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Upasana Finance Ltd.

BSE: 511764 Sector: Financials
NSE: N.A. ISIN Code: INE819K01014
BSE 00:00 | 20 Aug 38.10 -3.90
(-9.29%)
OPEN

44.70

HIGH

44.70

LOW

38.00

NSE 05:30 | 01 Jan Upasana Finance Ltd
OPEN 44.70
PREVIOUS CLOSE 42.00
VOLUME 12454
52-Week high 69.95
52-Week low 31.00
P/E 105.83
Mkt Cap.(Rs cr) 16
Buy Price 38.10
Buy Qty 1.00
Sell Price 39.30
Sell Qty 100.00
OPEN 44.70
CLOSE 42.00
VOLUME 12454
52-Week high 69.95
52-Week low 31.00
P/E 105.83
Mkt Cap.(Rs cr) 16
Buy Price 38.10
Buy Qty 1.00
Sell Price 39.30
Sell Qty 100.00

Upasana Finance Ltd. (UPASANAFINANCE) - Auditors Report

Company auditors report

To the Members of

UPASANA FINANCE LIMITED

1. Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Upasana FinanceLimited ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.

2. Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance 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 read with Rule 7 of the Companies (Accounts)Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of materials misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

4. Opinion

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:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2018;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate

5. Emphasis of Matter

The Company has not appointed whole time director Company Secretary and ChiefFinancial Officer as required under section 203 of the Act read with rule 8A of theCompanies (Appointment and Remuneration of Managerial personnel) Rules2014. The Companyis in the process of appointing them. Our Opinion is not qualified in respect of thismatter.

6. Report on Other Legal and Regulatory Requirements

i) 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 theAct we give in the Annexure A a statement on the matters specified in paragraph 3 and 4of the Order.

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

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

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

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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".

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) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company has disclosed the effect of the pending legal proceedings against it inits financial statements as mentioned in Note 19 of the Notes to the Accounts;

ii. The Company did not have any long term contracts including derivative contract forwhich there were any material foreseeable losses.

iii. during the year there were no requirement on the part of the company to transferany amount to the Investor Education and Protection Fund

Place: Chennai For M/s. Kalyanasundaram & Co.
Date:29 May 2018 Chartered Accountants
C.P. Govardhan
Partner
Membership No. 218363

"Annexure A" to the Auditors' Report Referred to Paragraph 5 of Our Report ofEven Date

1. The Company has no fixed assets.

2. The Company has no stock of inventory and hence reporting on physical verificationdoes not arise.

3. During the year the company has not granted any loan to a company firm LimitedPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013.

4. During the year the company has not granted any loan furnished any gurantees orprovided any security. The Company has complied with the provisions of Section 185 of theCompanies Act 2013. The provisions of Section 186 are not applicable to the company.

5. The Company has not accepted any deposit within the meaning of Section 73 to 76 ofthe Companies Act 2013 during the year.

6. The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act.

7. (i) According to the records provided to us the company is generally regular indepositing undisputed statutory dues including provident fund Income Tax service tax andTax deducted at source with the appropriate authorities. However we have observed delaysin remitting sums in respect of Tax deducted at source.

(ii) According to information and explanations given to us there are no undisputeddues that were not deposited with the concerned authorities.

8. The Company has not availed any term loan form the bank or financial institutions.Hence the reporting on default in repayment thereof does not arise.

9. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) or by way of term loans during the year. Hencereporting on utilization of such money does not arise.

10. To the best of our knowledge and belief and according to the information andexplanations given to us during the year no fraud by the Company and no material fraudon the Company by its officers or employees were noticed or reported during the course ofour audit.

11. No managerial remuneration has been paid or provided during the year.

12. According to the information explanations and Management representation given tous and based on our examination of the records of the Company there were no related partytransactions entered into by the company during the year.

13. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.

14. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with them.

15. The Company is required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934 and has obtained the registration.

16. In our opinion and according to the information and explanations given to us thenature of the Company's business/ activities during the year has been such that clauses(ii) (regarding inventory) and (xii) (regarding Nidhi Company) of paragraph 3 of theCompanies (Auditor's Report) Order 2016 are not applicable to the Company for the year.

Place: Chennai M/s. Kalyanasundaram & Co.
Date: 29 May 2018 Chartered Accountants
C.P. Govardhan
Partner
Membership No. 218363

"Annexure B" to the Independent Auditors' Report

1. Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of UpasanaFinance Limited Chennai ("the Company") as at 31st March 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the period endedon that date.

2. Management's Responsibility for Internal Financial Controls with reference toFinancial Statements

The Company's Management is responsible for establishing and maintaining internalfinancial controls with reference to financial statements based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls with reference to financial statements that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the respective Company's policies the safeguarding of its assetsthe prevention 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.

3. Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to financial statements based on ouraudit. We conductedour audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both issued by the Institute of Chartered Accountants of India. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to financial statements were establishedand maintained 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 with reference to financial statements overfinancial reporting and their operating effectiveness. Our audit of. internal financialcontrols over financial reporting with reference to financial statements includedobtaining an understanding of internal financial controls over financial reporting withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue 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 systemwith reference to financial statements over financial reporting with reference tofinancial statements.

4. Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control with reference to financial statements overfinancial reporting is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial control with reference to financial statements over financial reportingincludes those policies and procedures that;

I. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

II. 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

III. 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.

5. Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to financial statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls over financial reporting to future periods are subject to the risk thatthe internal financial control with reference to financial statements over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deterlorate.

6. Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements over financial reportingand such internal financial controls over financial reporting were operating effectivelyas at 31st March 2018 based on the internal control over financial reporting withreference to 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.

Place: Chennai For M/s. Kalyanasundaram & Co.
Date: 29 May 2018 Chartered Accountants
C.P. Goveirdhan
Partner
Membership No. 218363