You are here » Home » Companies ยป Company Overview » Star Housing Finance Ltd

Star Housing Finance Ltd.

BSE: 539017 Sector: Financials
NSE: N.A. ISIN Code: INE526R01028
BSE 00:00 | 08 Feb 46.45 0.25
(0.54%)
OPEN

46.20

HIGH

53.00

LOW

45.55

NSE 05:30 | 01 Jan Star Housing Finance Ltd
OPEN 46.20
PREVIOUS CLOSE 46.20
VOLUME 202636
52-Week high 60.20
52-Week low 23.04
P/E 48.89
Mkt Cap.(Rs cr) 358
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 46.20
CLOSE 46.20
VOLUME 202636
52-Week high 60.20
52-Week low 23.04
P/E 48.89
Mkt Cap.(Rs cr) 358
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Star Housing Finance Ltd. (STARHOUSINGFIN) - Auditors Report

Company auditors report

To the Members of

STAR HOUSING FINANCE LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Star Housing Finance Limited(the "Company") which comprise the Balance Sheet as at March 312022 and theStatement of Profit arvd Loss including Other Comprehensive Income the Statement of CashFlows and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting p>olicies and other explanatory information.

In our opinion and to the best of our information arvd according to theexplanationsgiven 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 and fair viev/ inconformity with the Indian Accounting Standardsprescribed under section 133 of the Actread with the Companies (Indian AccountingStandards) Rules 2015 as amended. ("IndAS ') and other accounting principles generally accepted in India of the state of affairsof the Company as at March 312022 and its profit total comprehensive income its cashflowsandthechangesin equity for the yearendedonthat date. Basisfor 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 re^x>nsibilities underthose Standards are further described in the Auditor's Responsibility for the Ajdit of theFinancial Statements section of our report We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)together with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics V/e believe that the audit evidence obtained by us is sufficient andappropriate to providea basis for our audit opinion on the financial statements.

Emphasis of Matter

We draw attention to Note 35 to 36 to the financial Statement which describes theextent to which the COVID-19 pandemic will impact the company's operations and Itsfinar>cial metrics including the expected credit loss on financial assets v/hich aredependent on uncertain future developmentSw Ouropinion is not modified in respect of thismatter.

Key Audit Matter

Key audit matter is the matter that. In our professional judgment was of mostsignificance in our audit of the financial statements of the current period. The matterwas 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 the matter. V7ehave determined the matter described below to be the key audit matter to be communicatedin our report.

Impairment of loans Principal audit procedures performed
significant judgement by the management. The most significant judgements are: Profile specific to the borrowers.
• Timely identification and classification of the impaired loans including classification of assets to stage 12 or 3 using criteria in accordance with Ind AS 109 which also include considering the impact of Rei's regulatory circulars We evaluated the design and operating effectiveness of controls across the processes relevant to ECL including the judgements and estimates.
V/e tested the completeness of loans and advances included In the Expected Credit Loss calculations as of March 31. 2022 by reconciling it with the balances as per loan balance register and loancommitmentreportasonthatdate.
• The segmentation of financial assets when their ECL is assessed on a collective basis.
* Determination of probability of defaults (PD) and loss given defaults (LGD) based on the default history of loans subsequent recoveries made and other relevant factorsand We tested assets in stage 12 and 3 on sample basis to verify that they were allocated to the appropriate stage. Tested samples to ascertain the completeness and accuracy of the input data used for determining the PD and LGD rates and agreed the data with underlying books of accounts and records.
• Assessment of qualitative factors having an impact on the credit risk.
There are disclosures made in financial statements for ECL especially in relation to judgements and estimates by the Management in determination of the ECL. Refer note 3.6 and note 8 to the financial statements. For samples of exposure we tested the appropriateness of determining EAD PD and LGD.
For exposure determined to be individually impaired we tested samples of loans and advances and examined management's estimate of future cash flows assessed their reasonableness and checked the resultant provision calculations.
We performed an overall assessment of the ECL provision levels at each stage including management's assessment and provision on account of Company's portfolio risk profile credit risk management practices. We assessed the adequacy and appropriateness of disclosures in compliance with the Ind AS 107 in relation to ECL especially in relation to judgements used in estimation of ECL provision.

Information Other than the Financial Statements and Auditors' Report Thereon

• The Company's Board of Directors are responsible for the other information. Theother information comprises the information included in the Management Discussion andAnalysis and Directors' Report (the ''Reports") but does rvot include financialstatements and our auditors' report thereon. The reports are expected to be made availableto us after the date of this auditor' report.

• Our opinion on the financial statements does not cover the other irrformationand we do not express any form of assurance conclusion thereon

• In connection with our audit of the financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the f inarKial statementsor our knowledge obtained during thecourse of our auditor otherwise appears to be materially misstated.

When we read the Other lnformatk>nif we conclude that thereisa materialmisstatement therein v/earerequiredtocommunicate the matter to those charged withgovernance as required under SA 720 (Revised) The Auditor's responsibilities Relating toOther Information'.

Management's Responsibilities 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 f inarKial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also irKludes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccountingolicies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls atereoperatingeffectively orensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessingtheCompan/sability to continue as a going concern disclosing as applicable mattersrelated to going concern and usmg the going concern basis of accountir^ unless managemerrteither intends to liquidate the Company ortocease operations or has norealisticatternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financialreporting process.

Auditors' 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 reasonablybe expected toinfluence the economicdecisk>nsof users taken on thebasisof these financial statements.

As part of an audit in accordance with SAs ^ve exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the riste 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 abasts for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher thwn for one resultir>g from error as fraudmayinvolvecollusion.forgeryjntentionalomiss*ons.misr^resentationsor theoverrideofinternal control.

• Obtain an understanding of interr^al financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(l) of the Act we are also responsible forexpressing our opinion on whether theCompany has adequateintert^al financial controlssystemln place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management

• Evaluate the appropriateness and reasonableness of disclosures made by the Boardof Directors in terms of the requirements specified under the Listing Regulations.

• 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 conditiorvs 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 finarveial statements or if such dtsclosurss 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 causetheCompanytoceasetocontinueasa goingconcern.

• Evaluate theoverall presentation structure andcontentof theFinancial Resultsincluding thedisclosures and whether theFinandal Results representtheunderlyingtransactions and events in a manner thatachievesfairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably krvswledgeable user of the financial statements may be influerveed. We considerquantitative materialityand qualitative factors in

i. plannir>gthescopeofourauditworkandinevaluatingtheresuttsofourwork;and

ii. toevaluate theeffect ofany identified misstatomontsin the finarv:ialstatomcnts.

We communicate with those charged V/ith governance regarding among other matters theplanned scope and liming of the audit and significantaudit findings irvciudinganysignificantdeficienctes in internal control thatwe identify during our audit.

We also provide those chargedwithgovernancewithastatementthatwe have complied withrelevant ethical requirement regarding indopondonce and tocommunicatev/.ththemallrclatior?hipsand other matters that may reasonably be thought tobearon ourindependence andwhereapplicable 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 the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or v/hon. in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably beexpectedtooutweighthepublic interest benefitsof suchcommunication.

Other Matters

Thefinancial statements asat and for the year ended March 312021 have been audited bythe predecessor auditor. The report of the predecessor auditor on the comparativefinancialstatements dated May 22nd2021 expressed an unmodified opinion.

Our opinion on the financial statements and our report on Other Legal and RegulatoryRequirements below is not modified In respect ofthismatter.

Report on Other Legal and Regulatory Requirements

1. Asrequired by Section 143(3) of the Act. basedon our audit wereport that:

a) We have sought and obtairved all the information and oxplanatiorts which to the bestof our knowledge and belief v/ere necessary for the purposes of ou r a udit.

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

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of CashFlowsandStatenventofChangesinEqu'ftydeaKwithbythisReportareinagreementwith the relevantbooks of account

d) Inour opinion the aforesaid financial statements comply with the Ind ASspecifiedur>der Section 133of the Act.

e) On the basIsofthev/rittenrepresentationsrecelvedfromthedirectorsasandtakenonrecordbytheBoardofDirectors noneofthedirectorsisdisqualifiedasonMarch312022frombeingappointedasadirectorintermsof Section164(2) of the Act.

^ Withrespectto the adequacyof theintemalfinancialcontroteoverfinancialreportingoftheCompany and the operating

effectivenessofsuchcontrols refer to our separate Reportin"AnnexureA".Ourreport?<pressesanunmodified opinion on the adequacy andoperatingeffectivenessof theCompany'sinternal financial controlsover financial reporting.

g) With respect to the other matters to be included ir^ the Auditor's Report inaccordance with the requirements of section 97(16) of the Act as amended in our opinionand to the best of our inf ormation and according to the explanations given to uSk theremuneration has been paid by the Company to its directors during the year Is Inaccordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report inaccordance w'tth RuleTI of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i.TheCompanydoesnothaveanypendinglitigat)onsasatyear-end>vhichwouldimpactitsfinancialposition.

i*L The Company did not have any long-term contracts including derivafive contracts asat the year-end for vrhich there were any

material foreseeable losses.

ill. There werenoamountswhichwererequiredtobetrarisfetTedto the Investor EducationandProtection Fund by theCompany.

iv. (a) The Management has represented that to the best of its knowledge and beliefas disclosed in the notes of accountSi. no funds (which are material either irvjividuallyor in aggregate) have been advanced or loaned or invested (either from borrowed fundsorshare premium or any other sources or kind of funds) by the Company to or in any otherperson(s) or ent;ty(ies) includir>g foreign entities ('Intermediaries') with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest ir> other persons or entities identified in anymanner whatsoever by or on behalf of the Company CUttimate Beneficiartes") or provideany guarantee security or the like on behalf of theUltimate Beneficiaries. Refernote45tothefinarKialstatements.

(b) The Management has represented that to the best of it's knowledge and belief asdisclosed in the notes to accounts no funds (which are materia! either individually orintheaggregate) have been received bytheCompany from any person(s) or entity(ies)including foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise.

that the Company shall directly or Indirectfy lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of theFunding Party('Ultimate Beneficiaries") or provide anyguaranteesecurity or the likeon behalf ofthe Ultimate Beneficiaries. Refer note45tothefinancial statements.

(c) Based on the audit procedures that has been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub- clause (i) and (ii) of Rule 11(e) as provided under (a)and (b) above contain any material mis-statement.

V. The company has not declared or paid any dividend during the year and has notproposed final dividend for the year.

 

Z As required by the Companies (Auditors' Report) Order 2020 (the‘Order") issued by the Central Government In terms of Section 143(11) oftf^eActwe give in "Anr^exureB"astatementonthemattersspecifiedlnparagraphs3and4oftheorder.

For: Nyatl Mundra& Co.

Chartered Accountants

FRN:008513C

Sd/-

CAAkash Jain

Partner

Membership No. :079052

UDIN: 22079052AHHLPR8858

Place: Udaipur

Date: 18.04.2022

Report on Internal Financial Controls Over Financial Reporting

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the "Act")

We have audited the internal financial controls over financial reporting of STARHOUSING FINANCE LIMITED (the "Cornpany") as of March 312022 in conjunction withour audit of thefinancial statements of the Companyforthe year ended onthat date.Management'sResponsibility for Internal Financial Controls

The Company's management Is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial rep>orting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Rnancial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (the "Guidance Note ').These responsibilities include the design. imp>lementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and thetimety preparation of reliablefinancial information as required under the Act.

Auditor's Responsibility

Our responsibilrty is to express an opinion on the Company's internal financialcontrols over financial reportir>g based on our audit. We conducted our audit inaccordance with the GuidanceNoteand the standards on Auditing prescribed under Section143(10) of the Act. to the extent applicable to an audit of internal financial controls.Those Standards and the guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controlsover financial reporting was established and maintained and if suchcontrolsoperated effectively in all material respects.

Our audit irwolves performir>g procedures to obtain audit evidence about theadequacy of the internal firiancial controls system over financial reporting and theiroperating effectiveness. Ouraudit of internal finarKialcontrolsoverfir^rKial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing arKi evaluatingthe design and operating effectiveness of Internal control based on the assessed risk. Theprocedure selected depend on the auditor's judgement including the assessment of therisks of material 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 theCompany'sintemalfinancialcontrotesystemoverfinanciaireporting.

Meaning of Internal Financial Controls Over Financial Reportir>g

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 p>olicies and procedures that(1) pertain to the maintenanceofrecords that in reasonable detail accurately and feirty reflect thetrarsactionsanddispositions of the assets of ihe company; (2) provide reasonable assurancethat transactions are recorded as necessary to permit preparation of financial statementsin accordance v/ith 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 urtauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitatlorts of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the p>ossibility of collusion or

improper management override of a>ntrois material misstatements due to error orfraud may occur and rrot be detected. Also projections of any evaluation of the interna!financial controls over financial reporting to future periods are subject to the risk thatthe interrial financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has^ in all material respects^ an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreportir>g were operating effectively as at March 312022 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance Note.

For: Nyati Mundra & Co.

Chartered Accountants

FRN:008513C

Sd/-

CA Akash Jain Partner

Membership No. :079052

UDIN: 22079052AHHLPR8858

Place: Udaipur

Date: 18.04.2022

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

(I) Accordirvg to the information and explanations given to us in respect of PropertyPlant and Equipment & Intangible Assets.

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment The Company hasmaintained proper records showing full particulars of intangible assets.

b) The Company has a program of verificalion of Property Plant and Equipment so tocover all the items in a phased periodical manner vrhkh in our opinion. Is reasonablehaving regardtoWie size of the Company and the r^ature of its assets. /Vxording to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c) Based upon the audit procedure performed and according to the records of theCompany the title deeds of all the imrTKJvable properties are held in the name of theCompany.

d) TheCompany hasnotrevalued any of its Property PlantandEquipmentincluding Right ofUse Assetsand intangible assets during the year.

e) No prococdir^gs have boon initiated durir>g the year or are ponding against thoCompany as at March 312022 for holding any benami properly under the Benami Transactions(Prohibition) Act 1988 (as amended In 2016 ) and rules made thereunder.

(ii) a) The ompanydocsnothaveanyinventoryandhenceroportingundcrclausc3(ii)(a)oftheOrdorisnotapplicablo.

b) According to the information and explanations given to us the Company has not beensanctioned working capital limits in excess of Rs 5 crores in aggregate at any points oftime during the year from bante on the basis of security of current assets hencereporting under clause 3 (ii)(b)of the Order is not applicable.

(iii) During the year the Company has made investments in and granted loans oradvances in the nature of loans secured or unsecured to companies firms limitedliability partnershipsoranyotherparties. TheCompany has not provided any guaranteeorsecuritytoany other entity durir>g the year.Withrespecttosuchinvestmentsandloansandadvances:

a) TheCompany'sprincipalbusinessistogiveloansandhencereportingunderclause3(iii)(a)oftheOrderisnotapplicable.

b) The investments made and the terms and conditions of the grant of all theloar? andadvances In the natureof loarw during thoyear are in our opinionprimafacienotpre]udicial to the Compan/s interest.

c) In respect of loans and advances in the r>ature of loans (together referred to as' loan assets') the schedule of repayment of principal and payment of interest has beenstipulated. Note 3.6 to the Financial Statements explains the Company's accounting policyrelating to impairment of fiivtndai assets which include loans assets. In accordance withthat policy loan assets with balances as at March 312022 aggregating 311.46 Lacs werecategorised as credit impaired (‘Stage 3') and 1910.27 lacs were categorised as thosewhere the credit risk has increased significantly since initial recognition ("Stage2'). Disclosures in respect of such loans have been provided in Note 6.1 to the FinancialStatements. Having regard to the nature of the Company's business and the volume ofinformation irrvolved. it is not practicable to provide an itemized list of loanassetswheredelinquenciesintherepaymentof principal and interesthave been identified.

d) The total amount overdue for more than ninety days in respect of loans and advancesin the r>ature of loar? as at the year end is 98.37 Lacs. Reasonable steps are beentaken by the Company for recovery of the principal and interest as stated in theapplicable Regulations and loan agreements

e) TheCompany'sprincipalbusinessistogiveloansandhencereportingunderctause3(iii)(e)oftheOrderisnotappl(cable.

f) According toinformation andexplanationsgiven to usand based on the auditproceduresperformed.theCompany has not granted any loans or advances in the nature ofloanseitt>er repayable on demand or without specifying any terms or period of mpaymentduring the year. Hence reporting under clause 3(iii)(f) is not applicable.

(iv) According toinformation andexplanationgiven tous theCompany hasnotadvancedloansormade investmentsinor provided guaranteesorsecuritytopartiescoveredbysection 185and 186oftheActHencereportingunderparagrap>h 3(iv) of the Order is r>ot applicable.

(v) According to the information and explanations given to us. the Company has notaccepted any deposits or amounts which aredeemedto bedepositsduringtheyearandryoorderinthisrespecthasbeenpassedbytheCompanyLawBoardorNational Company LawTribunal or the Reserve Bank of Irwdia or any Court or any other Tribunals in regard tothe Company. Hervce reporting under ciause3(v) of theOrder is not applicable.

(vi) According to the information and explanations given to us^ the Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act inrespect of the services rendered by the Company. Hence reporting under clause 3(vi) ofthe Order Is not applicable.

(vit) Accordingtotheinformationandexplanationsgiventous.inrespectofstatutorydues:

a) Undisputed statutory dues irKluding Goods arKl Service tax (GST). Provident FundEmployees' State lr>surance. Income- tax cess and other material statutory duesapplicable to the Company have generally been regularly deposited by it with theappropriate authorities.

b) There were no undiluted amounts payable in respect of GST Provident FundEmployees' State Insurance Income-tax cess and other material statutory dues in arrearsas at March 312022 for a period of more than six months from the date they becamepayable.

c) There were rK> dues referred in sub clause (a) above which have not beendeposited on account of disputes as at March 31.

2022.

(viii) According to the information and explar%ations given to us. no transactionsrelating to previously unrecorded income were surrendered ordisdosedasincorr>einthetaxassessa>entsunderthelncomeTdxActl961durIr>g the year.

('x) According to the information and explanations given to us inrespect ofborrowings:

a) The Company has not defaulted in the repayment of loans or other borrowings or inthe payment of interest thereon to any lender during the year.

b)TheCompanyhasnotbeendeclaredwilffuldefaulterbyanybankorfinancialinstitutionorgovernmentoranygovernment authority.

c) In our opinion term loans availed by theCompany were applied by the Company duringthe yearfor the purposesfor which theloanswereobtained.otherthan temporary deploymentpendingapplication in respect of term loans raised towardsthe end of the year.

d) On an overall ?omination of the financial statements of the Company funds raisedon short term basis have prima facie not been usedduring the yearfor long-term purposesby the Company.

8) The Company did not have any subsidiary or associate or joint venture during theyear and hence reporting under clause 3(ix)(e) of the Order is not a pplicable.

f)TheCompanydoesnothaveanysubsidiaryorassociateorjointventureandhencereportingonclause3(ix)(f)oftheOrder isnotapplicable.'

(x) (a) The Company hasnot raised moneysbyyray of initial public offerorfurther publicoffer (including debt instrun>ents) during

the year and hence reporting under clause 3(x)(a) of the Order is not applicable b)According to the information and explanationsgiven to us^ company has made preferentialallotment of908729shares of

Rs 10 at a premium of Rs 79 as approved in its Board meeting held on 18th Nov 2021. Inour opinion requirements of the section 42 and section 62 of the Companies Act.2013havebeen complied with and thefunds raised have been used for the purposes for whichthe funds were raised.

(xi) (a) According to the information arvd explanations given to us no fraud by theCompany and rvo material fraud on the Company

has been noticed or reported during the year.

b) No report under section 143(12) of the Act has been filed in Form ADT-4 asprescribed under rule 13 of Companies (Audit

and Auditors) Rules 2014 withtheCentralGovernment duringthe yearanduptothedateof thisreport. c)As represented tousbythe Management there were no'/vhistleblowercomplaintsreceived by theCompany during the year.

(xii) TheCompanyisnotaNidhiCompanyand hence reportirvg underclause 3(xii)of the Orderisnotapplicable.

(xiii) According to the informationand explanationsgiven to us theCompanyisincompliancewith Section 188and 177of theAct here

applicable for all transactions with the related parties and the details of relatedparty transactior? have been disclosed in the financial statements etc. asrequired bythe applicable accounting standards.

(xiv) (a) In our opinion the Company has an adequate Internal audit systemcommensurate with the size and the nature of its

business.

b) We have considered the internal audit reports issued to the Company during the yearand covering the p>eriod upto March

312022.

(xv) Accordirvg to the information and explar>ations given to us during the yearthe Company has not entered into any rron-cash transactions with itsdirectors or personsconnected with him and hence provisions ofsectionl92 of ffic Act are rvotapplicable.

(xvi) TheComp>anyis notrequiredtobe registered undersecfonAS-IAof theReserve Bank ofIndia Act 1934. Hence reporting under clauses3(xvi)abandcof theOrderisnotapplicable. TheGroup does not have any CIC as part of the group ar>d accordirvgly reporting underclause <xvi) (d) of the Order is not applicable.

(xvii) TheCompanyhasr?ot incurred cash fosses during the financial year covered byouraudit and theimmediatelypreceding financial year.

(xviii) There has been no resignation of the statutory auditors of the Company. Hencereporting under clause 3(xviii) of the Order is not applicable.

(x'x) On the basisof thefir^ncial ratios ageing and expected datesof realization offinancial assetsand payment of financial liabilities. Asset Liabiitty Maturity (ALM)pattern other information accompanying the fir^ancial statements and our knowledge of theBoard of Directors and Management plans and based on our examination of the evidencesupporting the assumptions nothing has come to our attention whic^t causes us to believethat any material uncertainty exists as on the date of the audit report ir>dicatingthat the Company is not capable of meeting its liabilities ex sting at the date of balancesheet as and when they fall due withina period of one yearfrom the balance sheet date. Wehowever state thatthis is not an assurance as to the future viability of the Company. Wefurther state that our reporting Is based on the facts up to the date of the audit reportarvd we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany asand when they fall due.

(xx) The Company has fully spent the required amount towards Corporate SocialResponsibility (CSR) and there Is no unspent CSR amount for the year requirirvg a transferto a Fund specified In Schedule Vil to the Act or special account in compliance with theprovision of section 135(6)of the said Act. Accordingly reporting under clause 3(xx)ofthe Order is not applicable.

(xxi) According to the information and explanations given to us the Company does nothave subsidiary associate and joint venture. A?:ordingly reporting under clause3(xxi)of the Order is not applicable.

For; Nyati Mundra & Co.

Chartered Accountants

FRN:008513C

Sd/-

CA Akash Jain

Partner

Membership No. :079052

UDIN: 22079052AHHLPR8858

Place: Udaipur

Date: 18.04.2022

TO

THE BOARD OF DIRECTORS

STAR HOUSING FINANCE LIMITED

Independent Auditor's Additional Report for the year ended pursuant to therequirements of the Master Direction - Non-

Banking Finance Company- Housing Finance Company (Reserve Bank) Directions2021.

1. This report has been issued in accordance v/ith the requirements of the MasterDirectiwi - Non- Banking finance Company • Housing Finanee Company (ReserveBank)Directions2021.

2. We have audited the accompanying audited Ind-AS financial statements of Star HousingFir\ance Company ("the Company') which comprise the Balance Sheet as at 31st March2022 the Statement of Profit and loss including Other Compreher?sive IncometheStatement of Changes in Equity and the Statement of Cash Flosvs for the year then endedand notes to the Ind-AS financialstatementsincludingasummaryofsignificantaccountingpoticiesand other explanatoryinformation and have issuedan unquallfiedopinionvideourAuditreportdatedlBthAprir 2022.

InadditiontothesaidreportmadeunderSection 143of theCompaniesAct2013('theAcf)onthelr>d AS financial statements of the Company for the year ended 31stMarch 2022 ar>d as required by the requirements of Master Direction - Non- Bankingfinance Company - Housing Finance Company (Reserve Bank) Directions 2021. andInformatiotyexplanations and representation received from the management we report on thematters specified in paragraphs 70 of Chapter XII of the said Directions.

Management and those Charged with Governance's Responsibility for the FinancialStatements

3. The Company's Board of Directors is responsible forthe matters stated in Section134(5) of the Companies Act 2013 (The Act) with respect to the preparation of these IrxJASfinancialstatements thatgivea true arxJ fair view of the financial position financialperformance(including other Comprehensive Income) charvges in equity and cash flows ofthe Company in accordance with the Indian Accounting Standards (Ind AS) and otheraccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor the safeguarding the assetsof theCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationof appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintervanceofadequateintemaifinancialcontrote. that wereoperatingeffectively for ensuring the accuracy and completeness of tho accounting recordsrelevanttothoproparation andpresentationof the financial statomentsthatgive a true andfair view and are free from material misstatement whether due to fraud or error Inpreparing the financial statements management is responsible for assessing theCompany'sability to continue as a going concern disclosing asapplicable matters relatedto goingconcemandusingthegoingconcernbasisofaccountingunlessmanagementeitherlntendstoliquidate theCompany or to cease operations or has norealisticalternativebut to do so.

4. The Management of the Company is also responsible for Compliance with the NationalHousing Bank Act1987 (The NHB Act') Master Direction - Non- Banking finance Company -Housing Finance Company (Reserve Bank) Directions 2021 and other circulars anddirections issued by the NHB there under and for providing all the required information tothe NHB. Further the Company is responsible for complianceofRBI circular or guidelineswherever applicable.

Auditors Responsibility

5. Pursuant to the requirements of the Auditor's Report Directions it is ourresponsibility to provide reasonable assurance on the matters specified in para 70 of theDirections to the extent applicable to the Company on the basis of our audit of thefinancial statements of the Company for the year ended 31st March 2022 and examination ofbooks of account arvd other records maintained by theCompany for the year then ended.

6. Vie conducted our examination in respect of this certificate in accordancewith the Guidance Note on Reportsor Certificates for Special Purposes ("the GuidanceNote ") issued by the Institute of Chartered Accountants of India. The Guidance Noterequires that we comply with the ethical requirements of theCode of Ethics issued bythelnstituteof Chartered Accountants of India.

7 We have complied v/Ith the relevant applicable requirements of the Standard onQuality Control (SOC) I Quality Control for Firms that Perform Audits and Reviews ofHistorical Rnancial Information and Other Assurance and Related and Related

Services Engagements issued by ICAl.

8 Opinion;

Based on our auditof the financial statements forthe year ended 31st March 2022 andexamination asabove evidences obtained and the information and explanations along withthe representatiorts provided by the Management we report that

A: Applicable to all Housing Finance companies:

1 The company has obtained a Certificate of Registration No. 12.0080.09 from NationalHousing Bank (CoR not valid for acc^tance of public deposit). According to the informationand explanations given to us^ the housing company is complying with the principalBusinessCriteria as defined in para 4.1.17of the master- direction- Non Banking Financecompany- Housing Finance company (Reserve Bank) Directions2021.

2 According to the information and explanations given to us the company is meeting therequired Net Owned Fund (NOF) requirement as prescribed under section 29A of the NationalHousir>g Bank Act 1987 during the period under audit and as on 31stMarch2022.Durirvgthe year.thehousingfinancecompany asnotissuedpaid-uppreferenceshareswhicharecompulsorily convertible into equity.

3 According to the information nd explanations iven to us.thecompanyhascompliedwithsection29C of theNational Housing Bank Act1987by creating areserve fund in which 20 percent of its net profit has been transferred during thefinancial year ended 31st March 2022.

4 According to the information arvd explanations given to us and as per the auditeviderKes gathered during the audit the Company's total borrowings as on March 312022amounting to Rs.78.48Crs is less than 12 times of NOF.

5 According to the informationand explanationsgiven tousandaspertheauditevidencesgatheredduring the audit.the companyhascompliedwiththeprudentialnormsonincomerecognitionaccountingstandardsassetcl3ssificationloan-tovalueratioprovisk>ningrequirementsdisclosureinbdlancesheetinvestmentinrealestate.exposuretocdpttaimarlcetandengdgementof brokers and concentration of credit/investments as specified in the Master Direction -Non- Banking finance Company - Housing Rna nee Company (Reserve Bank) Directions 2021.However we drawyourattentionto;

a) The company has granted moratorium to the eligible borrowers as per the RBI circularon Covid-19 Regulatory package dated 17.04.2020 and 23.05.2020 whereby Term Loan EMispayable from 01.03.2020 to 31.08.2020 have been deferred and the Loan tenure has beenextended by the respective period. As on 31-March-2022outstandir>g of those accounts is21.29 Crore and total no. of that account is286out of 1271 live customer

6 According to the information and explanations given to us the capital adequacy ratioas disclosed In the half yearly statutory return and revised return filed thereaftersubmitted to National Housing Bank has been correctly determined by the company and suchratio is in compliance wrththeminimumcapitaltorisk weighted asset ratio (CRAR).

7 According to the information and explanations given to us the Company during thehalf financial year ended 30thSep 2021 has furnished to the NHB the half yearly StatutoryReturn within the stipulated period. Further half yearly NHB Statutory Return for theperiod end as on 31-March-2022 yet to be submitted because it is not falling due as on thedate of the Audit report.

8 According to the information and explanations given to us. the Schedule-Ill Return onstatutory liquid assets is notapplicable to the company as its norvdeposit taking compa ny

9 According to the informationand explanationsgiven to us the company has not openedany new branch during the FY-21-22

10 According to the information and explanations given to us. the company has not givenany loan against security of shares (Para 3.13 of the Directions) not given any loanagainst security of single product- gold jewellery not given any loan againstHFCs ownshares (Para 18 of the Directions).

11 According to the information and explanations given to us. the Board of Directors ofthe company have passed a resolution for non-acceptance of any public deposit dated 07thApril2021.

12 According to the information and explanations given to us ihe company has notaccepted any public deposits during the financial yearertded.

6; Applicable to Housing Finance companies aco^ting/holding public deposits:

13 According to the information and explanations given to us the Company hasCertificate of Registration as Housing Finance Company and not accepting/holding publicdeposits. Accordingly Paragraph 70.2.1 to 70.2.7 of Master Direction - Non- Bankingfinance Compary - Housing Finance Company (Reserve Bank) Directions 2021 are notapplicable to the company for the financial year ended 31st March 2022.

For; NyatiMundra&Co.

Chartered Accountants Firm Registration No.008153C

Sd/-

Akash Jain

Partner

M.No.079052

UDIN:22079052AHHLPR8858

Place; Udaipur

Date:18.04.2022.

.