jhaveri credits capital ltd share price Auditors report

To the Members of JHAVERI CREDITS AND CAPITAL LIMITED

Opinion: -

We have audited the accompanying IND AS financial statements of JHAVERI CREDITS AND CAPITAL LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 202?, the Statement of Profit and Loss (including other comprehensive income), (he Statement of Changes in Equity, the Cash Flow Statement for the year then ended, and notes to ‘he financials statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Acl 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 31s March 2022, its profit, changes in equity and its cash flows for the year ended on that date.

Basis of Op into n:-

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. 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 ot the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical 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.

Responsibility of Management for the Financial Statements:-

The Companys Board of Directors is responsible for the matters slated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the 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.

Those Board of Directors ore also responsible for overseeing the companys financial reporting process,

Auditors Responsible:-

Out objectives are to obtain reasonable assurance about whether the financial statements os 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 la influence the economic decisions of users taken an the basis of these financial statements,

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit, We also:

* Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, arid obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

* Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriable in the circumstances, Under section M3(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures mode by management,

* Conclude on the appropriateness of managements use of the going concern basis of

accounting and, based on The audit evidence obtained, whether a material uncertainty exists related to evenls or conditions that may cost significant doubl on the Companys ability to continue as a going concern. If we conclude thaf o material uncertainly exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements or, if such disclosures ore inadequate, to modify our opinion, Our conclusions are based on the audit evidence obtained up to the date of our audios report. However, future events or conditions may cause The Company to cease to continue as a going concern.

• Evaluate (he overall presentation, structure and content of the financial statements, * Including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

Report on Other Legal and Regulatory Requirements; -

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure ‘A- a statement on the matters specified in paragraphs 3 and 4 of the Order,

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 best of our knowledge and belief were necessary for the purpose of our audit,

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books,

c) The Balance Sheet, Statement of Profit and Loss (including other comprehensive income), the Statement of changes in equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account,

d) In our opinion, the aforesaid IND AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014,

e) On the basis of written representations received from the directors, taken on record by the Board of Directors, none of the directors are disqualified as or 31st March, 2022 from being appointed as a director in terms of Section 164(2) of the Act.

f} With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

g) With respect lo the other matters lo be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according fo the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial positions in its financial statements- Refer to Mote No 29. The Company had filled with Vivad se Vishwas Scheme for AY 2012-13 and The said application was accepted and with amount of taxation of Rs 22,02,967/- has been paid by the Company on 29th September 2021 ;

The Company did not have any long-term contracts including derivative contracts tor which there were any material foreseeable tosses. in. There were no amounts which were required to be transferred to the Inveslor education and Protection Fund by the Company. "

Annexure J‘AM referred to In paragraph 1 under the heading ‘Report on Other Legal and Regulatory Requirements of our report of even date to the member of JHAVERI CREDITS AND CAPITAL LIMITED (the Company)

(I) (aj (i) The Company has maintained proper records showing ful! particulars, including Quantitative details and situation of properly, plant and equipment.

(ii) The Company does nol hold any intangible assets, hence no records are required 1o be maintained by the Company.

(b) The Property, plant and equipment have been physically verified by the management during the year as per the regular program of verification which. In our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification,

fc) According to information and explanations given by the management, the Company the title deeds of all the immovable properties for the current financial year are held in The name of the Company.

(d) The Company has not revalued its property, plant and equipment during the said financial year. Accordingly, the provision of the clause 3(i) fd) of the Order is not applicable and hence not commented upon

(e) According to the information and explanations given by the management, no proceedings have been initiated or ore pending against The company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1938) and rules made thereunder. Hence, the provision of the clause 3(iJ (e) of the Order is nof applicable and hence not commented upon

(?) (a) Since the Company hold inventory of shares in demalerialized form, the question of commenting on physical verification of inventory does not arise and no malarial discrepancies were noticed during the period under review.

(b) in our opinion and according to the information and explanations given to us. the company has not been sanctioned working capital limits in excess of five crore rupees during the said financial year under review.

(i) (a} According la The information and explanations given to us, the Company has not granted any loans, secured or unsecured to firms. Limited Liability Partnerships or other parties. However the Company has granted loans to other companies as per its principal business. Accordingly, the provision of the clause 3(iii) (a) of the Order is not applicable and hence not commented upon,

(b) According to the information and explanations given to us, the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the companys interest.

(c) As per the explanation and the information provided, the schedule of repayment * and payment of interest has been stipulated and repayments have been made regularly as per the terms of repayment.

(d) In our opinion and information and explanation provided, no amount of loan is overdue,

(e) As pec the information and explanation provided to us, no loan has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same ponies. Accordingly,, the provision of the clause 3(iii} (e) of the Order is not applicable and hence not commented upon. 0

(f) As per the information provided the Company has granted loans repayable on demand (Refer to Note No 34 of the financial statements} as below;-

Loan Granted to	Aggregate Amount of Loan Granted (in lakhs)	Percentage thereof to the total loons granted
Body Corporate (Related Parties)	1,136.30	100%

(iv) In our opinion ond according to the information and explanations given to us, there ore no loans, investments, guarantees, and securities granted in respect of which provisions of Section 135 and 186 of The Companies Act 2013 are applicable and hence not com men led upon.

(v) The Company has not accepted any deposits from the public.

(vi) As informed to us, the Central Government has not specified maintenance of cost records under sub-section (1.) of Section 148 of the Companies Act, 2013 in respect of activities undertaken by The company during the financial year.

(vii) (a) According to information and explanations given to us and the records of the Company examined by us. in our opinion, The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, sales-tox, incomo-tax, service lax, customs duty, excise duly, value added tax, cess and other material statutory dues applicable to if,

(b) According to the information and explanations given 1o us, no undisputed amounts payable in respect of provident fund, employees stale insurance, income-tax. sales- tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues were outstanding at the year end, far a period of more than six months from The date they became payable.

(viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, no Transactions not recorded in the books of account have been surrendered or disclosed os income during the year in the tax assessments under The income Tax Act. 1961,

(ix) (a) Based on our audit procedures performed for the purpose of reporting the True and fair view of the financial statements and according to information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to any. Lender,

(b) As per the information provided, this company is not declared willful defaulter by any bank or financial institution or other lender:

(c) Based on our audit procedures peri armed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, term loans were applied for The purpose for which the loans were obtained

(d) According to information and explanations given by the management, the company has not raised funds on short terms basis.

(e ) According fa information and explanations given by the management, no funds has been taken from any entity or person on account of or to meet The obligations of its subsidiaries, associates, or joint ventures.

(g) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the company has nol raised any loans on the pledge of securities held in its subsidiaries, joint ventures, or associate companies.

(x) (a) Eased on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that the Company has not raised any money by way of initial public offer or further public offer (including debt instruments).

(b) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(x) are not applicable to the company and, not commented upon,

(xi) (a) Based upon the audit procedures performed for the purpose of reporting The true and fair view of The financial statements and according to the information and explanations given by the management, we report that no fraud on or by The officers and employees of the Company has been noticed or reported during the year.

(b) Based upon the audit procedures performed far the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, no report under sub-section f 12) of section 143 of the Companies Act in form ADT - 4 has been filled by auditors,

(C) Based upon the audit procedures performed for The purpose of reporting fhe true and fair view oF the financial statements and according to the information and explanations given by the management, no whisite-blewer complaints has been received during the year by the company

(xii) in our opinion and according to The information and explanations given by the management, the Company is not a Nidhi company. Therefore, the provisions of clause 3(xii) or the Order are not applicable to the Company and hence not commented upon,

(xiii) Based on our audit procedures performed for the purpose of reporting fhe true and fair view of the financial statements and according to the information and explanations given by the Management, we report that transactions with related parties are in compliance with the provisions of Section 177 & 188 of the Companies Act. 2013, wherever applicable and all the transactions with related parties have been disclosed in the Financial Statements, as required by applicable accounting standards.

(xiv) for Based on our audit procedures performed for the purpose at reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has an internal audit system commensurate with the size and nature of its business (b) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the internal Audit report for the said financial year were considered by us.

(xv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to The information and explanations given by the management not entered into any nan-cash Transactions with directors or persons connected with him.

(xvi) (a) According to the information and explanations given to us, the Company is not required to be registered under sec lion 45-IA of the Reserve Sank of India Ac!, 1934, fb) In our opinion and as per the information and explanation provided to us, the company has not conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of india as per the Reserve Bank of India Act, 1934;

(c ) Based on our audit procedures performed for the purpose of reporting fhe true and fair view of the financial statements and according to the information and explanations given by the management, the company is not a Core Investment Company jcicj as defined in the regulations made by the Reserve Bank of India, Accordingly the provision of clause 3fxvi)?are not applicable and hence not commented upon,

(d) In our opinion and as per the information and explanation provided fo us. there is not more than one CIC as part of the Group,

(xvii) According to the information and explanations given to us, the company has not incurred cash losses in the financial year and in the immediately preceding financial year.

(xviii) According to the information and explanations given lo us, there has been no resignation of the statutory auditors during the said financial year under review,

(xix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according lo the information and explanations given by the management, the contingent liabilities and commitment are disclosed in Note No 29 of the financial statements for the year

(xx) According fo the information and explanations given lo us, no such projects has been undertaken by the company and accordingly clause 3(xx) (a) and (b) is not applicable to the company and hence not commented upon.

(xxl)According to the information and explanations given to us, no consolidated financial statements are applicable to the company and hence clause 3 (xxi) is not applicable and commented upon.

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF JHAVERI CREDITS AND CAPITAL LIMITED

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

We have audited the internal financial controls aver financial reporting of JHAVER/ CREDITS AND CAPITAL LIMITED ("the Company") as of March 31, 2022 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys Management is responsible tor 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 the Companys policies, the safeguarding of its assets, the prevention and defection 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 Infernal Financial Controls and, both issued by the Institute of chanted Accountants of Indio. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable Whether internal financial controls over financial reporting was established and maintained and if such controls operated effectively in oil material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the infernal financial controls system over financial reporting and their operating effectiveness- Our audit of internal financial controls over financial reporting included obtaining an undemanding of internal financial controls over financial reporting assessing the risk that a material weakness exists, end testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

Meaning of Infernal 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; (2) provide reasonable assurance that Transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts end expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding proven lion or timely defection of unauthorized acquisition, use, or disposition of the Companys 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 Financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting fo future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in ail 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 31,2022, 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.