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Shalibhadra Finance Ltd.

BSE: 511754 Sector: Financials
NSE: N.A. ISIN Code: INE861D01011
BSE 00:00 | 18 May 210.00 -0.30
(-0.14%)
OPEN

214.90

HIGH

214.90

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204.00

NSE 05:30 | 01 Jan Shalibhadra Finance Ltd
OPEN 214.90
PREVIOUS CLOSE 210.30
VOLUME 29242
52-Week high 259.80
52-Week low 50.10
P/E 23.39
Mkt Cap.(Rs cr) 105
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 214.90
CLOSE 210.30
VOLUME 29242
52-Week high 259.80
52-Week low 50.10
P/E 23.39
Mkt Cap.(Rs cr) 105
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shalibhadra Finance Ltd. (SHALIBHADRAFIN) - Auditors Report

Company auditors report

To

The Members Of

SHALIBHADRA FINANCE LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial statements of SHALIBHADRA FINANCE LIMITED("the Company") which comprise the Balance Sheet as at 31 March 2021 theStatement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the financial statements").

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 Companies Act 2013 ("theAct") in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed u/s 133 of the Act read with the Companies

(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") and otheraccounting principles generally accepted in

India of the State of Affairs of the Company as at 31st March 2021 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 in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the

Financial 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 the provision of the Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI`s Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report:

Key Audit Matter How the matter was addressed in our report
Revenue Recognition:
Income/ Interest from vehicle loan are accounted for on an accrual basis and are recognized so as to produce a constant periodic return on the amount financed. We have verified the income / interest on the loans sanctioned on a quarterly basis and it is accounted regularly on mercantile basis
Sanctioning of Loans:
The Company is mainly in the business of Auto finance to Customers for personal use wherein grant of loan is based on personal evaluation of the borrower by the management and security given by hypothecation of the vehicle with RTO registration authority. We have checked the control system of authorization sanction of loans the security offered to the Company and down payment made by the Customer.
Bank Finance is availed on the stock in trade of receivables from the Customers in regular course of business There is no excess amount availed from the banks against eligible stock in trade.

Information Other than the Financial Statements and Auditors Report thereon TheCompany's Board of Directors is responsible for the other information. The Otherinformation comprises the information included in the Directors Report Managementdiscussion & Analysis and Business responsibility report but does not include thefinancial statements and our auditor`s report thereon.

Our opinion on the financial statements does not cover other information and we do notexpress 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 financial statements or ourknowledge obtained during the course of 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.

Management`s Responsibility for the Financial Statements

The Company`s Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe Ind AS and accounting principles generally accepted in India. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material 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 also responsible for overseeing the Company's financialreporting process.

Auditorfs Responsibility 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 SA`s weexercise professional judgment and maintain professional skepticism 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 to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 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 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 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions 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.

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")issued by the Central Government of

India in terms of Section 143 (11) of the Act we give in the Annexure A a statementon the matters specified in paragraphs 3 and 4 of the Order.

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 purposes of our audit;

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

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and the Statement of changes in Equity dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid Financial Statements comply with the Ind AS specifiedunder Section 133 of the Act read with the relevant rule 7 of the Companies (Accounts)Rules 2014; e) On the basis of written representations received from the directors as on31 March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company`s internal financial controls overfinancial 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) Rule 2014 as amended inour opinion and to the best of our information and according to the explanation given tous: i. The Company does not have any pending litigations which shall impact its financialpositions. (Refer Note on contingent Liability) ii. The Company does not have any longterms contracts for which provisions are required to be made. iii. The Company is notliable to transfer any amount to the Investor Education and Protection Fund.

For VORA & ASSOCIATES
CHARTERED ACCOUNTANTS
(ICAI Firm Reg. No.: 111612W)
RONAK A. RAMBHIA
PARTNER
(Membership No.: 140371)
UDIN: 21140371AAAAEY8579
PLACE: MUMBAI
DATED: June 30 2021

Annexure A to the Auditorsf Report

The Annexure referred to in paragraph 1 under "Report on Other legal andRegulatory Requirements" section of our Report to the members of the Company on theFinancial Statements for the year ended 31st March 2021.

(i) In respect of its Fixed Assets

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) As explained to us and accordingto the practice generally followed by the Company all the fixed assets have been verifiedin a periodical manner by the management during the year and no material discrepancieswere noticed on such physical verification. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and nature of itsassets. No material discrepancies were noticed on physical verification. (c) The titledeeds of immovable properties are held in the name of the Company or are in the process oftransfer in the name of the Company.

(ii) In respect of inventories

In our opinion and according to the information and explanation given to us TheCompany's inventory is the

Vehicle Loan Stock.

(iii) In respect of loans granted secured or unsecured by the Company to firms orother parties covered in the register maintained u/s 189 of the Act;

The Company has not granted any secured / unsecured loan to any of the parties coveredin the register maintained under section 189 of the Act. Accordingly sub clauses (a) (b)and (c) are not applicable.

(iv) In our Opinion and according to the information and explanation given to us TheCompany has complied with the provisions of section 185 and 186 of the Act in respect ofgranting of loans making investments providing guarantees and securities as applicable.

(v) The Company has not accepted any deposits within the meaning of Section 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3 (v) of the Order are not applicable.

(vi) The maintenance of cost records has not been specified by the Central Governmentunder Section 148 (1) of the Act for the business activities carried out by the Company.Thus reporting under clause 3 (vi) of the Order is not applicable to the Company.

(vii) According to information and explanation given to us In respect to statutorydues

(a) The Company has generally been regular in depositing undisputed statutory duesunder Income tax Goods & Service Tax and other Statutory Dues as applicable to itwith the appropriate authorities. According to the information and explanations given tous no undisputed amounts payable in respect of the above were outstanding as at 31stMarch 2021 for a period of more than six months from the date on when they becamepayable. (b) According to the information and explanations given to us the following duesin respect of Income Tax are outstanding on account appeal filed with CIT (A):

Assessment Year Amount under Dispute Authority with whom Appeal is filed
2017-2018 73946650/- CIT (A)

(viii) The Company has taken loans and borrowings from financial institutions andbanks the company has not defaulted in repayment any dues to the financial institutionsand banks.

(ix) The Company has not raised any moneys by way of Initial Public Offer or furtherpublic offer or obtained term loans during the year. Hence reporting under clause 3 (ix)of the Order is not applicable to the Company.

(x) To the best of our knowledge and according to the information and explanation givento us no fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during this year.

(xi) In our opinion and according to the information and explanation given to us andbased on our examination of the records of the Company the Company has paid managerialremuneration within the limits prescribed under the

Company's Act 2013 during the year under review.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) ofthe Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usthe transactions with related parties are in compliance with section 177 and section 188of the Act as applicable and the details have been disclosed in the Financial Statementsas required by the applicable accounting standard.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected with them and hence reporting under clause 3 (xv) of theOrder is not applicable to the Company.

(xvi) According to the information and explanations given to us the Company isregistered under section 45-IA of the Reserve Bank of India Act 1934.

For VORA & ASSOCIATES
CHARTERED ACCOUNTANTS
(ICAI Firm Reg. No.: 111612W)
RONAK A. RAMBHIA
PARTNER
(Membership No.: 140371)
PLACE: MUMBAI
DATED: June 30 2021

Annexure B to the Auditorsf Report

Independent Auditors Report on Internal Financial Control over Financial Reporting

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (gthe Acth)

We have audited the internal financial controls over financial reporting of SHALIBHADRAFINANCE LIMITED ("the Company") as of March 31 2021 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Managementfs 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f 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 ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and 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 judgement including the assessment of the risks ofmaterial misstatement of the Ind AS 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 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 2021 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 VORA & ASSOCIATES
CHARTERED ACCOUNTANTS
(ICAI Firm Reg. No.: 111612W)
RONAK A. RAMBHIA
PARTNER
(Membership No.: 140371)
PLACE: MUMBAI
DATED: June 30 2021

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