To,
The Members,
Shreevatsa Finance & Leasing Limited,
Report on the Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Shreevatsa
Finance & Leasing Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2023, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows
for the year ended on that date, and a summary of the 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 Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, the profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
Our responsibility is to express an opinion on these standalone Ind AS financial
statements based on our audit. We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made thereunder. We conducted
our audit of the standalone Ind AS financial statements in accordance with the Standards
on Auditing, issued by the Institute of Chartered Accountants of India, as specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the standalone Ind AS financial statements.
Key Audit Matters
In our opinion and based on the information and explanations given to us, there are no
other key audit matters to be communicated in our report.
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, 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 financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone Ind AS financial statements that give a true and fair view of the
financial position, financial performance including other comprehensive income, cash flows
and changes in equity of the Company in accordance with accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) specified under
section 133 of the Act., read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. 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 the 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 Ind AS 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 are 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 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 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, and 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 omission, 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 appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made 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 events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the company to cease to continue as
a going concern.
• Evaluate the 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.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
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 financial
statements.
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, 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 best
of 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 the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 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 control over financial
reporting of the company with reference to these standalone Ind AS financial statements
and operating effectiveness of such controls, refer to our separate report in Annexure B
to this report.
g) With 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, 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 litigation which would impact its financial
position.
ii) The company did not have any long term contracts including derivatives contract for
which there were any material foreseeable losses.
iii) There were no amounts which 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, on
the date of this audit report, other than as disclosed in the Note 23 to the accounts, no
funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person(s)
or entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether
recorded in writing or otherwise, that the Intermediary shall, 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 no funds have been received by the Company,
other than as disclosed in the Note 23 to the accounts, from any person(s) or entity(ies),
including foreign entities ("Funding Parties"), with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether, directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the funding Party ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries. Based on reasonable audit
procedures adopted by us, nothing has come to our notice that such representation contains
any material misstatement.
vi) No Dividend has been declared by the company during the year under consideration.
For R. Mohla & Co.
Chartered Accountants
Firm Reg No.:003716C
Tanvi Agarwal
(Partner)
Membership No.424006
Place: Kanpur
Date: 29.05.2023
UDIN: 23424006BGQJBN9513
SHREEVATSAA FINANCE AND LEASING LIMITED
FINANCIAL YEAR- 2022-23
ANNEXURE ‘A TO INDEPENDENT AUDITORS REPORT
[Referred to in Paragraph 1 under the heading of "Report on Other Legal and
Regulatory
Requirements" of our Report of even date]
(i) In respect of its Property, Plant & Equipment :
a) The company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets.
b) As explained to us all fixed assets have been physically verified by the management
at reasonable intervals, having regard to the size of the company and nature of its assets
and no discrepancies were noticed on such physical verification.
c) As per the records produced before us and explanations provided to us the company
does not own any immovable property.
(ii) In respect of its inventories:
a) As explained to us the company is dealing in shares and securities which has been
verified by the management from time to time from the DEMAT account and other records of
the company. In our opinion and on the basis of our examination of the records, the
company is maintaining proper records of inventory and no material discrepancies were
noticed on the verification between the stocks and the book records.
(iii) As the company is registered as NBFC, with Reserve bank of India, its principal
business is of giving loans, therefore this whole clause is not applicable on the company.
(iv) In our opinion and according to the information and explanations given to us, the
company being a Non Banking Financial Company has granted loan to corporate bodies in
normal course of business and has complied with the provisions of sections 185 and 186 of
the Companies Act, 2013 with respect of loans, investments made.
(v) The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
(vi) The Central Government has not prescribed the maintenance of cost records in
respect of the Company, under section 148 (1) of the Companies Act, 2013.
(vii) In respect of Statutory dues:
a) The company is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education protection fund, employees
state insurance, income tax, goods & services tax, custom duty, cess and other
material statutory dues applicable to it. No such material dues were in arrears, as at
31.03.2023 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, the following dues of
Income Tax have not been deposited on account of dispute :-
| Name of Statue |
Nature of Dues |
Amount not deposited |
Period to which it relates |
Forum where dispute is pending / Remark |
| Income Tax Act, 1961 |
Tax Deducted at Source |
Rs. 5930/- |
Prior Years |
Interest on Payments defaults u/s 201 |
| Income Tax Act, 1961 |
Tax Deducted at Source |
Rs. 15800/- |
Prior Years |
Short Payment |
(viii) In our opinion and according to the information and explanations given to us,
the company has not taken any loan from the financial institution, bank and government or
has not issued any debentures during the year.
(ix) As explained to us and as per the records, the company has not raised any money by
way of initial public offer or further public offer (including debt instruments) or term
loans during the year. Accordingly, provisions ofclause (ix) of para 3 of Companies
(Auditors Report) Order, 2016 is not applicable.
(x) To the best of our knowledge and belief and according to the information and
explanation given to us, no fraud on or by the Company by its officers or employees has
been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our
examination of the records of the company, the company has paid/provided for the
managerial remuneration in accordance with the requisite approvals mandated by the
provisions of section 197 read with the Schedule V to the Act.
(xii) Since, the company is not a Nidhi company, therefore provisions of clause (xii)
of para 3 of Companies (Auditors Report) Order, 2016 is not applicable.
(xiii) As explained to us, and as per the records of the company, the transactions with
the related party have been made in compliance with sections 177 and 188 of the Companies
Act, 2013, where applicable for all transactions with the related parties and the details
of related party transactions have been disclosed in the Financial Statements as required
by applicable accounting standards.
(xiv) As explained to us and as per the records, the company has not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures during the year under review.
(xv) As explained to us and as per the records, the company has not entered into any
non cash transactions with directors or persons connected with him during the year under
review.
(xvi) As explained to us and as per the records, the company is required to and has
been registered under section 45-IA of the Reserve Bank of India Act, 1934 vide
registration no. 12.00050 dated 27.02.1998.
For R Mohla & Co
Chartered Accountants
FRN: 003716C
Tanvi Agrwal
(Partner)
M No.424006
Date: 29.05.2023
Place: Kanpur
UDIN: 23424006BGQJBN9513
SHREEVATSAA FINANCE AND LEASING LIMITED FINANCIAL YEAR- 2022-23
Annexure B" to the Independent Auditors Report of even date on the Standalone
Financial Statements of Shreevatsa Finance & Leasing Limited.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Shreevatsa
Finance & Leasing 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 onthe 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(‘ICAI).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, issued by ICAI and deemed
to be prescribed 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 judgment, 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;
(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 and 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 prevention or timely detection 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 to 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 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 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.
For R. Mohla & Co.
Chartered Accountants
Firm Reg No.:003716C
Tanvi Agarwal
(Partner)
Membership No. 424006
Place: Kanpur
UDIN: 23424006BGQJBN9513
Date: 29.05.2023.
+91-9892691696
