To the Members of
SHREENATH INVESTMENT COMPANY LIMITED
Opinion
We have audited the standalone financial statements of Shreenath Investment Company
Limited which comprise the balance sheet as at 31st March 2023, and the statement of
Profit and Loss (including other comprehensive income), statement of changes in equity and
statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies and other explanatory information
(hereinafter referred to as “the standalone financial statements”).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 (“the Act”) in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2023, and profit (including other
comprehensive income), changes in equity and its cash 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 are further
described in the Auditors Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the Rules thereunder, and we have fulfilled our other
cthical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion. Emphasis of Matter We draw attention to the following matter in
the notes to the Standalone Financial Statements:
Note No. 33 to the Standalone Financial Statements which explains that during the year,
the Companys income from financial assets has increased substantially on account of
dividend income and gain from sale of units of mutual funds, with the result that the
Company could be considered as a non-banking financial company (NBFC) in terms of RBI
Press Release 1998-99/1269 dated 08th April 1999 read with RBI Notification DNBS (PD) C.C.
No. 81 / 03.05.002/ 2006-07 dated 19th October 2006. However, this being exceptional in
nature and the fact that the Company does not have any intention to carry on the business
of NBFC and it is in the process of commencing business as stock broker and / or trading
in commodities, the Company has not applied for registration under section 45-1A of the
Reserve Bank of India Act, 1934.
For the same reasons, the financial statements of the Company are prepared as per
Division II of Schedule 111 of the Companies Act, 2013.
Our report is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Considering the nature and limited scale of the activity of the Company during the
year, we have determined that there are no Key Audit Matters to communicate in our report.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
Annual Report, but does not include the Standalone financial statements and our auditors
report thereon.
Our opinion on the Standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements, our
responsibility is to read the other information and, in doing so, consider whether such
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in
this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance (including
other comprehensive income), changes in equity and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards specified under section 133 of the Act. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process. Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these standalone financial statements. accordance with SAs, we exercise
professional judgment and maintain As part of an audit in professional skepticism
throughout the audit.
We also: the risks of material misstatement of the standalone financial statements, o
identify and assess or error, design and perform audit procedures responsive to those
risks, and whether due to fraud that is sufficient and appropriate to provide a basis for
our opinion. The risk obtain audit evidence a material misstatement resulting from fraud
is higher than for one resulting from of not detecting involve collusion, forgery,
intentional omissions, misrepresentations, or the error, as fraud may override of internal
control. of internal control relevant to the audit in order to design audit e obtain an
understanding appropriate in the circumstances. Under section 143
(3)
(i) of the Act, we are procedures that are for expressing our opinion on whether the
company has adequate internal also responsible controls with reference to standalone
financial statements in place and the operating financial effectiveness of such controls.
the appropriateness of accounting policies used and the reasonableness of accounting o
evaluate estimates and related disclosures made by management. on the appropriateness of
managements use of the going concern basis of accounting o conclude evidence obtained,
whether a material uncertainty exists related to events and, based on the audit may cast
significant doubt on the Companys ability to continue as a going or conditions that we
conclude that a material uncertainty exists, we are required to draw attention in our
concern. If to the related disclosures in the standalone financial statements or, if such
auditors report are inadequate, to modify our opinion. Our conclusions are based on the
audit disclosures obtained up to the date of our auditors report. However, future events
or conditions may evidence cause the Company to cease to continue as a going concern. the
overall presentation, structure and content of the standalone financial statements, e
evaluate the disclosures, and whether the standalone financial statements represent the
including underlying transactions and events in a manner that achieves fair presentation.
magnitude of misstatements in the standalone financial statements that, individually
Materiality is the probable that the economic decisions of a reasonably knowledgeable user
of or in aggregate, makes it financial statements may be influenced. We consider
quantitative materiality and the standalone in
(i) planning the scope of our audit work and in evaluating the results of our
qualitative factors
(ii) to evaluate the effect of any identified misstatements in the standalone financial
work; and statements. with those charged with governance regarding, among other matters,
the planned We communicate of the audit and significant audit findings, including any
significant deficiencies in scope and timing internal control that we identify during our
audit. those charged with governance with a statement that we have complied with relevant
We also provide regarding independence, and to communicate with them all relationships and
ethical requirements may reasonably be thought to bear on our independence, and where
applicable, other matters that related safeguards. communicated with those charged with
governance, we determine those matters that From the matters in the audit of the
standalone financial statements of the current period and were of most significance
matters. We describe these matters in our auditors report unless law or are therefore the
key audit disclosure about the matter or when, in extremely rare circumstances, we
regulation precludes public should not be communicated in our report because the adverse
consequences determine that a matter reasonably be expected to outweigh the public
interest benefits of such of doing so would communication.
Report on Other Legal and Regulatory Requirements the Companies (Auditors Report)
Order, 2020 (“the Order”), issued by the Central As required by terms of
sub-section (11) of section 143 of the Act, we give in “Annexure A” Government
of India in on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable. a statement As required by Section 143(3) of the Act, we report that: and
obtained all the information and explanations which to the best of our (a) We have sought
knowledge and belief were necessary for the purposes of our audit. proper books of account
as required by law have been kept by the Company so far (b) Tn our opinion, as it appears
from our examination of those books.
Sheet, the Statement of Profit and Loss (including other comprehensive income), the (c)
The Balance of Changes in Equity and Statement of Cash Flows dealt with by this Report are
in Statement agreement with the books of account. the aforesaid standalone financial
statements comply with the Indian Accounting (d) In our opinion, Standards specified under
Section 133 of the Act. basis of the written representations received from the directors
as on 31% March, 2023 (e) On the on record by the Board of Directors, none of the
directors is disqualified as on 31% March, taken 2023 from being appointed as a director
in terms of Section 164(2) of the Act. respect to the adequacy of the internal financial
controls with reference to standalone (f) With statements of the Company and the operating
effectiveness of such controls, refer to our financial separate Report in “Annexure
B”. respect to the other matters to be included in the Auditors Report in accordance
with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and 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 financial
position. i
i. the Company did not have any long-term contracts including derivative contracts. As
such, the question of commenting on any material foreseeable losses thereon does not
arise. ii
i. there were no amounts which were required to be transferred by the Company to the
Investor Education and Protection Fund.
iv. the management has represented that, to the best of its knowledge and belief, other
than as in the note 10.23 to the accounts, no funds have been advanced or loaned or
disclosed invested (either from borrowed funds or share premium or any other sources or
kind of funds) company to or in any other person or entity, including foreign entity by
the ("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
v. the management has represented that, to the best of its knowledge and belief, other
than as disclosed in the note no. 23 to the accounts, no funds have been received by the
company from any person or entity, including foreign entity ("Funding Parties"),
with the whether recorded in writing or otherwise, that the company shall, whether,
understanding, or indirectly, lend or invest in other persons or entities identified in
any manner directly by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any whatsoever guarantee, security or the like on behalf
of the Ultimate; v
i. Based on such audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause
(i) and
(ii) of Rule l1
(e), contain any material mis-
statement.
vii. The Company has neither declared nor paid any dividend during the year.
FOR KAMDAR DALAL & ASSOCIATES
FIRM REGISTRATION NO.: 129596W
Zl POY Jed
m "
S.K.KAMDAR
PARTNER
MEMBERSHIP NO.: 032878
UDIN : 23032878BGYCLP4358
MUMBAI : MAY 30, 2023
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 of our Report of even date)
1. In respect of Companys Property Plant and Equipment and Intangible Assets:
a.
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
(b) The Company has maintained proper records showing full particulars of intangible
assets. The Company has a program of physical verification of Property, Plant and
Equipment at the end of the year which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. Pursuant to the program, the Property,
Plant and Equipment were physically verified by the Management during the year. According
to the information and explanations given to us, no discrepancies were noticed on such
verification.
Based on our examination of the share certificates and society maintenance bills
provided to us, we report that the Immovable Properties held by Company i.e. Buildings
(Office Premises) disclosed in the financial statements under Property, Plant and
Equipment are in the name of the Company as at the balance sheet date.
The Company has not revalued any of its Property, Plant and Intangible assets during
the year.
No proceedings have been initiated during the year or are pending against the Company
as at March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
The Company does not have any inventory. Hence, reporting under clause 3(ii)(a) of the
Order is not applicable.
The Company has not been sanctioned working capital limits in excess of Rs. 5 crore, in
aggregate, at any point of time during the year, from banks or financial institutions on
the basis of security of current assets. Hence, reporting under clause 3(ii)(b) of the
Order is not applicable.
[9S]
The Company has not provided any loans or advances in the nature of loans or stood
guarantee, or provided security to any other entity during the year. Hence, reporting
under clause 3(iii)(a) of the Order is not applicable.
In our opinion, the investments made during the year are, prima facie, not prejudicial
to the Companys interest.
The Company has not provided any loans or advances in the nature of loans during the
year. Hence, reporting under clauses 3(iii)(c), (d), (?) and (f) of the Order is not
applicable.
In respect of loans, investments, guarantees and security: a. According to the
information and explanations given to us, the Company has complied with the provisions of
section 186 of the Companies Act, 2013 in respect of the investments made by it.
The Company has not granted any loans or provided any loans or provided any guarantees
or security to the parties covered under section 185. Hence, reporting under clause 3(iv)
of the Order is not applicable to the Company.
In respect of acceptance of deposits:
The Company has not accepted any deposits or amounts which are deemed to be deposits.
Hence, reporting under clause 3(v) of the Order is not applicable to the Company.
6. In respect of maintenance of cost records: to the information and explanations
given to us, the Company is not required to According cost records under sub-section 1 of
section 148 of the Companies Act, 2013. Hence, maintain reporting under clause 3(vi) of
the Order is not applicable to the Company.
In respect of statutory dues : to the information and explanations given to us and
the records of the Company a. According by us, undisputed Income Tax dues and other
statutory dues have been deposited examined with the appropriate authorities. Further, as
explained to us, the provisions of regularly Fund, Employees State Insurance, Sales Tax,
Service Tax, Customs Duty, Excise Provident Value Added Tax and Cess arc not applicable to
the Company during the year. As at Duty, there were no undisputed dues payable for more
than six months from the date 31/03/2023, they became payable. to the information and
explanations given to us, as at 31/03/2023, there were no According dues payable for more
than six months from the date they became payable, except disputed the following:
Statute |
dispute is the amount pending relates |
(Rs. in lacs) |
Income Tax Income Tax Act, 1961 |
Jurisdictional Assessment Year Assessing 2015-16 Officer |
15.90 |
Income Tax Income Tax Act, 1961 |
Jurisdictional Assessment Year Assessing 2019-20 Officer |
0.58 |
There were no transactions relating to previously unrecorded income or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (43 of
1961). According to the records of the Company examined by us and the information and
explanations given to us: a. During the year, the Company has not defaulted in repayment
of the principal amount and the interest amounts in respect of loans taken by it. b. The
Company has not been declared a wilful defaulter by any bank or financial institution or
other lender. The Company has not taken any term loan during the year and there are no
outstanding term ?. loans at the beginning of the year. Hence, reporting under clause
3(ix)(c) of the Order is not applicable. d. According to the records of the Company
examined by us and the information and explanation given to us, the Company has not
utilised funds raised on short term basis for long term purposes during the year. The
Company has taken funds from an entity or person during the year. However, since the e.
Company does not have any subsidiaries, associates or joint ventures, reporting under
clause 3(ix)(e) of the Order is not applicable. f. The Company has raised loans during the
year. However, since the Company does not have any subsidiaries, any associates or joint
ventures, reporting under clause 3(ix)(f) of the Order is not applicable.
10. a. The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year. Hence, reporting under clause
3(x)(a) of the Order is not applicable. b. During the year, the Company has not made any
preferential allotment or private placement of shares or fully or partly or optionally
convertible debentures. Hence, reporting under clause 3(x)(b) of the Order is not
applicable.
11. During the course of the examination of the books and records of the Company and
the audit procedures performed in accordance with the generally accepted auditing
practices in India and according to the information and explanations given to us : a. no
fraud by the Company or any fraud on the Company has been noticed or reported during the
year; b. in view of “a” above, no report under sub-section (12) of section 143
of the Companies Act, 2013 was required to be filed by us in Form ADT-4, as prescribed
under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government
during the year.
?. no whistle blower complaints have been received by the Company during the year.
12. The Company is not a Nidhi Company. Hence, reporting under clause (xii) of the
Order is not applicable.
. In our opinion, the Company is in compliance with Section 177 and 188 of the
Companies Act, 2013 with respect to applicable transactions with the related parties and
the details of related party transactions have been disclosed in the standalone financial
statements as required by the applicable accounting standards.
14. a. In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business. b. We have considered the
internal audit reports for the year under audit, issued to the Company during the year and
till date, in determining the nature, timing and extent of our audit procedures.
. According to the information and explanations given to us, during the year the
Company has not entered into any non-cash transactions with its directors or persons
connected with its directors. Accordingly, provisions of section 192 of the Companies Act,
2013 are not applicable.
. In respect of Non-Banking Finance Company (NBFC): a. According to the
information and explanations given to us, and in terms of Note No.33 in Notes to
Standalone Financial Statements, the Company is not required to be registered under
section 45-1A of the Reserve Bank of India Act, 1934.
For the same reasons, reporting under clause 3(xvi)(b) of the Order is not
applicable.
?. The Company is not a Core Investment Company (CIC) as defined under the Regulations
by the Reserve Bank of India. d. In our opinion, there is no core investment company
within the Group [as defined in the Core Investment Companies (Reserve Bank) Directions,
2016]. Hence, reporting under clause 3(xvi)(d) of the Order is not applicable.
. The Company has not incurred cash losses during the financial year covered by
our audit and the immediately preceding financial year.
There has been no resignation of the statutory auditors of the Company during the
year.
On the basis of financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, our knowledge of the Board of Directors and management plans, we are
of the opinion that no material uncertainty exists as on the date of the audit report that
Company is capable of meeting its liabilities existing at the date of balance sheet as and
when they fall due within a period of one year from the balance sheet date. We, however,
state that this is not an assurance as to the future viability of the Company. We further
state that our reporting is based on the facts up to the date of the audit report and we
neither give any guarantee nor any assurance that all liabilities falling due within a
period of one year from the balance sheet date will get discharged by the Company as and
when they fall due.
20 . The Company is not covered by the provisions of Section 135 of Companies
Act, 2013 relating to Corporate Social Responsibility for the year. Hence, reporting under
clause (xx) of Order is not applicable.
FOR KAMDAR DALAL & ASSOCIATES
FIRM REGISTRATION NO.: 129596W
CHARTERED ACCOUNTANTS
phe
S.K.KAMDAR
PARTNER
MEMBERSHIP NO.: 032878
UDIN : 23032878BGYCLP4358
MUMBAI : MAY 30, 2023
B TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE ANNEXURE
STANDALONE FINANCIAL STATEMENTS OF SHREENATH INVESTMENT COMPANY LIMITED the Internal
Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Report on
Companies Act, 2013 (“the Act”) We have audited the internal financial controls
over financial reporting of Shreenath Investment Company Limited (“the Company”)
as of March 31, 2023 in conjunction with our audit of the standalone financial statements
of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the “Guidance Note ) and the Standards on Auditing, as specified under section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of Internal Financial Controls and, both
issued by the Institute of Chartered Accountants of India. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks 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 to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting. Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that : (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; assurance that transactions are recorded as
necessary to permit preparation of (2) provide reasonable statements in accordance with
generally accepted accounting principles, and that receipts financial expenditures of the
company are being made only in accordance with authorisations of and management and
directors of the company; and assurance regarding prevention or timely detection of
unauthorised (3) provide reasonable use, or disposition of the companys assets that could
have a material effect on the acquisition, financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting of the
inherent limitations of internal financial controls over financial reporting, including
the Because of collusion or improper management override of controls, material
misstatements due to possibility or fraud may occur and not be detected. Also, projections
of any evaluation of the internal error financial controls over financial reporting to
future years are subject to the risk that the internal control over financial reporting
may become inadequate because of changes in conditions, or financial that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting established by the Company considering the
essential components of internal control stated in criteria Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the the Institute of
Chartered Accountants of India. Explanatory Paragraph have also audited, in accordance
with the Standards on Auditing issued by the Institute of We Chartered Accountants of
India as specified under Section 143(10) of the Act, the financial statements the Company,
which comprise the Balance Sheet as at March 31, 2023 and the related Statement of of and
Loss for the year then ended and a summary of significant accounting policies and other
Profit explanatory information and in our Report dated May 30, 2023 we have expressed an
unqualified opinion thereon.
FOR KAMDAR |
DALAL & ASSOCIATES |
FIRM REGISTRATION |
NO: 129596W |
CT CHARTERED sade ACCOUNTANTS |
|
| S.K.KAMDAR |
|
| PARTNER |
|
| MEMBERSHIP |
NO: 032878 |
| UDIN : |
23032878BGYCLP4358 |
| MUMBAI : MAY 30, 2023 |
|
+91-9892691696
