The Members of
M/s AJEL LIMITED
Report on the Audit of the Financial Statements: Opinion:
We have audited the accompanying financial statements of M/s AJEL LIMITED(the Company) Mumbai which comprise of the Balance Sheet as at 31stMarch 2020 the Statement of Profit & Loss and the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity withAccounting Standards prescribed under Section 133 of the Act read with the Companies(Indian Accounting Standard) Rules 2015 and other accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2020the Profit and Loss and it's cash flows for the year ended on that date.
Basis of Opinion:
We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and rules thereunder We have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Management's Responsibility for the Financial Statements:
The Company's Management is responsible for the matters stated in section 134(5) of theCompanies Act 2013 (the Act) with respect to the preparation of these Ind ASStandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding the assets of the company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of accounting records relevant tothe preparation and presentation of the Ind AS financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financialreporting process.
Our objective is to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS 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 assessthe risks of material misstatement of the financial statements whether due to fraud orerror design and perform audit procedures responsive to those risks and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in orderto design audit Procedures that is 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 theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists; we are required to drawattention in our audit report to the related disclosures in the financial statements orif such disclosures are inadequate to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our audit report. However future events orconditions may cause the Company to cease to continue as a going concern. Evaluate theoverall presentation structure and content of the financial statements including thedisclosures and whether the financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually 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 any identified misstatements in the financialstatements.
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 that we identify during 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.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for qualified opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Standalone financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India except in the case ofqualifications as mentioned in the Point No. 2.01 as mentioned below:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2019;
(b) in the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date and
(c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.
In respect of written off of un-reconciled balances representing the following heads:
|Sl. No. Account Head ||Amount Rs. |
|1 Sundry Debtors ||6914580.39 |
|2 Sundry Creditors ||(92944.63) |
|3 TDS Receivable ||731516.00 |
|4 Service Tax Receivable ||1234956.00 |
|5 Provisions ||(3625266.00) |
The total of which amounting to Rs.5162842/- which were pending due from previousyears where no documentation/information is available with the management of the companyexcept an oral reply stating them as un-reconciled and long standing balances.
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 of India in terms of sub-section (1) of section 143 ofthe Act we give in the Annexure Aa statement on the matters specified inparagraphs 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 obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit except to the extent asmentioned in Point No. 2.01 as mentioned above.
(b) in our opinion proper books of account as required by law above have been kept bythe Company except in respect of Point No. 2.01 as mentioned above so far as it appearsfrom our examination of those books.
(c) the Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) in our opinion the aforesaid standalone Balance Sheet Statement of Profit andLoss and the Cash Flow Statement comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Indian Accounting Standards) Rules 2015 as amended;
(e) on the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in termsof sub-section (2) of section 164 of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B.
(g) With reference to the other matters to be included in the Auditor's report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanation given to us:
(i) The Company does not have any pending litigations which would impact its financialposition in its financial statements.
(ii) The company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.
For RAMESH ATHASNIYA & CO.
CA. RAMESH ATHASNIYA Partner. M.No. 204976 Firm Registration No. 007480S
UDIN : 20204976AAAAEX2094
Dated : 15th September 2020. Place : Hyderabad.
ANNEXURE A TO THE AUDITOR'S REPORT
(Referred to in Paragraph (3) of our Report of even date to the members of M/s AJELLIMITED
(i). (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company.
(ii). The company is a service company primarily rendering consulting and softwareservices. Accordingly it does not hold any physical inventories.
(iii). (a) In our opinion and according to the information and explanations given tous the company has granted loans to One body corporate covered in the register maintainedunder section 189 of the Act.
(b) There are no overdue amounts in respect of the loan granted to a body corporatelisted in the register maintained under Section 189 of the Act.
(iv). In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.
(v). In our opinion and according to the information and explanations given to usduring the course of our audit the company has not accepted deposits as per thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act and the rules framed there under.Therefore the provision of Clause (v) of paragraph 3 of the CARO 2016 is not applicableto the Company.
(vi). We have been informed that the Central Government has not prescribed for themaintenance of Cost records under Section 148(1) of the Companies Act 2013 in respect ofthe activities carried on by the company.
(vii). According to the information and explanations given to us and on the basis ofour examination of books of accounts and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income Tax Goods & Services Tax Duty of Customs Cess and any otherstatutory dues with the appropriate authorities except in the case of statutory dues asmentioned in the table given below which are due payable for more than six months from thedate on which they become payable.
|Sl. No. Name of The Statute ||Nature of Dues ||Amount Rs. ||Period for which the amount relates |
|1 TDS ||Statutory ||668819 ||2013-14 |
|2 TDS ||Statutory ||690819 ||2015-16 |
|3 TDS ||Statutory ||132236 ||2018-19 |
|4 Provident Fund ||Statutory ||396680 ||2013-14 |
|5 Provident Fund ||Statutory ||12047 ||2014-15 |
|6 ESI ||Statutory ||414867 ||2013-14 |
|7 Service Tax ||Statutory ||5965837 ||2013-14 |
|8 Income Tax ||Statutory ||4079325 ||2018-19 |
|9 *Provision for Tax ||Statutory ||2267626 ||- |
|10 **Other Statutory Dues ||Statutory ||311181 ||- |
|Total:- || ||10860112 || |
* The year to which the Provision for Tax belongs to is not available in the books toreport in detail. ** The breakup of Other Statutory Dues is not available in the books toreport in detail. According to the information and explanations given to us there are nodues of Provident Fund Employees State Insurance Central Excise Sales Tax Income Taxor any other Statutory Dues not been deposited on account of any dispute except thefollowing:
|Sl. No. Assessment Year ||Against the Order of ||Amount (Rs) |
|1 2012-13 ||-- ||Rs. 10097200/- |
(viii). In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to the Banks. The Company has not takenany loan either from financial institutions or from the Government and has not issued anydebentures.
(ix). Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not raised moneys by way of initial public offeror further public offer including debt instruments and term loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.
(x). Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no material fraud by the Company or on the Companyby its officers or employees has been noticed or reported during the year under audit.
(xi). Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V of the Companies Act 2013.
(xii). In our opinion and according to the information and explanations given to usthe Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) of theOrder are not applicable to the Company.
(xiii). In our opinion all transactions with related parties are in compliance withSection 177 and 188 of Companies Act 2013 and the details of such transactions have beendisclosed in the Financial Statements as required by the applicable accounting standards.
(xiv). 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 and hence not commented upon.
(xv). 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 him as referred to in section 192 ofCompanies Act 2013. Accordingly the provisions of clause 3(xv) of the Order are notapplicable to the Company and hence not commented upon.
(xvi). In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) ofthe Order are not applicable to the Company and hence not commented upon.
For RAMESH ATHASNIYA & CO. Chartered Accountants
CA. RAMESH ATHASNIYA Partner. M.No. 204976 Firm Regn No.: 007480S UDIN :20204976AAAAEX2094
Dated : 15th September 2020. Place : Hyderabad.
Annexure B to the Independent Auditors' Report of even date on theStandalone Financial Statements of M/s AJEL LIMITED
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 of M/s AJELLIMITED (the Company) as of March 31 2020 in conjunction with our auditof the standalone financial statements of the Company for the year ended on 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 financial reporting 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 adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to 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 internal financial control over financial reporting is a process designedto provide 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 assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
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 March 31 2020 except in thecase of Point No. 2.01 as mentioned in Qualified Opinion para of our Audit Report basedon the internal control over financial reporting criteria established by the Companyconsidering the essential 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 RAMESH ATHASNIYA & COMPANY Chartered Accountants
CA. RAMESH ATHASNIYA Partner.
Firm Reg No.007480S
Place : Hyderabad
Date : 15thSeptember 2020.