Parsharti Investment Limited Mumbai
Report on the Audit of Ind AS Financial Statements Opinion
We have audited the accompanying Ind AS financial statements of Parsharti InvestmentLimited (The Company) which comprise the Balance Sheet as at March 31 2021the Statementof Profit and Loss (Including Other Comprehensive Income) the Cash Flow Statement theStatement of Changes in Equity and Notes to the Ind AS Financial Statement for the yearthen ended including a summary of significant accounting policies and other explanatoryinformation (Hereinafter referred to as the "Ind AS Financial Statement").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 (The Act') in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia including Indian Accoiuiting Standards(Tnd AS') specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at March 312021 andits profit (including other Comprehensives income) its Cash Flows and changes in equityfor the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143 (10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Ind AS F inancialStatements Section of our report. We are Independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India ('ICAI') togetherwith the ethical requirements that are relevant to our audit of the Ind As 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 the Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment w ere of mostsignificance in our audit of the financial statements of the current period.
We have determined tliat there are no key audit matters to communicate in our report.
Information other than the Financial Statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the other information. The Otherinformation comprises the information included in Management Discussion and AnalysisBoard's Report including Annexures in the Board Report and Shareholder information butdoes not include tire financial statements and our auditor's report thereon.
Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.
If based on the work we have performed we concluded that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Responsibilities of management and Those Charged with Governance for the StandaloneFinancial Statements.
The Company's Board of Director is responsible for the matters stated in Section 134(5)of The Companies Act 2013 ("The Act")with respect to the preparation andpresentation of these Ind AS financial statements that give a true and fair view of thestate of affairs (financial position) Profit (financial performance) (Including OtherComprehensive Income) and changes in the Equity and cash flows of the Company inaccordance with the Accounting principles generally accepted in India including the IndAS specified under section 133 of the Act read with the Companies (Indian AccountingStandard) Rules 2015 as amended.
This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the C ompanyand for preventing and detecting frauds and other irregularities: selection andapplication of appropriate accounting policies; making judgment 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 of theInd AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the Ind AS financial statementsjnanagement is responsible for assessingthe company's ability to continue as a going concern disclosing as applicablemattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the company or to cease operation or has no realisticalternative but to do so.
The Board of Directors of the Company are also responsible for overseeing the financialreporting process of the Company.
Auditor's Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS Financialstatements as whole are free from material misstatement whether due to fraud or errorsand 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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or errors and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Ind AS financial statements.
As part of an audit in accordance with Standards on Auditmg we exercise professionaljudgments maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or errors 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 the internal controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for explaining our opinion on whether the Companyhas adequate internal financial controls system in place and the operating effectivenessof 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 rqrort to the related disclosures inthe Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained upto the date of auditreport.
However future conditions or events may cause the Company to cease to continue as agoing concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a maimer that achieves fairpresentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of a reasonablyknowledgeable user of the financial statements 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 financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiency 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 safeguard.
From tire matters communicated with those charged with governance we determine thosematters that were of most significance in audit of Ind As financial statements of thecurrent period and are therefore the key audit matters .We describe these matters in ourauditor's report unless law' or regulation precludes about public disclosures about thematters or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order2016 (The Order') issuedby theCentral Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. Further to our comment in Annexure A'As required by section 143 (3) oftlieAct 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 pur pose of our audit:
b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c. The Ind AS financial statements dealt with by this Report are in agreement with thebooks of account.
d. In our opinion the aforesaid Ind As Financial Statement comply with the Ind ASspecified under section 133 of the Act read w ith Companies!Indian Accounting Standards)Rules2015 as amended.
e. On the basis of written representation received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312021 from being appointed as a dir ector in terms of Section 164(2) of the Act.
f. We have also audited tire internal financial controls over financial reporting(IFCOFR) of the Company as on .3151 March 2021 in conjunction with our audit ofthe Ind AS financial statements of the Company for the year ended on that date and ourreport as per Annexure B expressed an unmodified opinion;
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 explanation given to us:
i. The Company does not have any pending litigation as at 3131 March 2021which would impact its financial position.
ii. The Company did not have any long term contracts including derivative contracts asat 3131 March 2021.
iii There lias been no delay in transferring amounts to the Investor Education andProtection Fund by the C ompany during the year ended on 31s1 March 2021.
Annexure A to the Independent Auditors' Report
(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" of our report
to the Members of Parsharti Investment Limited (the Company") for the yearended March 31st 2021)
1. In respect of its Fixed Assets:
(i) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(ii) As explained to us all the Fixed assets have been physically verified by themanagement during the year and no material discrepancies were identified on suchverification. The frequency of physical verification is reasonable having regard to thesize of the Company and nature of its business.
(iii) As the company does not have any immovable properties. Clause (i) (c) of theParagraph 3 of the Order is not applicable to the Company.
2. In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year. As per the information given no materialdiscrepancies were noticed on such verification.
3. According to the Information and explanations given to us. The Company has notgranted any loans to bodies corporate covered in the register maintained under section 189of the Companies Act. 2013 (the Act') hence clause 3(iii) is not applicable.
4. In our opinion and according to the information and explanation given to us Inrespect of Loans investment guarantees and securities the provisions of section 185 and186 of the Companies Act 2013 have been complied with.
5. The company has not accepted any deposits from the public within the meaning ofsections 73 to 76 of the Act and The Companies (Acceptance of Deposits) Rules 2014(asamended). Accordingly the provisions of clause 3 (v) of the Order are not applicable.
6. The Central Government of India has not prescribed the maintenance of cost recordsunder subsection 1 of section 148 of the Companies Act.
7. a) According to the information and explanations given to us and records of thecompany examined by us The company has generally been regular in depositing liabilitytowards undisputed statutory dues including Provident Fund Employees State InsuranceIncome tax. Sales Tax Service Tax Duty of Custom Duty of Excise Value added Tax GSTcess and other material statutory due as applicable with the appropriate authorities.According to the information and explanations given to us and records of the companyexamined by us there are no dues of income tax or wealth tax or service tax or duty ofcustoms or duty' of excise or value added tax GST or cess which were in arrears as at31-03-2021 for a period of more than six months from the day they become payable.
b) On the basis of our examination of the documents and records the company does nothave any disputed statutory' liabilities.
8. The Company does not have any loans or borrowings from any Banks FinancialInstitutions govemmentor debenture holders during the year and accordingly the clause isnot applicable to the Company.
9. The Company has not raised any money by wuy of initial public oiler or furtherpublic oiler (including debt instruments) and term loans during the year. Accordinglyprovisions of C lause 3(ix) of the Order are not applicable to the Company.
10. No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.
11. As required by Section 197(16) of the Act we report that the company has paidremuneration to its directors during the year in accordance with the provisions of andlimits laid down under Section 197 read with Schedule V to the Act.
12. The Company is not a Nidlii Company. Hence reporting under clause (Xii) of the CARO2016 Order are not applicable.
13. In our opinion all the transactions with the related parties are in compliance withsection 177 and 188 of the Act where applicable and the requisite details have beendisclosed in the Ind AS financial statement etc. as required by the Ind. AS ( Refer Note24 to Ind AS financial statements).
14. The Company has not made any Preferential /private placement of shares or privateplacement of fully or partly convertible debentures during the year under review.Accordingly provisions of clause 3(ivx) of the order are not applicable.
15. In our opinion The Company has not entered into any non-cash transactions with thedirectors or persons connected with them covered under section 192 of the Act.
16. The Company is not required to be registered under section 45-JA of the ReserveBank of India Act 1934.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT of even date to the
Members of Parsharti Investment Limited on the Ind AS Financial statement for the yearended 31st March 2021
Independent Auditor's report on the Internal Financial Controls under clausc(i) ofSub-section 3 of Section 143 of The Companies Act 2013 (The "Act")
In conjunction with our audit of the Ind As financial Statements of ParshartiInvestment Ltd (The Company) as at and for the year ended on March 31 2021 we haveaudited the internal financial Controls over financial reporting (IFCoFR) of the Companyas of that date.
In conjunction with our audit of the IndAs financial Statements of Parsharti InvestmentLtd (The Company) as at and for the year ended on March 31 2021 we have audited theinternal financial Controls over financial reporting (IFCoFR) of the Company as of thatdate.
Management's Responsibility for 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 the internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over Financialreporting (The "Guidance note") issued by the Institute of Chartered Accountantsof India (ICAI). These responsibilities includethe design implementation and maintenanceof adequate internal financial controls that we reoperating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection offrauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under tire Act.
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 the internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over Financialrqrorting (The "Guidance note") issued by the Institute of Chartered Accountantsof India (ICAI). These responsibilities includethe design implementation and maintenanceof adequate internal financial controls that we reoperating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection offrauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting (IFCoFR) based on our audit. We conducted our audit inaccordance with the Standards on auditing issued by the ICAI and deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of IFCoFR andGuidance Note issued by ICAI. Those Standards and the GuidanceNoterequirethatwecomplywithethicalrequirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR we reestablished and maintained and ifsuch controls operated effectively in all material aspects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe IFCoFR and their operating effectiveness. Our audit of IFC oFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk.
The procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.
Meaning of Internal Financial Controls Over Financial Reporting
A company's IFCoFR is a process designed to provide reasonable assurance regardingthere liability of financial reporting and the preparation of financial statements forexternal purposes in accordance with the Generally Accepted Accounting Principles.Acompany's IFCoFR includes those policies and procedures that:(i) pertain to themaintenance of records that in reasonable details accurately and fairly reflect thetransaction and dispositions of the assets of the company; (ii) Provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with the generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and
(iii) Provide reasonable assurance regarding prevention or timely detection ofunauthorized dacquisition use or dispositions 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 IFCoFR including tire possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the IFCoFR to futureperiods are subject to therisk that the IFCoFR may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.
In our opinion the Company has in all material respects adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting wereoperating effectively as at 3151 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal contr ol stated in the Guidance Noteissued by the ICAI.
FOR BKG & ASSOCIATES
Finn Reg. No.: 114852W
CA. B.K. Gupta
M. No.: 040889
Date: 27h May 2021