We have audited the accompanying standalone financial statements of ESQUIRE MONEY
GUARANTEES LIMITED (“the Company”), which comprises of the Balance Sheet as at March
31, 2024, the Statement of Profit and Loss, Statement of changes in equity, and Statement of Cash
Flows for the year then ended, and notes to the Financial Statements, including a summary of
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us,
except for the possible effects of the matters described in the basis for qualified opinion paragraph
of our report the aforesaid standalone financial statements give the information required by the Act,
in the manner so required and give a true and fair view in conformity with the Indian Accounting
Standards prescribe under section 133 of the Act read with the Companies (Indian Accounting
Standard) Rules 2015 as amended (Ind AS) with the accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2024, and Loss, changes in equity and
its cash flows for the year ended on that date.
Basis for Qualified Opinion
We draw attention to the matters described in the “Basis for Qualified Opinion” paragraph of the
audit report on Standalone Financial Statements of the company audited by us. These matters in so
far as it relates to the amounts and disclosures included in respect of the company are included in
“Annexure-1”which forms an integral part of our report the effects of which are not ascertainable
on the financial statements that constituted the basis for modifying our opinion. Our opinion on the
Standalone Financial Statements is qualified in respect of the matters referred to in “Annexure-1” to
this report, to the extent applicable.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
Section 143 (10) of the Companies Act, 2013. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Companies Act, 2013 and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our qualified opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the standalone financial statements of the current year. These matters were addressed in
the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters except for the matters described in basis
for qualified opinion section.
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position, financial performance, changes in
equity and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards specified under Section 133 of the
Act. This responsibility also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for the safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent and design,
implementation, and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that gives a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern,
and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements
as a whole are free from material misstatement, whether due to fraud or error and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is
not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these standalone financial statements. As part of
an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit.
We also:
a) Identify and assess the risks of material misstatement of the standalone financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
b) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has an adequate internal financial controls system in place and the operating
effectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
d) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
e) Evaluate the overall presentation, structure, and content of the standalone financial statements,
including the disclosures, and whether the standalone financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the standalone financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Information other than the financial statements and Auditors’ report thereon
The Company’s Board of Directors is responsible for the other information. The other information
comprises the Board’s Report (including annexures thereto), Management Discussion and Analysis
and Report on Corporate Governance (collectively referred to as 'other information') but does not
include the standalone financial statements, and our auditors’ report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
1. As required by the Companies (Auditor’s Report) Order, 2020 issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act, we give in
“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a. Except for the matters described in the “Basis for Qualified Opinion” paragraph we have
sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit.
b. In our opinion and except for the matters described in the “Basis for Qualified Opinion”
paragraph, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books.
c. The Balance Sheet, Statement of Profit and Loss, Statement of changes in equity, and the
Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d. Except for the matters described in the “Basis for Qualified Opinion” paragraph in our
opinion, the aforesaid standalone financial statements comply with the Indian Accounting
Standards specified under Section 133 of the Act.
e. On the basis of written representations received from the Directors as on March 31, 2024, and
taken on record by the Board of Directors, none of the directors is disqualified as on March
31, 2024, from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure B”.
g. With respect to the other matters to be included in the Auditor’s Report in accordance with
the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to
us, the remuneration paid by the Company to its directors during the year is in accordance
with the provisions of section 197 of the Act.
h. With respect to the other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014 as amended, in our opinion and
to the best of our information and according to the explanations given to us:
(i) Except for the effects described in the “Basis for Qualified Opinion” the Company
does not have any pending litigations which would impact its financial position.
(ii) In our opinion and as per the information and explanations provided to us, the
Company has not entered into any long-term contracts including derivative contracts,
requiring provision under applicable laws or accounting standards, for material
foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.
(iv) a. The company has not advanced any funds to or in any other persons or entities,
including foreign entities (“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b. The company has not received any funds from any persons or entities, including
foreign entities (“Funding Parties”) with the understanding, whether recorded in
writing or otherwise, that the company shall, whether, directly or indirectly, lend
or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
c. Based on the audit procedures that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us
to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain any material misstatement.
(v) The company has not declared or paid any dividend during the year.
(As referred to in “Basis for Qualified Opinion” paragraph of our audit report of even date to the
members of Esquire Money Guarantees Limited for the year ended 31st March, 2024)
Bases on our audit on the consideration of our report of the company, we report that :
1. Trade Receivable (Note: 7), Other Current Assets (Note: 9) have been classified as current
assets includes balance which are outstanding for realization/settlement since previous several
years and in the absence of adequate information/explanations regarding the realization settlement
of such amounts within twelve months after the year and reasons for not classifying then as non¬
current asset is inconsistent with IND AS-1 “Presentation of Financial Statement.” This has
resulted in over statement of respective current assets and under statement of the corresponding
non-current assets.
2. Assessment of Impairment of Assets has not been done by the Company which is
inconsistent with IND AS-36 “Impairment of Assets.”
3. Trade Receivable (Note: 7), Other Current Assets (Note: 9), Other Non-Current Assets
(Note: 5) are subject to confirmation.
4. The Financial Assets, Other Current Assets (Note: 9) has not been measured at fair value as
required by IND AS-109 “Financial Instruments” and proper disclosures as required in IND AS
107 “Financial Statements Disclosures” has not been done for the same.
5. As per IND AS-12 “Income Taxes” the recognition of deferred tax assets arising from
unused tax losses and unused tax credits vis a vis deferred Tax liabilities the presentation of
income taxes in the financial statements and the disclosure of information relating to income
taxes. The Company has not provided for deferred tax liability/ created deferred tax asset which is
inconsistent with the material accounting policy of the Company.
For want of complete information on the cumulative impact of our observations in para 1 to 5
above to this report on assets, liabilities, income and expenditure is not ascertained.
For Rajesh U Shah & Associates.
Chartered Accountants
Firm Regn.No.: 327799E
Place : Kolkata
Dated : 30/05/2024 Sd/-
Rajesh Shah
(Proprietor)
Membership No : 056550
UDIN: 24056550BJZZBA7338
| 