We have audited the accompanying Ind AS financial statements of APOLLO FINVEST (INDIA) LIMITED (“the
Company”) which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash
Flows for the year ended on that date, and notes to financial statements, including a summary of material
accounting policies.
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Ind AS financial statements give the information required by the Companies Act, 2013 (“the Act”)
in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended, (“Ind AS”), the relevant circulars, guidelines and directions issued by the Reserve Bank
of India (“RBI”) from time to time (“RBI Guidelines”) and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2025 and the profit and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Ind AS 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 (ICAI) together with the ethical requirements that are relevant to our audit of the Ind AS financial
statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate 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, were of most significance in our
audit of the Ind AS financial statements of the current period. These matters were addressed in the context
of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
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Sr. No
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Key Audit Matter
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How was the matter addressed in our audit
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1
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Accuracy in identification and
categorization of loans and advances
receivable from financing activities
as performing and non performing
assets and in ensuring appropriate
asset classification, existence
of security, income recognition,
provisioning/ write off thereof
and completeness of disclosure
including compliance in accordance
with the applicable extant guidelines
issued by Reserve Bank of India (RBI).
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We have assessed the systems and processes laid
down by the Company to appropriately identify
and classify the loans and advances receivables
from financing activities including those in
place to ensure correct classification, income
recognition and provisioning/write off including
of Non-performing assets as per applicable RBI
guidelines.
The audit approach included testing the existence
and effectiveness of the control environment
laid down by the management and conducting
of substantive verification on selected sample
transactions in accordance with the principles
laid down in the Standards on Auditing and
other guidance issued by Institute of Chartered
Accountants of India.
Agreements entered into regarding significant
transactions including related to loans have been
examined to ensure compliance.
Compliance with material disclosure requirements
prescribed by RBI guidelines and other statutory
requirements has been verified.
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2
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Impairment of financial assets
(expected credit loss) (as described
in note 2.3(f)(i) and 41 of the Ind AS
financial statements)
Ind AS 109 requires the Company
to recognise impairment loss
allowance towards its financial
assets (designated at amortised
cost and fair value through other
comprehensive income) using the
expected credit loss (ECL) approach.
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• We read and assessed the Company’s
accounting policies for impairment of financial
assets and their compliance with Ind AS 109.
• We evaluated the stage classification as of the
balance sheet date according to the Company’s
definition of default and the circulars issued by
the Reserve Bank of India over time.
• We tested the criteria for staging of loans based
on their past-due status to check compliance
with requirement of Ind AS 109. Tested a sample
of performing (stage 1) loans to assess whether
any loss indicators were present requiring them
to be classified under stage 2 or 3 and vice versa.
• We evaluated the reasonableness of the
Management estimates by understanding the
process of ECL estimation and tested the controls
around data extraction and validation.
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Sr. No
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Key Audit Matter
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How was the matter addressed in our audit
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Such ECL allowance is required to be
measured considering the guiding
principles of Ind AS 109 including:
• Unbiased, probability
weighted outcome under
various scenarios;
• Time value of money;
• Impact arising from forward
looking macro-economic
factors and;
• Availability of reasonable
and supportable information
without undue costs.
Applying these principles involves
significant estimation in various
aspects, such as:
• Grouping of borrowers
based on homogeneity by
using appropriate statistical
techniques;
• Staging of loans and
estimation of behavioral life;
• Determining macro-economic
factors impacting credit
quality of receivables;
• Estimation of losses for loan
products with no/minimal
historical defaults.
Considering the significance of such
allowance to the overall financial
statements and the degree of
estimation involved in computation
of expected credit losses, this area is
considered as a key audit matter.
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• Tested the ECL model, including assumptions
and underlying Computation
• Assessed the floor/minimum rates of provisioning
applied by the Company for loan products with
inadequate historical defaults.
Audited disclosures included in the Ind AS financial
statements in respect of expected credit losses.
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Other information
The Company’s Board of Directors is responsible for the other information. The other information comprises
the Management Discussion and Analysis, Directors’ Report including Annexures to Directors’ Report and
Corporate Governance, but does not include the Ind AS financial statements and our auditor’s report
thereon. The above stated reports are expected to be made available to us after the date of this auditor’s
report.
Our opinion on the Ind AS financial statements does not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other
information is materially inconsistent with the Ind AS financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Ind AS
Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, changes in equity and cash flows of the
Company in accordance with the Ind AS and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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 Ind AS financial statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, Management or Board of Directors 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 or Board of Directors
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Ind AS 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.
• 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 adequate internal financial
controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• 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 Ind AS 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.
• Evaluate the overall presentation, structure and content of the Ind AS financial statements, including
the disclosures, and whether the Ind AS financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Ind AS financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Ind
AS financial statements may be influenced. We consider quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the Ind AS financial statements.
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 Ind AS 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in
the “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. 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 of the aforesaid Ind AS financial statements.
b. In our opinion, proper books of account as required by law relating to preparation of the aforesaid Ind
AS financial statements have been kept by the Company so far as it appears from our examination
of those books except for the matters stated in paragraph 2(j)(vi) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules, 2014.
c. The Company does not have any branches. Hence, the provisions of section 143(3)(c) is not applicable.
d. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the
Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in
agreement with the books of account.
e. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
f. In our opinion, there are no financial transactions or matters which have any adverse effect on the
functioning of the Company.
g. On the basis of the written representations received from the directors as on March 31, 2025 taken
on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from
being appointed as a director in terms of Section 164 (2) of the Act.
h. The modification relating to the maintenance of accounts and other matters connected therewith
are as stated in the paragraph 2(b) above on reporting under Section 143(3)(b) and paragraph 2(j)(vi)
below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
i. With respect to adequacy of internal financial controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our separate report in “Annexure B”
j. In our opinion and to the best of our information and according to the explanations given to us,
we report as under 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, in our opinion and to the
best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position as referred
to Note 39(B) to the Ind AS financial statement.
ii. The Company did not have any long-term contracts including derivative contracts; as such the
question of commenting on any material foreseeable losses thereon does not arise.
iii. There has been no delay in transferring amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no
funds(which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person or entity, including foreign entity
(“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 Management has represented, that, to the best of its knowledge and belief, no funds (which
are material either individually or in the aggregate) have been received by the Company from any
person orentity,including foreign entity (“Funding Parties”),with the understanding, whetherrecorded
in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other
persons orentities identified in any mannerwhatsoeverby oron 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. As stated in Note 21(viii) to the Ind AS financial statements, The Company has not proposed,
declared or paid any dividend during the year and hence compliance with section 123 of the Act
is not applicable for the year.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account
using accounting software which has a feature of recording audit trail (edit log) facility is applicable
to the Company with effect from April 1, 2023, and accordingly, the reporting under Rule 11(g) of
Companies (Audit and Auditors) Rule, 2014 is applicable from April 1, 2023.
Based on our examination which included test checks, the company, has used accounting
software for maintaining its books of account for the financial year ended March 31, 2025, which
has a feature of recording audit trail (edit log) facility. It was not enabled for the period April 1,
2024 to September 15, 2024 and the same has been operated from September 16, 2024.
Further, during the course of our audit, we did not come across any instance of audit trail feature
being tampered with and the audit trail has been preserved by the company as per the statutory
requirements for record retention.
3. 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.
For GMJ & Co
Chartered Accountants
(FRN: 103429W)
CA Amit Maheshwari
Partner
Place : Mumbai M. No.: 428706
Date : May 23, 2025 UDIN: 254287 06BMIO YP9686
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