We have audited the accompanying standalone financial statements of MAYUKH DEALTRADE LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March 2024, 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 a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone 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") and other accounting principles generally accepted in India, of the state of affairs of the Company as
at 31st March 2024, 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 of the standalone financial statements in accordance with the Standards on Auditing
specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described
in the Auditor's Responsibilities for the Audit of the Standalone 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 independence requirements that are relevant to our audit of the
standalone 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 audit
opinion on the standalone 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 standalone financial statements of the current period. These matters were addressed in the context of our
audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not
provide a 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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Adoption of new accounting framework (md
AS) Effective 1st April 2017, the Company
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? Our key audit procedures included:
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adopted the Indian Accounting Standards ('md
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? Design / controls
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AS") notified by the Ministry of Corporate
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? We have also confirmed the approvals
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Affairs with the transition date of 1st April 2016.
The following are the major impact areas for the
Company upon transition:
> Classification and measurement of
financial assets and financial liabilities.
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of Audit Committee for the choices
and exemptions made by the
Company for
compliance/acceptability under IND
AS 101.
? Substantive Tests
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> Measurement of loan losses (expected
credit losses)
> Business combinations
> Accounting for securitization and
assignment.
> Accounting for loan fees and costs
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• Valuated management's
transition date choices and
exemptions for
compliance/acceptability
under md AS 101.
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> Accounting for employee stock options
The migration to the new accounting
framework (Ind AS) is a complicated process
involving multiple decision points upon
transition. Ind AS 101, Adoption prescribes
choices and exemptions for application of Ind
AS principles at the transition date.
We identified transition date accounting as a
key audit matter because of significant degree
of management judgment and application on
the areas noted above.
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• Understood, the methodology
implemented by management
to give impact on the
transition.
• Assessed the accuracy of the
computations.
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Subjective Estimate
Recognition and measurement of impairment of
loans and advances involve significant
management Evaluation of the appropriateness
of the judgment.
With the applicability of md AS 109 credit loss
assessment is now based on expected credit loss
(ECL) model. The Company's impairment
allowance is derived from estimates including
the historical default and loss ratios.
Management exercises judgment in determining
the quantum of loss based on a range of factors.
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Our audit procedures included:
Design / controls
• Evaluation of the appropriateness of the
impairment principles based on the
requirements of md AS 109.
• Assessing the design and implementation
of key internal financial controls over loan
impairment process used to calculate the
impairment charge.
• We used our modelling specialist to test
the model methodology and
reasonableness of assumptions used.
• Testing of management review controls
over measurement of; impairment
allowances and disclosures in financial
statements.
Substantive tests
• We focus on appropriate application of
accounting principles, validating
completeness and accuracy of the data and
reasonableness of assumptions used in the
model
• Test of details over of calculation of
impairment allowance for assessing the
completeness, accuracy and relevance of
data.
• Model calculations were tested through re¬
performance where possible.
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IT Systems and Controls
The Company's key financial accounting and
reporting processes are highly dependent on the
automated controls in information systems,
such that there exists a risk that gaps in the IT
control environment could result in the
financial accounting and reporting records
being materially misstated. The Company
primarily uses three systems for it overall
financial reporting.
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Our audit procedures to assess the IT system
access management included the following:
General IT Controls / User Access Management
• We tested a sample of key controls
operating over the information technology
in relation to financial accounting and
reporting systems, including system access
and system change management, program
development and computer operations.
• We tested the design and operating
effectiveness of key controls over user
access management which includes
granting access right, new user creation
removal of user rights and preventative
controls designed to enforce segregation of
duties.
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• Evaluating the design, implementation and
operating effectiveness of the significant
accounts related IT automated controls
which are relevant to the accuracy of
system calculation, and the consistency of
data transmission.
• Other areas that were independently
assessed included password policies
system configurations, system interface
controls, controls over changes to
applications and databases and that
business users, developers and production
support did not have access to change
applications, the operating system or
databases in the production environment.
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Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board's Report
including Annexures to Board's Report, Business Responsibility Report, Corporate Governance and
Shareholder's Information, but does not include the standalone financial statements and our auditor's 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
standalone financial statements or our knowledge obtained during the course of our 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.
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 Act with respect
to the preparation of these standalone 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 standalone financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the standalone 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 are 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:
? 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.
? 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 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.
? 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.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the 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 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 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.
Report on Other Legal and Regulatory Requirements
1. 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, the statement of cash flows and the statement of
changes in equity dealt with by this Report are in agreement with the books of account;
D. In our opinion, the aforesaid standalone 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 2024 taken
on record by the Board of Directors, none of the directors is disqualified as on 31st March 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
A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Company's internal financial controls over financial reporting.
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:
H. 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.
I. 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 in its
standalone Ind AS financial statements;
ii. the Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts;
iii. There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central
Government of India in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the
matters specified in paragraphs 3 and 4 of the Order
For S S R V & Associates
Chartered Accountants
Firm Reg. No.: 135901W
Sd/-
Rakesh Agarwal
Partner
Membership No: 129593
Place: Mumbai
Date: 30th May, 2024
UDIN: 24129593BKAFCX1633
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