To the Members of
Rapid Investments Limited
Qualified Opinion
We have audited the financial statements of Rapid Investments Limited ("the
Company"), which comprise the balance sheet as at 31st March 2023, and the
statement of Profit and Loss (including Other comprehensive income), statement of change
in Equity and statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information.
Except for the matter stated in Basis for Qualified 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 ("the act")
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at 31st
March, 2023, its profit, change in equity and its cash flows for the year ended on
that date,
a) In the case of the balance sheet, of the state of affairs of the company as at March
31, 2023
b) In the case of the Profit and Loss Account, of the profit for the period ended on
that date and
c) In the case of cash flow statement, for the cash flows for the year ended on that
date
d) And the changes in equity for the year ended on that date
Basis for Qualified Opinion
As stated in note no 32 to the financial statement the company has purchased Selected
308 Loan portfolios aggregating to Rs 775.62. Lakhs from Veritas Buildtech Private Limited
and has sold 44 Existing Loans aggregating to Rs 95.57 Lakhs to Veritas Buildtech Private
Limited which remain unverified due to non-availability of adequate agreement(s) and
repayment schedules. Hence, we are unable to comment upon the correctness of carrying
value of financial assets and financial liabilities in accompanying statement.
We conducted our audit in accordance with the Indian Accounting Standards (Ind AS)
specified under section 143(10) of the Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditor s Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters described below to be
the key audit matters to be communicated in our report.
S. No. Key Audit Matter |
Auditor s Response |
1. Recognition of Interest Income in terms of IND AS 109. |
Our Audit procedure includes: |
We have identified recognition of Inter- est income as the key audit
matters as it has inherent risk associated around the accuracy of calculation and its
recognition in books of accounts. |
a. Obtained an understanding of the systems, processes and controls
im- plemented by the company for re- cording and computing Interest in- come on loans
advanced. |
|
b. Obtained an understanding of the accounting policy applied by the
company for recognition of interest income and whether the same is in consonance with the
IND AS 109. |
|
c. On selected specific and statistical samples of loans, we tested
that the interest recognized is in accordance with the interest recognition policy of the
company. |
Information other than the financial statements and auditors report thereon
The Company s board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Board s
Report including An-nexures to Board s Report but does not include the financial
statements and our auditor s report thereon. Our opinion on the financial statements does
not cover the other information and we do not express any form of assurance conclusion
thereon. In connection with our audit of the financial statements, our responsibility is
to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Company s 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 Indian Accounting Standards (Ind AS)
specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with 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, management is responsible for assessing the
Company s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
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 Company s financial
reporting process.
Auditor s 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 audi-tor s 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, we 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 of 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. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management s 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 Company s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor s 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 the date of our auditor s
report. However, future events or conditions may cause the Company to cease 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.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
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 with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) 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 Auditors Report Under Non-Banking Financial Companies Auditor s
Report (Reserve Bank) Directions, 2016 we give in the Annexure B the report to the extent
applicable.
3. As required by Section 143 (3) of the Act, we report that:
a) Except for the matter stated in basis for qualified opinion 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 and except for the matter stated in basis for qualified
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, the Statement of Profit and Loss (including other comprehensive
income), Statement of change in equity and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
d) In our opinion and except for the matter stated in basis for qualified opinion,
the aforesaid financial statements comply with the Indian Accounting Standards (Ind AS)
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 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in Annexure C .
g) With respect to the matter to be included in the Auditor s Report under section
197(16), In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of section 197 of the Act. The remuneration paid to any director is
not in excess of the limit laid down under section 197 of the Act. The Ministry of
Corporate Affairs has not prescribed other details under section 197(16) which are
required to be commented upon by us.
h) With respect to the other matters to be included in the Auditor s Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of its knowledge and belief, ,
no funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the company to or in any other person(s)
or entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of it s knowledge and belief, ,
no funds have been received by the company from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with the understanding, whether recorded
in writing or otherwise, that the company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material mis-statement.
v. No dividend have been declared or paid during the year by the company.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
For ANEESH JAIN & Co.
Chartered Accountants
Firm Regn No. 020778C
SD/-
CA ANEESH JAIN
Proprietor
M.no: 427025
Date: 30th May 2023
Place: Jaipur
UDIN: 23427025BGZHJR2380
Annexure A The Annexure referred to in paragraph 1 of Our Report on "Other Legal
and Regulatory Requirements".
We report that:
(i) (a)(A) The company is maintaining proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment;
(B) The company is maintaining proper records showing full particulars of intangible
assets;
(b) According to Information and explanation given to us and on the basis of our
examination of records of the company, Property, Plant and Equipment have been physically
verified by the management at reasonable intervals; no material discrepancies were noticed
on such verification;
(c) According to Information and explanation given to us and on the basis of our
examination of records of the company the company has no immovable property. Hence, clause
3(i)(c) is not applicable.
(d) According to Information and explanation given to us and on the basis of our
examination of records of the company, the company has not revalued its Property, Plant
and Equipment (including Right of Use assets) or intangible assets or both during the
year.
(e) According to Information and explanation given to us and on the basis of our
examination of records of the company, 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.
(ii) (a) The company has no Inventory hence, clause no 3(ii)(a) is not applicable.
(b) According to Information and explanation given to us and on the basis of our
examination of records of the company, no banks or financial institutions have sanctioned
any working capital limit to the company during the year.
(iii) According to Information and explanation given to us and on the basis of our
examination of records of the company, the company has not made investments in, nor
provided any guarantee or security or granted any loans or advances in the nature of
loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any
other parties. Hence, Clause 3(iii) is not applicable.
(iv) According to Information and explanation given to us and on the basis of our
examination of records of the company, In respect of loans, investments, guarantees, and
security, provisions of section 185 and 186 of the Companies Act, 2013 have been complied.
(v) The company has not accepted any deposits or amounts which are deemed to be
deposits covered under sections 73 to 76 of the Companies Act, 2013.
(vi) As per information & explanation given by the management, no maintenance of
cost records has been specified by the Central Government under sub-section (1) of section
148 of the Companies Act.
(vii) (a) According to the records made available to us, company is regular in
depositing undisputed statutory dues including 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 to the appropriate authorities.
According to the information and explanation given to us there were no outstanding
statutory dues as on 31st of March, 2023 for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us, there is no statutory
dues referred to in sub-clause (a) that have not been deposited on account of any dispute
(viii) According to the information and explanations given by the management, the
Company has not surrendered or disclosed any transactions, previously unrecorded as income
in the books of account, in the tax assessments under the Income-tax Act, 1961 as income
during the year.
(ix) (a) According to the information and explanations given by the management, we are
of the opinion that the company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lender.
(b) According to the information and explanations given by the management, the company
is not declared willful defaulter by any bank or financial institution or other lender;
(c) In our opinion and according to the information and explanations given by the
management, no term loan was obtained during the year. Hence, Clause 3(ix)(c) is not
applicable.
(d) According to the information and explanations given to us by the management, no
funds have been raised by the company on short term basis during the year.
(e) According to the information and explanations given by the management, the company
has no subsidiaries, associates or joint ventures and hence has not taken any funds from
any entity or person on account of or to meet the obligations of its subsidiaries,
associates or joint ventures. Hence, clause 3(ix)(e ) is not applicable.
(f) According to the information and explanations given by the management, the company
has not raised loans during the year on the pledge of securities held in its subsidiaries,
joint ventures or associate companies.
(x) (a) According to the information and explanations given by the management the
company has not raised any money by way of initial public offer or further public offer
(including debt instruments) during the year.
(b) According to the information and explanations given by the management the company
has not made any preferential allotment or private placement of shares or convertible
debentures (fully, partially or optionally convertible) during the year.
(xi) (a) According to the information and explanations given by the management, no
fraud by the company or any fraud on the company has been noticed or reported during the
year;
(b) 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 by the management, no
whistle-blower complaints had been received by the company
(xii) According to the information and explanations given by the management The company
is not a Nidhi Company. Therefore, clause 3(xii) is not applicable on the company.
(xiii) According to the information and explanations given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, where
applicable and the details have been disclosed in the financial statements, etc., as
required by the Indian Accounting Standards (Ind AS);
(xiv) (a) In our opinion and based on our examination, the company has an internal
audit system commensurate with the size and nature of its business.
(b) The reports of the internal auditor have been considered by us during the course of
our audit. (xv) On the basis of the information and explanations given to us, in our
opinion during the year the company has not entered into any non-cash transactions with
directors or persons connected with him.
(xvi) (a) Based on our examination, the suspension on Company s registration u/s 45-IA
of Reserve Bank of India Act 1934 (2 of 1934) has been revoked by RBI vide order dated 23rd
March 2023.
(b) In our Opinion and based on our examination, the Company has not conducted any
Non-Banking Financial or Housing Finance activities apart without a valid Certificate of
Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act,
1934,
(c) In our Opinion and based on our examination, the Company is not a Core Investment
Company (CIC) as defined in the regulations made by the Reserve Bank of India. (d)
According to the information and explanations given by the management, the Group does not
have any CIC as part of the Group.
(xvii) Based on our examination, the company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
(xix) On the information obtained from the management and audit procedures performed
and on the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditor s knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report that company is capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date;
(xx) Based on our examination, the provision of section 135 are not applicable on the
company. Hence clause 3(xx) is not applicable.
(xxi) According to the information and explanations given by the management, the
company has no subsidiaries, associates or Joint ventures hence is not required to prepare
Consolidate financial statement. Hence this clause is not applicable.
For ANEESH JAIN & Co.
Chartered Accountants
Firm Regn No. 020778C
SD/-
CA ANEESH JAIN
Proprietor M.no: 427025
Date: 30th May 2023
Place: Jaipur
UDIN: 23427025BGZHJR2380
Annexure B
The Annexure referred to in paragraph 2 of Our Report on "Other Legal and
Regulatory Requirements".
1. The company is engaged in the business of non-banking financial institution and has
obtained a certificate of registration (COR) bearing number 13.00783 dated 25.05.1998 from
Banks Department of Non-Banking Supervision, Jaipur Regional Office.
2 The company is entitled to continue to hold such COR in terms of its asset/Income
Pattern as on March 31, 2023.
3 The board of directors has passed a resolution in its meeting held on 30.05.2022 for
non-acceptance of public deposits.
4 The company has not accepted public deposits during the year ended March 31, 2023.
5 The company has complied with the prudential norms relating to income recognition,
accounting standards, asset classification and provisioning for bad and doubtful debts as
applicable to it in terms of DNBR (PD) CC. No.044/03.10.119/2015-16 (as amended up to the
date of this report)
For and on behalf of
ANEESH JAIN & CO.
Chartered Accountants
Firm Regn No. 020778C
SD/-
(ANEESH JAIN)
Proprietor
M. No. 427025
Place : Jaipur
Dated : 30th May 2023
UDIN : 23427025BGZHJR2380
+91-9892691696
