The Members of
Arfin India Limited
Reports on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Arfin India Limited(the Company) which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss including the statement of Other Comprehensive Income theStatement of Changes in Equity and Statement of Cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2019 its Profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditors Responsibilities for the Audit ofthe Financial 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 the
Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Information Other Than the Financial Statements and Auditors Report Thereon
The companys board of directors is responsible for the other information. Theother information comprises the information included in the Annual report but does notinclude the Ind AS financial statements and our Auditors report thereon.
Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind As financial statements our responsibility isto read the other information and in doing so consider whether such other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated if based on work we haveperformed we conclude that there is material misstatement of this other information weare required to report the fact. We have nothing to report in this regard.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act) with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) 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. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompanys 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. Those Board of Directors are also responsible for overseeing theCompanys financial reporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withthe Standards on Auditing (SAs) will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and 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 inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3) we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls;
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management;
Conclude on the appropriateness of managements use of the going concernbasis of accounting in preparation of financial statements and based on the auditevidence obtained whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the appropriateness of this assumption. If we concludethat a material uncertainty exists we are required to draw attention in ourauditors report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors report. However future events orconditions may cause the company to cease to continue as a going concern;
evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
We communicate with those charged with governance of the Company of which we are theindependent auditors regarding among other matters the planned scope and timing of theaudit and significant audit findings including any significant deficiencies in internalcontrol 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.
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 anyidentified misstatements in the financial statements.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors report) Order 2016 (theOrder) issued by the Central Government of India in terms of Sub-Section (11) ofSection 143 of the Act we give in the Annexure 1 a statement on thematters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
(c ) The Balance Sheet Statement of Profit and Loss including other comprehensiveincome and the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;
(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules2015 as amended;
(e) On the basis of written representations received from the Directors as on March 312019 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2019 from being appointed as a Director in terms of Section 164 (2) ofthe 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 2 to this report;
(g) With respect to the other matters to be included in the Auditor's Report inaccordance 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 explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 of the Act; and
(h) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements Refer Note 35 to the financial statements.
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses if any.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For Sanjay Bajoria & Associates
Firm Registration No.: 117443W
Kalpesh R. Shah
(Membership No.: 103301)
Date: May 27 2019
Annexure 1 to the Independent Auditors Report
Referred to in Paragraph 1 of report on Legal & Regulatory Requirements of ourreport of even date to the members of Arfin India Limited on the FinancialStatements for the year ended on March 31 2019
1 In respect of Fixed Assets:
a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;
b) As explained to us the fixed assets have been physically verified by the managementduring the year according to a phased program designed by the Company to cover all theitems which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. In accordance with this program fixed assets have beenphysically verified by the management during the year and according to the information andexplanations given to us no material discrepancies have been noticed on suchverification;
c) The title deeds of immovable properties other than self-constructed immovableproperties as disclosed in fixed assets note to the Financial Statements are held in thename of Company.
2 In our opinion and according to the information and explanations given to usphysical verification of inventories has been conducted at reasonable intervals by themanagement during the year and discrepancies noticed on verification between the physicalstocks and book records were not material having regard to the size of the Company.
3 According to the information and explanation given to us the Company has not grantedany secured or unsecured loans to Companies Firms LLP or other parties covered in theregister maintained under Section 189 of the Companies Act 2013. Therefore theprovisions of clause 3(iii) of the aforesaid Order in our opinion are not applicable tothe Company.
4 In our opinion and according to the information and explanations given to us theCompany has not granted any loans or given any guarantee or provided any security or madeany investment to any parties covered under Section 185 of the Act. The Company has notadvanced any loans or given guarantees or provided any security or made investmentspursuant to the provisions of Section 186 of the Act and hence not commented upon.
5 In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public and hence the provisions of Section73 to 76 or any other relevant provisions of the Companies Act 2013 and Rules framedthere under with regard to the deposits accepted from the public are not applicable tothe Company.
6 We have broadly reviewed the books of accounts maintained by the Company pursuant tothe Rules prescribed by the Central Government for maintenance of cost records underSub-Section (1) of Section 148 of the Companies Act 2013 for the business activitiescarried out by the Company and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination for the same with a view to determine whether they are accurate or complete.
7 In respect of Statutory Dues:
(a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund investor education and protection fund employees state insurance GST incometax sales tax wealth tax custom duty excise duty cess and other statutory dues ifany. According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax sales tax customs duty and excise duty etc.were outstanding as at March 31 2019 for a period of more than six months from the datethey became payable.
(b) According to the information and explanations given to us there are no dues ofincome tax GST service tax value added tax wealth tax excise duty and cess which havenot been deposited on account of any dispute.
8 In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of loans and borrowings to any banks or financialinstitutions or government. The Company has not issued any Debentures.
9 To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not raised moneys by way of initial public offeror further public offer (including debt instruments). However term loans obtained wereprima facie applied by the Company during the year for the purpose for which they wereraised.
10 To the best of our knowledge and belief during the course of our examination of thebooks and records of the Company carried out with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across of any instances of material fraud by the Company or on the Company byits officers or employees noticed or reported during the year nor we have been informedof any such case by the management.
11 To the best of our knowledge and belief and according to the information andexplanations given to us managerial remuneration has been paid / provided in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV to the Act.
12 As the Company is not Nidhi Company and the Nidhi Rules 2014 are not applicable toit; the provisions of Clause 3(xii) of the Order are not applicable to the Company.
13 To the best of our knowledge and belief and according to the information andexplanations given to us all the transactions with related parties are in compliance withthe provisions of Section 177 and Section 188 of the Act wherever applicable. The detailsof related party transactions have been disclosed in the Financial Statements as requiredunder Related Party Disclosures.
14 To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Consequently the provisions of Clause 3(xiv) of the Order are not applicable tothe Company.
15 To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withits Directors or persons connected with them. Consequently the provisions of Clause 3(xv)of the Order are not applicable to the Company.
16 According to the nature of business of the Company the Company is not required tobe registered under Section 45-IA of the Reserve Bank of India Act 1934. Consequentlythe provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Sanjay Bajoria & Associates
Firm Registration No.: 117443W
Kalpesh R. Shah
(Membership No.: 103301)
Date: May 27 2019
Annexure 2 to the Independent Auditors Report
Referred to in Paragraph 2 of report on legal and regulatory requirements of our reportof even date to the members of Arfin India Limited on the Financial Statements forthe year ended on March 31 2019
Report on the Internal Financial Controls under clause (i) of Sub-Section 3 of Section143 of the Act
We have audited the Internal Financial Controls over financial reporting of ArfinIndia Limited (the Company) as on March 31 2019 in conjunction with ouraudit of the Financial Statements of the Company for the year ended on that date.
Managements Responsibility for Internal
The Companys 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. These responsibilities includethe design implementation and maintenance of adequate Internal Financial Controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys 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 reportingand the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act tothe extent applicable to an audit of Internal Financial Controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India (ICAI). Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate Internal Financial Controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedure to obtain audit evidences about the adequacy ofthe Internal Financial Control Systems over financial reporting and their operatingeffectiveness. Our audit of Internal Financial Control Systems over financial reportingincludes obtaining an understanding of Internal Financial Controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the Auditors judgment including the assessment of therisks of material misstatement if any of the Financial Statements whether due to fraudor error.
We believe that the audit evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the Companys Internal Financial ControlSystems over financial reporting.
Meaning of Internal Financial Control Systems over Financial Reporting
A Companys Internal Financial Control Systems over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith Generally Accepted Accounting Principles. A Companys Internal Financial ControlSystems over financial reporting includes those policies and procedures that;
(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
(ii) provide reasonable assurance that the transactions are recorded as necessary topermit preparations of Financial Statements in accordance with the Generally AcceptedAccounting Principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of management and Directors of the Company; and
(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisitions use or disposition of the Companys assets that could havea material effect on the Financial Statements.
Inherent Limitations of Internal Financial Control Systems over Financial Reporting
Because of the inherent limitations of Internal Financial Control Systems overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not to bedetected. Also projections of any evaluation of the Internal Financial Control Systemsover financial reporting to future periods are subject to the risk that the InternalFinancial Control Systems over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate Internal Financial ControlSystems over financial reporting and such Internal Financial Controls over financialreporting were operating effectively as at March 31 2019 based on the criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Control Systems over financialreporting issued by the Institute of Chartered Accountants of India.
For Sanjay Bajoria & Associates
Firm Registration No.: 117443W
Kalpesh R. Shah
(Membership No.: 103301)
Date: May 27 2019