We have audited the accompanying standalone financial statements of Arunis Abode Limited ("the Company"), which
comprise the balance sheet as at 31st March 2025, and the statement of profit and loss (including other comprehensive
income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the
standalone financial statements, including a summary of the 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 ("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 31st March 2025, and loss and other comprehensive loss, 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 SAs 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.
1. Assessment of Going Concern Assumption
Description of Key Audit Matter:
During the year, the Company did not earn any revenue from its real-estate consultancy business activity. Further,
pursuant to a change in majority shareholding, the management has initiated a process to dispose of majority
of assets and liabilities of the Company as part of internal agreements with the new stakeholders. These
developments give rise to significant uncertainty about the Company's ability to continue as a going concern.
Accordingly, assessing the appropriateness of the going concern assumption used in the preparation of the
financial statements required significant auditor attention.
How the matter was addressed in our audit:
• Reviewed Board resolutions and correspondence regarding the management's restructuring and disposal
plans.
• Examined the Company's liquidity position and cash flow projections.
• Evaluated the classification and measurement of assets and liabilities under Ind AS.
• Assessed the adequacy of disclosures relating to going concern in Note 27 to the financial statements.
2. Recognition and Valuation of Inter-Corporate Deposits (ICDs)
Description of Key Audit Matter:
As part of treasury operations during the transition period, the Company invested surplus funds arising from the
sale of assets into short-term Inter-Corporate Deposits (ICDs). The recognition and valuation of these financial
assets require significant judgment with respect to the creditworthiness of counterparties, recoverability, and
measurement under Ind AS 109 - Financial Instruments. This was considered a key audit matter due to the
materiality of these investments and the inherent risks associated with such transactions.
How the matter was addressed in our audit:
• Obtained and verified ICD agreements and reviewed counterparties' financial health.
• Tested recoverability, including interest income recognition and impairment analysis under the Expected
Credit Loss (ECL) model.
• Evaluated compliance with Ind AS 109 and adequacy of related disclosures in Note [Y] to the financial
statements.
Emphasis of matter
We draw attention to Note 27 to the financial statements which explain the fact that major shareholder and existing
promoter of the Company executed a Share Purchase Agreement whereby he has sold his entire holding. As per a
mutual understanding between the outgoing and incoming management, the existing investments and properties of
the Company are being liquidated prior to full transfer of control. Pending deployment of such funds, the Company
has temporarily placed surplus proceeds in the form of inter-corporate deposits (ICDs) with select entities to optimize
returns.
The outgoing management believes that the thresholds of 'net-owned funds' as defined under section 45-IA of the
Reserve Bank of India Act, 1934 and 'financial activity as principal business' as explained in RBI vide press release
1998-99/1269 dated April 8, 1999, as determined by 50-50 test are achieved by the Company only temporarily. No
communication with the regulator, i.e. RBI is made as the breach of limits is only due to specific events and participation
in ICDs is made in good faith for efficient fund utilization during the transition period.
Our opinion is not qualified in respect of this matter.
Other Matter
The financial statements of the Company for the year ended 31st March 2024 were audited by the predecessor auditor
whose Audit Report dated 24th May 2024 expressed an unmodified opinion on the standalone financial statements.
Information Other than the Financial Statements and Auditors' Report Thereon
The Company's management and Board of Directors are responsible for the other information. The other information
comprises the information included in the Company's annual report but does not include the 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.
Management's and Board of Directors' Responsibility for the Financial Statements
The Company's management and Board of Directors are 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 state of affairs and
profit 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. 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 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 and Board of Directors are 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 control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal 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 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.
Materiality is the magnitude of misstatements in the 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 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.
Report on Other Legal and Regulatory Requirements
(A) As required by the Companies (Auditor's Report) Order, 2020 (the "Order") issued by the Central Government 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.
(B) 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 standalone balance sheet, 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 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.
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 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 with reference to financial statements of the
Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B".
(C) With respect to the other matters to be included in the Auditors' 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 does not have any pending litigations which would have an impact on its financial position.
b) The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.
c) There were no amounts which were required to be transferred to the Investor Education and Protection Fund
by the Company.
(D) With respect to the matter to be included in the Auditors' Report under section 197(16) of the Act, as amended, in
our opinion and according to the information and 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.
(E) (i) The management has represented that, to the best of its knowledge and belief, other than as disclosed in
the notes to the accounts, 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 person(s) or
entity(ies), including foreign entities ("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;
(ii) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in
the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies),
including foreign entities ("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; and
(iii) Based on audit procedures which we considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of
Rule 11(e), as provided under 2 (C) (i) and (ii) above contain any material misstatement.
(iv) The company has not declared or paid any dividend during the year in contravention of the provisions of
section 123 of the Companies Act, 2013.
(F) Based on our examination which included test checks, the Company has used accounting software "Tally Prime
(Edit Log)" for maintaining its books of account which have 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, where
audit trail (edit log) facility was enabled and operated, we did not come across any instance of the audit trail
feature being tampered with.
For B R Pancholi & Co.
Chartered Accountants
Firm's Registration No.: 107285W
CA Bhupendra Pancholi
Partner
Membership No.: 041254
Place: Vadodara
Date: 14th May, 2025
UDIN: 25041254BMNTGK4368
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