To.
The Members of
Quest Financial Services Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of QUEST FINANCIAL SERVICF:S LIMITED
(‘-the Company"), which comprise the Balance Sheet as at 31st March, 2022 and
the Statement of Profit and Loss, for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 in the manner so required and give a true and lair view in conformity
with the accounting principles generally accepted in India, of the state of affairs of the
Company as at 31s March 2022, and its LOSS, for the year ended on that date
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the "Auditors Responsibilities for the Audit of
the Financial Statements" section of our report. We are independent of the Company in
accordance w ith the Code of Ethics issued by the Institute of Chartered Accountants of
India together w ith the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the C ode of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis tor our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance, and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under
section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance w ith the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent, and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible lor
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the companys financial
reporting process. Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if. individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with SAs, w e exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk ot not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude Lliat a material uncertainty
exists, we are required to draw attention in our auditors report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to ihe date of
our auditors report. However, future events or conditions may cause the Company to eease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the
disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation. r\ a
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate w ith them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report off Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (I I) of section 143 of
the Companies Act, 2013. we give in the Annexure-A. a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.
2 As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet and the Statement of Profit and Toss, dealt with by this Report
are in agreement with the books of account
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules. 2014.
e) On the basis of the written representations received from the directors as on 31 si
March, 2022 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2022 from being appointed as a director in terms of Section
164(2) of the Act.
0 With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Anncxure B".
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules. 2014, as amended, in
our opinion and to the best of our information and according to the explanations given to
us:
i) The financial statements disclose the impact of pending litigations on the financial
position of the Company in accordance with the generally accepted accounting practice.
ii) The Company did not have any long-term contracts including derivative joWacts Jfyr
wftpich there were any material foreseeable losses.
iii) There were no amounts w hich were required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXVRE-A
Annexurc - A referred to in paragraph 1 under the section, ‘Report on Other Legal
and Regulatory Requirements of our report of even date:
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
(i) (a) (A) The Company has maintained proper records showing full particulars
including quantitative details and situation of Property, Plant & Equipment.
(B) The company has maintained proper records showing full particulars of Intangible
Assets.
(b) The major Property, Plant & Equipment of the company have been physically
verified by the management at reasonable intervals during the year and no material
discrepancies w ere noticed on such verification.
(c) This Clause is not applicable on the Company.
(d) The Company has not revalued its Property, Plant & Equipment during the year.
(e) The Company has charged depreciation at Straight Line Method (SLM) rates for some
of the fixed assets and has not charged depreciation for some other fixed assets.
(f) According to the information and explanation given to us. no proceedings have been
initiated or are pending against the company for holding any benami property under the
Benami Transactions (Prohibition} Act. 1988 (45 of 1988) and rules made thereunder during
the year.
(ii) (a) The inventory has been physically verified during the year by the management.
In our opinion, the frequency of verification, coverage & procedure of such
verification is reasonable and appropriate. No material discrepancies were noticed on such
verification.
(b)The company has not been sanctioned any working capital limits from banks or
financial institutions.
(iii) The companies has not provided any guarantee or security or granted any loans and
advances, secured or unsecured to companies, firms, Limited Liability partnerships or
other parties.
(a) To the best of our information, in our opinion, the investments made are not
prejudicial to the companys interest.
(b) Clause iiic, iiid, iiie and iiif is not applicable to the/c^mpany.
(iv) In our opinion and according to the information and explanations provided to us,
all mandatory provisions of section 185 and 186 of the Companies Act, 2013 in respect of
loans, investments, guarantees, and security have been complied with.
(v) The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
(vi) To the best of our knowledge and belief, the Central Government has not specified
maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of
Companys services. Accordingly, the provisions of clause 3(vi) of the Order are not
applicable.
(vii) a) According to the information and explanations given to us and records examined
by us, the company is depositing with appropriate authorities undisputed statutory dues
including provident fund, investors education and protection fund, employees state
insurance, income tax, sales lax, wealth tax, service tax. custom duty, excise duty, ccss.
Goods & service Tax and any other statutory dues with the appropriate authorities,
b) There are no dues in respect of Goods and Services Tax, provident fund, employees
state insurance, income - tax, sales tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues that have not been deposited with the
appropriate authorities on account of any dispute.
No transactions have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961,
(viii) The Company has no borrowings, including debt securities during the year,
(ix) (a) The Company has not raised moneys by way of initial public offeror further
public offer (including debt instruments) during ihe year,
(b) According to the information and explanation given to us, the Company has not made
any preferential allotment or private placement of shares or convertible debentures
(fully, partially or optionally convertible) during the year.
(x) (a) According to the information and explanations given to us, any fraud by the
company or any fraud on the company has not been noticed or reported during the year;
(b) According to the information and explanation given to us, no report under
sub-section (12) of section 143 of the Companies Act has been filed by the auditors in
Form ADT -4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with
the Central Government;
(c) According to the information and explanations given to us, no whistle blower
complaints, received during the year by the company.
(xi) The Paragraph 3(xii) of the order is not applicable since the Company is not a
Nidhi Company.
(xii) According to the information and explanations given by the management,
transactions with the related parties are in compliance with section 177 and 188 of
Companies Act. 2013 where applicable and the details have been disclosed in the notes to
the financial statements, as required by the applicable accounting standards
(xiii) According to the information and explanations given to us, the company has no
internal audit system.
(xiv) According to the information Based upon the audit procedures performed and the
information and explanations given by the management, the company has not entered into any
non-cash transactions with directors or persons connected with him as referred to in
section 192 of Companies Act. 2013.
(xv) a) The Company is not registered under Section 45-IA of the Reserve Bank of India
Act, 1934.
h) the company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India, according the provisions of clause 3 (xvi) of the Order
arc not applicable.
(xvi) According to the information and explanations given to us and based on the audit
procedures constructed we are of opinion that the company has not incurred cash losses
during the financial year.
(xvii) There has been no resignation of the statutory auditors during the year and
accordingly, the provisions of clause 3 (xviii) of the Order is not applicable.
(xviii) According to the information and explanations given to us and based on our
examination of financial ratios disclosed in the financial statements, ageing and expected
date of realization of financial assets and payment of liabilities, other information
accompanying the standalone financial statements, our knowledge of the Board of Directors
and management plans, we are of the opinion that no material uncertainty exists as on the
date of audit report and the Company is capable of meeting its liabilities existing at the
date of balance sheet as and when they fall duo within a period of one year from the
balance sheet date.
(xix) The provisions of Section 135 towards corporate social responsibility are not
applicable on the company. Accordingly, the provisions of clause 3 (xx) of the order is
not applicable.
(xvii) This being standalone financial statements of the company clause (xxi) of the
order is not applicable.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
In conjunction with our audit of the financial statements of the Company as of and for
the year ended 31 st March. 2022, we have audited the internal financial controls over
financial reporting of Quest Financial Services Limited (hereinatkr referred to as
"the Company"), which is company incorporated in India, as of that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over f inancial Reporting
issued by the Institute of Chartered Accountants of India (1CAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to the respective companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company, based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") and the Standards on Auditing prescribed under
section 143(10) of the Companies Act, 2013. to the extent applicable to an audit of
internal financial controls and. both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about w hether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting with reference to theses financial statements.
Meaning of Internal Financial Controls Over Financial Reporting with Reference to these
Financial Statements
A companys internal financial control over financial reporting with referencerto these
financial statements is a process designed to provide reasonable assurance regarding thft
reliability of financial reporting and the preparation of financial statements for
external purpo^qs in acporqafice with generally accepted accounting principles. A
companys internal financial control over financial reporting with reference to these
financial statements includes those policies and procedures that (I) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company arc being made only in accordance w ith
authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the companys assets that could have a material effect on the financial
statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting with
Reference to these Financial Statements
Because of the inherent limitations of internal financial controls over financial
reporting with reference to these financial statements, including the possibility of
collusion or improper management override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections of any evaluation of the
internal financial controls over financial reporting with reference to these financial
statements to future periods are subject to the risk that the internal financial control
over financial reporting with reference to these financial statements may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion to the best of our information and according to the explanations given
to us, has, in all material respects, an adequate internal financial controls system over
financial reporting with reference to these financial statements and such internal
financial controls over financial reporting with reference to these financial statements
were operating effectively as at 31st March, 2022, based on the internal control over
financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
+91-9892691696
