Me hen audited the accon^anying PinmuHL statemente of MAN RAJ HOUSING FINANCE LIMITED (CIN-
1.659 23 MmsgoPLaiSSDOO), which cnmptise Ihe Balance Sheet as at JT March 20K the Frfatement of Ptotil fli'tl toss
Ottno- ÝCon^rtH'ientive Income) and me Statement of Cash Flows fur die year menendad, .Tnd notes bo Uie Financial
statements. including a surTmary of significant otcounbng policies and other explanatory inFcrmadon [herenafter referred tD as
die "Financial sFalerrmns';
In our opinim and to the best of our r icmuvtii and according to the explanations given to us because of 1hc sigmficvicc of
the matter's defended hi 1he SnsJs fa' Adiwse Ljowiicn section of chji leport, the accompanying financial statements do not
present FArly me rmanciai position of the company as h i l M»th 2CF24. wd Its riii*¥.lid performance its cash nows Tof
die year then ended m accordance with die accoundng pnnciplcs gt?iCT<iliy nccqjted kl India, including Ific Indian Acoountng
Standards (jnfl AS) spetsusd under Section 133 or me Companies Act 20I3 f'me Atr;
BASIS FOR ADVERSE OPINION L
Me refm lo Fnllnm ir>g martens.
a; Advances to Related Parties t
rime lhan QQfti of the company's araets are advances, deposits, etc. to lelated parties For the pwehase of properties and
rtints. TheK related names artemiy under inyestioauon By me enforcement Directorate (ED) meter me Prevention or
Muncy timmJenng Att {PMLA), and die tented assets have bem provrsdnally attached by (he ED. This races s^iifitanl
concerns about me recoverability and v*xation of these advances,
b) Related Party Liabilities :
ApprdKrmatety EiSOf the Company's liabilities an? In the term of unsecured loans San related p.vhrs, whn has heneHcat
iriterew in the properties for wTuch die iltveirieinLiciied advances were given. me entmigleineiie of ttieye baniacltris and the
10101011 party's Financial interest creoles significant uncertainty abour. the completeness and accuracy of the Company's liabmes
t) Default on Bonk Borrowings :
Tlie Company has defaulted dti Use repayment of u loan from Jalgoon ftcupte Co-Op Bank Ltd., wQ) an outstanding balance of
F5. tiGT.W Lakhs as oF rebmary 2020. Since then, interest on the adstandinq balance has- not been provided. According to me
statement from ASftEC (India) Ltd., In wham die bank has assigned this debt, Hiere- is uncliivgcd interest oviutintiirg to fe.
390.3a Lakhs *xl penal interest of fts. 52.91 LakFis tor the period from 0t;03I2Q10 to 3iyCF3;2tt24, totaling Its. f42.7S Laths
Ctfwquailtf, the toss ror the year and the liatxbity tor the Amp paysw are understated by Ft* .75 u*hs.
d ,i Untei lamty on tiieConspanv(s-^iljty.tOjConti tide as a point? concern l
The company is not in operation for wore man 3 years Owing the year the company has incurred a net Loss of Rs. It w
Lakhs resulting Ha accumulated losses cf Rs {M2.97 LikJis. Tfk: Cumpuciy^ net worth t negative, FurBier non provisiemny of
interest as above o'id the Company has defaulted on the repaymenc of ns bank bomiwings, nacatnig severe finawdat dfibess
and questioning the Company's aMfly to continue as a going concern.
1hese tfiues ate both material and pervasive to me rmai’cia stateinfncs, affecting the true and Fair view of the Company's
rin*»cii)i position and lesuTs or opsratKns.
We conducted a* audit of the rinffiKiaa statement* m *tJ5rdance with the Standards cn Auditing (SAsO specified under section
M3(HJ) Of the Gjompwties Aet, 2013. Or rnpontom*. under those staridarffr are further descritMto n ihe Auditor's,
Respon&iHllty for Hie A.rtlif or the Financial Statements union of our report. We are indepenctant of rhe Company -«t
accordance Wftfi the Code of Ethics Issued by the Ins1 Hute of Chartered Accountants of India ("ICAT} together with the ethical
requirements that are relevant to our auai of Idle financial statements under the provisions of tiie Companies Ad, 3013 and the
Rules hei&jnder, and we have Iuirilled our other ethical responsibillUs n acco^danoe with these requirements and the ItATs
Code of Ethis. We believe that the audit evidence obtatfied tsy us ts sufficient and appropriate to provide a baas for our opinion
on the financial statements.
Key audit matters, are those matters that. In our professional judgment, were of meat slgn/icance n our audit of the financial
statement- of the currmt period. These matters wot addressed in the context of our audit of the Financial statements as a
whole and n formingi our opnion thereon, and we dd not provide a separate opinion on these matters.
We have rlrlermrinl the matters described below to be the kev audit matters to tie comnunirated in Our reocrl
|
|SND.
|
Key Audi! Matters (HAM)
|
Horj our audit addiessed l^e Key Audit Haftei
|
|
I.
|
Non-moving inventory
The ccvripany's unsold shops / fiats have very lew demand and
therefore it Is becoming difficult to vH! them. At the balance-sheet
date, the value or Inventory amounted to BR.71 lakhs representing
93-90% of the total! current assets. Inventories; were considered as
a Key Audit Matter due to the size or the balance aid because
inventory valuation involves management judgement
|
To *Mn^ the risk or neJertal error On
Inventories., our Audit procedure Mmkd
Ýwngst outer: assessing tfe CQfnfltafpce of
company's .icccurn fng i*>icy orfr Inventory with
applicable accounting standard assessing the
Inventory valuation processes and practice!;.
|
Information QBm tiian MM EtnancM aummli and fliiittacfr Banatl HraatLi
The Company's Board of DUecrots s responsible lot the preparation of the other information. The other into* rrattan comprises
the Information mdided In Board s Report but does not retude the financial statements and oui auditor s report thereon.
Oli opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon
In connection wflh our audit of the financial statements,. our responsibility e to read the Oiher inforrmbon and, in doing so,
consider whether die other information is materially ficonsbionfl with the financial statements or or knowledge obtained
during the course of our amM tr otherwise appears to be materially misstated
ir (vised on the work we iwe pertained, we conclude that there fc a material rrtiH&rtettwrrt of this mfomwltonj we ans
required ie report that fact, we haw nothing to report in regard. Management Is responsible tor the financial itatemcrt*.
MANAGEMENT'S RESPOHSIBIljr? FOR THE FINANCIAL STATEMENTS :
The Company's Board of Directors k nesponsbte for the matters stated n Section 134(5) qf the Companies Act, 2GL3 ("the
Act "J with respect to the preparation of these financial statements that give a Lrue and Talr view cf the financial position,
financial performance cf ihe Company m accordance mch ilie accounting prTiaples generally accepted in India, including the
Accounting Standards specified under Section 133 or the Act, read with Rule 7 or the- Comparves (Accounts) Rules, 7DH. This
responsibility also includes maintenance ot adequate accounting records in accordance with the provisions of the Ad tor
safeguarding the assets of the Company and for preventing and detecftfig frauds and other irregularities; selection and
application of appropnate accounting pekoes, making judgments and estimates that are reasonable and! prudent, and design,
ImpiemcntatiDn and maintenance of adequate Internal flnandai oantrufe. that were operating Bffectavety for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the fiHncbl statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error
In preparing If* r*ianr.lal statements, management & responsive tor assessing the Company's ability ip continue as a gemg
concern., d&cfeslngi, as applicate, matters related to going concern and using the going concern basis of accounting unless
management either Attends to liquidate the Company or to cease iterations, or has no realistic alternate but to do so.
the toad of dlreaors are also responsible for overseeing the Company's financial reporting process.
flUgJTOM- KtSFOHSt&mrr FOKIHE-nBAflClAL STATE HENT3 L
Oir Objectives ire 60 ObtaTi reasonable assurance about wither Bur frUincidl statements AS a wl>Cfe irr fre* from mtfvU
mltJtJttfllcnt, whettier due to fraud or emir. aid to issue an auditor's 'titorf (hoi rrluW ar upturn Reasonable WMim is
a lii^> level of assurance. But is nut a guarantee tfiat an audit conducted in sefiOtdartCt wch Sfts will always detect .1 rnsterW
misstatement when il exists. HisMatiyncnts ran irise hum frji>3 or error and ire considered material if, individually or in tin1
aggregate, diey could retiSeriaUv be expected to NtUeoCc die rtoinmk dcoiwtut of users taken on Hie Basis (/ Hiese financial
stMcnteiris
As (Hit Of «1 Audi m accordant*: with 5dS, wt emMU# EfrOfrt&nfiAl hricjment and maintain prafSilOnal scepticism fJktKighiAit
the aunt Wt-aiso;
4 Msnl«V ind ip? miky. or nci;™ia| rottfOftnwit of the ritanr.ial slnrfYrwrUs, whether due lq frA*1 rw emir, neugn am]
perilorrh aiKW |*«bdw<5 «Sp<HS>re 1p thwe rik^ Slid Obtain audit evidence Vwt if. SufTiiienl and Appropriate tt> pxnvHft A
hack for nr opinion The r sk nr noi detecting a inalensl 11 liks-.ils 1 rvm rPFiihmg from hand Is highe* Hwi tor one reciting
1mm error, as fraud may involve rollusinfl, forgery, lnlentionAl omkeons, mfti WKn&Wnt, nr 1he owrrkte nf manat cmltml.
1 Obtain an uiderctandiig nr raiiw Nnanclal coni,Mb relevant to the audit n order in design audit pnoceduies that are
approf* late in 1he circumstances Udder section i Hi J);l; erf the Act, we Ere efso responsHe for expressing aur opinion on
whether the Company has adequate ntemal tinancsl controls system n place and Hie operating efrectrveness of such controls.
' Evaluate the appropriateness of accountrg policies used and the reasonableness Df accounting Estimates and related
dsclosures made by management.
* Ccndude on toe appopnateness of management S use ot the going concern Basis of accounting and, Based on die audit
evidence obtained, whether a material uncertainty exists related tD events or conditions that may cast significant doubt on Inc
Company's at- ty tD contnue as a gong concern. If we conclude that a material uncertainty exists, vie ae required tD draw
attention in cur auditor 5 report to the ranted disclosures in the financial statements or, If sudi dtsdosttfos are macc'g.ato. Sd
modify our opinion. Our tonckiMns are Based on 1hc audit evidence obtanod up to Ihc date of our auditor's report However,
future events or tondtrons rray cause lhe Company to tease to tontraie as a going canton.
T Evaluift: Hie antral presentation, sfruotoR1 .md cn*ent of the fruncHl stiitniidite, inoluhrig tlx; distkrsures, and wlrethcr
tfic fin.incHl statement repmml the i«ter|yiiig (riiisottlrxii .tnd events .n j rtiSmtr Biat achieves Itk presentotitr
klalrnnlily is (he (TUSrtbrde Qf dUHtitwrent* in tile Rnandai siatements tfkil, eitlividuilly rr m aggregate, makes H pr*dbk
ithsrt the eoenumir dKit*cns or i lensoiwtiy knrjvjirtkte.ide user of ifie munclil stnterneritH may te rinuenced. We consktr
qpmtitflHi*materfiiHy .mfl (p*Htatlve rotors p fi) pLymrHj die s«pe ur ™j- aain wrrt. ain in eviiuaneiij die mviits of our
?w>t, and (ii) to eviluale Ihe effect pf any idanfled mussuteinents in the fkundal statements.
We ujnrrtFitJtie wiBi diose ihaiped witti ^cvemante regarding, amonu other nutters, the planned scope and urnng of the
iuflil *kl Sityiintant *illit fimliiXJs, inlodhifl iwiy skjlircint (Wtiencies in intemil «Kitn)l tt*t we Hleritnv OurWQ Our Audit
we ql» provide Ihijse Charged wffli gpvdnuik.e whh a slalemeot Him we (lave (pfipli«l w<|f1 reiev.ihi elktal re(pjireni«nls
regarding irdcuei idem.e, and lu ton inignicitr widi f iem All retailkklftiips wt otlier mvitters dun may reasonably Sr ttmuglil to
bear tii ou hdepmderif.e, and where appltable, rebihed eafegu**.
man me inmim. conmrtuted with inpse chargwi wilh grerimiance, ™* determine those nMHere dwi w»e of most
mnlflaoee n the audit of the ruanwi siatfinents of the OFrerit penod »id are ihererore Die key airfc matters, we desfaite
tfiese maltort In out aHlior's report unless law & regulation fwdudas public qnclcsure abnui H* matter or lyhen, ni
extremely fare circumstances, we detain*k that a matter should not be communicated m our report because the adverse
consequences of doing so ward reasonably be expected to outweigh the pifcic interest benefits of such ccmmunicaijon.
REPORT ON OTHER LEGAL.AIN Q REGULATORY REQUIREMENTS ;
1. As required by the Coffipanscs (Auditor's Report) Order, 2020 C’the Older") issued by the Omtral Govemmeht of India In terms
of sub^scction (11) of section 143 of the Art Chcrcinaftir referred to ® the "Order^ and on die basis of such checks of the
books and records of the company as we considered appropriate and according to the ptformation and explanation given to us,
we give in the 'Anoexure A', a statement on die matters speofied1 in paragraphs 3 and 4 of the Order, to the extent i^aplicafcle
2. As required by Section 143 (3) of the Act, based on our audit we report that:
(a) We have sought and obtained all the information and explanations which to the best: of our knowledge and belief wee
necessary for the purposes of our audit.
(b) tkCPfH for the possible effort? of the matter described to the ‘Oasts for Adverse Gptnionparagraph, in our opinion proper books
of account as retired by Saw have boon kept by the Company so tar as it appears from our examination of those bocks;
(c) Except for the possfbfe effects of the matter desertfjed tn the 'Basis for Adverse Opinion'paragraph, the Balance Sheet, the
Statement of Profit and loss induing Other Comprehensive Income, Statement of Changes in Equity and the Statement of
Cash Flows (teat wfih by ths Report are in agreement with the books of account;
(d) Except for the passive effects of the matter desorbed in the Bass for Adverse Gptdion 'paragraph, In our opinion, the aforesaid
finanaal statements comply with dw Endian Accounting Standards specified under Section 133 of the Companies Act 2013 read
with Rule 7 of the Compans (Accounts) Rules. 2014
(ej On the basis of the wrUton representations recovcd from the three tors of the Company as on 31 March 2023 taken on record by
the Board of Directors, none of the directors is dtsquaSficd as on 31 March 2023 from being appointed as a director in terms oF
Section 164 {2) cf the Adrr
(f) With respect to the adecjjacy of the internal fcnanctol controls over financial reporting of the Company and the operating
effectiveness of such controls,, refer to our separate report in ' Annexune £r\ Our report expresses an unmodified opsmon on the
adequacy and operating effectiveness of the Ccnparry’s ntemal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditor's Report n accoretence with the requirements of sec boo 197(16)
of the Act, as amended, hi our option and to the best of our mfbnrabcn and according to the explanations given to us, no
remuneration has been paid by the Company to Its directors during the year.
(h) With respect to the other matters to be mdydod n the Auditor's Report tfi accordance with Rule 11 of the Companies (And it and
Auditors) fiuter 20i4r in our opinion and to the best of our inrforrratKMi and according to the exptsiadcns. given to us:
i The Company has disclosed the impact of pending litigations on its finanaai posAxin n its Lnd AS financial statements; Refer
Note No 24.10 to the Ind AS financial statemeiLs
|L The Company has entered into a long term contract with a related party and has not entered into any derivative contract and
m respect erf the tong term contract according: to the management there are no material foreseeable losses in the said contract
and there tore the question or making any provision for the same dues not arise.
HI There are no anwurits required to he irarsferred to the frwestor Education and Protection Fund by the company.
|v The Managenwil has represented dvH, to Ute pest at its knowledge and tielier, other than as disclosed in the nodes rp the
acoquife, no funds have been advanced or loaned or lirvesled (either from borfowecl Tunds or share premium or any other
sources nr kiid at ttinds} by the Cornfsany to or hi any other person^) or enhiy( iesfc. including roregn entitles
i”'Intermediaries"), with the undemanding, whether recorded in writing or Otherwise, that the Intermediary shall, directly or
indirectly lend or nvest in other persons or entities idoitfied in any manner whatsoever by or on behalF of the Company
{'Uldn-iafte Beneficiaries'*} nr provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
v) Based on the audi procedures performed that have been considered reasonable and appropriate m the circumstances, nothing
lias come to my/our notice that has causal mefts to believe mat the represeniatcns under sufrdMe Ci) (|j} of Rule 11(e)
contain any material mis-statement.
vi) The Company has failod to implement the feature of recording an audit trail in its accounting software, as mandated by Rule
I l{g} of the Companies *: Audit and Airfftors) Ryles, 20H.
vh) The company has not declared or paid any divided during the year.
For Ratwi Chandak ft Co.
Chartered Accountants
Cft KAushal K. Mundada
Partite?
Membership No.: 122492
Firm Reg.no.: 10669GW
UOIN : 2412249 2&KCUPC7Q65,
Place: Jalgaon.
Date: 27lh Hbt Mm,
|