Shri Kalyan Holdings Ltd.
|BSE: 532083||Sector: Financials|
|NSE: N.A.||ISIN Code: INE079N01019|
|BSE 00:00 | 21 Jun||Shri Kalyan Holdings Ltd|
|NSE 05:30 | 01 Jan||Shri Kalyan Holdings Ltd|
|BSE: 532083||Sector: Financials|
|NSE: N.A.||ISIN Code: INE079N01019|
|BSE 00:00 | 21 Jun||Shri Kalyan Holdings Ltd|
|NSE 05:30 | 01 Jan||Shri Kalyan Holdings Ltd|
The Members of SHRI KALYAN HOLDINGS LIMITED Report on the Audit of the FinancialStatements Opinion
We have audited the accompanying financial statements of SHRI KALYAN HOLDINGS LIMITED(the Company) which comprise the Balance Sheet as at 31st March 2022 theStatement of Profit and Loss (including Other Comprehensive Income) Statement of changesin Equity and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information (herein after referredto as financial statements). In our opinion and to the best of our informationand according to the explanations given to us the aforesaid financial statements give theinformation required by the Companies Act 2013 (the Act) in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardunder section 133 of the Act read with the Companies (Indian Accounting Standard) Rules2015 as amended (Ind AS) and other accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2022 the profit andtotal comprehensive income changes in equity and its cash flows for the year ended onthat date. Basis for Opinion We conducted our audit of the financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the financial statements under provision of Act and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the financial statements. Key AuditMatters Key audit matters (KAM) are those matters that in our professionaljudgment were of the most significance in our audit of the financial statements of thecurrent period. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we co not provide aseparate opinion on these matters. We have not identified any of such matters that are tobe reported separately here during the current period. Information Other than theFinancial Statements and Auditors Report thereon The Companys Board ofDirectors is responsible for the preparation of the other information. The otherinformation comprises the information included in Annual Report but does not include thefinancial statements and our auditors report thereon. Our opinion on the financialstatements does not cover the other information and we do not express any form ofassurance conclusion thereon. In connection with our audit of the financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. 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. Responsibility of Managementfor the Financial StatementsThe Companys 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 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 (Ind AS)specified under Section 133 of the Act. 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thefinancial statements management is responsible for assessing the Companys abilityto continue as a going concer disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. The Board of Directors are also responsible for overseeing the companysfinancial reporting process. Auditors Responsibilities for the Audit of theFinancial Statements Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
*? Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
* Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
* Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on ability of theCompany to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditors report to the related disclosurein the financial statement or if such disclosure are inadequate to modify our opinion.Our conclusion are based on the audit evidence obtained up to date of our auditor'sreport. However future events or condition may cause the company to cease to continue asa going concern.
. Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation. We communicate withthose charged with governance regarding among other matters the planned scope and timingof the audit and significant audit findings including any significant deficiencies ininternal control that we identify during our audit. We also provide those charged withgovernance with a statement that we have complied with relevant ethical requirementsregarding independence and to communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence and where applicable relatedsafeguards. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. VWWe describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror 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 onOther Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 (theOrder) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure A a statementon the matters specified 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 andobtained all the information and explanations which to the best of our knowledge andbelief 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 Sheet statement of Profit and Loss Account including OtherComprehensive Income Statement of changes in Equity and the statement of Cash Flow dealtwith by this Report is in agreement with the relevant books of account. qd) In our opinionfinancial statements comply with the Indian Accounting Standard under section 133 of theAct read with the Companies (Indian Accounting Standard) Rules2015 as amended.
e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 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) The company has not paid or declared any dividend in the current year.
h) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinionand to the best of our information and according to the explanations given to us:
ili. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
'. (a) The management has represented that to the best of its knowledge and belief nofunds have been advanced or loaned or invested any funds (either from the borrowed fundsor share premium or any other source or kinds of funds) by the company to or in any otherperson or entity including foreign entities (Intermediaries) with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries.(b) The management has represented that to the best of its knowledge and belief nofunds have been received by the company from any person or entity including foreignentities with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party(Ultimate Beneficiaries) or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause iv(a) and iv(b) contain any material mis-statement.
Annexure A to the Independent Auditors Report
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:
i. (a) (A) The company has maintaining proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment right ofuse assets and investment property; (B) The company is maintaining proper records showingfull particulars of intangible assets;
(b) The Property Plant and Equipment right of use assets and investment property ofthe Unit have been physically verified by the management at reasonable intervals in aphased manner so as to generally cover all the assets once in three years. As informed tous no material discrepancies have been noticed on such verification whereverreconciliation has been carried out. In our opinion the frequency of physicalverification program adopted by the Company is reasonable having regard to the size of theCompany and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of all the immovable propertiesincluding investment properties (other than properties where the unit is the lessee andthe lease agreements are duly executed in favour of the lessee) disclosed in thefinancials are held in the name of the company.
(d) The company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets or both during the year.
(e) No proceedings have been initiated or are pending against the unit for holding anyBenami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder. Accordingly reporting under clause 3(i)(e) of the Order is notapplicable to the unit.
i. (a) As explained to us the inventory of shares and securities has been physicallyverified during the year by the management. In our opinion the frequency of verificationis reasonable. There were no discrepancies noticed on verification between the stockslying in Demat Account and the bookrecords.
(b) According to the information and explanations given to us at any point of time ofthe year the Company has not been sanctioned any fresh working capital facility more than5 crores from banks or financial institutions on the basis of security of current assets.The company is not required to file quarterly returns or statements with banks orfinancial institutions and hence reporting under clause (ii)(b) of the Order is notapplicable.
ili. (a) Since the principal business of the Company is to give loans the requirementto report on clause 3(iii)(a)of the Order is not applicable to the Company.
(b) According to the information and explanations given to us and based on the auditprocedures conducted by us we are of the opinion that the investments made guaranteesprovided are prima facie not prejudicial to the interest of the Company.
(c) In respect of loans and advances in the nature of loans the schedule of repaymentof principal and payment of interest has been stipulated. Note no. 5 to the financialstatements explains the Companys accounting policy relating to impairment offinancial assets which include loan assets. In accordance with that policy loan amountwith balance as at 31 March 2022 aggregating ' 5500000 were categorized as creditimpaired (Stage 3). Disclosures in respect of such loans have been provided innote no. 32 to the financial statements. In all other cases the repayment of principaland interest is regular. Having regard to the nature of the Companys business andthe volume of information involved it is not practicable to provide an itemized list ofloan assets where delinquencies in the repayment of principal and interest have beenidentified.
(d) The total amount overdue for more than ninety days in respect of loans andadvances in the nature of loans as at the year-end is * 5500000. Reasonable steps arebeing taken by the Company for recovery of the principal and interest (e) Since theprincipal business of the Company is to give loans the requirement to report on clause3(iii)(e) of the Order is not applicable to the Company.
(f) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has granted loans or advances inthe nature of loans repayable on demand.
iV. The Company has not advanced loans or made investments in or provided guaranty orsecurity to parties covered by section 185 and section 186 is not applicable to theCompany. Hence reporting under paragraph 3(iv) of the Order is not applicable. Accordingto the information and explanations given to us the Company has not accepted any depositduring the year and does not have any unclaimed deposit as at March 31 2022 andtherefore the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules made thereunder are not applicable to the Company. Weare informed by the management that no order has been passed by the Company Law BoardNational Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunalagainst the Company in this regard. Vi. The maintenance of cost records has not beenspecified by the Central Government under Section 148(1) of the Companies Act 2013 forthe business activities carried out by the Company. Thus reporting under paragraph 3(vi)of the Order is not applicable to the Company. Vil. In respect of statutory dues:
a) According to the information and explanations given to us and according to the booksand records as produced and examined by us in our opinion the Company is generallyregular in depositing the undisputed statutory dues including Goods and Service Taxprovident fund professional tax income-tax and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.
b) According to the information and explanations given to us no undisputed amountspayable in respect of Goods and Service Tax provident fund professional tax income-taxand other material statutory dues were in arrears as at 31 March 2022 for a period of morethan six months from the date they became payable.
c) According to the information and explanation given to us there are no dues ofincome tax sales tax goods and service tax duty of customs duty of excise value addedtax which have not been deposited on account of any dispute.
vill. In our opinion and according to the information and explanations given to us thecompany does not have any transactions not recorded in the books of account have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961). Accordingly clause 3(viii) of the Order is not applicable.
(a) In our opinion the Company has not defaulted in the repayment of loans orborrowings or in the payment of interest thereon.
(b) The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority.
(c) The Company has not taken any term loan during the year and there are no unutilizedterm loans at the beginning of the year and hence reporting under clause (ix)(c) of theOrder 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) On an overall examination of the Financial Statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries associates or joint ventures.
(f) The Company has not raised loans during the year on the pledge of securities heldin subsidiary joint ventures or associate companies and hence reporting on clause (ix)(f)of the Order is not applicable
(a) The Company not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year and hence reporting under clause (x)(a)of the Order is not applicable.
(b) During the year the Company has not mace any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company.
Xi. (a) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company has been noticed or reported duringthe period covered by our audit.
(b) No case or report under sub-section (12) of section 143 of the Companies Act hasbeen committed to be filed by the auditors in Form ADT-4 as prescribed under rule 13 ofCompanies (Audit and Auditors) Rules 2014 with the Central Government;
(c) According to the information and explanations given to us including therepresentation made to us by the management of the Company there are no whistle-blowercomplaints received by the Company during the year.
Xil. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly Clause 3 (xii) (a) 3 (xii) (b) and 3 (xii)(?c) of the Order is not applicable. xiii. According to the information and explanationsgiven to us and based on our examination of the records of the Company transactions withthe related parties are in compliance with sections 177 and 188 of the Act whereapplicable and details of such transactions have been disclosed in the FinancialStatements as required by the applicable accounting standards.
XIV. (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.
(b) We have considered the internal audit reports issued to the Company during theyear and covering the period up to 31 March 2022 for the period under audit. According tothe information and explanations given to us and based on our examination of the recordsof the Company the Company has not entered into non-cash transactions with directors orpersons connected with him. Accordingly clause (xv) of the Order is not applicable.
(a) According to the records of the company examined by us and the information andexplanations given to us the Company is a Non- Banking Financial Corporation and it hasobtained registration under Section 45-IA of the Reserve Bank of India Act 1934. (24)
(b) The Company has not conducted any Non-Banking Financial or Housing Financeactivities without obtaining a valid Certificate of Registration (CoR) from the ReserveBank of India as per the Reserve Bank of India Act 1934.
(c) The Company is nota Core Investment Company as defined in the regulations made byReserve Bank of India. Accordingly the requirement to report on clause 3(xvi) of theOrder is not applicable to the Company.
(d) There is no Core Investment Company as a part of the Group hence the requirementto report on clause 3(xvi) of the Order is not applicable to the Company.
XVil. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year
xvii. There has been no resignation of the statutory auditors of the Company during theyear.
xix. According to the information and explanations given to us and based on ourexamination of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the FinancialStatements our knowledge of the Board of Directors and management plans we are of theopinion that no material uncertainty exists as on the date of the audit report thatcompany is capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within a period of one year from the balance sheet date.
xx. In our opinion and according to the information and explanations given to us theprovision of section 135 of the Act is not applicable to the company. Accordingly Clause3 (xx) (a) and Clause 3 (xx) (b) of the Order is not applicable.
Annexure-B to the Auditors Report
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 internalfinancial controls with reference to financial statements of SHRI KALYAN HOLDINGS LIMITED(the Company) as of 31 March 2022 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date. ManagementsResponsibility for Internal Financial Controls The Companys management isresponsible for establishing and maintaining internal financial controls based on theinternal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013. Auditors Responsibility Our responsibilityis to express an opinion on the Companys internal financial controls with referenceto financial statements based on our audit. We conducted our audit in accordance with theGuidance Note and the Standards on Auditing issued by ICAI and deemed to be prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether internal financial controls with reference to financial statements wasestablished and maintained and if such controls operated effectively in allmaterialrespects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Companys internal financial controls system with referenceto financial statements. Meaning of Internal Financial Controls over Financial statement Acompanys internal financial control over financial statements 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 companys internal financial control with referenceto financial statements 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 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 authorizations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the companys assets that could have a material effect on thefinancial statements. Inherent Limitations of Internal Financial Controls over Financialstatements Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures maydeteriorate. Opinion In our opinion the Company has in allmaterial respects an internal financial controls system with reference to financialstatements and such internal financial controls with reference to financial statementswere operating effectively as at 31 March 2022 based on the internal control withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.