Sri Amarnath Finance Ltd.
|BSE: 538863||Sector: Financials|
|NSE: N.A.||ISIN Code: INE985Q01010|
|BSE 00:00 | 01 Dec||Sri Amarnath Finance Ltd|
|NSE 05:30 | 01 Jan||Sri Amarnath Finance Ltd|
|BSE: 538863||Sector: Financials|
|NSE: N.A.||ISIN Code: INE985Q01010|
|BSE 00:00 | 01 Dec||Sri Amarnath Finance Ltd|
|NSE 05:30 | 01 Jan||Sri Amarnath Finance Ltd|
TO THE MEMBERS OFSRIAMARNATH FINANCE LIMITED Report on the Audit of StandaloneFinancial Statements Opinion
We have audited the accompanying Standalone financial statements of Sri AmarnathFinance Limited ("the company") which comprises the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss and the Cash Flow Statement for the yearended and notes to the financial statements including a summary of significantaccounting 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 2021 and its profit/loss and its cash flows for the year endedon that date.
Basis of Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
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.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters state dinsection 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view
of the financial position financial performance 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. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safe guarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are 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.
That Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's 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.
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 sub - section (11) of section 143 ofthe Act we give in the Annexure A a statement on the Matters specified in the paragraph3 and 4 of the Order.
2. As required by Section 143(3) of the Act we report that:
a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofo urknowledgeand belief were necessary for the purpose so four 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
d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) The basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director interms of Section 164(2) of the Act.
f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11of the Companies (Audit and Auditors) Rules 2014in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigation which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivate 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.
Annexure - A to the Auditors' Report
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31stMarch 2021 wereport that:
(i) (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets
(b) According to explanation given to us fixed assets have been physically verified bythe management at reasonable intervals and no material discrepancies were noticed on suchverification.
(c) According to the information and explanations given to us the company has not heldany immovable property as on 31.03.2021.
(ii) The Company is a service company primarily rendering Finance services.Accordingly it
does not hold any physical inventories. Thus paragraph 3(ii) of the Order is notapplicable to the Company
(iii) The Company has granted loans to bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act').
(a) according to information given to us rate of interest and other terms andconditions of grant of such loan to bodies corporate listed in registered maintained undersection 189 of the act is not prejudicial to the interest of the Company.
(b) according to information given to us the loan granted to the bodies corporatelisted in the registered maintained under section 189 of the company act 2013 theborrowers have been regular in the payment of principal and interest as stipulated.
(c) According to information given to us there is no overdue amounts in respect of theloan granted to a bodies corporate listed in the register maintained under section 189 ofthe Act.
(iv) 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.
(v) The company has not accepted any deposited from the public
(vi) According to the information and explanation given to us the provision of theclause (3)(vi) are not applicable to the company as the company is not engaged in theproduction of goods or providing services covered by the companies (cost records andaudit) rules 2014.
a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company is regular in depositing undisputed statutorydues including provident fund employees' state insurance income-tax sales tax servicetax duty of customs duty of excise value added tax cess and other statutory dues tothe appropriate authority.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax service tax duty of customsduty of excise value added tax cess and other material statutory dues were in arrears asat 31st March 2021 for a period of more than six months from the date theybecame payable.
b) According to information and explanations given to us there are no material dues ofincome tax or sales tax or service tax or duty of custom orduty of excise or value addedtax have not been deposited by the Company on account of any dispute
(viii) Based on our audit procedure and as per the information and explanation given tous we are of the opinion that the company has not defaulted in repayment of loan orborrowing to a financial institution or bank.
(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and the term loan.
(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
(xi) According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance of requisite approvals mandated by the provisionsof section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
(xiii) 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.
(xiv) 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. Accordingly paragraph 3(xiv) of the Order is not applicable.
(xv) According to the information and explanations the company has not entered into anynoncash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.
(xvi) The Company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and the registration has been obtained.
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 over financial reporting of SriAmarnath Finance Limited ("the Company") as of 31 March 2021 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
Management7 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's 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.
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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
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 31stMarch 2021 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
FOR VINOD VISHAL & CO.
FRN No. 09112N
CA. DIVYA GUPTA
M. No. 537766