We have audited the Financial Statements of KIFS FINANCIAL SERVICES LIMITED ("the Company"), which
comprise the Balance Sheet as at 31st March 2025, the Statement of Profit and Loss (including Other
Comprehensive Income) 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, the aforesaid
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 March 31,
2025, the Profit and total comprehensive income 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 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 Act and the Rules 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 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 period. 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. We have no key audit matter to communicate in our report.
Information other than the 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 Financial Statements and our auditor's 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.
Management's responsibility 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 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 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 are 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 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 Standards of Auditing (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 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 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. 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;
(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 and the
statement of cash flow dealt with by this report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the AS specified under section 133 of the
Act;
(e) 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;
(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". 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 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 does not have any pending litigations which would impact its financial position;
II. The company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses; and
III. During the financial year under report i.e. 2024-25, the company has duly transferred ? 1,73,903/-,
the unclaimed and unpaid dividend amount for the financial year 2016-17 to the investor education
and protection fund.
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 Or entity, including foreign entity (“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 provide under (a) and (b) above,
contain any material misstatement.
V. (a) The final dividend proposed in the previous year, declared and paid by the Company during the
year is in accordance with Section 123 of the Act, as applicable.
(b) The Company has not declared and paid any interim dividend during the year and until the date
of this report.
(c) The Board of Directors of the Company have proposed final dividend for the year, which is
subject to approval of the member at the ensuing Annual General Meeting. The amount of dividend
proposed in accordance with Section 123 of the act as applicable.
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.
However, we are unable to comment that the audit trail facility has been operated throughout the
year for all relevant transactions recorded in the software. Accordingly the question of our
commenting on whether the audit trail was tampered with does not arise.
VII. The Company has paid/provided for managerial remuneration in accordance with the requisite
approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
For Bimal Shah Associates,
Chartered accountants
FRN: 101505W
Bimal A. Shah
(Proprietor)
Membership no.: 042372
Ahmedabad, May 21, 2025
UDIN: 25042372BMORBD5263
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