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Regency Fincorp Ltd.

BSE: 540175 Sector: Financials
NSE: N.A. ISIN Code: INE964R01013
BSE 00:00 | 04 Oct 10.20 -0.25
(-2.39%)
OPEN

10.64

HIGH

10.64

LOW

10.20

NSE 05:30 | 01 Jan Regency Fincorp Ltd
OPEN 10.64
PREVIOUS CLOSE 10.45
VOLUME 4110
52-Week high 14.85
52-Week low 6.15
P/E 8.29
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.64
CLOSE 10.45
VOLUME 4110
52-Week high 14.85
52-Week low 6.15
P/E 8.29
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Regency Fincorp Ltd. (REGENCYFINCORP) - Auditors Report

Company auditors report

To

The Members of Regency Fincorp Limited

(Previously known as Regency Investment Limited)

Report on the Financial Statements

We have audited the accompanying standalone financial statements ofRegency Fincorp Limited (previously known as Regency Investment Limited) which comprisethe Balance Sheet as at March 31 2021 the Statement of Profit and Loss the Cash FlowStatement for the year ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("The Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate Internal financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

Following are observation and qualification:-

(I) During the course of our audit the following observations wereobserved with respect to compliances under the Companies Act 2013:

a) The Bombay Stock Exchange had waived the penalty vide its letterCFD./DIL2/OW/P/2021/1483/1 dated 19.01.2021 amounting to Rs. 33.44 with the approval ofSEBI.

b) The company has issued and allotted 389651 Equity Shares at Rs.29.00 per share (Rs. 19.00 being security premium) on 21.03.2020 but the final listingletter received from Bombay Stock Exchange was of 381031 equity shares. There was adifference of 8620 Equity Shares of Ms Priyanka Singh Nain (one of the allottee inPreferential allotment) were not listed due to non fulfilment of non-lock-in of herpre-preferential shareholding i.e 13806 equity shares. Further 13806 Equity shares weresold out and re-purchased during year for lock-in period.

c) TDS deducted on interest paid pending as on date due tonon-reconciliation among the parties.

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 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. 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 purpose of our audit;

b) In our opinion proper books of accounts as required by law have beenkept by the Company so far as appears from our examination of those books;

c) The Balance Sheet Statement of Profit and Loss and Cash FlowStatement dealt with by this Report are in agreement with the books of accounts;

d) In our opinion the aforesaid Standalone Financial Statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the directorsand taken on record by the Board of Directors none of the directors is disqualified as onMarch 312021 from being appointed as a director in terms of section 164 (2) of the Act.

f) With respect to the adequacy of internal financial controls overfinancial reporting of the company and the operating effectiveness of such control referto our separate report in "Annexure B"; and

g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

(i) The Company does not have any pending litigation as on 31.03.2021.

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

(ii) There were no amounts which were required to be transferred to theInvestor Education and Protection Fund.

FOR SUNIL K SHARMA & ASSOCIATES.
CHARTERED ACCOUNTANTS
FIRM REG NO. 029335N
(CA SUNIL KUMAR)
PROPRIETOR
M.NO. 536370
PLACE: CHANDIGARH
DATE: 15.06.2021
UDIN : 21536370AAAABK2559

Annexure - A to Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

I) In Respect of its Fixed Assets :

The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets. In our opinion the fixedassets covering significant value have been physically verified by the Management duringthe year at reasonable intervals and having regard to the size of the Company and thenature of its assets and on the basis of the information and explanations given by theManagement no material discrepancies have been noticed on such verification.

No substantial part of fixed assets has been disposed off during theyear which has affected the going concern.

ii) In Respect of its Inventory :

The company has no inventories; therefore the para no 3(i) of theCompanies (Auditors Report) Order 2016 are not applicable to the Company.

iii) In our opinion and according to information and explanations givento us the company has not granted any loans secured or unsecured to companies firms orother parties listed in the register maintained under Section 189 of the Companies Act2013.

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 and explanationsgiven to us the Company has not accepted any deposits within the meaning of Sections 73to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).

vi) To the best of our knowledge the Central Government has notprescribed the maintenance of cost records under sub section (1) of section 148 of theCompanies Act 2013.

vii) According to the information and explanations given to us inrespect of statutory dues :

a) The Company has not been regular in depositing undisputed duesincluding Income Tax and any other statutory dues applicable to it with the appropriateauthorities and there were no undisputed dues in arrears as at 31st March 2021 for aperiod of more than six months from the date they become payable.

b) According to the information and explanations given to us therewere no disputed dues of income tax or sales tax or wealth tax or service tax or duty ofcustoms or duty of excise or value added tax or cess.

viii) The Company has issued and allotted unsecured non convertibledebentures during the year.

ix) The Company has not raised money by way of further public offerduring the year.

x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

xi) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has provided managerialremuneration during the year.

xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly paragraph 3. (xii) of theOrder is not applicable.

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 section 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv) 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 directors or persons connected with him. Accordingly paragraph3 (xv) of the Order is not applicable

xv) The Company has obtained the requisite registration under section45-IA of the Reserve Bank of India Act 1934.

FOR SUNIL K SHARMA & ASSOCIATES.
CHARTERED ACCOUNTANTS
FIRM REG NO. 029335N
(CA SUNIL KUMAR)
PROPRIETOR
M.NO. 536370
PLACE: CHANDIGARH
DATE : 15.06.2021
UDIN : 21536370AAAABK2559

Annexure - B to the Auditors' Report

(Referred to in paragraph 2(f) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date)

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

We have audited the internal financial controls over financialreporting of Regency Fincorp Limited ("the Company") as of 31stMarch 2021 in conjunction with our audit of the financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

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 ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. These Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment 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 andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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 financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) 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.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial 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

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

FOR SUNIL K SHARMA & ASSOCIATES.
CHARTERED ACCOUNTANTS
FIRM REG NO. 029335N
(CA SUNIL KUMAR)
PROPRIETOR
M.NO. 536370
PLACE: CHANDIGARH
DATE : 15.06.2021
UDIN : 21536370AAAABK2559

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