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Ujjivan Financial Services Ltd.

BSE: 539874 Sector: Financials
NSE: UJJIVAN ISIN Code: INE334L01012
BSE 10:29 | 18 Aug 184.10 0.10
(0.05%)
OPEN

182.95

HIGH

186.85

LOW

182.95

NSE 10:19 | 18 Aug 184.45 0.50
(0.27%)
OPEN

184.00

HIGH

186.90

LOW

183.05

OPEN 182.95
PREVIOUS CLOSE 184.00
VOLUME 14608
52-Week high 210.00
52-Week low 96.10
P/E 920.50
Mkt Cap.(Rs cr) 2,240
Buy Price 184.20
Buy Qty 5.00
Sell Price 184.45
Sell Qty 1.00
OPEN 182.95
CLOSE 184.00
VOLUME 14608
52-Week high 210.00
52-Week low 96.10
P/E 920.50
Mkt Cap.(Rs cr) 2,240
Buy Price 184.20
Buy Qty 5.00
Sell Price 184.45
Sell Qty 1.00

Ujjivan Financial Services Ltd. (UJJIVAN) - Auditors Report

Company auditors report

To the Members of Ujjivan Financial Services Limited

REPORT ON THE AUDIT OF THE STANDALONE

FINANCIAL STATEMENTS

Opinion

We have audited the standalone financial statements of UjjivanFinancial Services Limited ("the Company") which comprise the Balance Sheet asat March 31 2021 and the Statement of Profit and Loss Statement of Changes in Equityand Statement of Cash Flows For the year then ended and notes to the standalone financialstatements including a summary ofsignificant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act') in the manner so requiredand give a true and Fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015 as amended and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 312021 and profit changes in equity and itscash flows For the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are Further described in the Auditor's Responsibilities For the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance 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 thestandalone financial statements under the provisions of the Act and the Rules thereunderand 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.

Emphasis of Matter

We draw attention to Note 28 to the standalone Financial statementswhich states that management has made an assessment of the impact of COVID-19 on theCompany's operations financial performance and position as at and For the year endedMarch 31 2021 and has concluded that no there is no impact which is required to berecognised in the standalone financial statements. Further the impact of COVID-19Pandemic on the subsidiary's Financial statements will depend on the Future developmentswhich are uncertain. Accordingly no adjustments have been made to the standalonefinancial statements.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in Forming our opinion thereon and we do not providea separate opinion on these matters.

We have determined that there are no key audit matters to communicatein our report.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible For the otherinformation. The other information comprises the information included in the Director'sreport but does not include the standalone financial statements and our auditor's reportthereon which we obtained prior to the date of this auditor's report and the AnnualReport which is expected to be made available to us after that date.

Our opinion on the standalone financial statements does not cover theother information and we do not express any Form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed on the other information that we obtained prior to thedate of this auditor's report we conclude that there is a material misstatement of thisother information we are required to report that Fact. We have nothing to report in thisregard.

When we read the Annual Report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those Charged withGovernance.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible For the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and Fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act For safeguardingof the assets of the Company and For preventing and detecting Frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively Forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statement that give a true andFair view and are Free From material misstatement whether due to Fraud or error.

In preparing the standalone financial statements the Board ofDirectors is responsible For assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible For overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Financial statements as a whole are Free From material misstatement whetherdue to Fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise From Fraud or errorand are considered material IFindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

We give in "Annexure A" a detailed description of Auditor'sresponsibilities For Audit of the Standalone 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 of the Act we give in "Annexure B" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary For the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so Far as it appears From our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss the Statementof Changes in Equity and the Statement of Cash Flow dealt with by this Report are inagreement with the books ofaccount.

(d) In our opinion the aforesaid standalone Financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received From thedirectors as on March 312021 taken on record by the Board of Directors none of thedirectors are disqualified as on March 312021 From being appointed as a director in termsof Section 164 (2) of the Act.

(F) With respect to the adequacy of the internal financial controlswith reference to standalone Financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure C".

(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. The Company does not have any pending litigations which would impactits financial position.

ii. The Company did not have any long-term contracts includingderivative contracts For which there were any material Foreseeable losses.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

3. As required by The Companies (Amendment) Act 2017 in our opinionaccording to the information and explanations given to us and based on our examination ofthe records of the Company the Company has paid/ provided For managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

For MSKA & Associates
Chartered Accountants ICAI Firm Registration No. 105047W
Deepak Rao
Partner
Bengaluru
Membership No. 113292
May 28 2021
UDIN: 21113292AAAAGF3523

Annexure A to the Independent Auditor's Report on even date on theStandalone Financial Statements of Ujjivan Financial Services Limited

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has internal financial controls with reference to financial statementsin place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

For MSKA & Associates
Chartered Accountants ICAI
Firm Registration No. 105047W
Deepak Rao
Partner
Bengaluru
Membership No. 113292
May 28 2021
UDIN: 21113292AAAAGF3523

Annexure B to Independent Auditors' Report of even date on theStandalone Financial Statements of Ujjivan Financial Services Limited for the year endedMarch 312021

[Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report]

i. (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets (Property Plantand Equipment).

(b) Fixed assets (Property Plant and Equipment) have been physicallyverified by the management during the year and no material discrepancies were identifiedon such verification.

(c) According to the information and explanations given to us thereare no immovable properties and accordingly the requirements under paragraph 3(i)(c) ofthe Order are not applicable to the Company.

ii. The Company is involved in the business of rendering services.Accordingly the provisions stated in paragraph 3(ii) of the Order are not applicable tothe Company.

iii. The Company has not granted any loans secured or unsecured toCompanies Firms Limited Liability Partnerships (LLP) or other parties covered in theregister maintained under section 189 of the Companies Act 2013 ('the Act'). Accordinglythe provisions stated in paragraph 3 (iii) (a) to (c) of the Order are not applicable tothe Company.

iv. In our opinion and according to the information and explanationsgiven to us the Company has not either directly or indirectly granted any loan to any ofits directors or to any other person in whom the director is interested in accordancewith the provisions of section 185 of the Act and the Company has not made investmentsthrough more than two layers of investment companies in accordance with the provisions ofsection 186 of the Act. Accordingly provisions stated in paragraph 3(iv) of the Order arenot applicable to the Company.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within the meaningof Sections 73 7475 and 76 of the Act and the rules framed there under.

vi. The provisions of sub-section (1) of section 148 of the Act are notapplicable to the Company as the Central Government of India has not specified themaintenance of cost records for any of the products of the Company. Accordingly theprovisions stated in paragraph 3 (vi) of the Order are not applicable to the Company.

vii. (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company is regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income-tax goods and service tax duty of customs cessand any other statutory dues applicable to it.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax sales-tax duty of custom duty of excise value added tax goodsand service tax cess and other statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable.

(c) According to the information and explanation given to us and therecords of the Company examined by us there are no dues of income tax goods and servicetax customs duty cess and any other statutory dues which have not been deposited onaccount of any dispute.

viii. The Company does not have any loans or borrowings from anyfinancial institution banks government or debenture holders during the year.Accordingly the provision stated in paragraph 3(viii) of the Order is not applicable tothe Company.

ix. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly the provisions stated in paragraph 3 (ix) of the Order are not applicable tothe Company.

x. During the course of our audit examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of material fraud by the Company or on the Company by itsofficers or employees.

xi. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid/ provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly the provisions stated inparagraph 3(xii) of the Order are not applicable to the Company.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

xiv. According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during theyear. Accordingly the provisions stated in paragraph 3 (xiv) of theOrder are not applicable to the Company.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordinglyprovisions stated in paragraph 3(xv) of the Order are not applicable to the Company.

xvi. The Company is required to and has been registered under Section45-IA of the Reserve Bank of India Act 1934 as an NBFC-ND-SI-CIC.

For MSKA & Associates
Chartered Accountants ICAI
Firm Registration No. 105047W
Deepak Rao
Partner
Bengaluru
Membership No. 113292
May 28 2021
UDIN: 21113292AAAAGF3523

Annexure C to the Independent Auditor's Report of even date on theStandalone Financial Statements of Ujjivan Financial Services Limited

[Referred to in paragraph 2(F) under 'Report on Other Legal andRegulatory Requirements' in the Independent Auditors' Report]

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

We have audited the internal Financial controls with reference tostandalone financial statements of Ujjivan Financial Services Limited ("theCompany") as of March 31 2021 in conjunction with our audit of the standalonefinancial statements of the Company For theyearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible For establishing andmaintaining internal Financial controls based on the internal control with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (ICAI) (the "Guidance Note"). 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to standalone financial statements based on our audit.We conducted our audit in accordance with the Guidance Note and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Act 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 tostandalone financial statements was established and maintained and iFsuch controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe internal financial controls with reference to standalone Financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone Financial statements included obtaining an understanding of internal financialcontrols with reference to standalone financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Financial statements whether due to Fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis For our audit opinion on the Company's internal financialcontrols with reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to StandaloneFinancial Statements

A Company's internal financial control with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of Financial reporting and the preparation of standalone financial statementsFor external purposes in accordance with generally accepted accounting principles. ACompany's internal financial control with reference to standalone Financial statementsincludes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and Fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference toStandalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone Financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or Fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to Future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects internalfinancial controls with reference to standalone financial statements and such internalfinancial controls with reference to standalone financial statements were operatingeffectively as at March 312021 based on the internal control with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note.

For MSKA & Associates
Chartered Accountants ICAI
Firm Registration No. 105047W
Deepak Rao
Partner
Bengaluru
Membership No. 113292
May 28 2021
UDIN: 21113292AAAAGF3523

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