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Finkurve Financial Services Ltd.

BSE: 508954 Sector: Financials
NSE: N.A. ISIN Code: INE734I01027
BSE 14:31 | 21 Jan 42.70 1.50
(3.64%)
OPEN

43.40

HIGH

43.40

LOW

41.00

NSE 05:30 | 01 Jan Finkurve Financial Services Ltd
OPEN 43.40
PREVIOUS CLOSE 41.20
VOLUME 514
52-Week high 72.00
52-Week low 32.10
P/E 142.33
Mkt Cap.(Rs cr) 542
Buy Price 42.00
Buy Qty 31.00
Sell Price 42.65
Sell Qty 60.00
OPEN 43.40
CLOSE 41.20
VOLUME 514
52-Week high 72.00
52-Week low 32.10
P/E 142.33
Mkt Cap.(Rs cr) 542
Buy Price 42.00
Buy Qty 31.00
Sell Price 42.65
Sell Qty 60.00

Finkurve Financial Services Ltd. (FINKURVEFIN) - Auditors Report

Company auditors report

To The Members of Finkurve Financial Services Limited

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of FinkurveFinancial Services Limited ("the Company") which comprises of Balance Sheetas at March 31 2021 the Statement of

Profit and Loss (including Other Comprehensive Income) the Statementof Changes in Equity and the Statement of Cash Flow for the year then ended and notes tothe standalone financial statements including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the Act) in the manner so required andgive a true and fair view in conformity with the Indian

Accounting Standards ("Ind AS") prescribed under section 133of the Act read with Companies

(Indian Accounting Standards) Rules 2015 as amended and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 its profits (including other comprehensive income) changes inequity 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 thoseStandards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the standalone financial statements under the provisions of the Act and theRules made thereunder 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.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significant in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined that there are no key auditmatters to communicate in our report.

Information Other than the Standalone Financial Statements andAuditor's report thereon

The Company's Board of Directors is responsible for thepreparation of other information. The Other information comprises the information includedin the Company's annual report but does not include the standalone financialstatement and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and those charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance (including other comprehensive income) changes in equity and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements the Management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered materialif individually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit.

We are also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial control system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of Management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the entity to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. Pursuant to the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. [A] As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books andrecords.

(c) The Balance sheet the Statement of Profit & Loss (includingother comprehensive income) Statement of Changes in Equity and the Statement of Cash Flowdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Account) Rules 2014.

(e) On the basis of the written representation received from thedirectors as on March 31 2021 taken on records by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a Director in termsof Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure "B".

[B] With respect to the matters to be included in the Auditor'sreport in accordance with the rule 11 of the Companies (Audit and Auditors) Rules 2014in our opinion and to the best of our information and according to the explanations givento us:

i. There were no pending litigations which would impact the financialposition of the Company.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There is no amount required to be transferred to the InvestorEducation and Protection Fund by the Company.

[C] With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Sec 197(16) of the Act asamended we report that the Company has paid remuneration to its directors during the yearin accordance with the provisions of the Act and limits laid down under section 197 readwith Schedule V to the Act.

Annexure A to Independent Auditor's Report

Referred to as Annexure ‘A' in paragraph (1) of Other Legaland Regulatory Requirements of the Independent Auditors' Report of even date to themembers of Finkurve Financial Services Limited on the standalone financialstatement for the year ended on 31st March 2021 we report that :

(i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the managementduring the year under a regular programme of verification which in our opinion isreasonable having regard to the size of the company and the nature of its assets. Nodiscrepancies were noticed on such verification.

(c) The company does not have immovable property hence; verification oftitle deed of any such immovable properties is not applicable.

(ii) The Company is in the business of providing services and does nothave any physical inventory hence; the provisions of the clause 3(ii) of the Companies(Auditors' Report) Order 2016 are not applicable to the company.

(iii) The Company has granted unsecured loans to bodies corporates andother parties covered in the register maintained under section 189 of the Act as reportedin note no 30 of standalone financial statements.

(a) In respect of aforesaid loans granted the terms and conditionunder which such loans are granted are not prejudicial to the interest of the company.

(b) The aforesaid loans are of short term in nature and are repayableon demand. There is no schedule of repayment of principle and interest of such loans. Therepayment of principle and receipt of interest are whenever demanded have been receivedand is regular.

(c) There are no overdue amounts for more than ninety days or more inrespect of the loans granted to the bodies corporate and other parties listed in theregister maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made.

(v) In our opinion and according to the information given to us thecompany has not accepted deposits and hence compliance with the directives issued byReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Act and the rules framed there under with regard to the depositsaccepted is not applicable.

(vi) According to the information and explanation given to us thecentral government has not prescribed maintenance of cost records under sub section (1) ofsection 148 of the Act for any activities conducted/ services rendered by the Company.Accordingly paragraph 3(vi) of the Order is not applicable to the Company.

(vii) (a)The company is regular in depositing with appropriateauthorities applicable undisputed statutory dues including income tax service tax goodsand service tax cess and other statutory dues as applicable and no any undisputed amountsof such taxes were in arrears as at 31st March 2021 for a period of more thansix months from the date they became payable. The provisions relating to duty ofcustom duty of excise value added tax and sales tax are not applicable to the Company.

(b) According to the information and explanation given to us there areno dues of income tax service tax goods and service tax or cess which have not beendeposited with appropriate authority on account of any dispute. The provisions relating toduty of custom duty of excise value added tax and sales tax are not applicable to theCompany.

(viii) In our opinion and according to the information and explanationgiven to us the company has not availed any loan or borrowings from the financialinstitutions or banks or debenture holders during the year; hence clause 3(viii) of theCompanies (Auditors' Report) Order 2016 is not applicable to the Company.

(ix) The Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) or term loans during the year;hence clause 3(ix) of the Companies (Auditors' Report) Order 2016 are not applicableto the Company.

(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

(xi) According to the information and explanation give to us and basedon our examination of the records of the Company the company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with the Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company; hence clause 3(xii) of the Companies(Auditors' Report) Order 2016 are not applicable to the Company.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with the sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year hence;clause 3(xiv) of the Companies (Auditors' Report) Order 2016 are not applicable tothe Company.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with the directors or the persons connected with him; hence clause3(xv) of the Companies (Auditors' Report) Order 2016 is not applicable to theCompany.

(xvi) The Company is required to be registered as NBFC under section45-IA of the Reserve Bank of India Act 1934 and it has obtained certificate ofregistration dated 9th March 1998.

Annexure B to Independent Auditor's Report

Referred to as Annexure ‘B' in paragraph 2[A](f) of OtherLegal and Regulatory Requirements of the Independent Auditors' Report of even date tothe members of Finkurve Financial Services Limited on the standalone financialstatement for the year ended on 31st March 2021.

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. We have audited the internal financial controls over financialreporting of Finkurve Financial Services Limited ("the Company") as on31st March 2021 in conjunction with our audit of the standalone financial statements ofthe Company for the year ended and as on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ("theGuidance Note"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing issued by ICAIand prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls over financial reporting. Those Standards and the GuidanceNote require that we comply with the ethical requirements and plan and perform the auditto obtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting 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 includingthe assessment of the risks of material misstatement of the standalone financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

7. Because of the inherent limitations of internal financial controlsover financial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2021 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 Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For P. D. Saraf & Co.
Chartered Accountants
(Firm Regd. No. 109241W)
Sd/-
(Madhusudan Saraf)
Partner
M. No. 41747
UDIN: 21041747AAAACI1385
Place: Mumbai
Date: 30th June 2021

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