To,
The Members of,
WORTH INVESTMENT & TRADING COMPANY LIMITED
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of WORTH INVESTMENT
& TRADING COMPANY LIMITED (the "Company"), which comprise the Balance
Sheet as of March 31, 2023, and the Statement of Profit and Loss, statement of changes in
equity and statement of cash flows for the year 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 Ind AS 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 Indian Accounting Standards prescribed under Section 133
of the Act read with the companies (Indian Accounting Standards) Rules, 2015, as amended,
("Ind AS") and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, and profit and total comprehensive
income (including other comprehensive income), changes in equity and its cash flows for
the year ended on that date.
Basis for Opinion
We conducted our audit of the Ind AS financial statements in accordance with the
Standards on Auditing specified under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditors
Responsibility for the Audit of the Ind AS 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 (ICAI) together with the ethical requirements
that are relevant to our audit of the Ind AS financial statements under the provisions of
the Act and the Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We
believe that the audit evidence obtained by us is sufficient and appropriate to provide a
basis for our audit opinion on the Ind AS financial statements.
Key Audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Our opinion is not modified in respect of these matters. We have determined the matters
described below to be key audit matter to be communicated in our report.
| Key Audit Matters |
How our audit addressed the key audit matter |
| Income Recognition, Asset Classification (IRAC) and Provisioning Norms |
|
| As per RBI guidelines every NBFC require to maintain minimum provision in the books of
accounts of the NBFC. |
As per verification of books of accounts of the company, all the loans and advances
are standard hence company require to maintain only 0.4% provision on outstanding balance
as on balance sheet date. |
| As per norms company require to maintain 0.4% provision on all standard assets of the
company. |
As per verification company maintain appropriate provision on standard assets. And in
the books of company have not non-performing asset hence ECL (Expected Credit Loss)
provision does not require to maintain as per Ind AS 109. |
| In the books company have standard asset of amount Rs. 4275.66 Lakh and company has
made provision on standard of Rs. 7.19 lakh in the current financial year. |
|
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report but does not include
the Ind AS financial statements and our auditors report thereon. The Annual Report is
expected to be made available to us after the date of this auditors report.
Our opinion on the Ind AS financial statements does not cover the other information and
we will not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements, our responsibility is
to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the Ind AS 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.
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these Ind AS financial statements
that give a true and fair view of the financial position, financial performance, cash
flows and changes in equity 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 read with the Companies (Indian Accounting Standards) Rules
2015 as amended.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding 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 Ind AS
financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, management is responsible for 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 Board of
Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
That Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit. We are also:
• Identify and assess the risks of material misstatement of the Ind AS 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 financial control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, 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 the 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 that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Ind AS 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
auditors 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 Ind AS financial
statements, including the disclosures, and whether the Ind AS financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatement in the Ind AS financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonable knowledgeable user of the 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 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.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Ind AS financial statements for
the financial year ended March 31, 2023, and are therefore the key audit matters. We
describe these matters in our auditors report unless law or regulation precludes public
disclosure about the matters or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on 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 (11) of section 143 of
the Companies Act, 2013, we give in "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, based on our audit we report, to the
extent applicable 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, the Statement of Profit and Loss including other comprehensive
income, statement of changes in equity and the Cash Flow Statement dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 4 of the Companies Indian
Accounting Standards Rules, 2015 as amended.
e) On the basis of the written representations received from the directors as on March
31, 2023, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 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 over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure B". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial.
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 Company does not have any pending litigations on its financial position in its
Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. The company is not liable to transfer any amounts to the Investor Education and
Protection Fund. Therefore, there has been no delay in transferring amounts, required to
be transferred, to the Investor Education and Protection Fund by the Company.
iv. 1. The management has represented that, to the best of its knowledge and belief, as
disclosed in note 26 to the accounts, 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 persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall:
• directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Holding
Company or its subsidiary companies and joint venture company incorporated in India or
• provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
2. The management has represented, that, to the best of its knowledge and belief, as
disclosed in note 26 to the accounts, no funds have been received by the Company from any
persons or entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall:
• directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the
Funding Parties or
• provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries.
3. Based on such audit procedures as 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 clause (a)
and (b) contain any material misstatement.
v. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
For DMKH & Co.
Chartered Accountants
(FRN: 116886W)
CA Manish Kankani
Partner
Membership No. 158020
UDIN: 23158020BGUSDQ4709
Place: Mumbai
Date: May 30, 2023
Annexure "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in Paragraph 1, under the "Report on Other Legal and Regulatory
Requirements" section of our report of even date)
Report on the Ind AS Financial Statements of WORTH INVESTMENT & TRADING COMPANY
LIMITED
On the basis of such checks as we considered appropriate and in terms of the
information and explanations given to us during the course of the audit, we state as
under:
i. In respect of companys property, plant and equipment:
a. A. The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
B. The Company does not have any intangible assets in the books of accounts during the
year.
b. All property, plant and equipment have not been physically verified by the
management during the year but there is a regular program of verification on sample basis
which, in our opinion, is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such verification.
c. According to the information and explanations given by the management, the company
does not have any immovable properties included in property, plant and equipment during
the year.
d. No, the company has not revalued its Property, Plant and Equipment (including Right
of Use assets) or intangible assets or both during the year.
e. There are no proceedings 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. In respect of its inventories:
a. As explained to us, company have not any inventory as a stock in trade in the books
of accounts of the company hence the said clause is not applicable.
b. According to the information given to us, the company has not availed working
capital limits from bank or financial institutions on the basis of security of current
assets.
iii. Yes, during the year company has made investments, given guarantee or security or
granted loans or advances which are characterized as loans, unsecured or secured, to LLPs,
firms or companies or any other person.
a. This clause is not applicable since the principal business of company is to give
loans.
b. As per explanation given by management and examination of records, the investments
made, guarantees provided, security given and the terms and conditions of the grant of all
loans and advances in the nature of loans and guarantees provided are not prejudicial to
the companys interest.
c. As the business model of company is to give loans, in respect of loans and advances
in the nature of loans, the schedule of repayment of principal and payment of interest has
been stipulated and the repayments or receipts are generally regular.
d. Amounts are overdue in respect of above loans. The total amount overdue for more
than ninety days is Rs. 6.95 Crores and reasonable steps have been taken by the company
for recovery of the principal and interest.
e. This clause is not applicable since the principal business of company is to give
loan.
f. As per the examination of books, the company has not granted any loans or advances
in the nature of loans either repayable on demand or without specifying any terms or
period of repayment.
iv. In our opinion and according to the information and explanations given to us, since
the details of granting of loans, investments, guarantees given and securities provided in
view of provisions of section 185 and 186 of the Companies Act, 2013 are not available at
the company, reporting on the matters specified in paragraph 3(iv) of the companies
(Auditors Report) Order, 2020 is not applicable.
v. The Company has not accepted any deposits from the public within the meaning of the
directives issued by the Reserve Bank of India, provision of Section 73 to 76 of the Act,
any other relevant provision of the Act and the relevant rules framed thereunder.
Therefore, paragraph 3(v) of the Order is not applicable.
vi. To the best of our knowledge and as explained, the Central Government has not
specified the maintenance of cost records under section 148(1) of the Companies Act, 2013,
for the products/services of the Company. Thus, reporting under paragraph 3(vi) of the
order is not applicable to the Company.
vii. According to information and explanations given to us, in respect of statutory
dues:
a. The Company has been generally regular during the year, in depositing undisputed
statutory dues, including provident fund, income-tax, employees state insurance, goods
and service tax, cess and other statutory dues applicable to it to the appropriate
authorities. The provisions relating to duty of excise are not applicable to the Company.
b. There were no undisputed amounts payable in respect of provident fund, employees
state insurance, income-tax, goods and service tax, cess and other statutory dues
outstanding, at the year end, for a period of more than six months from the date they
became payable.
viii. As per the examination of books there are no transactions which are not recorded
in the books of account which have been surrendered or disclosed as income during the year
in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
ix. According to the information and explanations given to us, the Company have not
taken any loans or borrowings from financial institutions, banks, government and has not
issued any debentures. Accordingly, paragraph 3(ix) of the Companies (Auditors Report)
Order, 2020 is not applicable to the company.
x. a. In our opinion and according to the information and explanation given by the
management, the company has not raised money by way of term loan (including debt
instruments) during the year. The Company did not raise any money by way of Initial Public
offer or further public offer. Hence, paragraph 3(x) of the Companies (Auditors Report)
Order, 2020 is not applicable.
b. In our opinion and according to the information and explanation given by the
management, the company has not made any preferential allotment (Sec. 62) or private
placement (Sec. 42) of shares or convertible debenture (fully, partially or optionally
convertible) during the year. Hence, paragraph 3(x) of
c. The Companies (Auditors Report) Order, 2020 is not applicable to the company.
xi. a. To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company or on the company has been noticed or reported during
the year.
b. There is no reporting u/s 143(12) of the companies act, 2013 has been filed by us
(the auditors) in form ADT-4 as prescribed under rule 13 of companies (Audit and Auditors)
Rules,2014 with the Central Government.
c. No whistle Blower complaints has been received by the company.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company. Therefore, paragraph 3(xii) of the Order is not applicable
and hence not commented upon.
xiii. According to the information and explanations given by the management,
transactions with the related parties are in compliance with Sections 177 and 188 of the
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.
xiv. a. To the best of our knowledge the company has internal audit system which is
commensurate with the size and nature of its business.
b. The audit report of internal auditors was considered while conducting statutory
audit.
xv. According to 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 the Companies Act, 2013.
xvi. According to the information and explanations given by the management, the company
is required to be registered under section 45 -IA of the Reserve bank of India Act, 1934
and holds a certificate of registration as a non-banking financial institution without
accepting public deposit (NBFC-ND-SI) vide registration no. B.05.03383.
xvii. As per the information and explanation given by the management, company has not
incurred any cash losses in the financial year 2022-23 and the immediately preceding
financial year 2021-22.
xviii. There was no resignation of auditor during the financial year, so the said
clause is not applicable to company.
xix. 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, 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 the audit report and
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. The CSR spent obligation is not applicable to company.
For DMKH & Co.
Chartered Accountants ;
(FRN: 116886W)
CA Manish Kankani
Partner
Membership No. 158020
UDIN: 23158020BGUSDQ4709 S
Place: Mumbai
Date: May 30, 2023
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of WORTH
INVESTMENT & TRADING COMPANY LIMITED (the "Company") as of March 31,
2022 in conjunction with our audit of the Ind AS financial statements of the Company for
the year ended on 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 Financial Reporting
issued by the Institute of Chartered Accountants of India. 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 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 Companys 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") issued by the Institute of Chartered
Accountants of India 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.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that:
1. 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 are being made only in
accordance with authorisations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection of
unauthorised 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
Because of the inherent limitations of internal financial controls over financial
reporting, 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 to future periods are subject to the risk that the internal financial control
over financial reporting 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, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2023, based on "the criteria for
internal financial control over financial reporting 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".
For DMKH & Co.
Chartered Accountants
(FRN: 116886W)
CA Manish Kankani
Partner
Membership No. 158020
UDIN: 23158020BGUSDQ4709
Place: Mumbai
Date: May 30, 2023.
+91-9892691696
