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Ventura Guaranty Ltd.

BSE: 512060 Sector: Financials
NSE: N.A. ISIN Code: INE139J01019
BSE 05:30 | 01 Jan Ventura Guaranty Ltd
NSE 05:30 | 01 Jan Ventura Guaranty Ltd

Ventura Guaranty Ltd. (VENTURAGUARANTY) - Auditors Report

Company auditors report

TO THE MEMBERS OF VENTURA GUARANTY LIMITED

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the accompanying Standalone Financial Statements of Ventura GuarantyLimited ("the Company") which comprise the Standalone Balance Sheet as at 31stMarch 2021 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the Standalone Financial Statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "Standalone Financial Statements").

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 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of a_airs of the Company as at 31st March 2021 and totalcomprehensive income (comprising of Profit and other comprehensive income) changes inequity and its cash flows for the year then ended.

BASISFOR OPINION

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the standalone financial statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India ("ICAI") together with theindependence requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have ful_lledour other ethical responsibilities in accordance with these requirements and theICAI’s Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion on the standalone financialstatements.

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 do not provide aseparate opinion on these matters. We have determined no such key audit matters to becommunicated in our audit report.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTSAND AUDITOR’S REPORT THEREON

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Director’s Report butdoes not include the financial statements and our auditors’ report thereon. The DraftDirector’s Report is made available to us as on the date of this Auditor's Report.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement in the other information; we are required to report that fact. We havenothing 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 Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting 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 statements that give a true andfair view and are free from material misstatement whether due 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 asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the company’s financialreporting process.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF 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 scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• 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 Act we are also responsible for expressing our opinion on whether the Companyhas adequate internal financial controls with reference to the standalone

_nancial statements in place and the operating effectiveness of such controls.

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

Conclude on the appropriateness of management’s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our Auditor's Report. However future events or conditions maycause the Company to cease to continue as a going concern.

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

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any Identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit _ndings including anysignificant de_ciencies 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" a statementon the matters 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 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss(including other comprehensive income) the Statement of Changes in Equity and the CashFlow Statement dealt with by this Report are in agreement with the relevant books ofaccount;

(d) In our opinion the aforesaid Standalone Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164(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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlswith reference to the standalone financial statements;

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has not paid any remuneration to its directors during the year;hence the provisions of section 197 of the Act will not apply;

(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 explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition as on 31st March 2021;

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;

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

For C N K & Associates LLP
Chartered Accountants
Firm Registration No: 101961W/W - 100036
Hiren Shah
Partner
Place: Mumbai Membership No: 100052
Date: 23rd June 2021 UDIN: 21100052AAAADD3050

ANNEXURE "A"

TO THE INDEPENDENT AUDITOR’S REPORT

[Referred to in Para 1 under ‘Report on Other Legal and RegulatoryRequirements’ in our Independent Auditor’s Report of even date to the members ofthe Company on the Standalone Financial Statements for the year ended 31stMarch 2021]

1. a) According to the information and explanations given by the management there areno fixed assets in the books of the Company and accordingly the requirements underparagraph 3(i) and 3(ii) of the Companies (Auditor’s Report) Order 2016 ("theOrder") are not applicable to the Company.

b) As per the information and explanation given to us there is no immovable propertyheld by the company hence the requirements under paragraph 3(iii) not appliable to theCompany.

2. According to the information and explanation given to us the nature of business ofthe Company does not require it to have any inventory. Hence the requirement of clause(ii) of paragraph 3 of the said Order is not applicable to the Company.

3. As per the information and explanation given to us the Company has grantedunsecured loan to company covered in the register maintained under section 189 of theCompanies Act 2013.

a) In respect of aforesaid loan terms and conditions under which such loans weregranted is not prejudicial in the company’s interest.

b) In respect of the aforesaid loan the schedule of repayment of principal and paymentof interest has been stipulated and the party is paying the principal amounts asstipulated and is also regular in payment of interest as applicable.

c) In respect of aforesaid loan there is no amount which is overdue for more thanninety days.

4. The company being a Non-Banking Financial Company is engaged in the business offinancing hence provisions of section 185 and 186 of the Companies Act 2013 is notapplicable.

5. According to the information and explanations given to us the Company has notaccepted any deposits from the public during the year. Therefore the provisions ofparagraph 3(v) of the Order are not applicable.

6. According to the information and explanations given to us maintenance of costrecords has not been prescribed by the Central Government under sub section (1) of section148 of the Companies Act 2013.

7. a) According to information and explanations given to us the Company is regular indepositing with appropriate authorities undisputed statutory dues including income taxgoods and service tax cess and other statutory dues. There is no undisputed statutorydues outstanding as at 31st March 2021 for a period more than six months fromthe date they become payable.

b) According to the records of the Company there are no dues of Income-Tax Goods andService Tax which have not been deposited as on 31st March 2021 on account ofany dispute.

8. Based on the information and explanation given to us and also according to therecords of the Company the Company does not have any borrowing from financialinstitutions or banks or by way of debentures.

9. The Company has not raised money by way of Initial Public Offer or Further PublicOffer (Including debt instruments) during the year. In our opinion and according toInformation and explanation given to us the Company did not raise any money by way ofterm loan during the year.

10. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

11. According to the information and explanations given to us during the year nomanagerial remuneration has been paid or provided by the Company. Therefore the provisionsof clause 3 (xi) of the Order are not applicable.

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable.

13. In our opinion and according to the information and explanations given to us allthe transaction with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and appropriate details have been disclosed in thefinancial statements as required by the applicable accounting standard.

14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Accordingly the paragraph3 (xiv) of the Order is not applicable to the company.

15. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him. Therefore the provisions of clause 3 (xv) of the Order are not applicable.

16. In our opinion and according to the information and explanation given to us theCompany has obtained Certificate of registration required under section 45-IA of theReserve Bank of India Act 1934.

For C N K & Associates LLP
Chartered Accountants
Firm Registration No: 101961W/W - 100036
Hiren Shah
Partner
Place: Mumbai Membership No: 100052
Date: 23rd June 2021 UDIN: 21100052AAAADD3050

ANNEXURE "B"

TO THE INDEPENDENT AUDITOR’S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of the Companyas of 31st March 2021 in conjunction with our audit of the Financial Statementsof the Company for the year ended on that date.

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIALCONTROLS

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls with reference to Financial Statements of the Company that wereoperating effectively for ensuring the orderly and e_cient conduct of its businessincluding 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 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 prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to Financial Statements of the Company were establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the internalfinancial controls with reference to Financial Statements of the Company and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgment including the assessment of therisks of material misstatement of the Financial Statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

MEANINGOF INTERNAL FINANCIALCONTROLS OVER FINANCIAL REPORTING

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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 havea material effect on the Financial Statements.

I NHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLSOVER 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 to the best of our information and according to the explanations givento us the Company has in all material respects an internal financial controls withreference to Financial Statements of the Company and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For C N K & Associates LLP
Chartered Accountants
Firm Registration No: 101961W/W - 100036
Hiren Shah
Partner
Place: Mumbai Membership No: 100052
Date: 23rd June 2021 UDIN: 21100052AAAADD3050

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