We have audited the accompanying Standalone Financial
Statements of Arman Financial Services Limited (“the
Company"), which comprise the Standalone Balance Sheet
as at March 31 2025, the Standalone Statement of Profit and
Loss (including other Comprehensive Income), the Standalone
Statement of Changes in Equity and the Standalone
Statement of Cash flows for the year then ended, and notes
to the Standalone Financial Statements, including a summary
of Material accounting policies and other explanatory
information (herein after referred to as “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 (“Act") in the manner so required and
give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs
of the Company as at March 31 2025, and its profit including
other comprehensive income, 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
(SAs) specified under section 143(10) of the Companies Act
2013. Our responsibilities under those Standards are further
described in the Auditor's Responsibility 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 (ICAI) 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
made there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence
obtained by us 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.
Key audit matters identified in our audit is in respect of Provision for Expected Credit Losses on loans as follows: Provision
for Expected Credit Losses on loans [Refer Para 3.6 for the accounting policy and Note 3 for the related disclosures]:
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Key Audit Matter
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As at March 31, 2025 the Company has Net financial assets
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Our audit procedures in relation to expected credit losses
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(loans) amounting to 55,272.33 Lakhs. As per Ind AS 109-
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were focused on obtaining sufficient appropriate audit
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Financial Instruments, the Company is required to recognize
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evidence as to whether the expected credit losses recognized
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allowance for expected credit losses on financial assets.
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in the standalone financial statements were reasonable and
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Under Ind-AS framework, the management had to estimate
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the related disclosures in the standalone financial statements
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the provision for expected credit losses as at March 31,2025.
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made by the management were adequate. These procedures
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Expected credit loss cannot be measured precisely, but can
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included, but not limited, to the following:
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only be estimated through use of statistics. The calculation
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a) obtaining an understanding of the model adopted by
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of expected credit losses is complex and requires exercise
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the Company for calculation of expected credit losses
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of judgment around both the timing of recognition of
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including how management calculated the expected
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impairment provisions and estimation of the amount of
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credit losses and the appropriateness data on which the
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provisions required in relation to loss events. The broader
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calculation is based;
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macroeconomic situation, including inflation rates, interest
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b) testing the accuracy of inputs through substantive
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rates, and overall economic growth, has influenced
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procedures and assessing the reasonableness of the
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the change in the estimation of expected creditlosses.
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assumptions used;
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Uncertainties in economic conditions and market volatility
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compared to previous years have led the management to
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c) developing a point estimate by making reference to the
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increase the provision by 1071.57 Lakhs for the year ended
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expected credit losses recognized by entities that carry
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March 31, 2025. Considering the significance of the above
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comparable financial assets;
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matter to the standalone financial statements and the
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d) testing the arithmetical calculation of the expected
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substantial judgment involved in the calculation of expected
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credit losses;
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credit losses, we have identified this as a key audit matter for
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e) verifying the adequacy of the related disclosures; and
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the current year audit.
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f) Obtaining written representations from management
whether they believe significant assumptions used in
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OTHER INFORMATION
The Company's Board of Directors are responsible for the
preparation of other information. The other information
comprises the information included in the Management
Discussion and Analysis, Board's Report including Annexures
to Board's Report, Corporate Governance and Shareholder's
Information and other information in the Company's annual
report, 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 will 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.
RESPONSIBILITIES OF THE MANAGEMENT AND THOSE
CHARGED WITH GOVERNANCE FOR THE STANDALONE
FINANCIAL STATEMENTS
The Company's Board of Directors are 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 (Ind AS) specified under
section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for 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 give a true and
fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the Standalone financial statements, the 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 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
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, specified under
section 143(10) 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 control 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 economic decisions of a
reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in planning the scope of
our audit work and in evaluating the results of our work; and
to evaluate the effect of any identified misstatements in the
standalone 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 year 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
(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 (d) (i) and
(d) (ii) contain any material mis-statement.
e) The Company has not declared or paid any
Dividend during the year as prescribed under
Section 123 of the Companies Act, 2013.
f) Based on our examination which included test
checks, the company has used an accounting
software for maintaining its books of account
which has a feature of recording audit trail (edit
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 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) 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 accompanying
Standalone Financial Statements.
b) In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
Standalone Financial Statements have been kept
by the Company so far as it appears from our
examination of those books.
c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (Including other
Comprehensive Income), Standalone Statement of
changes in Equity and the Standalone Statement
of Cash Flows 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 Companies (Indian
Accounting Standards) Rules, 2015 as amended;
e) On the basis of the written representations received
from the directors as on 31 March, 2025 taken
on record by the Board of Directors, none of the
directors is disqualified as on 31 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 with reference to Standalone
Financial Statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in “Annexure B"; and
3. 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:
a) The Company has disclosed the impact of pending
litigations as at 31st March, 2025 on its financial
position in its Standalone Financial Statements
- Refer Note 31 to the Standalone financial
statements.
b) The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses.
c) There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company.
d) (i) The management has represented that,
to the best of its knowledge and belief, no
funds 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
persons or entities, including foreign entities
(“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
Company 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
have been received by the Company from any
persons or entities, 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 persons or entities identified in
any manner whatsoever (“Ultimate
Beneficiaries") by or on behalf of the
Funding Party or
• provide any guarantee, security or the
like from or on behalf of the Ultimate
Beneficiaries; and
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. Additionally, the
audit trail has been preserved by the company as
per the statutory requirements for record retention.
4. With respect to the matter to be included in the Auditor's
Report under Section 197(16) of the Act:
In our opinion and according to the information and
explanations given to us, the remuneration paid by the
Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act
and is not in excess of the limit laid down therein.
For, Laxminiwas & Co.
Chartered Accountants
FRN: 011168S
Guharoy Ashish Kumar
Partner
Place: Hyderabad Mem. No. 018659
Date: 29/05/2025 UDIN: 25018659BMOBIK1831
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