VA K R A N G E E L I M I T E D Integrated Annual Report 22-23

Standalone Financial Statements

Independent Auditor’s Report

TO THE MEMBERS OF VAKRANGEE LIMITED judgment, were of most significance in our audit of the
Report on the Audit of Standalone Financial Statements Standalone Financial Statements of the current period.
These matters were addressed in the context of our audit
Opinion of the Standalone Financial Statements as a whole, and
We have audited the Standalone Financial Statements in forming our opinion thereon, and we do not provide a
of VAKRANGEE LIMITED (hereinafter referred to as “the separate opinion on these matters. We have determined the
Company”), which comprise the Standalone Balance sheet matters described below to be the key audit matters to be
as at March 31, 2023, the Standalone Statement of Profit and communicated in our reports.
Loss (including Other Comprehensive Income), Standalone 1. Estimates Involving in Capitalisation of Capital
Statement of Cash flows, and Standalone Statement of Expenditure, and determining their useful lives
Changes in equity for the year then ended on that date, and (Refer Note 1 “Significant Accounting Policies”, Critical
notes to the Standalone Financial Statements, including Accounting Estimates and Note 4 “Property, Plant and
a summary of significant accounting policies and other Equipment” for details)
explanatory information (hereinafter referred to as “the
Standalone Financial Statements). The Company has capitalised additions to Property, Plant
and Equipment (PPE), mainly related to the Automated
In our opinion and to the best of our information and Teller Machine (ATM) purchased newly from the OEM.
according to the explanations given to us, the aforesaid Expenditure such as freight cost and cost to bring
Standalone Financial Statements give the information the asset to the location and new acquisition cost are
required by the Companies Act, 2013 (“the Act”) in the capitalised. Identification and allocation of the related
manner so required and give a true and fair view in expenditures involves judgment and estimation of future
conformity with Indian Accounting Standards (“Ind AS”) economic benefit.
prescribed under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as The useful lives of PPE items are based on
amended and other accounting principles generally accepted management’s estimates regarding the period during
in India, of the state of affairs of the Company as at March which the asset or its significant components will be
31, 2023, its profit, its total comprehensive income, its used. The estimates are based on historical experiences,
changes in equity and its cash flows for the year ended on market practice and group decision on technical
that date. evaluation of useful lives of the ATM.
The Capital expenditure and new acquisition is not
Basis for Opinion considered to be an area of significant risk for our audit
We conducted our audit in accordance with the Standards but as it requires considerable time and resource to audit
on Auditing (SAs) specified under section 143(10) of due to its magnitude, it is considered to be a key audit
the Companies Act, 2013. Our responsibilities under matter.
those Standards are further described in the Auditor’s
Principal Audit Procedure
Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the We assessed whether the Company’s accounting policy
Company in accordance with the Code of Ethics issued by in relation to the capitalisation of expenditures are in
the Institute of Chartered Accountants of India together with sync and in compliance with IND AS and found them to
the ethical requirements that are relevant to our audit of the be consistent.
Standalone Financial Statements under the provisions of
We obtained a listing of capital expenditures and major
the Companies Act, 2013 and the Rules thereunder, and we
acquisition during the year and, on a sample basis,
have fulfilled our other ethical responsibilities in accordance
checked whether the assets were undertaken based on
with these requirements and the Code of Ethics. We believe
internal purchase order that had been properly approved
that the audit evidence we have obtained is sufficient and
by the key person with such authority with no material
appropriate to provide a basis for our audit opinion on
exceptions noted. We inspected a sample of contracts
Standalone Financial Statements.
and underlying invoices to determine whether the
classification between capital and operating expenditure
Key Audit Matters
was appropriate. We noted no material exceptions.
Key audit matters are those matters that, in our professional

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We evaluated whether the useful lives of the component by the Company. This involves judgment as the
determined and applied by the management were in line expected credit losses must reflect information about
with historical experience, group assessment and the past events, current conditions, and forecasts of future
market practice. conditions.
We checked whether the depreciation of PPE items v) Selected a sample of the customers, and
was commenced timely, by comparing the date of the
● Verified publicly available credit reports and other
reclassification from work in progress to asset in use, with
information relating to the Company’s customers
the date of the act of completion of the work. We noted no
to test if the management had correctly considered
material exceptions.
the adjustments to credit risk.
Reference to related disclosures
● Obtained and verified the details of credit period
The Company has provided information on the disclosure extension granted to the customers and developed
of the addition, deletion of PPE and depreciation for the an expectation of similar extensions across other
year on such addition and existing asset in Note 4 of the customers of the Company.
Standalone Financial Statements.
vi) Recomputed the expected credit loss allowance
2. Expected Credit Loss considering the above determined input data and
As described in Note 2 (B) (xi) (d) of the Standalone compared the amounts so recomputed with the
financial statements for the year ended March 31, 2023, amounts recorded by the management to determine
the management has determined the allowance for credit if there were any material differences individually or in
losses based on historical loss experience adjusted the aggregate.
to reflect the impact of the economic conditions. The
allowance for credit loss model requires consideration Emphasis of Matter
of the customers’ business operations/ability to pay We draw attention to Note 50 to the standalone financial
dues. Based on such analysis the Company has recorded statements, regarding the Scheme of Arrangement for
an allowance aggregating to ₹ 21.57 lakhs as at March Demerger (the “Scheme”) whereby the E-Governance & IT/
31, 2023, considered in Note 7 & 12 of the Standalone ITES Business (Demerged Undertaking) of the Company (the
Financial Statements. We identified allowance for credit “Demerged Company”) stands transferred to and vested in
losses as a key audit matter because the Company VL E-Governance & IT Solutions Limited (formerly known
exercises significant judgment in calculating the expected as Vakrangee Logistics Private Limited) (the “Resulting
credit losses. Company”) on a going concern basis.

Principal Audit Procedure The Hon’ble National Company Law Tribunal (the “NCLT”) has
We have performed the following procedures: approved the Scheme vide its Order dated May 19, 2023 and
filed with the Ministry of Corporate Affairs (MCA) on May 26,
i) Evaluated the design and implementation including the 2023.
operating effectiveness of the controls over:
In accordance with the Scheme approved by the NCLT, the
● Basis of consideration of the impact of the Company has given effect to the scheme from appointed
economic conditions; date specified therein i.e. April 01, 2021, and accordingly, the
● Completeness and accuracy of the data used in comparative financial information of the Company for the year
estimation of probability of default; ended March 31, 2022 has been restated.

● Computation of the expected credit loss allowance Our opinion on the standalone financial statements is not
modified in respect of these matters.
ii) Carried out inquiries with the management to
understand the impact of COVID-19 in terms of Information other than the Standalone Financial
identification of distressed customers and evaluation Statements and Auditors’ Report thereon
of recoverability of dues, extension in contractual
The Company’s Management and Board of Directors are
terms for collections.
responsible for the other information. The other information
iii) Tested the completeness and accuracy of the ageing comprises the information included in the Annual Report but
of accounts receivable data. does not include the Standalone Financial Statements and our
auditor’s report thereon.
iv) Further in addition to the above process, a forward
looking expected loss impairment model as prescribed Our opinion on the Standalone Financial Statements does not
in IND AS 109 “Financial Instruments” was also applied

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Standalone Financial Statements

cover the other information and we do not express any form of or error, and to issue an auditor’s report that includes our
assurance conclusion thereon. opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
In connection with our audit of the Standalone Financial
with SAs will always detect a material misstatement when it
Statements, our responsibility is to read the other information
exists. Misstatements can arise from fraud or error and are
and, in doing so, consider whether the other information
considered material if, individually or in the aggregate, they
is materially inconsistent with the Standalone Financial
could reasonably be expected to influence the economic
Statements or our knowledge obtained during the course of
decisions of users taken on the basis of these Standalone
our audit or otherwise appears to be materially misstated. If,
Financial Statements.
based on the work we have performed, we conclude that there
is a material misstatement of this other information; we are As part of an audit in accordance with SAs, we exercise
required to report that fact. We have nothing to report in this professional judgment and maintain professional skepticism
regard. throughout the audit. We also:
● Identify and assess the risks of material misstatement of
Responsibilities of Management and Those Charged
the Standalone Financial Statements, whether due to fraud
with Governance for the Standalone Financial
or error, design and perform audit procedures responsive
Statements
to those risks, and obtain audit evidence that is sufficient
The Company’s Management and Board of Directors are and appropriate to provide a basis for our opinion. The
responsible for the matters stated in section 134(5) of the risk of not detecting a material misstatement resulting
Companies Act, 2013 with respect to the preparation of these from fraud is higher than for one resulting from error, as
Standalone Financial Statements that give a true and fair fraud may involve collusion, forgery, intentional omissions,
view of the financial position, financial performance including misrepresentations, or the override of internal control.
other comprehensive income, changes in equity and cash
flows of the Company in accordance with the Ind AS and other ● Obtain an understanding of internal control relevant to
accounting principles generally accepted in India, including the audit in order to design audit procedures that are
the accounting Standards specified under section 133 of the appropriate in the circumstances. Under section 143(3)
Act. This responsibility also includes maintenance of adequate (i) of the Companies Act, 2013, we are also responsible
accounting records in accordance with the provisions of for expressing our opinion on whether the company has
the Act for safeguarding of the assets of the Company and adequate internal financial controls system in place and
for preventing and detecting frauds and other irregularities; the operating effectiveness of such controls.
selection and application of appropriate implementation ● Evaluate the appropriateness of accounting policies used
and maintenance of accounting policies; making judgments and the reasonableness of accounting estimates and
and estimates that are reasonable and prudent; and design, related disclosures made by management.
implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring ● Conclude on the appropriateness of management’s use of
the accuracy and completeness of the accounting records, the going concern basis of accounting and, based on the
relevant to the preparation and presentation of the financial audit evidence obtained, whether a material uncertainty
statement that give a true and fair view and are free from exists related to events or conditions that may cast
material misstatement, whether due to fraud or error. significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material
In preparing the Standalone Financial Statements, uncertainty exists, we are required to draw attention
management is responsible for assessing the Company’s in our auditor’s report to the related disclosures in the
ability to continue as a going concern, disclosing, as Standalone Financial Statements or, if such disclosures
applicable, matters related to going concern and using the are inadequate, to modify our opinion. Our conclusions
going concern basis of accounting unless management either are based on the audit evidence obtained up to the date of
intends to liquidate the Company or to cease operations, or our auditor’s report. However, future events or conditions
has no realistic alternative but to do so. may cause the Company to cease to continue as a going
The Board of Directors is also responsible for overseeing the concern.
Company’s financial reporting process. ● Evaluate the overall presentation, structure and content
of the Standalone Financial Statements, including the
Auditor’s Responsibilities for the Audit of the disclosures, and whether the Standalone Financial
Standalone Financial Statements Statements represent the underlying transactions and
Our objectives are to obtain reasonable assurance about events in a manner that achieves fair presentation.
whether the Standalone Financial Statements as a whole
Materiality is the magnitude of misstatements in the
are free from material misstatement, whether due to fraud

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Standalone Financial Statements that, individually or in a) We have sought and obtained all the information and
aggregate, makes it probable that the economic decisions of explanations which to the best of our knowledge and
a reasonably knowledgeable user of the consolidated financial belief were necessary for the purposes of our audit.
statements may be influenced. We consider quantitative
b) In our opinion, proper books of account as required
materiality and qualitative factors in (i) planning the scope of
by law have been kept by the Company so far as it
our audit work and in evaluating the results of our work; and
appears from our examination of those books.
(ii) to evaluate the effect of any identified misstatements in the
Standalone Financial Statements. c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including Other
We believe that the audit evidence obtained by us is sufficient
Comprehensive Income), the Standalone Statement of
and appropriate to provide a basis for our audit opinion on the
Cash Flows, and Standalone Statement of Changes in
Standalone Financial Statements.
Equity dealt with by this Report are in agreement with
We communicate with those charged with governance the books of account.
regarding, among other matters, the planned scope and
d) In our opinion, the aforesaid Standalone Financial
timing of the audit and significant audit findings, including
Statements comply with the Accounting Standards
any significant deficiencies in internal control that we identify
specified under Section 133 of the Act, read with Rule
during our audit.
7 of the Companies (Accounts) Rules, 2014.
We also provide those charged with governance with a
e) On the basis of the written representations received
statement that we have complied with relevant ethical
from the directors as on March 31, 2023 taken on
requirements regarding independence, and to communicate
record by the Board of Directors, none of the directors
with them all relationships and other matters that may
are disqualified as on March 31, 2023 from being
reasonably be thought to bear on our independence, and
appointed as a director in terms of Section 164 (2) of
where applicable, related safeguards.
the Act.
From the matters communicated with those charged with
f) With respect to the adequacy of the internal financial
governance, we determine those matters that were of
controls over financial reporting of the Company and
most significance in the audit of the Standalone Financial
the operating effectiveness of such controls, refer to
Statements of the current period and are therefore the key
our separate Report in “Annexure B”.
audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure g) In our opinion and according to the information and
about the matter or when, in extremely rare circumstances, explanations given to us, the managerial remuneration
we determine that a matter should not be communicated in for the year ended Mach 31, 2023, has been paid
our report because the adverse consequences of doing so / provided by the Company to its directors is in
would reasonably be expected to outweigh the public interest accordance with the provisions of Section 197 read
benefits of such communication. with Schedule V to the Act.
h) With respect to the other matters to be included in
Other Matter the Auditor’s Report in accordance with Rule 11 of
The Standalone Financial Statements of the Company for the the Companies (Audit and Auditors) Rules, 2014, in
year ended March 31, 2022 was audited by another firm of our opinion and to the best of our information and
Chartered Accountants, who vide their report dated May 13, according to the explanations given to us:
2022, expressed an unmodified opinion.
i. The Company does not have any pending
Our conclusion is not qualified in respect of the above matter. litigations which would impact its financial position
except as referred in Note 39 to the Standalone
Report on Other Legal and Regulatory Requirements Financial Statements.
1. As required by the Companies (Auditor’s Report) Order,
ii. The Company did not have any long-term
2020 (“the Order”), issued by the Central Government
contracts including derivative contracts for which
of India in terms of sub-section (11) of section 143 of
there were any material foreseeable losses.
the Companies Act, 2013, we give in the “Annexure A” a
statement on the matters specified in paragraphs 3 and 4 iii. There were no amounts which were required
of the Order, to the extent applicable. to be transferred to the Investor Education and
Protection Fund by the Company.
2. As required by Section 143(3) of the Act, we report that:
iv. (A) T
 he Management has represented that, to the

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Standalone Financial Statements

best of its knowledge and belief, no funds have notice that has caused us to believe that the
been advanced or loaned or invested (either representations under sub-clause (i) and (ii) of
from borrowed funds or share premium or any Rule 11(e), as provided under (a) and (b) above,
other sources or kind of funds) by the Company contain any material misstatement.
to or in any other person(s) or entity(ies),
v. The dividend declared or paid during the year by
including foreign entities (“Intermediaries”),
the Company is in compliance with section 123 of
with the understanding, whether recorded in
the Act.
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or vi. Proviso to Rule 3(1) of the Companies (Accounts)
invest in other persons or entities identified in Rules, 2014 for maintaining books of account
any manner whatsoever by or on behalf of the using accounting software which has a feature of
company (“Ultimate Beneficiaries”) or provide recording audit trail (edit log) facility is applicable
any guarantee, security or the like on behalf of with effect from April 1, 2023 to the Company and
the Ultimate Beneficiaries; its subsidiaries, which are companies incorporated
in India, and accordingly, reporting under Rule
(B) T
 he Management has represented, that,
11(g) of Companies (Audit and Auditors) Rules,
to the best of its knowledge and belief, no
2014 is not applicable for the financial year ended
funds have been received by the company
March 31, 2023.
from any person(s) or entity(ies), including
foreign entities (“Funding Parties”), with the For S. K. Patodia & Associates
understanding, whether recorded in writing or Chartered Accountants
otherwise, that the Company shall, whether, Firm Registration Number: 112723W
directly or indirectly, lend or invest in other
persons or entities identified in any manner Dhiraj Lalpuria
whatsoever by or on behalf of the Funding Partner
Party (“Ultimate Beneficiaries”) or provide any Membership Number: 146268
guarantee, security or the like on behalf of the UDIN : 23146268BGVPSJ1482
Ultimate Beneficiaries; and
Place : Mumbai
(C) Based on such audit procedures that we have
Date : May 30, 2023
considered reasonable and appropriate in
the circumstances; nothing has come to our

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Annexure “A” to the Independent Auditor’s Report

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’
section of our report to the Members of VAKRANGEE LIMITED)
To the best of our information and according to the (iii) T
 he Company has not made investments in, companies,
explanations provided to us by the Company and the books of firms, Limited Liability Partnerships, but granted
account and the records examined by us in the normal course unsecured loans to other parties, during the year, in
of audit, we state that: respect of which;
(i) In respect of the Company’s Property, Plant and (a) Aggregate amount during the year, and balance
Equipment and Intangible Assets: outstanding at the balance sheet date of such loans
or advances and guarantees or security to subsidiary
(a) (A) The Company has maintained proper records
companies are as follows:-
showing full particulars, including quantitative
details and situation of property, plant & (₹ in Lakhs)
equipment.
Particulars Loan Guarantees
(B) The Company has maintained proper records
showing full particulars of intangible assets. Aggregate amount granted/ provided during the
year
(b) The Company has a program of physical verification
of Property, Plant and Equipment and relevant detail Subsidiaries 176.34 -
of right-to-use asset are verified in a phased manner. Others - -
In our opinion, this periodicity of physical verification Balance outstanding as at balance sheet date in
is reasonable having regard to the size of the
respect of above cases
Company and the nature of its assets. The frequency
of physical verification is reasonable and no material Subsidiaries 176.34 125.00
discrepancies were noticed on such verification. Others - -
(c) Based on our examination of the conveyance deeds / (b) In our opinion, the investments made and the terms
registered sale deed provided to us, we report that, the and conditions of the grant of loans, during the year
title deeds, comprising of all immovable properties of are prima facie, not prejudicial to the Company’s
land and buildings which are freehold, are held in the interest.
name of the Company as at the balance sheet date.
(c) In respect of loans and advances in the nature of loans
(d) According to information and explanation given to us, which are received back during the year, the schedule
the company has not revalued its property, plant & of repayment of principal and payment of interest has
equipment and Intangible assets. not been stipulated.
(e) As per the records examined by us and explanation (d) In respect of loans granted by the Company, there
given to us, the company does not have any is no overdue amount for than ninety days as at the
proceedings have been initiated or are pending against balance sheet date.
the company for holding any Benami property under
(e) No loans granted by the Company which has fallen
the “Benami Transactions (Prohibition) Act, 1988
due during the year, has been renewed or extended or
(as amended in 2016) and Rules made thereunder.
fresh loans granted to settle the overdues of existing
Accordingly, the provisions of Clause 3(i)(e) of the
loans given to the same parties.
Order are not applicable to the Company.
(f) In Accordance with the information and explanation
(ii) (a) As explained to us physical verification of inventory
given to us, the Company has granted loans or
has been conducted at reasonable intervals by the
advances in the nature of loans, either repayable on
management during the year and in our opinion, the
demand or without specifying any terms or period of
coverage and procedure of such verification by the
repayment is granted to the subsidiary, aggregating to
management is appropriate and no discrepancies
a total of ₹ 176.34 lakhs on balance sheet date, which
of 10% or more in the aggregate for each class of
is 98.98% of total loans granted.
inventory were noticed.
(iv) The Company has complied with the provisions of
(b) During the year, the Company has been sanctioned
Sections 185 and 186 of the Companies Act, 2013
working capital limit in excess of five crore
in respect of loans granted, investments made and
rupees, in aggregate, from Bank on the basis of
guarantees and securities provided, as applicable.
security of current assets. The quarterly returns or
statements filed by the Company with such banks (v) The Company has not accepted any deposits or amounts
are in agreement with the books of account of the which are deemed to be deposits from the public.
Company. Accordingly, clause 3(v) of the Order is not applicable to
the Company.

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(vi) The Central Government of India has not prescribed (ix) (a) According to the records of the Company
the maintenance of cost records under sub-section examined by us and the information and
(1) of section 148 of the Companies Act. Accordingly explanation given to us, the Company has not
the provisions under Clause 3(vi) of the order are not made any defaults in repayment of loans or other
applicable to the company. borrowings or in the payment of interest thereon
to any lender at the balance sheet date. The
(vii) In respect of Statutory Dues: Company does not have any loans or borrowings
(a) According to the information and explanations given to from Government. Further, the Company has not
us and on the basis of our examination of the records issued any debentures.
of the Company, in our opinion, the Company is (b) The Company has not been declared willful
generally regular in depositing the undisputed statutory defaulter by any bank or financial institution or
dues including provident fund, employees’ state government or any government authority.
insurance, income-tax, goods and services tax, duty of
customs, cess and other material statutory dues, as (c) The Company has taken Working capital term loan
applicable, with the appropriate authorities. during the year which was applied for the purpose
for which the loan was obtained.
There were no undisputed amounts payable in respect
of Goods and Service Tax, Provident Fund, Employees’ (d) On an overall examination of the financial
State Insurance, Income Tax, Goods and Service Tax, statements of the Company, funds raised on
Customs Duty, Cess and other material statutory dues short- term basis have, prima facie, not been used
in arrears as at March 31, 2023 for a period of more during the year for long-term purposes by the
than six months from the date they became payable. Company.

(b) According to the information and explanations given (e) On an overall examination of the financial
to us and the records of the Company examined by us, statements of the Company, the company has
there are no dues of income tax, sales tax, goods and not taken any funds from any entity or person
service tax, duty of customs, duty of excise or value on account of or to meet the obligations of its
added tax or cess which have not been deposited on subsidiaries.
account of any dispute. (f) According to the information and explanations
However, following are the dues which have not given to us and procedures performed by us, we
been deposited as on March 31, 2023 on account of report that the company has not raised loans
disputes: during the year on the pledge of securities held
in its subsidiaries, joint ventures or associate
Name Forum where Period Amount companies. Hence, the requirement to report on
of the dispute is to which (₹ in clause (ix)(f) of the Order is not applicable to the
Statute pending Amount Lakhs) Company.
relates
(x) (a) According to the information and explanations
Rajasthan Assistant FY 2017- 6,733.23 given to us and on the basis of our examination of
Value Commissioner, 2018 the records of the Company, the Company has not
Added Sales Tax raised any moneys by way of initial public offer or
Tax, 2003 further public offer (including debt instruments).
Accordingly, clause 3(x)(a) of the Order is not
Central Joint FY 2017- 27,048.00
applicable to the Company.
Goods and Commissioner 2018
Services of GST (b) According to the information and explanations
Tax Act, given to us and on the basis of our examination
2017 of the records of the Company, the Company has
Central Joint FY 2018- 293.57 not made any preferential allotment or private
Goods and Commissioner 2019 placement of shares or fully or partly convertible
Services of GST debentures during the year. Accordingly, clause
Tax Act, 3(x)(b) of the Order is not applicable to the
2017 Company.

(viii) According to the information and explanations (xi) (a) Based on the examination of the books and
given to us and on the basis of our examination of records of the Company and according to
the records of the Company, the Company has not the information and explanations given to us,
surrendered or disclosed any transactions, previously considering the principles of materiality outlined in
unrecorded as income in the books of account, in the Standards on Auditing, we report that no fraud by
tax assessments under the Income-tax Act, 1961 as the Company or on the Company has been noticed
income during the year. or reported during the course of the audit.

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(b) No report under sub-section (12) of Section 143 (xviii) There has been no resignation of the statutory auditors
of the Companies Act, 2013 has been filed by the during the year. Accordingly, clause 3 (xviii) of the Order
auditors in Form ADT-4 as prescribed under Rule is not applicable to the Company.
13 of Companies (Audit and Auditors) Rules, 2014 (xix) On the basis of the financial ratios, ageing and expected
with the Central Government. dates of realisation of financial assets and payment
(c) According to the information and explanations of financial liabilities, other information accompanying
given to us, the Company has not received any the financial statements and our knowledge of the
whistle blower complaint during the year. Board of Directors and Management plans and based
(xii) According to the information and explanations given to on our examination of the evidence supporting the
us, the Company is not a Nidhi Company. Accordingly, assumptions, nothing has come to our attention, which
clause 3(xii) of the Order is not applicable to the causes us to believe that any material uncertainty
Company. exists as on the date of the audit report indicating
that Company is not capable of meeting its liabilities
(xiii) In our opinion and according to the information and existing at the date of balance sheet as and when they
explanations given to us, the transactions with related fall due within a period of one year from the balance
parties are in compliance with Sections 177 and 188 sheet date.
of the Companies Act, 2013, where applicable, and
the details of the related party transactions have been However, this is not an assurance as to the future
disclosed in the standalone financial statements as viability of the Company. We further state that our
required by the applicable Indian Accounting Standards. reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor
(xiv) (a) In our opinion the Company has an adequate any assurance that all liabilities falling due within a
internal audit system commensurate with the size period of one year from the balance sheet date, will get
and the nature of its business. discharged by the Company as and when they fall due.
(b) We have considered the internal audit reports for (xx) (a) The provisions of sub-section (5) of Section 135
the year under audit, issued to the company during of the Companies Act 2013 in respect of “other
the year and till date, in determining the nature, than on-going projects” are not applicable to the
timing and extent of our audit procedures. company and hence, reporting under clause 3(xx)
(xv) In our opinion and according to the information and (a) of the Order is not applicable to the Company.
explanations given to us, the Company has not entered (b) The Company has transferred the amount of
into any non-cash transactions with its directors Corporate Social Responsibility remaining unspent
or persons connected to its directors and hence, under sub-section (6) of Section 135 of the Act in
provisions of Section 192 of the Companies Act, 2013 respect of “on-going projects” to a Fund specified
are not applicable to the Company. in Schedule VII to the Act. Details are as given
(xvi) (a) The Company is not required to be registered below:
under Section 45-IA of the Reserve Bank of
(₹ in Lakhs)
India Act, 1934. Accordingly, clause 3(xvi)(a) of the
Order is not applicable to the Company. Amount to Amount Amount transferred to
be spent in spent in Fund under Schedule
(b) The Company has not conducted any Non-
accordance accordance VII, within 6 months
Banking Financial or Housing Finance activities
with section with section from the end of the
without a valid Certificate of Registration (CoR)
135(6) 135(6) financial year (or
from the Reserve Bank of India as per the Reserve
till the date of audit
Bank of India Act, 1934 Accordingly, clause 3(xvi)
report, if that is earlier)
(b) of the Order is not applicable to the Company.
(a) (b) (c)
(c) The Company is not a Core Investment Company
(CIC) as defined in the regulations made by the 181.30 124.89 56.41
Reserve Bank of India. Accordingly, clause 3(xvi)(c)
of the Order is not applicable to the Company. For S. K. Patodia & Associates
(d) According to the information and explanations Chartered Accountants
provided to us during the course of audit, the Firm Registration Number: 112723W
Company does not have any CIC. Accordingly, the
requirements of clause 3(xvi)(d) are not applicable Dhiraj Lalpuria
to the Company. Partner
Membership Number: 146268
(xvii) According to the information and explanations given to
UDIN : 23146268BGVPSJ1482
us, and the records of the company examined by us, the
Company has not incurred cash losses in the current Place : Mumbai
and in the immediately preceding financial year. Date : May 30, 2023

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 VA K R A N G E E L I M I T E D Integrated Annual Report 22-23

Standalone Financial Statements

Annexure “B” to the Independent Auditor’s Report

(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory Requirements’
section of our report to the Members of VAKRANGEE LIMITED of even date)

Report on the Internal Financial Controls under under Section 143(10) of the Companies Act, 2013, to the
Clause (i) of Sub-section 3 of Section 143 of the extent applicable to an audit of internal financial controls,
Act both applicable to an audit of internal financial controls
and both issued by the ICAI. Those Standards and the
1. We have audited the internal financial controls over
Guidance Note require that we comply with the ethical
financial reporting of Vakrangee Limited (“the Company”)
requirements and plan and perform the audit to obtain
as of March 31, 2023 in conjunction with our audit of the
reasonable assurance about whether adequate internal
standalone financial statements of the Company for the
financial controls over financial reporting was established
year ended on that date.
and maintained and if such controls operated effectively in
Management’s Responsibility for Internal Financial all material respects.
Controls 4. Our audit involves performing procedures to obtain
2. The Company’s management is responsible for audit evidence about the adequacy of the internal
establishing and maintaining internal financial controls financial control system over financial reporting and their
based on internal control over financial reporting with operating effectiveness. Our audit of internal financial
reference to financial statements criteria established by controls over financial reporting included operating and
the Company considering the essential components of understanding of internal financial controls over financial
internal control stated in the Guidance Note on Audit of reporting, assessing the risk that a material weakness
Internal Financial Controls over Financial Reporting issued exist, and testing and evaluating the design and operating
by the Institute of Chartered Accountants of India (ICAI). effectiveness of internal control based on the assessed
These responsibilities include the design, implementation, risk. The procedures selected depend on the auditor’s
and maintenance of adequate internal financial controls judgment, including the assessment of the risk of material
which were operating effectively for ensuring the orderly misstatement of the financial statement, whether due to
and efficient conduct of its business, including adherence fraud or error.
to the respective company’s policies, the safeguarding 5. We believe that the audit evidence we have obtained is
of its assets, the prevention and detection of frauds and sufficient and appropriate to provide a basis for our audit
errors, the accuracy and completeness of the accounting opinion on the Company’s internal financial controls over
records, and the timely preparation of reliable financial financial reporting.
information, as required under the Act.
Meaning of Internal Financial Controls over Finan-
Auditor’s Responsibility cial Reporting with Reference to Financial State-
3. Our responsibility is to express an opinion on the ments
Company’s internal financial controls over financial 6. A company’s internal financial controls over financial
reporting with reference to financial statements based reporting with reference to financial statements is a
on our audit. We conducted our audit in accordance with process designed to provide reasonable assurance
the Guidance Note on Audit of Internal Financial Controls regarding the reliability of financial reporting and the
over Financial Reporting (the “Guidance Note”) issued preparation of financial statements for external purposes
by the Institute of Chartered Accountants of India (ICAI) in accordance with the Generally Accepted Accounting
and the Standards on Auditing deemed to be prescribed Principles. A company’s internal financial controls over

290
 CORPORATE OVERVIEW STRATEGY AND PERFORMANCE PERFORMANCE OF CAPITALS STATUTORY REPORTS FINANCIAL STATEMENTS

financial reporting with reference to financial statements that the internal financial controls over financial reporting
includes those policies and procedures that : with reference to financial statements may become
inadequate because of the changes in conditions, or that
i. pertain to the maintenance of records that, in
the degree of compliance with the policies or procedures
reasonable details, accurately and fairly reflect the
may deteriorate.
transaction and dispositions of the assets of the
company;
Opinion
ii. provide reasonable assurance that transactions In our opinion, the company, in all material respect, an
are recorded as necessary to permit preparation of adequate internal financial control system over financial
financial statements in accordance with the generally reporting with reference to financial statements and such
accepted accounting principles, and that receipts and internal financial controls over financial reporting with
expenditures of the company are being made only in reference to financial statements were operating effectively
accordance with authorizations of management and as at March 31, 2023, based on the internal control over
directors of the company; and financial reporting with reference to financial statements
iii. Provide reasonable assurance regarding prevention or criteria established by the Company considering the essential
timely detection of unauthorized acquisition, use, or components of internal control stated in the Guidance Note on
dispositions of the company’s assets that could have Audit of Internal Financial Controls Over Financial Reporting
a material effect on the financial statements. issued by the Institute of Chartered Accountants of India.
For S. K. Patodia & Associates
Inherent Limitations of Internal Financial Controls Chartered Accountants
over Financial Reporting Firm Registration Number: 112723W
7. Because of the inherent limitations of internal financial
controls over financial reporting with reference to financial Dhiraj Lalpuria
statements, including the possibility of collusion or Partner
improper management override of controls, material Membership No. : 146268
misstatements due to error or fraud may occur and not be UDIN : 23146268BGVPSJ1482
detected. Also, projections of any evaluation of the internal
financial controls over financial reporting with reference to Place : Mumbai
financial statements to future period are subject to the risk Date : May 30, 2023

291