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Anjani Finance Ltd.

BSE: 531878 Sector: Financials
NSE: N.A. ISIN Code: INE283D01018
BSE 00:00 | 21 Jan 2.86 0.05
(1.78%)
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NSE 05:30 | 01 Jan Anjani Finance Ltd
OPEN 2.86
PREVIOUS CLOSE 2.81
VOLUME 1600
52-Week high 2.86
52-Week low 0.86
P/E 17.88
Mkt Cap.(Rs cr) 3
Buy Price 2.86
Buy Qty 4001.00
Sell Price 2.86
Sell Qty 1500.00
OPEN 2.86
CLOSE 2.81
VOLUME 1600
52-Week high 2.86
52-Week low 0.86
P/E 17.88
Mkt Cap.(Rs cr) 3
Buy Price 2.86
Buy Qty 4001.00
Sell Price 2.86
Sell Qty 1500.00

Anjani Finance Ltd. (ANJANIFINANCE) - Auditors Report

Company auditors report

TO THE MEMBERS OF ANJANI FINANCE LIMITED

REPORT ON THE FINANCIAL STATEMENTS OPINION

We have audited the accompanying Standalone financial statements of ANJANI FINANCELIMITED ('the Company') which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2019 its Profit 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 theStandards on Auditing specified under section 143(10) of the Act (SAs). 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 issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto 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 mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

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 otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.

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 the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained 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 materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENT

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SA'Swill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

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 themall relationships and other matters that may reasonably be thought to bear on ourindependence and 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 statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe 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 2016 ("the Order")issued by the Central Government in terms of section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in the paragraph 3 and 4 ofthe 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 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 and the Cash Flow Statementdealt with by this report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 March31st 2019 taken on record by the Board of Directors none of the director isdisqualified as on March 31st 2019 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the company's internal financial controls overfinancial reporting; and

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197 (16) of the Act as amended in ouropinion and to the best of our information and according to the explanations given to usthe remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act; and

(g) 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 in our opinionand 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 March 31st2019 on its financial position vide Additional Notes on Accounts no. 18(B)(2) in itsstandalone financial statements.

b. Subject to the additional notes on accounts the Company has made adequate provisionas at March 31st 2019 as required under the applicable law or Indian accountingstandards for material foreseeable losses acknowledged by the company if any onlong-term contracts including derivative contracts.

c. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

Statutory Auditors
FOR: MAHENDRA BADJATYA & CO
CHARTERED ACCOUNTANTS
ICAI FRN 001457C
Sd/-
CA M.K BADJATYA
PARTNER
ICAI MNO 070508
PLACE: INDORE
DATE: 29/05/2019

Annexure - A to the Independent Auditors' Report

The Annexure required under CARO 2016 referred to in our Report to the members of theAnjani Finance Limited ("the Company") for the year ended March 31st2019and according to information and explanations given to us we report as under:

(i) (a) The company has maintained adequate records on computer showing generalparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the year inaccordance with a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. The discrepanciesnoticed on such verification which were not material have been properly dealt with in thebooks of account.

(c) The company does not have any immovable property therefore the requirements ofthis clause is not applicable to the company.

(ii) The nature of the company's business is such that it is not required to hold anyinventories.

(iii) The company is a registered Non Banking Financial company (NBFC) and during theordinary course of its business the company has granted certain unsecured loans amountingin aggregate to Rs.37815000/- to the parties covered in the register maintained U/s 189of the Companies Act 2013 and

(a) The terms and conditions of the grant of such loans are not prejudicial to theinterest of the company.

(b) The schedule of repayment of the principal and payment of interest has not beenstipulated however the repayment of such loans is received on the basis of mutualunderstanding.

(c) In the absence of any stipulation as to repayment the element of overdue amountcannot be ascertained.

(iv) The company is a registered Non Banking Financial company (NBFC) and providedloans in its ordinary course of business and in respect of such loans the interest ischarged over and above the bank rate declared by Reserve Bank of India (RBI). Accordinglyin our opinion the provisions of section 185 of the companies act 2013 are complied with.The provisions of the section 186 of the companies act 2013 are not applicable to thecompany.

(v) The company has neither invited nor accepted any deposits from the public duringthe period under audit. As such requirement of clause (v) of the aforesaid order is notapplicable.

(vi) Since the company is a registered NBFC company and is carrying on the business offinancial services therefore the requirement of maintenance of cost records under subsection (1) of section 148 of the Companies Act 2013 are not applicable to the company.

(vii) (a) According to the records of the Company it is generally regular indepositing undisputed statutory dues including Provident Fund Employees state insuranceIncome Tax Goods and Services Tax Duty of Custom and any other statutory dues whicheveris applicable to the company with the appropriate authorities during the year and noundisputed amounts were outstanding as at 31st March 2019 for a period of more than sixmonths from the date they become payable.

(b) According to the information and explanation given to us there are no dues ofIncome Tax Goods and Services Tax Duty of Custom and any other statutory dues which havenot been deposited on account of any dispute except as under.

Name of Statute Nature of Dues Demand (InRs.) Period to which Amount Relates (F.Y.) Forum where dispute is pending
Income Tax Act 1961 Income Tax 38870 2015-16 CPC Bengaluru

(viii) The company has not taken any loan from any financial institution or bank. Thereare no debenture holders and loan from government.

(ix) During the year under report the company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) and also notobtained any term loan.

(x) Based upon the audit procedures performed during the year no fraud by the companyor on the company by its officers or employees has been noticed or reported during thecourse of our audit;

(xi) To the best of our knowledge and belief and according to the information andexplanation given to us managerial remuneration has been paid/provided in accordance withthe requisite approvals mandated by the provisions of Section 197 read with Schedule V tothe act.

(xii) In our opinion the company is not a Nidhi company. Accordingly paragraph 3(xii)of the order is not applicable.

(xiii) In our opinion All the transactions with the related parties are in compliancewith section 177 and 188 of Companies Act 2013 wherever applicable and the details havebeen disclosed in the financial statements as required by the applicable accountingstandards.

(xiv) To the best of our knowledge and belief the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Consequently requirements of clause (xiv) ofparagraph 3 of the order are not applicable.

(xv) In our opinion the company has not entered into any non cash transaction withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the order is notapplicable.

(xvi) According to the information & explanations given to us the company is aregistered NBFC company U/s 45IA of the Reserve Bank of India Act 1934 vide registrationno B-03.00173 dated 24/11/14 in category of Non-Banking Financial Institution withoutaccepting public deposit and accordingly the company is carrying on financial Servicesbusiness.

Statutory Auditors
FOR: MAHENDRA BAD3ATYA & CO
CHARTERED ACCOUNTANTS
ICAI FRN 001457C
Sd/-
CA M.K BADJATYA
PARTNER
ICAI MNO 070508
PLACE: INDORE
DATE: 29/05/2019

Annexure - "B" to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ANJANIFINANCE LIMITED ("the Company") as on March 31st 2019 in conjunctionwith our audit of the Standalone financial statements of the Company for the year ended onthat date.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding 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.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting (the "Guidance Note")and the Standards on Auditing as specified under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls and both issuedby the Institute of Chartered Accountants of India. 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 over financialreporting with reference to these standalone financial statements was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to thesestandalone financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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 internal financial controls over financialreporting with reference to these standalone financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to the explanation givento us the Company has in all material respects a reasonable internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31st 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Finance Controls Over Financial Reporting issued by The Institute of CharteredAccountants of India.

Statutory Auditors
FOR: MAHENDRA BADJATYA & CO
CHARTERED ACCOUNTANTS
ICAI FRN 001457C
Sd/-
CA M.K BADJATYA
PARTNER
ICAI MNO 070508
PLACE: INDORE
DATE: 29/05/2019

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