To The Members of
Vax Housing Finance Corporation Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone accompanying financial statements of Vax Housing FinanceCorporation Limited (the Company) which comprise the balance sheet as atMarch 31 2021 and the Statement of Profit and Loss (including Other ComprehensiveIncome) change in Equity and statement of cash flows for the year then ended and notesto the standalone financial statements including a summary of significant accountingpolicies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and profit and other comprehensiveIncome changes in equity and cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) as specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the auditor's responsibilities for the audit of thefinancial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics' issued by the Institute of Chartered Accountantsof India together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the rules thereunder 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 and appropriate toprovide a basis for our opinion on the Financial Statements.
Emphasis of matter
COVID-19 pandemic will impact the Company's financial performance are dependent onfuture developments the severity and duration of the pandemic which cannot be predictedwith certainty. Our opinion is not modified in respect of the above matter.
Key audit matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we have determined thatthere are no key audit matters to communicate in our report.
Information Other than the Standalone Financial Statements and Auditors' Report Thereon
The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Director'sreport and Management Discussion & Analysis (MD&A) report but does not includethe standalone financial statements and our auditors' report thereon. Our opinion on thestandalone financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon. In connection with our audit of the standalonefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 financial statements that give a true and fair view of state of affairs profit/lossand other comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Board of Directors is also responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: Identify and assess therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 weare also responsible for expressing our opinion on whether the company has adequateinternal financial controls system in place and the operating effectiveness of suchcontrols. Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management. Conclude on theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the standalone financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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 sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure 1' a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
2. A. 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books; (c) the Balance Sheet the Statement ofProfit and Loss (including other comprehensive income) Changes in Equity and the CashFlow Statement dealt with by this Report are in agreement with the books of account; (d)in our opinion the aforesaid standalone 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 thedirectors as on 31st March 2021 taken on record by the Board of Directors the followingdirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act;
|Sr. No. ||Name ||DIN ||Reason for Disqualification |
|1 ||Kailash Gangasahay Gupta ||00283649 ||Din Disabled |
|2 ||Vijaysingh Nanusingh Rathore ||00283820 ||Din Disabled |
|3 ||Satish Chand ||03567303 ||Din Disabled |
(f) with respect to the adequacy of the internal financial controls with reference tofinancial statements of the company and the operating effectiveness of such controlsrefer to our separate Report in Annexure 2'
B. With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: i. the Company hasdisclosed the impact of pending litigations as at 31 March 2021 on its financial positionin its financial statements; ii. The Company did not have any long-term contractsincluding derivatives contracts for which there were any material foreseeable losses. iii.There were no amounts which required to be transferred by the Company to the InvestorEducation and Protection Fund.
C. With respect to the matter to be included in the Auditors' Report under Section197(16): In our opinion and according to the information and explanations given to us thecompany has not paid remuneration to its Directors during the current year. The Ministryof Corporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.
For B S R R & Associates
Firm Registration No : 154169W
CA Bhavin M Shah
Place : Ahmedabad
Date : 12th June 2021
To Independent Auditors' Report
Referred to in Report on Other Legal and Regulatory requirements paragraph 1 of theIndependent Auditors' Report of even date to the members of Vax Housing FinanceCorporation Limited on the financial statements for the year ended March 31 2021
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment. (b) The Company has aregular programme of physical verification of property plant and equipment by whichproperty plant and equipment are verified annually. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Corporation and thenature of its assets. No material discrepancies were noticed on such verification. (c)According to the information and explanations given to us company have no immovableproperties at the balance sheet date.
ii. The Company is engaged in providing financial services. Accordingly it does nothold any physical inventories. Thus paragraph 3 (ii) of the Order is not applicable tothe Company.
iii. According to information and explanations given to us and audit procedureconducted by us the company has not granted loans during the current year secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013. In respect of theexisting loan at the beginning of the year: (a) The schedule of repayment of principal andpayment of interest has been stipulated and repayments or receipts of principal amountsand interest have been regular as per stipulations; (b) There is no overdue amountremaining outstanding as at the year end.
iv. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has complied with the provisions ofSections 185 and 186 of the Act in respect of loans investments guarantee and securityas applicable.
v. As per the Ministry of Corporate Affairs notification dated 31 March 2014 theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and theCompanies (Acceptance of Deposits) Rules 2014 as amended with regard to the depositsaccepted are not applicable to the Company. The Company has not accepted any deposit aftercancellation of license of NBFC accordingly; reporting under Clause 3(v) of the Order isnot applicable.
vi. According to the information and explanations given to us the Central Govt. hasnot prescribed maintenance of cost records under sub-section (1) of Sec.148 of theCompanies Act 2013 for any of the products of the Company. vii. (a) According to theinformation and explanations given to us and on the basis of our examination of the booksof account amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including income tax and other material statutory dues applicable to ithave generally been regularly deposited by the Company with the appropriate authorities.As explained to us the Corporation did not have any dues on account of Customs Duty andExcise Duty. According to the information and explanations given to us and on the basis ofour examination of the records no undisputed amounts payable in respect of income tax inarrears as at 31 March 2020 for a period of more than six months from the date they becamepayable. (b) According to the information and explanations given to us and on the basis ofour examination of the records there are no other statutory dues that have not beendeposited on account of any dispute. However according to information and explanationsgiven to us the following dues of Income tax have not been deposited by the Corporationon account of disputes:
|Name of the statute ||Nature of dues ||Amount (`) ||Period to which the amount relates ||Forum where Dispute is pending |
|The Income Tax Act 1961 ||Demand 156 U/s ||1360757 ||AY 2017-18 ||CIT (Appeal) Ahmedabad |
viii. According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not taken loans and defaulted in the repaymentof loans or borrowings to financial institutions banks or debenture holders. TheCorporation has not taken loans or borrowings from government. Accordingly the provisionsof Clause 3(vii) of the Order are not applicable to the Company
ix. According to the information and explanations given to us and based on ourexamination of the records the company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) and term loans during the year.Accordingly the provisions of Clause 3(ix) of the Order are not applicable to theCompany.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.
xi. According to the information and explanations given to us and based on ourexamination of the records the Corporation has not paid / provided for managerialremuneration during the year therefore in accordance with the requisite approvals mandatedby the provisions of Section 197 read with Schedule V to the Act is not applicable.Accordingly the provisions of Clause 3(xi) of the Order are not applicable to theCompany. xii. According to the information and explanations given to us the Corporationis not a Nidhi company. Accordingly paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of the Companies Act 2013where applicable and the details of such transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully convertibledebentures during the year under audit. Accordingly the provisions of Clause 3(xiv) ofthe Order are not applicable to the Company.
xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him andthe provisions of section 192 of the Companies Act 2013. Accordingly the provisions ofClause 3(xv) of the Order are not applicable to the Company;
xvi. According to the information and explanations given to us the Company is requiredto be registered under Section 45-IA of the Reserve Bank of India Act 1934. The ReserveBank of India in exercise of the powers conferred on it under Section 45-IA (6) of theReserve Bank of India Act 1934 cancelled the certificate of registration of thenon-banking financial companie (NBFC) Vax Housing Finance Company Limited with effect from9th December 2016.
For B S R R & Associates
Firm Registration No : 154169W
CA Bhavin M Shah
Place : Ahmedabad
Date : 12th June 2021
To Independent Auditors' Report
Referred to in Report on Other Legal and Regulatory requirements paragraph 2(f) of theIndependent Auditors' Report of even date to the members of Vax Housing FinanceCorporation Limited on the financial statements for the year ended March 31 2021
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act
We have audited the internal financial controls over standalone financial reporting ofVax Housing Finance Corporation Limited (the Company) as of 31st March 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
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 deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020 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 B S R R & Associates
Firm Registration No : 154169W
CA Bhavin M Shah
Place : Ahmedabad
Date : 12th June 2021