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S R G Securities Finance Ltd.

BSE: 536710 Sector: Financials
NSE: N.A. ISIN Code: INE326P01019
BSE 00:00 | 03 Feb 14.40 -3.60
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NSE 05:30 | 01 Jan S R G Securities Finance Ltd
OPEN 14.40
PREVIOUS CLOSE 18.00
VOLUME 3000
52-Week high 22.40
52-Week low 12.15
P/E 19.73
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.40
CLOSE 18.00
VOLUME 3000
52-Week high 22.40
52-Week low 12.15
P/E 19.73
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

S R G Securities Finance Ltd. (SRGSECURITIES) - Auditors Report

Company auditors report

To

The Members

S R G Securities Finance Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of S R G Securities FinanceLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2022 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and notes to the 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 the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India

a) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2022

b) In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) In the case of the Cash Flow Statement cash 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 Companies Act 2013 ("Act"). Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of Financial Results section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the financial statements under the provisions of the Companies Act 2013 and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidenceobtained by us in is sufficient and appropriate to provide a basis for our opinion.

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

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's report including the Annexures to Board's ReportCorporate Governance and Shareholder's Information but does not include the financialstatements and our auditor's report thereon.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

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

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthe Financial Statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of The Companies (Accounts) Rules 2014. 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 the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe 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 are also responsible for overseeing the Company's financialreporting process. Auditor's Responsibility

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 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 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 the 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 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")as issued by Central Government of India in terms of Sub Section (11) of Section 143 ofthe Act we hereby 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 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 purposes of our audit;

b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of accounts;

d. In our opinion the aforesaid financial statements comply with the AccountingStandards referred to in Section 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 and taken onrecord by the Board of Directors none of the Directors is disqualified as on 31stMarch 2022 from being appointed as a Director in terms of Section 164(2) of the Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of The Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition;

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

h. 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 remuneration paid to Mrs. Seema Jain Whole Time Director of the Companyis in accordance with the provisions of Section 197 along with Schedule V of CompaniesAct 2013 and the remuneration limit is in accordance with Section 197 and Schedule V ofCompanies Act 2013 and approved with Shareholder's Resolution dated 30thSeptember 2021 except this no remuneration was paid to any other directors.

Annexure A to the Independent Auditors' Report

(Referred to in para 1 under "Report on other Legal and RegulatoryRequirement" of our report of even date)

1 According to the information and explanations given to us in respect of theproperty plant and equipment:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment. The Company does nothave intangible assets and right of use assets.

(b) As explained to us Property plant and equipment have been physically verified bythe management during the year and no discrepancies between the book records and thephysical inventory have been noticed. In our opinion the frequency of verification isreasonable in regards to size of the Company.

(c) We report that the Company does not have any immovable property as at the balancesheet date.

(d) The Company has not revalued its Property Plant and Equipment (including Right toUse assets) and intangible assets during the year and hence clause 3(i)(d) of the Order isnot applicable.

(e) There are no proceedings initiated or pending against the Company for holding anybenami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder and hence clause 3(i) (e) of the Order is not applicable

2. (a) The Company does not have any inventory and hence reporting under clause (ii) ofparagraph 3 of the Order is not applicable to the Company.

(b) According to the explanations and information given to us the Company has not beensanctioned working capital limits in excess of Rs. 5 crores hence reporting under clause3 (ii)(b) of the Order is not applicable to the Company.

3. According to the information and explanations given to us the Company has madeinvestments in and granted any loans or advances in the nature of loans secured toCompanies Firms Limited Liability Partnerships or other parties. The Company has notprovided any guarantee or security to any other entity during the year. With respect tosuch investments and loans and advances:

a) The Company's principal business is to give loans and hence reporting under clause3(iii)(a) of the Order is not applicable.

b) The investments made and the terms and conditions of the grant of all the loans andadvances in the nature of loans during the year are in our opinion prima facie notprejudicial to the Company's interest.

c) In respect of loans granted by the Company the repayments of principal amounts andinterest are generally regular considering the stipulation to repayment except in 46accounts.

d) The total amount overdue for more than ninety days in respect of loans and advancesin the nature of loans as at the year-end is Rs. 75.96 Lakhs. Reasonable steps are beentaken by the Company for recovery of the principal and interest as stated in theapplicable Regulations and Loan Agreement.

e) The Company's principal business is to give loans and hence reporting under clause3(iii)(e) of the Order is not applicable.

f) According to information and explanations given to us and based on the auditprocedures performed the Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentduring the year. Hence reporting under clause 3(iii)(f) is not applicable

4. According to the information and explanations given to us the Company has notadvanced any loan or given any guarantee or provided or securities to the parties coveredunder section 185 of the Act. The Company has complied with the provisions of section 186of the Act in respect of investments made or loans or guarantee or security provided tothe parties covered under section 186.

5. As per the Ministry of Corporate Affairs notification dated March 31 2014 theprovisions of Sections 73 to 76 or any other relevant provisions of The Companies Act2013 and The Companies (Acceptance of Deposits) Rules 2014 as amended with regard tothe deposits accepted are not applicable to the Company. According to information andexplanations given to us the Company has not accepted any deposits during the year.

6. According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under Sub-Section (1) of Section 148 of theAct in respect of the activities carried on by the Company.

7. According to the information and explanations given to us:

a) The Company is generally been regular in depositing undisputed statutory duesincluding Goods and Services Tax provident fund employees' state insurance income-taxcess and any other statutory dues applicable to the Company to the appropriateauthorities.

b) There are no undisputed statutory dues payable in respect of GST Provident FundEmployees' State Insurance Income-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.

c) There were no dues referred in sub clause (a) above which have not been deposited onaccount of disputes as at March 31 2022.

8. According to the information and explanations given to us no transactions relatingto previously unrecorded income were surrendered or disclosed as income in the taxassessments under the Income Tax Act 1961 during the year.

9. According to the information and explanations given to us in respect of borrowings:

(a) The Company has not defaulted in the repayment of loans or other borrowings or inthe payment of interest thereon to any lender during the year.

(b) The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority.

(c) According to the records of the Company examined by us and information andexplanations given to us the Company has not taken any term loan during the year andthere are no outstanding term loans at the beginning of the year and hence reportingunder clause 3(ix)(c) of the Order is not applicable.

(d) On an overall examination of the financial statements of the Company funds raisedon short term basis have prima facie not been used during the year for long-termpurposes by the Company.

(e) The Company did not have any subsidiary or associate or joint venture during theyear and hence reporting under clause 3(ix)(e) of the Order is not applicable

(f) The Company does not have any subsidiary or associate or joint venture and hencereporting on clause 3(ix)(f) of the Order is not applicable.

10. (a) According to the information and explanations given to us the Company has notraised moneys by way of Public Offer or further public offer (including debt instruments)during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or convertible debentures (fullyor partly or optionally) during the year and hence reporting under clause 3(x)(b) of theOrder is not applicable.

11. (a) According to the information and explanations given to us no fraud by theCompany and no material fraud on the Company has been noticed or reported during the year.

(b) No report under section 143(12) of the Act has been filed in Form ADT-4 asprescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment during the year and upto the date of this report.

(c) As represented to us by the Management there were no whistle blower complaintsreceived by the Company during the year.

12. The Company is not a Nidhi Company; hence reporting under clause (xii) of paragraph3 of the Order is not applicable to the Company.

13. According to the information and explanations given to us the Company is incompliance with Section 177 and 188 of The Companies Act 2013 wherever applicable forall transactions with the related parties and the details of related party transactionshave been disclosed in the notes on Financial Statements as required by the applicableaccounting standards

14. (a) During the year Internal audit has been carried out by the Independent firm ofChartered accountants. In our opinion and according to the information and explanationsgiven to us the scope and coverage is commensurate with the size of the Company and thenature of its business

(b) We have considered the internal audit reports issued to the Company during theyear and covering the period upto March 31 2022.

15. According to the information and explanations given to us the Company has notentered into any non- cash transactions with Directors or persons connected with him underprovisions of Section 192 of The Companies Act 2013. Therefore provision of clause (xv)of paragraph 3 of the Order is not applicable to the Company.

16. (a) According to the information and explanations given to us we report that theCompany has registered as required under section 45-IA of the Reserve Bank of India Act1934.

(b) The Group does not have any CIC as part of the group and accordingly reportingunder clause (xvi)

(d) of the Order is not applicable.

17. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

18. There has been no resignation of the statutory auditors of the Company. Hencereporting under clause 3(xviii) of the Order is not applicable.

19. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities Asset Liability Maturity (ALM)pattern other information accompanying the financial statements and our knowledge of theBoard of Directors and management plans and based our examination of the evidencesupporting the assumptions nothing has come to our attention which causes us to believethat any material uncertainty exists as on the date of the audit report indicating thatthe Company is not capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

20. CSR Provisions are not applicable on the Company Accordingly reporting underclause 3(xx) of the Order is not applicable.

21. According to the information and explanations given to us the Company does nothave subsidiary associate and joint venture. Accordingly reporting under clause 3(xxi)of the Order is not applicable

Annexure-B to the Independent Auditor's Report

(Referred to in para 2(f) under "Report on other Legal and RegulatoryRequirement" of our report of even date)

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

We have audited the internal financial controls over financial reporting of S R GSecurities Finance Limited ("the Company") as of March 31 2022 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the''Guidance Note") 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing issued by the ICAI and prescribedunder Section 143(10) of the Act 2013 to the extent applicable to an audit of internalfinancial controls both issued by The Institute of Chartered Accountants of India. 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 was established and maintained and 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 judgment including the assessment of the risks ofmaterial 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 reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company;(2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Financial Statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and Directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion 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 March 31 2022 based on"the 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 PKJ & Co.
Chartered Accountants
FRN: 124115W
Sd/-
Rishabh Jain
Partner
Membership No. 176309
Place: Mumbai
Date: 30-05-2022
UDIN: 22176309AJWPSY5563

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