To The Members of UPASANA FINANCE LIMITED Chennai for the year ended 31stMarch 2021 Report on Standalone Financial Statements
We have audited the accompanying standalone financial statements of Upasana FinanceLimited ("the company") which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information required bythe Companies Act 2013 as amended ('the Act') in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2021 its profit includingother comprehensive income its cash flows and the changes in equity for the year ended onthat date.
Basis for opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those standards are further described in the 'Auditor'sresponsibilities for the audit of the standalone financial statements' section of ourreport. We are independent of the Company in accordance with the 'Code of Ethics' issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.
Emphasis of matter
Without qualifying our opinion we bring to your attention the following:
a. During the year the Company has closed 6 Non Performing Borrowers loan accounts.Outstanding principal amount in the 6 NPA accounts to the extent of Rs.369.50Lakhs haverecovered fully and unrealized interest amount to the extent of Rs.121.75Lakhs waiverunder Covid-19 pandemic situation.
b. The Company has also waiver the interest amount to the extent of Rs.6.85Lakhs in the7 Performing borrowers loan accounts (Standard Asset) under Covid-19 pandemic situation.
Key audit matters
Key audit matters are those matters that in our professional judgement were of mostsignificance in
our audit of the standalone financial statements for the financial year ended 31 March2021. These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters. For each matter below our description of how our audit addressedthe matter is provided in that context.
We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone financial statements section ofour report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the standalone financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying standalone financial statements.
|KEY AUDIT MATTERS ||HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER |
|IMPAIRMENT OF FINANCIAL ASSETS AS AT BALANCE SHEET DATE (EXPECTED CREDIT LOSSES) || |
|IND AS 109 REQUIRES THE COMPANY TO PROVIDE FOR IMPAIRMENT OF ITS LOAN RECEIVABLES (DESIGNATED AT AMORTISED COST AND FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME) USING THE EXPECTED CREDIT LOSS (ECL) APPROACH. ECL INVOLVES AN ESTIMATION OF PROBABILITY WEIGHTED LOSS ON FINANCIAL INSTRUMENTS OVER THEIR LIFE CONSIDERING REASONABLE AND SUPPORTABLE INFORMATION ABOUT PAST EVENTS CURRENT CONDITIONS AND FORECASTS OF FUTURE ECONOMIC CONDITIONS WHICH COULD IMPACT THE CREDIT QUALITY OF THE COMPANY'S LOANS AND ADVANCES. ||READ AND ASSESSED THE COMPANY'S ACCOUNTING POLICIES FOR IMPAIRMENT OF FINANCIAL ASSETS AND THEIR COMPLIANCE WITH IND AS 109 AND THE GOVERNANCE FRAMEWORK APPROVED BY THE BOARD OF DIRECTORS PURSUANT TO RESERVE BANK OF INDIA GUIDELINES ISSUED ON 13 MARCH 2020. |
The other information comprises the information included in the Annual report but doesnot include the standalone financial statements and our auditor's report thereon. TheCompany's Board of Directors is responsible for the other information.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and those charged with governance for the standaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements Management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessManagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those charged with governance are also responsible for overseeing the Company'sfinancial reporting process.
Auditor's responsibilities for the audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in the aggregatethey could reasonably be expected to influence the economic decisions of users taken onthe basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsive tothose risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the over ride of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company has adequateinternal financial controls with reference to financial statements in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by Management.
Conclude on the appropriateness of Management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsfor the financial year ended 31 March 2021 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on other legal and regulatory requirements
(1) As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the 'Annexure 'A' a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
(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 bestof 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 theCompany so far as it appears from our examination of those books;
(c) The Balance Sheet the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealt withby this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;
(e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2021 from being appointed as a director in terms of Section 164(2) of theAct;
(f) With respect to the adequacy of the internal financial controls with reference tothese standalone financial statements and the operating effectiveness of such controlsrefer to our separate Report in 'Annexure 'B' to this report;
(g) In our opinion the managerial remuneration for the year ended 31 March 2021 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in ouropinion and to the best of our information and according to the explanations given to us:
i. The Company did not have any long term contracts including derivatives contracts forwhich there were any material foreseeable losses.
ii. During the year there were no requirement on the part of the company to transferany amount to the Investor Education and Protection Fund.
ANNEXURE "A" TO INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UPASANAFINANCE LIMITED CHENNAI FOR THE YEAR ENDED 31st MARCH 2021
Annexure A referred to in our report under "Report on Other Legal and Regulatoryrequirements Para 1" of even date on the accounts for the year ended 31stMarch 2021.
1. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.
2. The Company has no stock of inventory and hence reporting on physical verificationdoes not arise.
3. During the year the company has not granted any loan to a company firm LimitedLiability Partnerships or other parties covered in the register maintained under theSection 189 of the Companies Act 2013.
4. During the year the Company has not granted any loan furnished any guarantees orprovided any security. The Company has not made investments in Mutual fund Units duringthe year. The Company has complied with the provisions of section 185 of the CompaniesAct 2013. The provisions of Section 186 are not applicable to the company.
5. The company has not accepted any deposit within the meaning of the sections 73 to 76of the Companies Act during the year.
6. According to the information and explanations furnished to us the requirement formaintenance of the cost records pursuant to the Companies (Cost Records and Audit) Rules2014 specified by the Central Government of India under section 148 of the Companies Act2013 are not applicable to the Company for the year under audit.
7. (a) According to the records provided to us the company is generally regular indepositing undisputed statutory dues including Provident Fund Income Tax Service Tax andTax Deducted at Source with the appropriate authorities. However we have observed delaysin remitting sums in respect of Tax deducted at source.
(b) According to information and explanations given to us there are no disputed duesthat were not deposited with the concerned authorities.
8. The company has not availed any term loans from Bank or financial institutions.Hence the question of reporting on default in repayment thereof does not exist.
9. The company has not raised any money by the way of initial public offer or furtherpublic offers including debt instruments or by the way of term loans during the year.Hence reporting on utilization of such money does not arise.
10. Based on the audit procedures adopted and information and explanations furnished tous by the management no fraud on or by the company has been noticed or reported duringthe course of our audit.
11. No managerial remuneration has been paid or provided during the year.
12. The company is not a Nidhi Company and as such this clause of the Order is notapplicable.
13. (a) In our opinion and according to the information and explanations furnished tous all transactions with the related parties are in compliance with sections 177 and 188of Companies Act 2013.
(b) The details of transaction during the year have been disclosed in the financialstatements as required by the applicable accounting standards. Refer Note No. 18 toFinancial Statements.
14. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures under section 42 of theCompanies Act 2013.
15. In our opinion and according to the information and explanations furnished to usthe company has not entered into any non-cash transactions with directors or personsconnected with them.
16. The company is required to register under section 45-IA of the Reserve Bank ofIndia Act 1934 and has valid certificate of Registration issued by Reserve Bank of India.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UPASANAFINANCE LIMITED CHENNAI FOR THE YEAR ENDED 31st MARCH 2021
Annexure B referred to in paragraph 2(f) under the heading 'Report on other legal andregulatory requirements' of our report of even date
Report on Internal Financial Controls under Clause (i) of sub-section 3of section 143of the Companies Act 2013 (the 'Act')
We have audited the internal financial controls with reference to standalone financialstatements of Bajaj Finance Ltd. (the 'Company') as of 31 March 2021in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
Management's responsibility for internal financial controls
The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI').These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to these standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the 'Guidance Note') and the Standards on Auditing asspecified under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tothese standalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to these standalone financial statementsand their operating effectiveness. Our audit of internal financial controls with referenceto standalone financial statements included obtaining an understanding of internalfinancial controls with reference to these standalone financial statements assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to these standalone financial statements.
Meaning of internal financial controls with reference to these standalone financialstatements
A Company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding there liabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A Company's internalfinancial controls with reference to standalone financial statements includes thosepolicies and procedures that:
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of Management and Directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.
Inherent limitations of internal financial controls with reference to standalonefinancial statements
Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or improperManagement override of controls material misstatements due to error or fraud may occur andnot be detected. Also projections of any evaluation of the internal financial controlswith reference to standalone financial statements to future periods are subject to therisk that the internal financial control with reference to standalone financial statementsmay become inadequate because of changes in conditions or that the degree of compliancewith the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols with reference to standalone financial statements were operating effectively asat 31 March 2021 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.
| ||For M/s. S. JAWAHAR & ASSOCIATES |
| ||Chartered Accountants |
| ||FRN:006232S |
| ||S. JAWAHAR F.C.A |
| ||Partner |
|Date: 29.06.2021 ||Membership No. 201098 |
|Place: Chennai ||UDIN : 20201098AAAABH9365 |