The members of
ARYAMAN FINANCIAL SERVICES LIMITED Report on the Audit of Standalone FinancialStatements
We have audited the accompanying standalone financial statements of ARYAMANFINANCIAL SERVICES LIMITED ("the Company") which comprise the balance sheetas at 31st March 2019 the statement of profit and loss and the statement of cash flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (hereby referred asthe financial statement'). In our opinion and to the best of our information andexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standard(Ind AS) prescribed under section 133 of the Companies Act 2013 read with the Companies(Indian Accounting Standard) Rules 2015 as amended and the other accounting principlesgenerally accepted in India: -
i. In case of the Balance Sheet of the state of affairs of the Company as at31st March 2019;
ii. In case of Statement of Profit and Loss of the profit for the year endedon that date; and
iii. In case of Cash Flow Statement of the cash flows for the year ended onthat date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the FinancialStatements' section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)together with ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the rules there under and we havefulfilled our ethical responsibilities in accordance with these requirements and the Codeof Ethics. We believe that the audit evidences we have obtained are sufficient andappropriate to provide a basis for our opinion.
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. Wehave determined the matters described hereunder to be key audit matters to be communicatedin our report.
|Key audit matters ||Auditor's response |
|Measurement of Revenue ||Our audit procedure inter- alia included the following- |
|As per new notified Ind AS 115 measurement of revenue to be made on transaction price. ||We used assessment of overall control environment relevant for measurement of revenue. |
| ||We performed testing of journal entries with particular focus on manual adjustment to revenue account to mitigate the risk of manipulation of revenue and profit figures. |
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 Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and the auditor's report thereon.
Our opinion on the standalone financial statement does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in 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 statementsthat give a true and fair view of the financial position financial performance and cashflows of the Company in accordance with the AS and the other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that are operating effectively for insuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatements whether due to fraud or error. In preparing thestandalone financial statements management is responsible for assessing the Company'sability to continue as a going concern disclosing as applicable matters related togoing concern and using the going concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so. The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain a reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue our report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arise dueto fraud or error and are considered material if individually or in aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements. As part of an audit in accordance with the SAs we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
(i) Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.
(ii) Obtain an understanding of the internal controls relevant to the audit in order todesign 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 hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
(iii) Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
(iv) 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 conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
(v) 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.Materiality is the magnitude of misstatements in the financial statement individually orin aggregate makes it probable that the economic decision of reasonable knowledgeableuser of the financial statement may be influenced. We consider quantitative materialityand qualitative factors in (i) Planning the scope of our audit work and in evaluating theresults 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 othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal controls that we identify during ouraudit. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonable be thought to bear onour independence and where applicable relevant safeguards. From the matters communicatedwith those charged with governance we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (the Order') asamended issued by the Central Government of India in terms of sub-section (11) of section143 of the Act we give in the Annexure A a 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 sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit. b. In ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books; c. the Balance Sheet the Statement ofProfit and Loss and the Cash Flow Statement dealt with by this report are in agreementwith the books of account; d. In our opinion the aforesaid financial statements complywith the India Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014; e. On the basis of the written representationsreceived from the directors as on 31st March 2019 taken on record by the
Board of Directors none of the directors is disqualified as on 31st March 2019 frombeing appointed as a director in terms of Section 164 (2) of the Act. f. With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in AnnexureB. Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company's internal financial controls over financial reporting. g.With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the
Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:
i.The Company has disclosed the impact if any of pending litigations on its financialposition in its standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. The Company is not required to transfer any amount to the Investor Education andProtection Fund.
FOR V.N. PUROHIT & CO.
Firm Regn. No. 304040E
Membership No. 014238
New Delhi the 29th day of May 2019
ANNEXURE REFERRED TO IN PARAGRAPH "REPORT ON OTHER LEGAL AND REGUALTORYREQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF "THE COMPANY"FOR THE YEARENDED 31ST MARCH 2019
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that:
1. a) As per information and explanation given to us the Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.
b) As per information and explanation given to us all the fixed assets have beenphysically verified by the Management at the year end. In our opinion the frequency ofverification is reasonable considering the size of the Company and nature of its fixedassets. There were no material discrepancies were noticed on such verification.
c) As per information and explanations given to us and on the basis of our examinationof the records of the Company the title deeds of immovable properties are held in thename of the Company.
2. As per information and explanation given to us Company does not hold any physicalinventory hence the provision of sub- clause (ii) of the clause 3 of the order notapplicable;
3. As per information and explanation given to us The Company has not granted anyloans secured or unsecured to companies firms and limited liability partnerships orother parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of clause 3(iii) of the Order are not applicable to theCompany.
4. As per information and explanation given to us In our opinion and according to theinformation and explanations given to us the company has complied with the provisions ofsection 185 and I86 of the Companies Act 2013 In respect of loans investmentsguarantees and security.
5. As per information and explanation given to us there were no deposits within themeaning of directives issued by RBI (Reserve Bank of India) and Sections 73 to 76 or anyother relevant provisions of the Act and rules framed there under have been accepted bythe Company.
6. As per information and explanation given to us the Central Government has notprescribed maintenance of cost records under clause (d) of sub-section (1) of Section 148of the Act in respect of Company's products/services. Accordingly the provisions ofclause 3(vi) of the Order are not applicable to the Company.
7. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company is generally regular in depositingundisputed statutory dues including income- tax goods & service tax sales-taxservice tax duty of customs duty of excise value added tax and other statutory duesapplicable to the Company with appropriate authorities. No undisputed amounts in respectof the aforesaid statutory dues were outstanding as at the last day of the financial yearfor a period of more than six months from the date they became payable. According to theinformation and explanations given to us and on the basis of our examination of therecords of the Company there are no dues of income tax goods & service tax salestax service tax duty of customs duty of excise and value added tax which have not beendeposited on account of any dispute.
8. As per information and explanation given to us the Company has not defaulted inrepayment of loans or borrowings to banks or financial institutions during the year. TheCompany has not taken any loans or borrowings from government and debenture holders duringthe year.
9. As per information and explanation given to us the Company did not raise any moneyby way of initial public offer or further public offer (including debt instruments) orterm loan during the year. Accordingly the provisions of clause 3 (ix) of the Order arenot applicable to the Company. further the money raised by way of term loans were appliedfor the purpose for which obtained;
10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by or on the Company by its officers or employees noticed or reportedduring the year nor have we been informed of such case by the management.
11. According to the information and explanations given to us and based on examinationof records of the Company managerial remuneration has been paid or provided for duringthe year is in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V of the Act.
12. As per information and explanation given to us the Company is not a Nidhi Company.Therefore the provisions of clause 3(xii) of the Order are not applicable to the Company.
13. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us all transactions with therelated party are in compliance with Section 177 and 188 of the Act.
14. As per information and explanation given to us the Company has not madepreferential allotment or private placement of shares during the year and has compliedwith the provisions of Section 42 of the Act.
15. As per information and explanation given to us the Company has not entered intoany non-cash transactions prescribed under Section 192 of the Act with directors orpersons connected with them during the year. Therefore the provisions of clause 3(xv) ofthe Order are not applicable to the Company.
16. As per information and explanation given to us the Company is not required to beregistered under Section 45-IA of the
Reserve Bank of India Act 1934. Therefore the provisions of clause 3(xvi) of theOrder are not applicable to the Company.
Signed for the purpose of identification
FOR V.N. PUROHIT & CO.
Firm Regn. No. 304040E
Membership No. 014238
New Delhi the 29th day of May 2019
ANNEXURE - B TO THE AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub- section (3) ofSection 143 of the Companies Act 2013 We have audited the internal financial controlsover financial reporting of ARYAMAN FINANCIAL SERVICES LIMITED as on 31st March2019 in conjunction with our audit of the financial statements of the Company for the yearended on that date.
Management's Responsibility for the 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 controlsstated in the Guidance Note on Audit of Internal Financial Control over FinancialReporting issued 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 fraud and errors the accuracy andcompleteness of 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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialaspects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial control system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded 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 auditor's judgment including the assessment of risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidences we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and the receipt and expenditures of the Company are being only in accordancewith authorizations of management and directors of the Company; and (3) Provide reasonableassurance regarding prevention or timely detection of unauthorised 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 controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and could not bedetected. Also projections of any evaluation of the internal financial control overfinancial reporting to future periods are subject to the risk that the internal financialcontrols over financial reporting may became inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material aspects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 based on"the internal financial controls over financial reporting criteria considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India".
FOR V.N. PUROHIT & CO.
Firm Regn. No. 304040E
Membership No. 014238
New Delhi the 29th day of May 2019