We have audited the accompanying Financial Statements of Advance Lifestyles Limited ("the
Company"), which comprise the Balance Sheet as at 31st March, 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 the Financial Statements, including a
summary of material accounting policies and other explanatory information (herein after referred to
as "the Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Financial Statements give the information required by the Companies Act 2013 (herein after
referred to as "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 (herein after referred as "the Ind AS") and
other accounting principles generally accepted in India, of the state of affairs of the Company as at
31st March, 2025 and its profit, total comprehensive income, changes in equity and its cash flows for
the year ended on that date.
Basis of Our Opinion
We conducted our audit of Financial Statements in accordance with the Standard on Auditing (herein
after referred to as "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 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 (herein after referred as "ICAI")
together with ethical requirements that are relevant to our audit of Financial Statements under the
provisions of the Act and Rules made thereunder, and we have fulfilled our 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the 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 separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated
in our report.
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Sr. No.
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Key Audit Matter
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Auditor's Response
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1.
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Liability towards the Employees:
The company has recognized liabilities
toward the employees, including provisions
for benefits such as Gratuity, Retrenchment
Compensation, and others. Management's
estimation of these liabilities involves
significant judgments and assumptions,
particularly regarding the measurement of
future cash outflows, discount rates, and
demographic factors. The liability toward the
employees constitutes a substantial portion
of the company's obligations and is inherently
complex due to the long-term nature of
employee benefit arrangements and the
uncertainty surrounding future events. The
measurement of such liabilities involves
inherent subjectivity, and the outcomes are
sensitive to changes in key assumptions.
Moreover, given the lack of definitive
measures and reliance on management's
judgments and estimates, it needs to be
tested appropriately and should also conform
to Ind AS covenants. It is therefore key audit
matter. Refer Note Nos. 17, 34 & 35.
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The audit procedures adopted to test
the judgements of the management, the
appropriateness of historical data for
quantification and application of Ind AS
covenants are:
• Review of past practices supported by
factual evidence that the company's
previous actions have given rise to
expectations in the market leading to a
constructive/legal obligation as of the
date of the balance sheet
• Review of relevant documents that
support the management Judgement
that an obligation exists and that will
entail the outflow of the company's
economic resources
• Assessment of past practices and
historical data as being eligible to form
the basis for the provision/ accounting
estimates
• Assessment of adequacy of disclosures
made and compliance with Ind AS
covenants. Our review of the provisions
created by the company does not reveal
any material discrepancy in the
provisioning as well as their
quantification.
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2.
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Liability towards the Borrowings:
As of March 31st, 2025, the Company's
current financial liabilities encompass
unsecured borrowings from two entities,
totaling Rs. 462.69 Lakhs (compared to Rs.
462.69 Lakhs as of March 31st, 2024).
Notably, confirmations/ statements from
these entities have not been received due to
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In response to this matter, we have
performed alternative audit procedures
to gather sufficient appropriate audit
evidence to address the risks associated
with these borrowings. These procedure
include, but are not limited to:
• Evaluation of Internal Controls:
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their current involvement in the Corporate
Insolvency Resolution Process (CIRP). These
liabilities have remained outstanding for a
considerable period. Consequently, we
cannot provide any comment on any
necessary adjustments to the carrying value
of these balances and any potential impact on
the accompanying financial results.
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We have assessed the effectiveness of
the Company's internal controls over
the recording and measurement of
these liabilities, including procedures
related to monitoring and evaluating the
financial health of the entities.
• Review of Events Subsequent to the
Reporting Period:
We have considered events occurring
after the reporting period, including any
developments in the CIRP process, to
determine the appropriateness of the
carrying value of these balances as of
the reporting date.
Despite these procedures, due to the
inherent limitations associated with the
absence of external confirmations and
the uncertainty surrounding the
payment of the borrowings, we are
unable to assure the accuracy and
completeness of the carrying value of
these liabilities and any potential impact
on the accompanying financial results.
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3.
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Contingent Liabilities:
Contingent Liabilities are for ongoing
litigations and claims before various
authorities and third parties. These relate to
indirect tax and claims not acknowledge as
debt. Contingent liabilities are considered as
key audit matters as the amount involved is
significant and it also involves significant
management judgement to determine
possible outcome and future cash outflows of
these disputes.
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In the course of performing our audit
procedure in relation to this matter, we:
• Obtained details of disputed claims
from the management as on March 31,
2025.
• Discussed with the management about
the significant judgment considered in
determining possible outcome and
future cash outflows of these disputes.
• Verified relevant documents related to
the disputes.
• Evaluated the appropriateness of the
accounting policies, related disclosure
made and overall presentation in the
Standalone Financial Statements in
terms of Ind AS 37.
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Information Other than the Financial Statements and Auditor's Report
Thereon
The Company's Board of Directors are responsible for the preparation of the other information. The
other information comprises the information included in the Management Discussion and Analysis,
Board's Report, Business Responsibility and Sustainability Report, Corporate Governance and
Shareholder's Information, but does not include the Financial Statements, Consolidated Financial
Statements and our auditors' report thereon.
Our opinion on the 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 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.
Responsibilities of Management and Those Charged with Governance for the
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 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 Indian Accounting Standards (Ind AS) specified under
the Section 133 of the Act 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 Financial Statements that give 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.
The Board of Directors is also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 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 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 financial controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act,
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 ability of the Company 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 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 financial statements, including
the disclosures, and whether the 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 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. A. 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.
b) In our opinion, 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, the Statement of profit and loss including Other Comprehensive Income,
Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are
in agreement with the books of account.
d) In our opinion, the aforesaid Financial Statements comply with the Ind AS specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2025,
taken on record by the Board of Directors, none of the directors is disqualified as on 31st
March, 2025, 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 the financial reporting of
the Company and the operating effectiveness of such controls, refer to our separate Report
in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company's internal financial control over with reference to the Financial
Statements of the Company.
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 information 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 read with Schedule V 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, 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 litigation on its Financial Statement. Refer
Note - 30 to the Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses.
iii. During the year, there were no amounts which are required to be transferred, to the Investor's
Education and Protection Fund by the company.
iv. i) 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:
• directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Holding
Company or its subsidiary companies incorporated in India or
• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
ii) 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 to or any other person or entity, including foreign entities ("Funding Parties"), with
the understanding, whether recorded in writing or otherwise, that the Company shall:
• directly or indirectly, lend or invest in other person or entities identified in any manner
whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or
• provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries
iii) Based on such audit procedures as 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 or its holding company has not declared and paid any dividend during the year.
vi. Based on our examination which included test checks, the company has used accounting
software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Further, during the course of our audit we did not come across any
instance of audit trail feature being tampered with. The audit trail has been preserved by the
Company as per the statutory requirements for record retention
2. 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 Act, we give in
the "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
For Piyush J. Shah & Co.
Chartered Accountants
FRN: 121172W
Viral R. Sanghvi
Partner
M. No: 191046
UDIN: 25191046BMHXFG5741
Place: Ahmedabad
Date: 27th May, 2025
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