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Jumbo Finance Ltd.

BSE: 511060 Sector: Financials
NSE: N.A. ISIN Code: INE122N01017
BSE 05:30 | 01 Jan Jumbo Finance Ltd
NSE 05:30 | 01 Jan Jumbo Finance Ltd

Jumbo Finance Ltd. (JUMBOFINANCE) - Auditors Report

Company auditors report

To The Members of Jumbo Finance Ltd

Report on the Audit of the Financial statements Opinion

We have audited the accompanying financial statements of JUMBO FINANCE LIMITED (the Company") which comprise the Balance Sheet as at March 31 2022 and theStatement of Profit and Loss {including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory- information

In our opinion and to the best r information and according to the explanations given tous the aforesaid financial statements give the information required by the Companies Act.2013 ("the Act") in the manner so required and gi\e a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Act.id with the Companies (Indian Accounting Standards) Rules 2015 as amended (findAS") and of the counting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 and its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act ( SAs). Our responsibilities underthose Standards are further described in the Auditors. Responsibility for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAJ) together with the ethical requirements that are relevant to our audit of the.financial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAl's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our opinion on the financial statements

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current year March312022. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.

Information Other than the Financial Statements and Auditor's Report Thereon

• The Company's Board of Directors is responsible for the other informations. Theother informations comprise the informations included in the Director's report Managementdiscussion & Analysis and Business responsibility report but does not include thefinancial statements and our auditor's report thereon.

* Our opinion on the financial statements does not cover the other informations and wedo not express any form of assurance conclusion thereon.

• In connection with our audit if the financial statements ur re ponbi :is i toread the rather information and in doing so consider whether the other information ismaterial in on item with the financial statements our knowledge obtained during the courseof our audit or otherwise appear to be materially initiated

• If based on the work we have perforated 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 Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect t- the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe IND AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 guea 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 realisirealternative but to do so

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility 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 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 weexercise professional judgment and maintain professional skepticism throughout the audit.We also'

• Identify' and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those 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 collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial control 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 the 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 uncertainty exists related toevents or conditions that may cast significant doubt on the Company's ability to continueas a going concern. If we conclude that a material uncertainty exists we are required todraw attention in our auditor's report to the related disclosures in the Financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our audit report.Howeverfuture events or conditions may cause the Company to cease to continue as a goingconcern.

• Evaluate the overall presentation structure and vontent of the financialstatements. including the disclosures and whether the financial statement represent theunderflying trait sections and event - in a manner that achieves fair presentation

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate make-' 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 und (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 ourauditor's 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 of India in terms of sub-section (11) of Section 143 ofthe Act. we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable

2. As required by Section 143(3) of tire Act based on our audit 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 purpose 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 Sheer the Statement of Profit and Loss including Other ComprehensiveIncome the

Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the books of account.

d) fn our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March312022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure

B". Our report expresses unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialrepotting. With respect to the other matters to be inc luded in the Auditor's Reportin accordance with the requirements of section 197(16) of the Act as Amendedin our opinion and to the best of our information and according to the explanationsgiven to us. the remuneration paid by the Company to its directors during the yearis in accordance with the provisions of section 197 of the Act.

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 as amended inour opinion and to the best of our information and according to the explanations given tous

1) The Company does not have any pending litigations which would impact its financialposition.

2) The Company has made provision as required under the applicable law or IND ASfor material foreseeable lossesif any. on long-term contracts including derivativecontracts;

3) There has been no delay in transferring amounts required to be tran ferred to theInetr duration and Protection Fund by the company

For Hiren Buch Associates
Chartered Accountants
Firm Registration No:l 16131W
CA Chandrakartt Kotian
Partner
Membership No. 046514
UDIN: 22046514AJXMHB8068
Place: Mumbai
Date; 30th May2022

"Annexure A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement of our report of even date to the financial statements of theCompany for the year ended March 31 2022:

i. (a) (A) The Company has maintained proper records showing full particulars

including quantitative details and situation of Property Plant and Equipment

(B) The Company does not own any intangible assets.Hence this clause is not applicableto the company.

(b) These PropertyPlant and Equipment have been physically verified by the managementat reasonable intervals According to the information and explanations given to usnomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and records examined byus we report that the company does not own any immovable property as at the balance sheetdate and hence the reporting under clause 3(i)(c) of the Order is not applicable tocompany.

(d) The Company has not revalued its Property Plant and Equipment (includingRight-of-use assets) or intangible assets during the year. Accordingly the reportingunder Clause 3(i)(d) of tire Order is not applicable to the Company.

(e) Based on the information and explanations furnished to us no proceedings have beeninitiated on or are pending against tire Company for holding benami property under theProhibition of Benami Property Transactions Act 1988 (as amended in 2016) (formerly theBenami Transactions (Prohibition) Act 1988 (45 of 1988)) and Rules made thereunder andtherefore the question of our commenting on whether the Company has appropriatelydisclosed the details in its standalone financial statements does not arise.

ii. (a) The company is not having any inventory and therefore this clause is notapplicable to the company.

(b) The Company has not been sanctioned working capital limits in excess of five crorerupees in aggregate at any point of time during the year from banks or Financialinstitutions on the basis of security of current assets and hence reporting under clause3(ii)(b) of the Order is not applicable.

iii. During the year the company has made investments in and granted loans or advancesin the nature of loans secured or unsecured to companies and firms.

(a) As the principal business of the company is to provide loansthis sub-clause of theOrder is not applicable to the company.

According to information and explanation given to us and on the basis of ourexamination

(b) the terms and conditions under which such investments were made and loans weregranted are not prejudicial to the Company's interest.

(c) In respect of such loans outstanding as on the balance sheet date the schedule ofrepayment of principal has not been stipulatedas the loans are recoverable in demand.

(d) In respect of such loans outstanding as on the balance sheet datethere was nooverdue amount in respect of principal and interest.

(e) No loans granted had fallen due for repayment during the year neither any suchloan renewed or extended and no fresh loans were granted to same parties to settle theexisting loans.

(f) Company has granted loans repayable on demand.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of loans investments guarantees and security.

v. In our opinion and according to the informations and explanations given to ustheCompany has not accepted any deposit or amounts which are deemed to be deposits within themeaning of section 73 to 76 of the Act and Rules made thereunder or any other relevantprovisions of the Companies Act and rules made thereunder. Further according toinformation and explanation gi ven to us no order has been passed by Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.Hence reporting under clause 3(v) of the Order is not applicable.

vi. We have been informed that the maintenance of cost records has not been speci fiedby the Central Government under sub-section (1) of section 148 of the Companies Act 2013for the business activities carried out by the Company. Hence reporting under clause 3(vi) of the Order is not applicable to the Company.

vii. In respect of statutory dues:

(a) According to the information and explanations given to us and the records of theCompany examined by us In our opinion the Company is generally regular in depositingundisputed statutory dues including Goods and Services tax Provident Fund Employees'State Insurance Income Tax Sales Tax Service Tax duty of Custom duty of Excise ValueAdded Tax Cess and any other statutory dues applicable to it with the appropriateauthorities.There were no undisputed amounts payable in respect of Goods and Sendee tax.Provident Fund Employees' State Insurance Income fax Sales Tax Service Tax duty' ofCustom duty of Excise Value Added Tax Cess and other material statutory dues in arrearsas at March 31 2022 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of Goods and Services tax Provident FundEmployees' State Insurance Income Tax Sales Tax Service Tax duty of Custom duty ofExcise Value Added Tax Cess and any other statutory dues which have not been depositedon account of any dispute.

viii. According to the information and explanations given to us and the records of theCompany examined by us there are no transactions in the books of account that has beensurrendered or disclosed as income during the period in the tax assessments under theIncome Tax Act 1961 that has not been recorded in the books of accounts.

ix. (a) According to the records of the Company examined by us and the information andexplanations given to us. the Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender during the year.

(c) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the Company has not been declared Wilful Defaulter by anybank or financial institution or government or any government authority-.

(d) In our opinion and according to the information and explanations given to us andon the basis of our examinationno additional term loans were obtained during the yearHence reporting under this clause is not applicable to the company.

(e) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the financial statements of the Companywe report that the Company has not used funds raised on short-term basis for long-termpurposes.

(f) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has nottaken any funds from any entity' or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.

(f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies.Thereforethequestion of it's repayment does not arise.

x. (a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable.

(b) During the year the Company has not made any preferential allotment of shares andthe company has not issued any convertible debentures (fully or partly or optionally)Hence reporting under clause 3(x)(b) of the order is not applicable.

xi. (a) 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 noticed or reported duringthe year nor have we been informed of any such case by the Management.

(b) 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 a report under Section 143(12)of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 was not required to be filed with the Central Government. Accordingly thereporting under Clause 3(xi)(b) of the Order is not applicable to the Company

(c) 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 the Company has not receivedwhistle-blower complaints during the year.

xii. The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable toit the reporting under clause (xii) of the Order is not applicable.

xiii. In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the IND AS Financialsstatements as required by the applicable accounting standards.

xiv. (a) According to the information and explanations given to us and the recordsexamined by us company has an internal audit system commensurate with the size and natureof it's business.

(b)The reports of the Internal Auditors for the period under audit were considered byus.

xv. In our opinion during the period the Company has not entered into any non-cashtransactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. (a) According to the information and explanation given to us. the company isrequired to be registered under section 451A of Reserve Bank of India Act 1934 and it hasalready obtained the required registration.

(b) The Company has not conducted non-banking Standalone Financials / Housing Financeactivities without a valid Certificate of Registration (COR) from the Reserve Bank ofIndia.

(b) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India

(c) Based on the Information and explanations provided by the management of theCompany the Group has no Company defined as Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India.

xvii. The Company has not incurred cash losses in the financial year. It incurred cashlosses amounting to Rs.32.07 lakh in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors of the Company duringthe year. Thereforeclause 3 (xviii) of the Order is not applicable to the company.

xix. On the basis of the Financial ratios ageing and expected dates of realisation ofFinancial assets and payment of Financial liabilities other information accompanying theFinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We. however state that this is not an assurance as tothe future viability' of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

xx. As per section 135 of the Companies Act 2013 the company is not liable tocontribute towards Corporate Social Responsibility .Accordingly clause 3(xx) of the orderis not applicable to the Company.

xxi. The reporting under Clause 3(xxi) of the Order is not applicable in respect ofaudit of standalone Financial statements. Accordingly no comment in respect of the saidclause has been included in this report.

For Hiren Buch Associates
Chartered Accountants
Firm Registration No:116131W
CA Chandrakant Kotian
Partner
Membership No. 046514
UDIN: 22046514AJXMHB8068
Place: Mumbai
Date: 30* May2022

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 (f) under ‘Report on other legal and regulatoryrequirements' section of our report to the Members of Jumbo Finance Limited of even date)

Report on the internal financial controls over financial reporting under clause (i) ofsub - section 3 of section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of JumboFinance Limited ("the Company") as at March 312022 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's responsibility for internal financial controls

The board of directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business 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 Companies Act 2013(hereinafter referred to as "the Act").

Auditors' responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the standards on auditing prescribed under Section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. Thosestandards and the guidance note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained a d if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures 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 control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement in 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 control 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 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 (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) 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 authorisations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

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 of 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 thattire degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 312022 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 (the"Guidance Note").

For Hiren Buch Associates
Chartered Accountants
Firm Registration No:l 16131W
C A Chandrakant Kotian
Partner
Membership No. 046514
UDIN: 22046514AJXMHB8068
Place: Mumbai
Date: 30th May2022

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