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Ushakiran Finance Ltd.

BSE: 511507 Sector: Financials
NSE: N.A. ISIN Code: INE697C01011
BSE 00:00 | 06 Dec Ushakiran Finance Ltd
NSE 05:30 | 01 Jan Ushakiran Finance Ltd
OPEN 4.38
PREVIOUS CLOSE 4.38
VOLUME 1000
52-Week high 4.70
52-Week low 3.78
P/E 15.10
Mkt Cap.(Rs cr) 1
Buy Price 4.40
Buy Qty 798.00
Sell Price 4.18
Sell Qty 29.00
OPEN 4.38
CLOSE 4.38
VOLUME 1000
52-Week high 4.70
52-Week low 3.78
P/E 15.10
Mkt Cap.(Rs cr) 1
Buy Price 4.40
Buy Qty 798.00
Sell Price 4.18
Sell Qty 29.00

Ushakiran Finance Ltd. (USHAKIRANFIN) - Auditors Report

Company auditors report

To

The Members of

Ushakiran Finance Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Ushakiran Finance Limited("the Company") which comprise the Balance Sheet as at 31st March 2019 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 as amended ("the Act") in the manner so required and itgives a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2019 its profit 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 those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode 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 there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate 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 year. 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.

Key Audit Matters Auditor's Response/Procedures
a) Identification of Non Performing Assets and Adequacy of Provisions. We have assessed the company systems in place for classification of the assets identification and provision for the non performing assets including assessment of realizable securities.
Loans and Advances are classified as performing and non performing assets in accordance with the prudential norms issued by the Reserve Bank of India. Our audit approach consisted of testing the design of the systems for identification of the non performing assets to ensure conformity with the guidelines of the RBI in the matter and test checking identification of non performing assets.
The identification of non performing assets and creation of provision on such assets involves key management judgments relating to performance determination of realizable securities available to the company.
b) The Company's investment portfolio consists of Non Current investments. • We assessed appropriateness of the pricing methodologies with reference to Company's accounting and valuation policy for ascertaining market values;
The total non current quoted investments (net of provision) portfolio of the Company represents 23.33% of the Company's total assets. • We have assessed the process and tested the operating effectiveness of the key controls including the Company's review and approval of the estimates and assumptions used for the valuation.
Long term investments are stated at cost less provision for diminution other than temporary in the value of these investments.
In respect of the portfolio of quoted investments we do not consider these investments to be at a high risk of significant misstatement or to be subject to a significant level of judgment because they comprise liquid quoted investments. However due to their materiality in the context of the financial statements as a whole they are considered to be one of the areas which had the significant impact on our overall audit strategy.
The portfolio of unquoted investments is 0.58% of the Company's Total Assets. • For unquoted investments we critically evaluated the valuation assessment and resulting conclusions in order to determine the appropriateness of the valuations recorded with reference to the Company's valuation guidelines.
The valuation of unquoted investments involves judgment depending on the observability of the inputs into the valuation and further judgment in determining the appropriate valuation methodology where external pricing sources are either not readily available or are unreliable.
c) The Company's inventory consists of Shares. • We assessed appropriateness of the pricing methodologies with reference to Company's valuation policy.
Total Inventory of the Company represents 4.52% of the Company's total assets.
Inventory's are made and valued in accordance with Policy of the Company and relevant Indian GAAP at cost or market value whichever is lower. • We have verified the inventory of shares by Demat statements and physical shares.

Other Information

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report but doesnot include the financial statements and our auditor's report thereon. The otherinformation as identified above is expected to be made available to us after the date ofthis auditor's report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information we are required to report thatfact. We have nothing to report in this regard.

Responsibilities of the Management for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial 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.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

i. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

ii. Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

v. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 we give in the Annexure A a statement on the matters specifiedin 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 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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) In our opinion the managerial remuneration for the year ended 31st March 2019 hasbeen paid / provided by the company to its Directors/Manager in accordance with theprovisions of Section 197 read with Schedule V to the Act.

(h) 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 information and explanations givento us:

i. The Company do not have pending litigations which will impact its financial positionin its financial statements.

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

iii. There are no funds required to be transferred to the Investor Education andProtection Fund by the Company.

For Niranjan & Narayan
Chartered Accountants
Firm Registration Number: 005899S
(M. Niranjan)
Place : Hyderabad Partner
Date : 27th May 2019 Membership No. 029552

Annexure – A to the Independent Auditors' Report

(Referred to in paragraph 1 under ‘Report on Other Legal and

Regulatory Requirements' of our report of even date)

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the Management at reasonableintervals and according to the information and explanations given to us no materialdiscrepancies were noticed on such verification. In our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the Records of the company the title deeds of immovable properties areheld in the name of the Company.

2. The Inventory (shares and securities) has been verified by the management atreasonable intervals during the year on the basis of statements received from custodiansand depository participants and physical share certificates and no material discrepancieswere noticed on physical verification as compared to the book records.

3. The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 during the year. Thus paragraphs 3 (iii) (a) 3(iii) (b) and 3 (iii) (c) are not applicable to the company.

4. In our opinion and according to the information and explanations given to us duringthe year the Company has not given any loans made investments given guarantees orprovided security to parties covered under the provisions of section 185 and 186 of theCompanies Act 2013. Thus paragraph 3 (iv) is not applicable to the company.

5. During the year the company has not accepted any deposits from the public within themeaning of Sections 73 to 76 of the Companies Act 2013 and the rules framed there under.Thus Paragraph 3(v) is not applicable to the company.

6. The Central Government of India has not prescribed the maintenance of Cost recordsunder section 148 (1) of the Companies Act 2013 for any of the activities of the Company.Thus paragraph 3(vi) is not applicable to the company.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company the company is generally regular indepositing undisputed statutory dues including provident fund employees state insuranceincome tax Goods and Services Tax duty of customs duty of excise value added tax cessand any other statutory dues to the appropriate authorities. According to the informationand explanations given to us no undisputed amounts payable in respect of provident fundemployees state insurance income tax Goods and Services Tax duty of customs duty ofexcise value added tax cess and any other statutory dues were in arrears as at 31stMarch 2019 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofincome tax customs duty Goods and Services Tax excise duty and cess which have not beendeposited on account of any dispute.

8. According to the information and explanations given to us the company has notdefaulted in payment of dues to the financial institutions banks government or debentureholders during the year. The Company has not obtained any loan from financialinstitutions banks government and debenture holders during the year.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.

10. 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.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions of theSection 197 read with Schedule V to the Companies Act 2013.

12. 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.

13. 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.

14. According to the information and explanations given 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.

15. According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them as referred to in Section 192of the Act. Accordingly paragraph 3(xv) of the Order is not applicable.

16. The Company is required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934 and accordingly the Company was already registered under section 45-IA ofthe Reserve Bank of India Act 1934.

For Niranjan & Narayan
Chartered Accountants
Firm Registration Number: 005899S
(M. Niranjan)
Place : Hyderabad Partner
Date : 27th May 2019 Membership No. 029552

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date) Report on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the"Act")

We have audited the internal financial controls over financial reporting of UshakiranFinance Limited (the "Company") as of 31st March 2019 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management'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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the standards on auditing issued by the Institute ofChartered Accountants of India and deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Niranjan & Narayan
Chartered Accountants
Firm Registration Number: 005899S
(M. Niranjan)
Place : Hyderabad Partner
Date : 27th May 2019 Membership No. 029552