You are here » Home » Companies » Company Overview » Aar Shyam (India) Investment Company Ltd

Aar Shyam (India) Investment Company Ltd.

BSE: 542377 Sector: Financials
NSE: N.A. ISIN Code: INE512R01010
BSE 00:00 | 06 Jul Aar Shyam (India) Investment Company Ltd
NSE 05:30 | 01 Jan Aar Shyam (India) Investment Company Ltd
OPEN 3.36
PREVIOUS CLOSE 3.36
VOLUME 2
52-Week high 3.36
52-Week low 0.00
P/E 1.71
Mkt Cap.(Rs cr) 1
Buy Price 3.36
Buy Qty 73.00
Sell Price 8.00
Sell Qty 4.00
OPEN 3.36
CLOSE 3.36
VOLUME 2
52-Week high 3.36
52-Week low 0.00
P/E 1.71
Mkt Cap.(Rs cr) 1
Buy Price 3.36
Buy Qty 73.00
Sell Price 8.00
Sell Qty 4.00

Aar Shyam (India) Investment Company Ltd. (AARSHYAMI) - Auditors Report

Company auditors report

TO THE MEMBERS OF AAR SHYAM INDIA INVESTMENT COMPANY LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Aar Shyam IndiaInvestment Company Limited ("the Company") which comprise the Balance Sheetas at March 31 2021 the Statement of Profit and Loss the Statement of Changes in Equityand the Statement of Cash Flows for the year ended on that date and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 the profit and loss changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance 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 financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key audit matters How our audit addressed the key audit matter
Revenue Recognition
The total expected cash flows of the instrument over the life of the instrument must be substantially based on the profit or loss change in the recognized net assets or fair value of the recognized and un recognized net assets of the entity over the life of the instrument. Profit or loss and the change in the recognized net assets shall be measured in accordance with relevant accounting principles generally accepted in India. Our procedures included amongst others data analysis of the expected flows of revenue transactions and performing testing over transactions that deviated from our expectations.
We believe that Revenue from sale of shares /Securities because of its significance to profits the high volume of revenue transactions associated with trading of securities and the judgment required in recognizing revenue from sale of securities.
Key audit matters How our audit addressed the key audit matter
Recognition of Comprehensive Income arising out of valuation of Investment as per Ind-AS
Comprehensive Standards on Financial Instruments issued under the Companies ( Indian Accounting Standards ) Rules 2015 All equity Investment in the scope of Ind-AS are to be measured at fair value in the statement of financial Position with value changes recognized in Profit & Loss except for those investment for which the entity has irrevocably elected to present value changes in other comprehensive income . ObtaininganunderstandingofInternalcontroldesigned by the management for investment accounting and tested the operating effectiveness of those controls.
Audit involved substantive audit procedures like inspection and re calculation to identify encumbrances on those investments and verification of sufficiency and appropriateness of disclosures regarding the recognition of comprehensive Income arising out of valuation of investment as per Ind-AS
Impact of Covid-19
The Corona Virus (Covid-19) Pandemic has contributed to a significant decline and volatility in global and Indian markets and significant decrease in economic activity. On March 24 2020 the Government of India announced a nation-wide lockdown till April 14 2020 which was extended till May 31 2020 through subsequent announcements to control the spread of the virus. From 1st June onwards further relaxations in lockdown has been granted across the country which has helped the company employees to contact the borrowers. This has lead to significant disruption and dislocations for individuals and businesses impacting the company's regular operations including lending and collection activities due to inability of employees to physically reach borrowers. Our audit involved application of procedures to identify and assess the impact of various RBI circulars having effect of granting relief to the borrowers and thus having direct impact on the business of the company.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained 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 misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial positionstatementsthat give true and fair view of the financial performance changes in equity andcash flows of the Company in accordance with accounting principles generally accepted inIndia. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficientand appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the standalonefinancialstatements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to

the date of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.

Evaluate the overall presentation structure andcontentofthestandalonefinancialstatements including the disclosures and whether thestandalone financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

49

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder

2. As required by Section 143(3) of the Act based on our audit we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss including Statement of Changes in Equity and the

Statement of Cash Flow dealt with by this Report are in agreement with the relevantbooks of account. d) In our opinion the aforesaid standalone financial statements complywith the specified under Section 133 of the Act read with Section 469 of Companies Act2013 e) On the basis of the written representations received from the directors as onMarch 31 2021 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2021 from being appointed as a director in terms of Section164 (2) of the Act. f) With respect to the adequacy of the internal financial controlsover financial reporting and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting. g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended: Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act. h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us: i. The Company has disclosed the impact ofpending litigations if any on its financial position in its standalone financialstatements. ii. The Company has made provision as required under the applicable law orIndian Accounting Standards for material foreseeable losses if any on long-termcontracts including derivative contracts. iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany. iv. The reporting on disclosures relating to Specified Bank Notes is notapplicable to the company for the financial year ended March 31 2021.

For STRG & Associates
Chartered Accountants
FRN : 014826N
CA Rakesh Gupta
Parner
M No. 094040
UDIN – 21094040AAAAEY7535
Place: New Delhi
Date: 28.06.2021

"Annexure B" to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting ofAar ShyamIndia Investment Company Limited ("the Company") as of 31st March 2021 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financialreporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequateinternalfinancialcontrols that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internalfinancialcontrol over financial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controlsoverfinancialreporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancialreporting to future periods are subject to the risk that the internalfinancialcontrol over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021 criteriaestablished by the Company considering the essential basedontheinternalcontroloverfinancial components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For STRG & Associates
Chartered Accountants
FRN : 014826N
CA Rakesh Gupta
Partner
M. No.: 094040
UDIN - 21094040AAAAEY7535
Place: New Delhi
Date: 28.06.2021

"Annexure A" to the Auditors' Report

The Annexure referred to in our report to the members of Aar Shyam India InvestmentCompany Limited (the Company') for the year ended on 31ST March 2021. We report that:

1. The Company does not own any fixed assets: accordingly the provisions of the clause3(i)(a) 3(i)(b) & 3(i)(c) of

CARO2016 are not applicable to the Company.

2. The company does not own any inventory during the year; accordingly the provisionsof clause 3(ii) of CARO 2016 are not applicable to the company.

3. In our opinion and according to the information and explanations given to us theCompany has not granted unsecured loan to companies firms or other parties covered in theregister maintained under Section 189 of the Act.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made during the year.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year within the meaning of Sections 73 to76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits)Rules 2014 (as amended).

6. To the best of our knowledge and belief the Central Government has not specifiedmaintenance of cost records under sub-section (1) of Section 148 of the Act in respect ofCompany's products/ services. Accordingly the provisions of clause 3(vi) of the Order arenot applicable.

7. (a) According to the information and explanation given to us and based on ourexamination of records of the company. the company is generally regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable with the appropriateauthorities Further no undisputed amounts payable in respect thereof were outstanding atthe year-end for a period of more than six months from the date they become payable. (b)According to the information & explanations given to us There are no dues in respectof income-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax and cess that have not been deposited with the appropriate authorities onaccount of any dispute.

8. In our opinion the Company hasnotdefaulted financialinstitution or a bank orto repaymentofduestoany debenture-holders during the year.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.

10. No fraud on or by the Company has been noticed or reported during the periodcovered by our audit.

11. The managerial remuneration has been paid/provided in accordance with the requisiteapprovals mandated by the provision of Section 197 read with schedule V to the Act duringthe year. 12. In our opinion and according to the information and explanations given tous the Company is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act wherever applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableIndian Accounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Accordingly the provisions of clause 3(xiv) of the Order are notapplicable to the Company.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

16. The company is required to be registered under section 45 IA of the Reserve Bank ofIndia Act 1934.and the company has obtained the registration.

For STRG & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 014826N
CA Rakesh Gupta
Partner
Place : New Delhi M. No: 094040
Date : 28.06.2021 UDIN - 21094040AAAAEY7535

.