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Savani Financials Ltd.

BSE: 511577 Sector: Financials
NSE: N.A. ISIN Code: INE304E01010
BSE 00:00 | 17 Jun 10.50 0
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11.54

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11.54

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10.50

NSE 05:30 | 01 Jan Savani Financials Ltd
OPEN 11.54
PREVIOUS CLOSE 10.50
VOLUME 105
52-Week high 11.54
52-Week low 7.55
P/E 95.45
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.54
CLOSE 10.50
VOLUME 105
52-Week high 11.54
52-Week low 7.55
P/E 95.45
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Savani Financials Ltd. (SAVANIFINANCIAL) - Auditors Report

Company auditors report

Report on the Standalone Financial Statements To the Members of Savani FinancialsLimited Opinion We have audited the accompanying standalone financial statements of SAVANIFINANCIALS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2020 the Statement of Profit and Loss Statement of Changes in Equity the CashFlow Statement for the year then ended and notes to the financial statements includingsummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2020 its profit changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the 'Auditor's Responsibilities for the Audit of the Standalone FinancialStatements' section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Companies Act 2013 and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw your attention to note 27 to the statement financial statements for the yearended March 31

2020 which describes the impact of the outbreak of Coronavirus (COVID-19) on thebusiness operations of the Company. In view of the highly uncertain economic environmenta definitive assessment of the impact on the subsequent periods is highly dependent uponcircumstances as they evolve. Our conclusion is not modified in respect of this matter.

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 period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report

Information Other than the Standalone 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 Director'sReport including Annexures thereto Management Discussion and Analysis but does notinclude the standalone financial statements and our auditor's report thereon which weobtained prior to the date of this auditor's report and Secretarial audit report which isexpected to be made available to us after that date.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears 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.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative 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 Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls 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 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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

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.

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 it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss Statement of Changes in Equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (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".

(g) 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.

Company has not paid any remuneration to its directors. Accordingly provisions ofsection 197 regarding remuneration are not applicable to the Company.

(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:

i. The Company has no pending litigations as at 31st March 2020;

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 InvestorEducation and Protection Fund by the Company.

For Nilesh Lakhani & Associates

Chartered Accountants (Firm Regn. No. 113817W)

(Nilesh T. Lakhani)

Proprietor Mem. No.047459

UDIN : 20047459AAAAAV2732

Place: Mumbai Date: 29th June 2020

"ANNEXURE A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL

STATEMENTS OF SAVANI FINANCIALS LIMITED

i) The company has no Fixed Assets during the year hence the requirements of clause3(i)(a) to (c) are not applicable to the company.

ii) In respect of its inventories:

The company has not carried any inventory during the year. Accordingly clauses 3(ii)of the Order are not applicable.

iii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has not granted any loans securedor unsecured to companies firms or other parties covered in the register maintained undersection 189 of the Act. Accordingly the clauses 3(iii) (a) to (c) of the Order are notapplicable;

iv) According to the information and explanations given to us the Company has notgranted any loans made any investments and provided any guarantee or security to theparties covered by the provisions of section 185 and 186 of the Companies Act 2013.Accordingly the clause 3(iv) is not applicable to the company.

v) The Company has not accepted any deposit from public. We are informed by themanagement and as examined by us no order has been passed by the Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.

vi) As per the information and explanation given to us and as verified by us theCentral Government has not prescribed the maintenance of Cost records pursuant to therules made under section 148 (1) of the Act 2013.

vii) a) The company is regular in depositing undisputed statutory dues includingProvident Fund

Employees' State Insurance Income Tax Sales-Tax Wealth Tax Service Tax duty ofcustoms duty of excise value added tax cess goods and service tax and any otherstatutory dues with appropriate authorities where applicable. According to theinformation and explanations given to us there are no undisputed amounts payable inrespect of such statutory dues which have remained outstanding as at 31st March 2020 fora period of more than six months from the date they became payable.

b) According to the records of the company there are no dues outstanding in respect ofincome-tax sales-tax wealth-tax service tax duty of customs duty of excise valueadded tax cess and goods and service tax on account of any dispute.

viii) The company does not have any borrowings from Financial Institutions bank orgovernment nor has it raised money by way of debentures. Accordingly paragraph 3 (viii)of the Order is not applicable to the Company.

ix) The Company has neither raised money by way of initial public offer nor has theCompany obtained any term loans. Accordingly the clauses 3(ix) of the Order are notapplicable.

x) On the basis of our examination and according to the information and explanationsgiven to us and based on our examination of the records no fraud by the Company or anyfraud on the company by its officers or employees has been noticed or reported during theyear nor have we been informed of any such case by the management.

xi) On the basis of our examination and according to the information and explanationsgiven to us the company has not paid managerial remuneration accordingly the provisionsof section 197 read with Schedule V of the Companies Act 2013 are not applicable.

xii) In our opinion the company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the company.

xiii) According to the information and explanations given to us and based on ourexamination of the records the Company has not dealt in any transactions with the relatedparties therefore provisions of Section 188 and 177 of the Companies Act 2013 are notapplicable to the Company.

xiv) According to the information and explanations given to us and based on ourexamination of the records the Company has not made any preferential allotment / privateplacement of shares or fully or partly convertible dentures during the year under review.Accordingly provisions of clause (xiv) of Para 3 of the Order are not applicable to theCompany.

xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into any non-cash transactions withthe directors or persons connected with him. Accordingly provisions of clause (xv) ofPara 3 of the Order are not applicable to the Company

xvi) The Company being a Non-Banking Financial Company (NBFC) is registered withReserve Bank of India (RBI) as per the requirements of Section 45-IA of the Reserve Bankof India Act 1934.

For Nilesh Lakhani & Associates

Chartered Accountants (Firm Regn. No. 113817W)

(Nilesh T. Lakhani)

Proprietor Mem. No.047459

UDIN : 20047459AAAAAV2732

Place: Mumbai Date: 29th June 2020

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL

STATEMENTS OF SAVANI FINANCIALS LIMITED

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 SAVANIFINANCIALS LIMITED ("the Company") as of March 31 2020 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its 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 Companies Act 2013.

Auditors' 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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by Institute ofChartered accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance 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 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 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Nilesh Lakhani & Associates

Chartered Accountants (Firm Regn. No. 113817W)

(Nilesh T. Lakhani)

Proprietor

Mem. No.047459

UDIN : 20047459AAAAAV2732

Place: Mumbai

Date: 29th June 2020