You are here » Home » Companies » Company Overview » Williamson Financial Services Ltd

Williamson Financial Services Ltd.

BSE: 519214 Sector: Financials
NSE: N.A. ISIN Code: INE188E01017
BSE 00:00 | 21 Nov 7.19 0
(0.00%)
OPEN

6.85

HIGH

7.19

LOW

6.85

NSE 05:30 | 01 Jan Williamson Financial Services Ltd
OPEN 6.85
PREVIOUS CLOSE 7.19
VOLUME 5877
52-Week high 7.35
52-Week low 3.42
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.85
CLOSE 7.19
VOLUME 5877
52-Week high 7.35
52-Week low 3.42
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Williamson Financial Services Ltd. (WILLIAMSONFIN) - Auditors Report

Company auditors report

To The Members of Williamson Financial Services Limited

Report on The Audit of the Financial Statements

Qualiied Opinion

We have audited the inancial statements of Williamson Financial Services Limited(‘the Company') which comprise the Balance Sheet as at 31st March 2021 and theStatement of Proit and Loss

(including Other Comprehensive Income) Statement of Changes in Equity and theStatement of Cash Flows for the year then ended and Notes to the Financial Statementsincluding a Summary of Signiicant Accounting Policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the matters described in the Basis for Qualiied Opinion section ofour Report the aforesaid Financial Statements give the information required by theCompanies Act 2013(" the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under Section 133of the Act and other principles generally accepted in India of the state of afairs of theCompany as at 31st March 2021 its proit including other comprehensive income changes inequity and its cash lows for the year ended on that date.

Basis for Qualiied Opinion

(a) Going Concern Assumption in preparation of the Statement

Due to continuous losses the net-worth of the Company has been fully eroded. TheCompany has defaulted in repayment of borrowings to its lenders. In view of theManagement the Company would be able to improve its net working capital position todischarge its total inancial obligations as described in Note 29 to the FinancialStatement. However in view of the uncertainties involved these events and conditionsindicate a material uncertainty which may cast a signiicant doubt on the Company's abilityto continue as a going concern. Accordingly the use of going concern assumption ofaccounting in preparation of this Statement is not adequately and appropriately supported.

(b) Non-recognition of Interest Expense

We draw attention to Note 34 (a& b) of the Statement relating to non-recognition ofinterest expense amounting to Rs. 415151 thousand for the year ended 31st March 2021 onits borrowings. As a result inance Costs liability on account of interest is understatedand total comprehensive income for the year ended 31st March 2021 is overstated to thatextent.

These constitute a departure from the requirements of Indian Accounting Standard 109"Financial Instruments".

(c) Non-recognition of Interest Income

Interest income of Rs. 135900 Thousand for the year ended 31st March 2021 notprovided on loans given Refer Note 35. As a result interest income interest receivableand total comprehensive income for the year ended 31st March 2021 are understated to thatextent.

These constitute a departure from the requirements of Indian Accounting Standard 109"Financial Instruments".

(d) Advances

The Company had given Advances to Body Corporates aggregating to Rs.285000 Thousandwhich are outstanding as on March 31 2021. In absence of appropriate audit evidence andstatus thereofew are unable to comment on the validity and recoverability of suchadvances. Due to Non provision the impact of the same on advances and total comprehensiveincome are overstated.

(e) Non Conirmation of Loans and Advances

Due to Non-Conirmation and Reconciliation of Loans and Advances and Borrowingsadjustment/ impact or provisions in inancial statement if any not ascertainable in respectof this so cannot be commented by us at present. (Refer Note 34(d)).

We conducted our audit in accordance with the Standards on Auditing (SAs) speciiedunder Section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandard sarefurther 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 Accountants ofIndia together with the ethical requirements that are relevant to our audit of theinancial statements under the provisions of the Companies Act 2013 and we have fulilledour other ethical responsibilities in accordance with these requirements and ICAI Code ofEthics.We believe that the audit evidence we have obtained is suicient and appropriate toprovide a Basis for our Qualiied

Opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsigniicance in our audit of the inancial statements of the current period. These matterswere addressed in the context of our audit of the inancial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulilled the responsibilities described in theAuditors' responsibilities for the audit of the Financial Statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the Financial Statements. The results of our audit procedures includingthe procedures performed to address the matters below provide the basis for our auditopinion on eth accompanying Financial Statements.

A. Going Concern Assumption (Note no.29 of the financial statements)

The Company's Financial liabilities have exceeded Financial assets by Rs. 2951758 thousand as on March 31 2021. Funds obtained by borrowing and utilized for providing funds to other companies have become unserviceable primarily due to NonRepayment of outstanding amounts by those Companies and Investment in Securities. Further adjustments arising in respect of the matters dealt with under Basis for Qualified Opinion Section may have significant impact on the Net Worth of the Company. Our audit procedures included testing management's assumptions on the appropriateness of the going concern assumptions and reasonableness of the assumptions usedfocusing in financial restructuring of the Borrowings and ICD's given by the Company and other sources of funding and among others following procedures were applied in this respect:
The Company was unable to discharge its obligations for repayment of loans and settlement of financial and other liabilities. The availability of sufficient fund and the testing of Company's ability to continue meeting it's obligations under the financing covenants and otherwise as and when falling due for payment are important for the going concern assumption and as such are significant aspects of our audit. • Review of the Debt Restructuring process and steps so far taken by lenders in this respect:
- Core operations of the Company and management expectation of sustainability thereof;
- Minutes of the meetings of the Company with the consortium of lenders;
- Compliances vis-a-vis debt covenants associated with loans obtained;
• Placing reliance on management's assumptions and expectation of possible outcome of resolution plan under consideration of lenders; and
• Review of disclosures made by the management in the financial statement to ensure compliances in this respect.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included the Management Discussion and AnalysisBoard's Report including

Annexures to Board's Report and Shareholder's Information but does not include the IndAS Financial

Statements and our auditor's report thereon.

Our opinion on the inancial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the inancial statements our responsibility is to readthe other information identiied above when it becomes available and in doing so considerwhether the other information is materially inconsistent with the inancial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's and Those Charged With Governance responsibility for the FinancialStatements

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 inancial statements that give a true and fair view of the inancial positioninancial performance including other comprehensive income cash lows and changes in equityof the Company in accordance with the Ind AS and other accounting principles generallyaccepted in India. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalinancial controls that were operating efectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe inancial statements that give a true and fair view and are freefrom materialmisstatement whether due to fraud or error.

In preparing the inancial 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 inancialreporting process.

Auditor's responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the inancial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to inluence the economic decisions of users taken on the basis ofthese inancial 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 the risks of material misstatement of the inancial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is suicient 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.

? Obtain an understanding of internal inancial control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the Company has adequate internal inancial controls system in place and theoperating efectiveness of such controls. ? Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby the management. ? Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast signiicant 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 inancial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern. ? Evaluate the overall presentation structureand content of the inancial statements including the disclosures and whether theinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and signiicant audit indings including anysigniicant deiciencies 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 related safeguards.

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 term of sub-section (11) of Section 143 ofthe Companies Act 2013 we give in the Annexure A statement on the matters speciied inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit 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 accounts 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 ofProit and Loss including Other Comprehensive Income the Statement of Cash Flows and theStatement of Changes in Equity dealt with by this Report are in agreement with therelevant books of account; (d) Subject to the matter speciied in qualiied opinion sectionof our report in our Opinion the aforesaid inancial statements comply with the IndianAccounting Standards speciied under Section 133 of the Act;

(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 is disqualiiedas on 31st March 2021 from being appointed as a director in terms of Section 164(2) of theAct; (f) With respect to the adequacy of the internal inancial controls with reference toinancial statements of the Company and the operating efectiveness of such controls referto our separate 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 as amendedin our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its inancial position in itsinancial statements Refer Note 28 & 31 to the inancial statements. ii. The Company didnot have any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses; iii. There has been no delay in transferring amountsrequired to be transferred to Investor Education and Protection Fund by the Company.

FOR SALARPURIA & PARTNERS

Chartered Accountants

Firm's Registration No. 302113E

Nihar Ranjan Nayak

Partner

Membership No. 57076

UDIN: 21057076AAAACZ3726

Date: 25.06.2021

Place: Kolkata

Annexure A to Independent Auditors' Report on the Audit of the Financial Statements

The Annexure referred to in independent Auditors Report to the members of the Companyinancial statements for the year ended 31st March 2021 we report that : i. (a) TheCompany has maintained proper records showing full particulars including quantitativedetails and situation of ixed assets.

(b) As explained to us ixed assets have been physically veriied by the management atreasonable intervals. According to the information and explanation given to us nodiscrepancies were noticed on such veriication. (c) The Company does not have anyimmoveable properties so Paragraph 3(i)(c) of the order is not applicable. ii. TheCompany's nature of operations does not require it to hold any item of Inventories.Accordingly Clause 3(ii) of the Order is not applicable. iii. According to theinformation and explanations given to us the Company has not granted any loans securedor unsecured to Companies Firms LLP or Other parties covered under section 189 of theCompanies Act 2013.

iv. According to the information and explanations given to us the Company has compliedwith the provisions of section 185 and 186 of the Act with respect to the LoansInvestments made and Guarantees given. v. According to the information and explanationsgiven to us there is no such deposits taken by the company for which directives issuedby the Reserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under are required to becomplied with. vi. According to the information and explanations given to us the CentralGovernment has not prescribed the maintenance of cost record sunder Sub-section1 ofSection 148 of the Act for of the services rendered by the Company. Accordingly clause3(vi) of the Order is not to the Company.

vii. (a) According to the records of the Company and as per the information andexplanation given to us it has been regular in depositing undisputed statutory dues likeProvident Fund Income Tax Goods and Service Tax Cess and any other statutory dues withthe appropriate authorities. Save and except irregularities noticed in payment of TaxDeducted at Source Rs.985 (thousand) remains outstanding for more than 6 months as at 31stMarch 2021.The TDS Liability which remained outstanding more than six months as at31/03/2020 of Rs.49596 (thousand) out of which Rs. 46443 (thousand) transferred tointerest liability (Refer Note No. 44) (b) Accordingtothe information and explanationsgiven to us the Company has not deposited the following dues on account of dispute withthe appropriate authority.

(Rs in Thousand)

Nam of the Statute Nature of Dues Amount (Rs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 69310 /- A.Y 2017-18 CIT(Appeal)

viii. The Company does not have any loans or borrowings from inancial institutionsbanks and government or any debenture holders during the year. However the Company hassecured loans from other NBFC's and defaulted in repayment and obligation. Refer Note 34.ix. According to the information and explanations given to us and based on ourexamination of books and records of the Company. We report that the Company has not takenterm loans during the year.

x. According to the information and explanations given to us no fraud by the Companyor on Company by its Oicer or Employees has been noticed or reported during the course ofour audit nor have we been informed of any such case by the management. xi. According tothe information and explanations given to us and based on our examinations of records ofthe Company Managerial Remuneration has been paid/provided by the Company in accordancewith section 197 read with Schedule V to the Companies Act 2013.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly 3(xii) of the Order is not applicable. xiii.According to the information and explanations given to us and based on our examinations ofthe records of the company transactions with related parties are in compliance withsection 177 and 188 of the Act were applicable and it is of such transactions have beendisclosed in the inancial statements as required by the applicable accounting standards.xiv. According to the information and explanations given to us and based on ourexaminations of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly paid debentures during theyear. Hence comment on Paragraph on 3(xiv) of Order is not applicable. xv. According tothe information and explanations given to us the Company has not entered into anynon-cash transactions with directors or persons connected with him. Accordingly Paragraph3(xv) of the Order is not applicable. xvi. The Company has obtained Registration undersection 45-IA of Reserve Bank of India Act 1934.

However the Company fails to achieve the threshold limit of Net Owned Funds as per RBIAct as its Net Worth became Negative.

FOR SALARPURIA & PARTNERS
Chartered Accountants
Firm's Registration No. 302113E
Nihar Ranjan Nayak
Partner
Membership No. 57076
UDIN: 21057076AAAACZ3726
Date: 25.06.2021
Place: Kolkata

Annexure B to Independent Auditors' Report on the Audit of the Financial Statements

(Referred to in Para 2 (f) of 'Report on other Legal and Regulatory Requirements' ofour report of even date)

We have audited the Internal Financial Controls Over Financial Reporting of WilliamsonFinancial Services Limited ("the Company") as of 31st March 2021 in conjunctionwith our audit of the Ind AS inancial 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 internalinancial controls based on the internal control over inancial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal inancial controls that were operating efectively forensuring the orderly and eicient conduct of its business including adherence to Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable inancial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal inancial controlsover inancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the ICAI and the Standards onAuditing prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal inancial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal inancial controls overinancial reporting was established and maintained and if such controls operated efectivelyin all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal inancial controls system over inancial reporting and their operatingefectiveness. Our audit of internal inancial controls over inancial reporting includedobtaining an understanding of internal inancial controls over inancial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating efectiveness 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 inancial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is suicient and appropriate to provide abasis f or our audit opinion on the Company's internal inancial controls system overinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal inancial control over inancial reporting is a process designed toprovide reasonable assurance regarding the reliability of inancial reporting and thepreparation of inancial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal inancial control over inancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly relect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of inancial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material efect on the inancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal inancial controls over inancialreporting 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 inancial controls over inancialreporting to future periods are subject to the risk that the internal inancial controlover inancial 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 the Company has in all material respects an adequate internalinancial controls system over inancial reporting and such internal inancial controls overinancial reporting were operating efectively as at 31st March 2021 based on the criteriafor internal inancial control over inancial reporting 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 Institute ofChartered Accountants of India subject to certain improvements in connection with periodicreconciliation and conirmation of borrowings and loans and advances with appropriate auditevidence and appropriate action for recovery of loans and advances.

FOR SALARPURIA & PARTNERS

Chartered Accountants

Firm's Registration No. 302113E

Nihar Ranjan Nayak

Partner

Membership No. 57076

UDIN: 21057076AAAACZ3726

Date: 25.06.2021

Place: Kolkata

.