To the Members of Geetanjali Credit and Capital Limited Report on the Audit of theFinancial Statements Qualified Opinion
We have audited the accompanying standalone Ind AS financial statements of GeetanjaliCredit and Capital Limited ("the Company") which comprise the balance sheet asat 31st March 2022 and the statement of profit and loss and statement of cash flows forthe year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified opinion section of our report the aforesaid standalone Ind AS financialsStatements give the information required by the companies Act 2013 (Act') in themanner so required and give a true and fair view in conformity with the accountingprinciples generally excepted in India of the state of affairs and fair view of thecompany as at March 31 2022 its profit (or loss) statement of changes in equity andcash flows for the year ended on that date.
Basis for Qualified Opinion
Refer to standalone financial statements all the value with regards to financialassets and financial liabilities in the financial statements has been stated at historicalcost only irrespective of the fair value of the same which is departure from requirementof Ind AS 113 (Fair Value Measurement) and Ind AS 109 (Financial Instruments).
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 Auditor's Responsibilities for the Audit of theFinancial 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 Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Emphasis of Matter
Refer to Notes forming part of statement which includes the balance of SundryCreditors Investments Loans including deposits and advances are subject to confirmationfrom and reconciliation with the relevant parties as on the date of balance sheet date. Weare not in position to verify the amounts at which such balances are receivable andpayable.
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.
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Directors' Report but does notinclude the standalone financial statements and our auditor's report thereon.
Our Qualified opinion on the standalone Ind AS financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's 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 standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
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.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities 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 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 financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting 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.
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 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. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and Regulatory Requirements
This report doesn't include a statement on the matters specified in paragraph 3 and 4of the Companies (Auditor's Report) Order 2020 issued by the Central Government ofIndia in terms of sub section 11 of section 143 of the companies Act 2013 since in Ouropinion and according to the information and explanation given to us the said order isnot applicable to the company.
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 except
The confirmations of the balances outstanding as on the reporting date with customerssuppliers unsecured borrowings deposits and loans and advances are subject toconfirmation with books of the counter parties.
(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 and the Statement of Profit and Loss dealt with by this Reportare in agreement with the books of account.
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) 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 A".
(g) With respect 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 explanations given to us:
(a) The Company has disclosed details regarding pending litigations in note 28 offinancial statements which would impact its financial position.
(b) The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(c) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
(d) (i) The management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;
(ii) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been received by thecompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and
(iii) Based on audit procedures which we considered reasonable and appropriate in thecircumstances nothing has come to their notice that has caused them to believe that therepresentations under sub-clause (i) and (ii) contain any material mis-statement.
(e) The company has not declared or paid any dividend during the year in contraventionof the provisions of section 123 of the Companies Act 2013.
"Annexure A" to the Independent Auditor's Report of even date on theFinancial Statements of Geetanjali Credit and Capital Limited
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of GeetanjaliCredit and Capital Limited ("the Company") as of March 31 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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") issued by ICAI on Auditing prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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. Webelieve that the audit evidence 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions 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 that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
"ANNEXURE B" TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading Report on other Legal &Regulatory Requirement' of our report of even date)
(i) In Respect of the Fixed Assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
(ii) In respect of Inventories: No inventories are held by the company during the yearand no Inventory is there as on balance sheet date hence reporting under clause a b andc regarding the procedure for physical verification and reasonable records for inventoriesrespectively is not applicable.
(iii) The Company has not made investments in provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties. Hence sub-paragraphs (a) to(f) of paragraph 3(iii) of the Companies (Auditor's Report) Order 2020 ('the Order') arenot applicable.
(iv) The company has not made any loans investments guarantees and security on whichprovisions of section 185 and 186 of the Companies Act 2013 are applicable. Therefore theprovisions of clause 3(iv) of the said Order are not applicable to the company.
(v) The Company has not accepted any deposits or amounts which are deemed to bedeposits within the provisions of sections 73 to 76 or any other relevant provisions ofthe Companies Act. Therefore the provisions of paragraph 3(v) of the Order are notapplicable to the Company.
(vi) As explained to us the Central Government of India has not specified themaintenance of cost records under sub-section (1) of Section 148 of the Act for any of theproducts of the Company. Therefore the provisions of Clause (vi) of paragraph 3 of theorder are not applicable to the Company.
(vii) In Respect of Statutory Dues:
a) The Company is generally regular in depositing undisputed statutory dues includingIncome tax and other statutory dues with the appropriate authorities to the extentapplicable to it. There are no undisputed amounts payable in respect of income tax whichhave remained outstanding as at March 31 2022 for a period of more than 6 months from thedate they became payable.
b) Details of dues of income-tax other material statutory dues as applicable to theCompany which have not been deposited as at March 31 2022 on account of dispute are givenbelow:
|Name of the Statute ||Nature of the dues ||Amount Rs. ||Forum where dispute is pending ||Remarks |
|Income Tax Act 1961 ||AY 1999-00 ||13473910/- ||143(3) ||Regular Assessment & Penalty Dispute |
| ||AY 1999-00 ||7350000/- ||271(1)(c) || |
| ||AY 2000-01 ||2781150/- ||143(3) || |
| ||AY 2000-01 ||1523918/- ||271(1)(c) || |
(viii) The Company has not surrendered or disclosed as income any transaction notrecorded in the books of account during the year in the tax assessments under theIncome-tax Act 1961.
(ix) A) The Company has not borrowed funds from any banks financial institutions ordebenture holders. Hence the provisions of paragraph 3(ix) of the Order are notapplicable.
B) We report that the Company has not been declared willful defaulter by any bank orfinancial institution or other lender or government or any government authority.
C) The Company has utilized the money obtained by way of term loans during the year forthe purposes for which the loans have been obtained.
D) On an overall examination of the financial statements of the Company we report thatno funds raised on short-term basis have been utilized for long-term purposes by theCompany.
E) On an overall examination of the financial statements of the Company we report thatthe Company is not having subsidiaries associates or joint ventures. Hence the questionof taking any funds from any entity or person on account of or to meet the obligations ofits subsidiaries associates or joint ventures does not arise.
F) We report that the Company is not having subsidiaries joint ventures or associatecompanies. Therefore the question of raising loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies does not arise.
(x) A) The Company has not raised money by way of initial public offer or furtherpublic offer (including debt instruments). Therefore the provisions of Clause (x)(a) ofparagraph 3 of the order are not applicable to the Company.
B) The Company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year andtherefore the requirements of compliance with section 42 and section 62 of the Act andutilization of the funds for the purposes for which they were raised do not arise.
(xi) A) No material fraud by the Company or any fraud on the Company has been noticedor reported during the year.
B) As no material fraud by the Company or any fraud on the Company has been noticed orreported during the year there is no necessity of filing any report in Form ADT-4 undersub- section (12) of section 143 of the Companies Act with the Central Government.
C) The Company is not required to and has not established whistle-blower mechanismduring the year.
(xii) The Company is not a Nidhi Company. Therefore the provisions of Clause (xii) ofparagraph 3 of the order are not applicable to the Company.
(xiii) The Company has entered into transactions with related parties in compliancewith sections 177 and 188 of the Companies Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting Standard (Ind AS) 24 Related Party Disclosures specified under section 133 ofthe Companies Act read with rule 7 of the Companies (Accounts) Rules 2014.
(xiv) A) Though the Company is required to have an internal audit system under section138 of the Companies Act it does not have the same established for the year.
B) The Company did not have an internal audit system for the period under audit.
(xv) The Company has not entered into any non-cash transactions with its directors orpersons connected with its directors during the year and hence provisions of section 192of the Companies Act are not applicable to the Company.
However company has not provided us with the list of persons connected to director asdefined under companies act therefore no comments can be made regarding the fact thatwhether any non-cash transactions has done with the persons connected to the director.
(xvi) According to the information and explanations given to us we report that theCompany has registered as required under section 45IA of the Reserve Bank of India Act1934.
(xvii) The Company has not incurred cash losses in the current financial year and inthe immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year andaccordingly the provisions of paragraph 3(xviii) of the Order are not applicable to theCompany.
(xix) On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that Company is not capable of meeting its liabilities existingat the date of balance sheet as and when they fall due within a period of one year fromthe balance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.
(xx) The Company is not liable to spend or expend or contribute for Corporate SocialResponsibility under section 135 of the Companies Act. Hence the provisions of paragraph(xx) of the Order are not applicable.
(xxi) The Company is not having any subsidiary joint venture or associate company andas such the Company is not required to prepare consolidated financial statements. Hencethe provisions of paragraph (xxi) of the Order are not applicable to the Company.
|Date : 26th May 2022 ||For V S S B & Associates |
|Place : Ahmedabad ||Chartered Accountants |
| ||Firm No.121356W |
| ||Sd/- |
| ||(Vishves A Shah) |
| ||Partner |
| ||M. No.109944 |
| ||UDIN: 22109944AJQVQV5754 |