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Asit C Mehta Financial Services ltd.

BSE: 530723 Sector: Financials
NSE: N.A. ISIN Code: INE041B01014
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NSE 05:30 | 01 Jan Asit C Mehta Financial Services ltd
OPEN 125.20
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VOLUME 656
52-Week high 198.55
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OPEN 125.20
CLOSE 131.60
VOLUME 656
52-Week high 198.55
52-Week low 49.25
P/E
Mkt Cap.(Rs cr) 64
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Asit C Mehta Financial Services ltd. (ASITCMEHTAFIN) - Auditors Report

Company auditors report

To the Members of

ASIT C. MEHTA FINANCIAL SERVICES LIMITED

Report on the Audit of Standalone Ind AS Financial Statements

1. Opinion

We have audited the standalone Ind AS financial statements of ASIT C.MEHTA FINANCIAL SERVICES LIMITED ("the Company") which comprise the BalanceSheet as at 31st March 2022 and the Statement of Profit and Loss (includingother comprehensive income) Statement of changes in Equity and Statement of cash flowsfor the year then ended and notes to the standalone Ind AS financial statements includinga summary of significant accounting policies and other explanatory information(hereinafter referred to as "the standalone Ind AS financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under section 133 of the Act and read with the Companies (IndianAccounting Standards) Rules 2015 as amended ("Ind AS") and other accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2022 and its net Loss (including other comprehensive income) changes in Equity andits cash flows for the year ended on that date.

2. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor?s Responsibilities for the Audit ofthe Standalone Ind AS Financial Statements section of our report. We are independent ofthe Company in accordance with the "Code of Ethics" issued by the Institute ofChartered Accountants of India ("ICAI") together with the ethical requirementsthat are relevant to our audit of the standalone Ind AS financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the "Code of Ethics".We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

3. Key Audit Matters

Key audit matters are those matters that in our professional Judgmentwere of most significance in our audit of the standalone Ind AS financial statements ofthe current period. We based on our professional Judgement have determined that thereare no key audit matters to communicate in our report.

4. Other information

The Company's management and Board of Directors are responsible for thepreparation of other information. The other information comprises the information includedin the Management Discussion and Analysis Board's Report including annexures theretoBusiness Responsibility Report Corporate Governance Report but does not include thestandalone Ind AS financial statements and our auditor's report thereon.

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information and in doing so considerwhether such other information is materially inconsistent with the standalone Ind ASfinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

5. Responsibility of Management and those charged with governance forthe Standalone Ind AS Financial Statements

The Company's management and Board of Directors are responsible for thematters stated in section 134(5) of the Act with

respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards ("Ind AS") specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements the Managementis responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless Management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors and those charged with governance are alsoresponsible for overseeing the Company's financial reporting process.

6. Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal controls;

• obtain an understanding of internal controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to standaloneInd AS financial statements in place and the operating effectiveness of such controls;

• evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the Management;

• conclude on the appropriateness of the Management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the standalone Ind AS 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 auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern; and

• evaluate the overall presentation structure and content of thestandalone Ind AS financial statements Including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events Ina manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind ASfinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in thefinancial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone IndAS financial statements for the financial year ended 31st March 2022 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 in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

7. Report on Other Legal and Regulatory Requirements

7.1 As required by the Companies (Auditor's Report) Order 2020("the Order") as amended issued by the Central Government of India in terms ofsection 143(11) of the Act and on the basis of the information and explanations given tous and on the basis of such checks as we considered appropriate we give in the AnnexureA a statement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

7.2 As required by section 143(3) of the Act we report that:

(a) we have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) in our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) the Balance Sheet the Statement of Profit and Loss (includingother comprehensive income) the Statement of changes in Equity and the Cash FlowsStatement dealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone Ind AS financialstatements comply with the Ind AS specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended;

(e) on the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2022 from beingappointed as a director in terms of section 164(2) of the Act;

(f) with respect to the adequacy of the internal financial controlswith reference to these standalone Ind AS financial statements and the operatingeffectiveness of such controls refer to our separate Report in Annexure B. Our reportexpresses an unmodified opinion on the adequacy and operating effectiveness of theCompany's internal financial controls;

(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:

As per the records and based on the further information andexplanations the Company's Board consists of nonexecutive directors and independentdirectors only. These directors are paid only sitting fees for attending the Boardmeetings and Committees meetings plus reimbursement for travel expenses incurred to attendthe said meetings. In our opinion such payments by the Company to the said directorsduring the year are in accordance with the provisions of section 197 of the Act;

(h) with respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

(i) the Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements - Refer Note 38 to thestandalone Ind AS financial statements;

(ii) the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as requiredunder the applicable law or accounting standards;

(iii) there were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company;

(iv) (a) the management has represented that to the best of itsknowledge and belief other than as disclosed in note to the

accounts (Note 41) no funds of material in nature and substance havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the Company to or in any other person(s) or entitiesincluding foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall directly or indirectly lendor invest in other persons or entities identified in any manner whatsoever ("UltimateBeneficiaries") by or on behalf of the Company or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(b) the management has represented that to the best of its knowledgeand belief other than as disclosed in note to the accounts (Note 42) no funds ofmaterial in nature and substance have been received by the Company from any persons orentities including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries; and

(c) based on such audit procedures that we considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) herein above contain anymaterial misstatement.

(v) based on the records and further information and explanations givento us Company has not declared or paid any dividend during the year hence the questionof reporting thereon in compliance with section 123 of the Act does not arise.

For CHANDRAKANT & SEVANTILAL & J. K. SHAH & Co.
Chartered Accountants
Firm Registration No. 101676 W
(Kiran C. Shah) Partner
Mumbai Membership No. 032187
Dated: 27th May 2022 UDIN: 22032187AJSURH4220

(Referred to in paragraph 7.1 under "Report on Other Legal andRegulatory Requirements" section of our report of even date)

1. (a) (A) In respect of the Company's Property Plant and Equipment

The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment("PPE").

(B) As explained the Company does not have intangible assets.

(b) The Company has a program of physical verification to cover all theitems of PPE in a phased manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its PPE. Pursuant to the program items of PPE werephysically verified by the Management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us (otherthan properties where the Company is the lessee and the lease agreements are duly executedin favour of the Company as the lessee) and basis examination of the title deeds of theimmovable properties the said immovable properties are held in the name of the Company asat the balance sheet date.

(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not revaluedits Property Plant and Equipment (including right of use assets) during the year.

(e) According to the information and explanations given to us and onthe basis of our examination of the records of the Company no proceedings have beeninitiated or are pending against the Company for holding any benami property under theProhibition of Benami Property Transactions Act 1988 as amended [formerly the BenamiTransactions (Prohibition) Act 1988 (45 of 1988)] and rules made thereunder andtherefore reporting thereon is not required.

2. (a) The Company is in the business of providing services and doesnot have inventories. Accordingly reporting under clause

3(ii)(a) of the Order is not applicable to the Company.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not beensanctioned working capital limits in excess of Rupees five crores in aggregate frombanks or financial institution on the basis of the security of current assets at any pointof time during the year. Accordingly reporting under clause 3(ii)(b) of the Order is notapplicable to the Company.

3. According to the information and explanations given to us and basedon the audit procedures carried out by us and on the basis

of our examination of the records of the Company during the year theCompany has made investments provided guarantees

and securities and granted unsecured loans or advances in the nature ofloans to subsidiaries and other parties as under:

(a) (A) Particulars of Investments Loans or advances in nature ofloans stood Guarantee provided Securities to subsidiaries

& Others during the year:-

(? In'000)

Sr. No. Particulars Investments Guarantees Securities Loans
1 AGGREGATE AMOUNTS OF INVESTMENTS LOANS GRANTED GUARANTEE SECURITY PROVIDED:
1.1 Investments in /Loans to subsidiaries Rs 253156.06 - - Rs 443615.00
1.2 Guarantees/Securities to subsidiaries ? 13000.00 Mortgage of office unit no. 101 A wing and unit No. 103 A wing situated at Nucleus House Saki Vihar Road Andheri (E) Mumbai - 400072. Not Applicable
1.3 Securities to others- NBFC for Term loan Rs 90000.00 Equitable mortgage created in immovable properties being Unit 3rd to 7th floor A wing situated at Nucleus House Saki Vihar Road Andheri (E) Mumbai - 400072. Not Applicable
1.4 Loan to KMP - - - Rs 25.00
2 BALANCES OUTSTANDING AS AT BALANCE SHEET:
2.1 Investments in /Loans to subsidiaries Rs 253156.06 - - Rs 102876.72
2.2 Guarantees/Securities to subsidiaries - Rs 12946.86 As per 1.2 above -
2.3 Securities to others- NBFC for Term loan - Rs 86843.83 As per 1.3 above -
2.4 Loan to KMP - - - ? 25.00

(B) According to the information and explanations given to us and basedon the audit procedures conducted by us during the year the Company has not granted anyloans or advances in the nature of loans or stood guarantee or provided any security toany other entity than above.

(b) According to the information and explanations given to us and basedon the audit procedures conducted by us in our opinion the terms and conditions ofgranting loans or advances in the nature of loans and providing guarantee and securitiesduring the year are prima facie not prejudicial to the interest of the Company.

(c) According to the information and explanations given to us withregard to the unsecured loans granted to the subsidiaries the said loans are on shortterm basis and on current accounts and accordingly no terms are stipulated for therepayments of principal amounts and interest thereon. Based on the verification of therecords of the Company the interest on these loans including brought forward balance ofinterest remained outstanding at the end of the financial year.

With regard to the unsecured loans granted to the other companies theCompany has stipulated terms and conditions with regard to their repayments of principalamounts and interest.

(d) As per the records of the Company interest receivable from awholly owned subsidiary amounting ? 2976.80/- thousands represents outstanding from thepreceding financial year. With regard to the unsecured loans granted to the othercompanies and interest thereon principal amounts aggregating to ? 4000.00/- thousandsand interest aggregating to ? 534.28/- thousands represent outstanding from the precedingfinancial year(s). As explained the Company has stipulated terms and conditions withrespect to such outstanding dues.

(e) According to the information and explanations given to usunsecured loans granted to the subsidiaries are on current accounts and on short-termbasis and therefore no specific terms and conditions are stipulated for their repayment.With regard to the unsecured loans to other companies no fresh loans have been grantedduring the current financial year.

(f) As reported in above sub-clause unsecured loans granted during theyear to the subsidiaries aggregating to ? 443615.00/- thousands are without specifyingany terms or period of their repayments. The said amount constitutes 100% of the totalunsecured loans granted during the year. Excepting this no material amounts are grantedduring the current financial year to any of the Promoters and/or to the other relatedparties as defined in clause (76) of Section 2 of the Companies Act 2013. The aggregatebalance remained outstanding from subsidiaries including interest as of 31stMarch 2022 is ? 102876.72/- thousands.

4. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theAct in respect of loans investments guarantees and securities.

5. As per the information and explanation given to us during the yearthe Company has neither accepted any deposits nor accepted any amounts within the meaningof Sections 73 to 76 of the Act read with the Companies (Acceptance of Deposits) Rules2014 as amended and no Order has been passed by Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal. Accordingly therequirement to report on clause 3(v) of the Order is not applicable to the Company.

6. The maintenance of cost records has not been specified by theCentral Government under section 148(1) of the Act for the business activities carried outby the Company. Thus reporting under clause 3(vi) of the Order is not applicable to theCompany.

7. According to the information and explanations given to us inrespect of statutory dues as applicable to the Company:

(a) The Company has generally been regular in depositing undisputedstatutory dues including Goods & Services tax and Provident Fund as applicable to it;except dues outstanding as on last date of financial year payable to local municipal

authorities of ? 2783.95/- thousands which remained unpaid for aperiod of more than six months from the date it became payable.

Excepting above there were no other undisputed statutory dues payablein respect of Employees' State Insurance Customs Duty Cess and other material statutorydues in arrears as at March 31 2022 for a period of more than six months from the datethey became payable.

(b) According to the information and explanation given to us followingstatutory dues have not been deposited as at March 31 2022 on account of the dispute:

Name of statute Nature of dues Amount (? In'000) Period to which it relates Forum where dispute is pending
Foreign Exchange Regulation Act 1973 Contravention of FERA regulations Rs 13500.00 and Rs 2686.00 (aggregating to Rs 16186.00) 1994-95 Appellate Tribunal Foreign Exchange and Bombay High Court respectively
Finance Act 1994 Chapter V- Service tax Service tax & penalties on certain income Rs 10197.58 1996-2000 Customs Excise & Service tax Appellate Tribunal Mumbai
The Income tax Act 1961 Tax demand Rs 19.91 A.Y 2010-2011 Rectification u/s 154 pending with Assessing Officer
The Income tax Act 1961 Tax demand Rs 589.87* A.Y 2016-2017 Commissioner of Income-tax (Appeals)
The Income tax Act 1961 Tax demand Rs 11676.02 A.Y 2017-2018 Commissioner of Income-tax (Appeals)

* Tax Authorities have adjusted this demand entirely against Tax refunddue to the Company.

8. According to the information and explanations given to us and on thebasis of our examination of the records the Company has not surrendered or disclosed anytransactions previously unrecorded as income in the books of account in the assessmentsunder the provisions of the Income tax Act 1961 as income during the year. Accordinglythe requirement to report on clause 3(viii) of the Order is not applicable to the Company.

9. (a) During the year the Company has not defaulted in repayment ofloans and other borrowings and in payment of interest

thereon.

(b) According to the information and explanations given to us and basedon the examination of the records the Company is

not declared as a willful defaulter by any of the financialinstitutions or other lender.

(c) According to the information and explanations given to us and basedon the examination of the records the term loans

were applied for the purpose for which the said loans were obtained bythe Company during the year.

(d) According to the information and explanations given to us and basedon the overall examination of the financial statements

we report that no funds raised on short term basis have been used forlong term purposes by the Company.

(e) According to the information and explanations given to us and basedon the overall examination of the records and the

financial statements we report that the Company has taken funds fromthe Company's directors and other entities to meet the obligations of its subsidiaries asper the details given herein below:

(Rs ln'000)

Aggregate amount granted/provided during the year Subsidiaries Others
Rs 238275.00 Rs 226475.00 Rs 11800.00

(f) According to the information and explanations given to us and basedon the overall examination of the records we report that the Company has not raised anyloans during the year on the pledge of securities held in its subsidiaries andaccordingly reporting on defaults in repayment of such loans does not arise.

10. (a) During the year the Company has not raised moneys by way ofinitial public offer (including debt instruments) and

accordingly reporting on clause 3(x)(a) of the Order is not applicableto the Company.

(b) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andaccordingly reporting on clause 3(x)(b) of the Order is not applicable to the Company.

11. (a) To the best of our knowledge and according to the informationand explanations given to us and considering the materiality

no fraud by or on the Company has been noticed or reported during theyear.

(b) During the year no report under section 143(12) of the Act hasbeen filed by us as the statutory auditors of the Company in prescribed Form No. ADT- 4as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules 2014 with theCentral Government.

(c) To the best of our knowledge and belief and based on the furtherinformation and explanations given to us we have to report that no whistle-blowercomplaint has been received by the Company during the year and accordingly reporting onclause 3(xi)(c) of the Order is not applicable to the Company.

12. The Company is not a Nidhi Company and accordingly reporting onclause 3(xii) of the Order is not applicable to the Company.

13. In our opinion and according to the further information andexplanations given to us and based on the records of the Company the transactions withrelated parties are in compliance with Section 177 and Section 188 of the Act whereapplicable and the details thereof have been disclosed in the standalone Ind AS financialstatements as required by the applicable accounting standards.

14. (a) Based on the information and explanations given to us theinternal audit system in our opinion is commensurate with the

size and nature of the Company's business activities.

(b) We have considered the internal audit reports issued till datewhich are addressed by the internal auditors to the Management.

15. In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its Directors or persons connected to its directors and persons connected with themand hence the provisions of Section 192 of the Act are not applicable.

16. (a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly reporting on the clauses3(xvi)(a) and 3(xvi)(b) of the Order are not applicable to the Company.

(b) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India Act. Accordingly reporting on theclause 3(xvi)(c) of the Order is not applicable to the Company.

(c) According to the information and explanations given to us duringthe course of our audit the Group does not have any CICs. Accordingly reporting on theclause 3(xvi)(d) of the Order is not applicable to the Company.

17. The Company has incurred cash loss of ? 14336.44/- thousandsduring the current financial year and it has not incurred such cash loss during theimmediately financial year.

18. During the year no resignation has been given by the statutoryauditors and accordingly reporting on the clause 3(xviii) of the Order is not applicableto the Company.

19. According to the information and explanations given to us and onthe basis of the financial ratios aging and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the standaloneInd AS financial statements our knowledge of the Board of Directors and management plansand based on our examination of the evidence supporting the assumptions nothing has cometo our attention which causes us to believe that any material uncertainty exists as onthe date of the audit report that the Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

20. In our opinion and according to the information and explanationsgiven to us the provisions of Section 135 of the Act are not applicable to the Company.In view of this the requirements under the clauses 3(xx)(a) and 3(xx)(b) of the Order arenot applicable to the Company.

21. This being the standalone Ind AS financial statements of theHolding Company the requirements of reporting on the clause 3(xxi) (which is applicableto reporting on Consolidated Financial Statements) of the Order is not applicable to theCompany.

For CHANDRAKANT & SEVANTILAL & J. K. SHAH & Co.
Chartered Accountants
Firm Registration No. 101676W
(Kiran C. Shah) Partner
Mumbai Membership No. 032187
Dated: 27th May 2022 UDIN: 22032187AJSURH4220

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATEON THE STANDALONE IND AS FINANCIAL

STATEMENTS OF ASIT C. MEHTA FINANCIAL SERVICES LIMITED

[Referred to in clause (f) of paragraph 7.2 under "Report on OtherLegal and Regulatory Requirements" section of our report of even date]

Report on the Internal Financial Controls with reference to FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

1. We have audited the internal financial controls with reference tothe Standalone Ind AS Financial Statements of ASIT C. MEHTA FINANCIAL SERVICES LIMITED("the Company") as of 31st March 2022 in conjunction with our auditof the Standalone Ind AS Financial Statements of the Company for the year ended on thatdate.

2. Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal controls with referenceto financial statements criteria established by the Company considering the essentialcomponents of internal control stated in the "Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting" (the "Guidance Note") issuedby 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 Act.

3. Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to the Standalone Ind AS financial statements based onour audit. We conducted our audit in accordance with the Guidance Note and the Standardson Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Actto the extent applicable to an audit of internal financial controls with reference to theStandalone Ind AS financial statements. 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 with reference to theStandalone Ind AS financial statements were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to the Standalone Ind ASfinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to the Standalone Ind AS financial statements included obtainingan understanding of internal financial controls with reference to the Standalone Ind ASfinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditors' judgement including theassessment of the risks of material misstatement of the Standalone Ind AS FinancialStatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols with reference to the Standalone Ind AS financial statements.

4. Meaning of Internal Financial Controls with reference to FinancialStatements

A company's internal financial control with reference to the financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls over financial reporting includes those policies and procedures that(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that 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 withauthorisations 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.

5. Inherent Limitations of Internal Financial Controls with referenceto Financial Statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial reporting to future periods are subject to the riskthat the internal financial controls with reference to financial reporting may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

6. Opinion

In our opinion considering nature of activities size of operation andorganizational structure of the Company and exercise of controls through personalsupervision by the management to the best of our information and according to theexplanations given to us the Company has maintained in all material respects internalfinancial controls with reference to the Standalone Ind AS Financial Statements and suchinternal financial controls with reference to Standalone Ind AS Financial Statements wereoperating effectively as at 31st March 2022 based on the internal controlsover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by ICAI.

For CHANDRAKANT & SEVANTILAL & J. K. SHAH & Co.
Chartered Accountants
Firm Registration No. 101676W
(Kiran C. Shah) Partner
Mumbai Membership No. 032187
Dated: 27th May 2022 UDIN: 22032187AJSURH4220

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