TO MEMBERS OF GLANCE FINANCE LIMITED
Report on the Audit of Financial Statements
We have audited the financial statements of GLANCE FINANCE LIMITED (hereinafterreferred to as "the Company") which comprise the balance sheet as at March 312021 and the Statement of Profit & Loss (including other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information (collectively referred to as FinancialStatements').
In our opinion and to the best of our information and according to the explanationsgiven to us the Financial Statements give the information required by the Companies Act2013 (hereinafter referred to as "the Act") in the manner so required and give atrue and fair view in conformity with the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with Companies (Indian Accounting Standards) Rules2015 and amended and other accounting principles generally accepted in India of thestate of affairs (financial position) of the Company as at March 312021 and itsfinancial performance including other comprehensive income the changes in equity and itscash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under provisionsof the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Emphasis of Matter
Also we draw attention to Note No.48 of the Financial Statements regarding impact ofCOVID-19 pandemic.
The situation continues to be uncertain and the Company is evaluating the situation onan ongoing basis with respect to the challenges faced.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements for the year ended March 312021.These matters were addressed in the context of our audit of the Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matters described below to be the Key Audit Matters to becommunicated in our report:
|Key Audit Matter ||Our Response |
|1 Defined benefit obligation || |
|The valuation of the retirement benefit schemes in the Company is determined with reference to various actuarial assumptions including discount rate future salary increases rate of inflation mortality rates and attrition rates. Due to the size of these schemes small changes in these assumptions can have a material impact on the estimated defined benefit obligation. ||We have examined the key controls over the process involving member data formulation of assumptions and the financial reporting process in arriving at the provision for retirement benefits. We tested the controls for determining the actuarial assumptions and the approval of those assumptions by senior management. We found these key controls were designed implemented and operated effectively and therefore determined that we could place reliance on these key controls for the purposes of our audit. |
| ||We tested the employee data used in calculating the obligation and where material we also considered the treatment of curtailments settlements past service costs remeasurements benefits paid and any other amendments made to obligations during the year. From the evidence obtained we found the data and assumptions used by management in the actuarial valuations for retirement benefit obligations to be appropriate. |
|2 Related Party Transactions || |
|During the year the Company has entered into various transactions with related parties. ||Our audit procedures included considering the compliance with the various requirements for entering in to such related party transactions. |
|Determination of transaction price for such related parties transactions outside the normal course of business is a key audit matter considering the significance of the transaction value and the significant judgements involved in determining the transaction value. ||We have read the approvals obtained for the transactions. |
| ||We have assessed the disclosures in accordance with Ind AS 24 "Related Party Disclosures". |
|1 Modified Audit Procedures carried out in light of COVID-19 outbreak: || |
|Due to COVID-19 pandemic Nationwide lockdown and travel restrictions imposed by Central/ State Government/ Local Authorities during the period of our audit to facilitate carrying out audit remotely wherever physical access was not possible audit could not be conducted by visiting the premises of the Company. ||Due to the outbreak of COVID-19 pandemic that caused nationwide lockdown and other travel restrictions imposed by the Central and State Governments/local administration during the period of our audit we could not travel to the Company's Office and carry out the audit processes physically. |
|As we could not gather audit evidence in person/physically/ through discussions and personal interactions with the officials at the Company's Office we have identified such modified audit procedures as a Key Audit Matter. ||Wherever physical access was not possible necessary records/ reports/ documents/ certificates were made available to us through digital medium and emails. To this extent the audit process was carried out on the basis of such documents reports and records made available to us which were relied upon as audit evidence for conducting the audit and reporting for the current period. |
|Accordingly our audit procedures were modified to carry out the audit remotely. ||Accordingly we modified our audit procedures as follows: |
| ||a. Conducted verification of necessary records/ documents through emails wherever physical access was not possible. |
| ||b. Carried out verification of scanned copies of the documents deeds certificates and the related records made available to us through emails. |
| ||c. Making enquiries and gathering necessary audit evidence through Video Conferencing dialogues and discussions over phone calls/conference calls emails and similar communication channels. |
| ||d. Resolution of our audit observations telephonically/through email instead of a face- to-face interaction with the designated officials. |
f in doing so consider whether the other information is materially inconsistentwith the Financial Statements or our knowledge obtained in the audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information we are required to report thefact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to preparation of these Financial Statements that give atrue and fair view of the financial position financial performance changes in equity andcash flows of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with provisions of the Act for safeguarding 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 accuracy and completenessof the accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for 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 SAswill 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 risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign 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 hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
Evaluate appropriateness of the accounting policies used and reasonableness ofaccounting estimates''^\ and related disclosures made by management.
Conclude on appropriateness of management's use of the going concern basis ofaccounting 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 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'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 financialstatements including disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Financial Statements thatindividually 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 anyidentified misstatements in the Financial Statements.
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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen 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"Annexure A" - a statement on the matters specified in paragraphs 3 and 4 of theOrder.
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 appears from our examination of those books;
[ c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisreport are in agreement with the books of account;
d) In our opinion the Financial Statements comply with the Ind AS specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors as on March 312021 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31
2021 from being appointed as a director in terms of Section 164 (2) of the Act;
f) 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 our opinion and to the best of our information and according to the explanationsgiven to us the managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by provisions of Section 197 read with Schedule V of the Act;
g) 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"
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 in our opinionand to the best of our information and according to the explanations given to us wereport that:
i) The Company does not have any pending litigations which would impact its financialposition other than those mentioned in the notes to the accounts;
ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii) There were no amounts which were required to be transferred to the InvestorsEducation and Protection Fund by the Company;
ANNEXURE-A TO INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in paragraph 1 under the Report on Other Legal andRegulatory Requirements' our report to the members of GLANCE FINANCE LIMITED (theCompany') for the year ended on March 312021.
We report that:
i. In respect of its fixed assets:
(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of fixed assets whichis in our opinion reasonable having regard to the size of the Company and the nature ofits assets. In accordance with this programme certain fixed assets have been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.
(c) As per the information and explanation given to us by the management the Companydoes not own any immovable property. Accordingly the provisions of Clause 3(i)(c) of theOrder are not applicable to the Company.
ii. In respect of its inventories:
The inventory is in the form of Shares & Securities which has been verified withthe holding statements during the year by the management. In our opinion the frequencyof verification is reasonable. There were no material discrepancies noticed onverification of inventories as compared to the book records.
iii. The Company has not granted any loans secured or unsecured to Companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Act and hence provisions of Clause 3(iii) of the aforesaid Order arenot applicable to the Company.
iv. The Company has not granted any loans or made any investments or provided anyguarantee or security to the parties covered under Section 185 and the provisions ofsection 186 of the Act pertaining to investment and lending activities were not applicableto the Company since the Company was an NBFC. Accordingly provisions of Clause 3(iv) ofthe aforesaid Order are not applicable to the Company.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public within the meaning of Sections 73 7475 and 76 of the Act and the Rules framed thereunder to the extent notified.
vi. In our opinion and according to the information and explanations given to usmaintenance of cost records under sub-section (1) of the Section 148 of the Act has notbeen prescribed by the government.
vii. (a) According to the records of the Company the Company is generally regular indepositing with
appropriate authorities undisputed statutory dues including provident fund employees'state insurance income-tax GST sales tax wealth tax duty of customs duty of excisevalue added tax or cess and other statutory dues applicable to it. No undisputed amountspayable in respect of provident fund employees' state insurance income-tax sales taxwealth tax duty of customs duty of excise value added tax or cess and other statutorydues were outstanding as at 31-03-2021 for a period of more than six months from thedate they became payable.
(b) According to the records of the Company and information and explanations given tous no dues of income tax GST sales tax wealth tax service tax duty of customs dutyof excise value added tax or cess that have not been deposited on account of anydisputes.
viii. Based on our audit procedures and according to the information and explanationsgiven to us by the management we are of the opinion that the Company has not defaulted inrepayment of dues to financial institutions and bank.
ix. Based on our audit procedures and according to the information and explanationsgiven to us by the management the Company has not raised any money by way of initialpublic offer or further public offer (including debt instruments). Further term loanshave been applied for the purpose for which it is taken.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.
xi. The Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provision of the Section 197 read with Schedule V ofthe Act.
xii. The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable tothe Company and hence provisions of Clause 3(xii) of the aforesaid Order are notapplicable to the Company.
xiii. The Company has entered into the transaction with the related parties incompliance with the provisions of the Section 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Ind AS 24 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and henceprovisions of Clause 3(xiv) of the aforesaid Order are not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directors orthe persons connected with him and hence provisions of Clause 3(xv) of the aforesaid Orderare not applicable to the Company.
xvi. The Company has obtained registration as required under Section 45-IA of theReserve Bank of India Act 1934.
ANNEXURE-B TO INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in paragraph 2(f) under the Report on Other Legal andRegulatory Requirements' our report to the members of GLANCE FINANCE LIMITED (theCompany') for the year ended on March 312021.
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section143 of the Act We have audited internal financial controls over financial reporting ofGLANCE FINANCE LIMITED ("the Company") as of March 31 2021 in conjunction withour audit of the financial statements of the Company for the year then ended on that date.
Management's Responsibility for the 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (ICAI). These responsibilities includesdesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of businessincluding adherence to Company's policies the safeguarding of the assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.
Our responsibility is to express an opinion on Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (theGuidance Note') and the Standards on Auditing deemed to be prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those Standards and Guidance note require that we comply with ethical requirements andplan and perform audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedure to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement 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 systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide a reasonable assurance regarding the reliability of financial reporting andpreparation of financial statements for external purpose 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
2. Provide reasonable assurance that the transactions are recorded as necessary topermit preparation of financial statements in accordance with the generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance 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 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 control 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.
In our opinion the Company has in all material aspects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For and on behalf of |
| ||M/s. J M T & ASSOCIATES |
| ||Chartered Accountants |
| ||ICAI Firm Regn No. 104167W |
| ||(Amar Bafna) |
| ||Partner |
|Place : Mumbai ||Membership No. 048639 |
|Dated: May 7 2021 ||UDIN : 21048639AAAAEN9350 |