To the Members of
Majestic Research Services and Solutions Limited
1. Report on the Indian Accounting Standards Financial Statements
We have audited the accompanying Statement of Standalone Financial Results of MajesticResearch Services and Solutions Ltd (the "Company") for the quarter andyear ended March 31 2021 (the "Statement") being submitted by the Companypursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 as amended (the "ListingRegulations").
In our opinion and to the best of our information and according to the explanationsgiven to us the statement: 1. are presented in accordance with the requirements ofRegulation 33 of the Listing Regulations; and 2. gives a true and fair view in conformitywith the recognition and measurement principles laid down in the Indian AccountingStandards ("Ind AS") and other accounting principles generally accepted in Indiaof the net loss and other comprehensive income for the Quarter ended 31st March 2021 andother financial information of the Company for the quarter and year then ended March 312021.
Basis of Opinion
2. We conducted our audit of the Statement in accordance with the Standards onAuditing ("SA"s) specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Results section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of
Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the Standalone Financial Results for thequarter and year ended March 31 2021 under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidenceobtained by us is sufficient and appropriate to provide a basis for our audit opinion
Emphasis of Matter
We draw attention to:
1. The Financial Statements of the company is not in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (IND AS)prescribed under Section 133 of the Act and also notes to accounts supplies to us aredefective.
2. Company has not made sufficient provisions for its expenses interest and applicabletaxes for the financial year 2020-21 in financial.
3. In respect of non-availability of confirmation for outstanding closing bankbalances trade receivables advances and deposits. In absence of alternativecorroborative evidence we are unable to comment upon its recoverability if any.
4. In respect of non-availability of confirmations for outstanding closing bank loanstrade payable other current liabilities including unsecured loans and provisions. Inabsence of alternative corroborative evidence we unable to comment on the extent to whichsuch balances are Payable or not.
5. We didn't receive the Management assessment on
Trade payables that representing Micro Small and Medium Enterprises or not which areoutstanding for the period of more than a year and Interest is also not provided on thesame if any. Hence there would be noncompliance as per MSME Act 2006.
6. Note 8 to the financial Results regarding impact and uncertainties arising fromCOVID-19 Pandemic.
7. Non-Provisions of Gratuity as per As-15: Employee benefits" with regards toGroup Gratuity Scheme.
8. The Company has currently not recognized deferred tax assets in respect ofdeductible temporary differences arising during the half year and year ended 31st March2021.
3. Management's Responsibility for the Financial Statements
This Statement which includes the Standalone financial results is the responsibilityof the Company's Board of Directors and has been approved by them for the issuance. TheStatement has been compiled from the related audited Interim condensed standalonefinancial statements for the three months and year ended March 31 2021. Thisresponsibility includes preparation and presentation of the Standalone Financial Resultsfor the quarter and year ended March 31 2021 that give a true and fair view of the NetLoss and other comprehensive income and other financial information in accordance with therecognition and measurement principles laid down in Ind AS prescribed under Section 133of the Act read with relevant rules issued thereunder and other accounting principlesgenerally accepted in India and in compliance with Regulation 33 of the ListingRegulations. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Financial Results that give a true and fair view and is free from materialmisstatement whether due to fraud or error. In preparing the Standalone FinancialResults the Board of Directors is responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless the Board of Directors 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 financialreporting process of the Company.
4. Auditor's Responsibility
Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Results as a whole is free from material misstatement whether due to fraud orerror and to issue an auditor's report that includes our opinion. Reasonable assurance isa high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of this Standalone Financial Results. As part of an audit in accordancewith SAs we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:
Identify and assess the risks of material misstatement of the Standalone FinancialResults whether due to fraud or error design and perform audit procedures responsive tothose risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on the effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by the Board of Directors.
Evaluate the appropriateness and reasonableness of disclosures made by the Board ofDirectors in terms of the requirements specified under Regulation 33 of the ListingRegulations.
Conclude on the appropriateness of the Board of
Directors' use of the going concern basis of accounting and based on the auditevidence obtained whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the ability of the Company to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the Statement 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.
Evaluate the overall presentation structure and content of the Standalone FinancialResults including the disclosures and whether the Standalone Financial Results representthe underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the Standalone Financial Resultsof the Company to express an opinion on the Standalone Financial Results. Materiality isthe magnitude of misstatements in the Standalone Financial Results that individually orin aggregate makes it probable that the economic decisions of a reasonably knowledgeableuser of the Standalone Financial Results may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work; and (ii) to evaluate the effect of any identifiedmisstatements in the Standalone Financial Results.
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.
Annexure A to the Auditors' Report
Annexure referred to in paragraph 5 Our Report of even date to the members MajesticResearch Services & Solution Ltd. on the financial statement for the year ended 31stMarch 2021.
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 report that:
i. In respect of fixed assets;
a) The company has generally maintained records showing full particulars includingquantitative details and situation of fixed assets.
b) It has been explained to us that the Company has a regular program for physicalverification of fixed assets on a rotational basis which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets and no materialdiscrepancies were noticed on such verification.
c) The title deeds of immovable properties are held in the name of the Company. ii. Inrespect of inventories; Since there is no Inventory in the company hence there is norequirement for physically verification of inventory.
iii. The company has not granted any loans secured or unsecured to any companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
v. The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013.
vi. We have broadly reviewed the books of accounts relating to materials labors andother items of cost maintained by the company as prescribed by the Central Government forthe maintenance of cost records sub-section (1) of Section 148 of the Act and we are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained.
vii. In respect of statutory dues;
a) According to the information and explanations given to us and based on the recordsof the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Income-tax Sales-tax Service Tax CustomsDuty Excise Duty Value added tax cess and other material statutory dues as applicablewith the appropriate authorities in India however there has been some delay in payment ofthe some taxes. Undisputed amounts payable in respect of provident fund income tax salestax value added tax duty of customs service tax cess and other material statutory dueswere in arrears as at 31 March 2021 for a period of more than six months from the datethey became payable.
b) According to the information and explanations given to us and based on the recordsof the company examined by us there are dues of Income Tax Service Tax Sales TaxCustoms Duty and Excise Duty which have not been deposited on account of any disputes thesame is not ascertainable due to non filling / delay in filling of returns.
viii. Based on our audit procedures and on the basis of information and explanationsgiven by the management we are of the opinion that the company has not defaulted inrepayment of loans or borrowings to a financial institution or bank and it has no dues ofloans or borrowing to the government or dues to debenture holders.
ix. In our opinion and according to the information and explanations given to us termloans raised during the year have been applied for the purpose for which they were raised.The Company did not raise any money by way of initial public offer or further public offer(including debt instruments).
x. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud by the Company or on the company by itsofficials or employees noticed or reported during the course of our audit nor have webeen informed of any such instance by the Management.
xi. The Company is the Private Limited Company thus provisions of section 197 is notapplicable to the company.
xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has made preferential allotment orprivate placement of shares during the year the requirement of Section 42 of the CompaniesAct 2013 have been complied and the amount raised have been used for the purposes forwhich the funds were raised.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
|For Suvarna & Katdare |
|Chartered Accountants |
|(Registration No. 125080W) |
|CA Ravindra Raju Suvarna |
|Partner Membership No.: 032007 |
|Date: 30th June 2021 |