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 HOLDINGSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2020 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement for the year then ended and a summary of the significant accountingpolicies and other explanatory information (herein after referred to as "financialstatements").
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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standard under section 133 of the Actread with the Companies (Indian Accounting Standard) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2020 the profit and total comprehensive incomechanges in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose standards are further described in the Auditor's Responsibilities for the audit offinancial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under provision of Act and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the financial statements.
Key Audit Matters
Key audit matters ('KAM') are those matters that in our professional judgment were ofthe most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have not identified any of such matters that are to be reportedseparately here during the current period.
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 Annual Reportbut does not include the financial statements 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.
Responsibility of Management 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 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 specified underSection 133 of the Act This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due 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 Responsible for overseeing the company's financial reportingprocess.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs 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 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 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 ability of theCompany 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 disclosure in thefinancial statement or if such disclosure are inadequate to modify our opinion. Ourconclusion are based on the audit evidence obtained up to date of our auditor's report.However future events or condition may cause the company to cease to continue as a goingconcern.
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.
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.
Report on Other Legal and Regulatory Requirements
1. 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 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.
d) In our opinion financial statements comply with the Indian Accounting Standard undersection 133 of the Act read with the Companies (Indian Accounting Standard) Rules 2015as amended ("Ind AS")
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 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:
i. The Company do not have any pending litigations which would impact its financialposition;
ii. The Company do 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.
2. As required by the Companies (Auditor's Report) Order 2016 ("the order")issued by the central Government in terms of Section 143 (11) of the Act we give in the"ANNEXURE A" a statement on the matters specified in paragraphs 3 and 4 of theorder.
3. With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in "Annexure B". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
"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:
1) In Respect of its fixed assets:
(a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets of the company have been physically verified by the managementduring the year and discrepancies between the book records and the physical verificationhave been properly accounted in the books. In our opinion the frequency of verificationis reasonable.
(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 immovable properties areheld in the name of the Company.
2) 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 book records.
3) According to information and explanation given to us the company has granted loanssecured or unsecured to companies firms or other parties covered in the registermaintained under section 189 of the Companies Act. The balance outstanding as at the endof the year was Rs. 189839059 /-.
A) The terms and conditions of the grant of aforesaid loans are not prejudicial to thecompany's interest.
B) In respect of the aforesaid loans the parties are repaying the principal amounts asstipulated and are also regular in payment of interest wherever applicable.
C) There are no overdue amounts in respect of the above loan.
4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
5) According to information and explanation given to us the Company has not acceptedany deposits from the public. Accordingly clause 3 (v) of the Order is not applicable.
6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of section 148 of the Act in respect of theactivities carried on by the company.
7) 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 provident fund professionaltax income-tax and other material statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund professional tax income-tax and other materialstatutory dues were in arrears as at 31 March 2020 for a period of more than six monthsfrom the date they became payable.
b) According to the information and explanations given to us there are no dues ofprovident fund professional tax income- tax or other material statutory dues outstandingon account of any dispute.
8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues either to banks or to financialinstitutions. The Company has not taken any loan from the Government and has not issuedany debentures.
9) Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments. During the year company has raised moneyby way of term loan which were applied for the purpose for which those are raised.
10) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstance of fraud done by the company or any fraud done on the company by its officers oremployees noticed or reported during the year nor have we been informed of such case bythe management.
11) Based upon the audit procedures performed and the information and explanationsgiven by the management managerial remuneration has not been paid or provided during theyear. Accordingly clause (xi) of the order is not applicable.
12) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly clause (xii) of the Order is not applicable.
13) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly clause (xv) of theOrder is not applicable.
16) 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.
"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 internal financial controls with reference to financial statementsof SHRI KALYAN HOLDINGS LIMITED ("the Company") as of 31 March 2020 inconjunction with our audit of the financial statements of the Company for the year endedon 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 with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI').
These responsibilities include the design implementation and maintenance of internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether internal financial controls with reference tofinancial statements was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk.
The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
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 systemwith reference to financial statements.
Meaning of Internal Financial Controls over Financial statement
A company's 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 company's internal financial control with reference tofinancial 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 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 authorizations 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 Financial statements
Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
In our opinion the Company has in all material respects an internal financialcontrols system with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at 31 March2020 based on the internal control with reference to financial statements 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.