To
The Members of SHRI KALYAN HOLDINGS LIMITED
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of SHRI KALYAN HOLDINGS
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March,
2023, the Statement of Profit and Loss (including Other Comprehensive Income), Statement
of changes in Equity and the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information (herein after
referred to as "financial statements").
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
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standard under section 133 of the Act
read with the Companies (Indian Accounting Standard) Rules, 2015, as amended, ("Ind
AS") and other accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2023, the profit and total comprehensive income,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those standards are further described in the Auditors Responsibilities for the Audit
of 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 (ICAI) together with the ethical requirements that are relevant to our audit of the
financial statements under provision of Act 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 on the financial statements.
Key Audit Matters
Key audit matters (‘KAM) are those matters that, in our professional judgment,
were of the 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. We have not identified any of such matters that are to
be reported separately here during the current period.
Information Other than the 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 Annual Report,
but does not include the financial statements and our auditors report thereon.
Our opinion on the 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 financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our 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.
Responsibility of Management for the 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 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 (Ind AS)
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 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.
The 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 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 appropriate in the circumstances. Under section 143(3)(i)
of the Act, 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 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 ability of the
Company 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 disclosure in the
financial statement or, if such disclosure are inadequate, to modify our opinion. Our
conclusion are based on the audit evidence obtained up to date of our auditors report.
However, future events or condition 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.
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.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
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 Companies Act, 2013, 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 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 Account including Other
Comprehensive Income, Statement of changes in Equity and the statement of Cash Flow dealt
with by this Report is in agreement with the relevant books of account.
d) In our opinion financial statements comply with the Indian Accounting Standard under
section 133 of the Act read with the Companies (Indian Accounting Standard) Rules,2015, as
amended.
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 controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure B".
g) The company has not paid or declared any dividend in the current year.
h) In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of Section 197 of the Act.
i) With respect to 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 do not have any pending litigations which would impact its financial
position as on 31st March 2023;
ii. The Company do not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses; iii. There were no amounts which were
required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (a) The management has represented that to the best of its knowledge and belief, no
funds have been advanced or loaned or invested any funds (either from the borrowed funds
or share premium or any other source or kinds of funds) by the company to or in any other
person or entity, including foreign entities ("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.
(b) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the company from any person or entity, including foreign
entities, 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; and (c) Based on such audit procedures 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 iv(a) and iv(b) contain any
material mis-statement.
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For S. Rakhecha & Company |
|
Chartered Accountants |
|
FRN : 108490W |
|
CA. Suresh B. Rakhecha |
| Place: Mumbai |
Proprietor |
| Date: 26/05/2023 |
Membership No. 038560 |
|
UDIN: |
|
23038560BGTKVB6976 |
"Annexure A" to the Independent Auditors Report
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, and to the best of our knowledge and belief,
we report that:
i. (a) (A) The company has maintaining proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment, right of
use assets and investment property;
(B) The company is maintaining proper records showing full particulars of intangible
assets;
(b) The Property, Plant and Equipment of the Unit have been physically verified by the
management at reasonable intervals in a phased manner so as to generally cover all the
assets once in three years. As informed to us, no material discrepancies have been noticed
on such verification wherever reconciliation has been carried out. In our opinion, the
frequency of physical verification program adopted by the Company is reasonable having
regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the company, the title deeds of all the immovable properties
are disclosed in the financials are held in the name of the company.
(d) The company has not revalued its Property, Plant and Equipment or Intangible assets
or both during the year.
(e) No proceedings have been initiated or are pending against the unit for holding any
Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder. Accordingly, reporting under clause 3(i)(e) of the Order is not
applicable to the unit.
ii. (a) As explained to us, the inventory of shares and securities has been physically
verified during the year by the management.
In our opinion, the frequency of verification is reasonable. There were no
discrepancies noticed on verification between the stocks lying in Demat Account and the
bookrecords.
(b) According to the information and explanations given to us, at any point of time of
the year, the Company has not been sanctioned any fresh working capital facility more than
5 crores from banks or financial institutions on the basis of security of current assets.
The company is not required to file quarterly returns or statements with banks or
financial institutions and hence reporting under clause (ii)(b) of the Order is not
applicable.
iii. (a) Since the principal business of the Company is to give loans, the requirement
to report on clause 3(iii)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us and based on the audit
procedures conducted by us, we are of the opinion that the investments made, guarantees
provided are, prima facie, not prejudicial to the interest of the Company.
(c) In respect of loans and advances in the nature of loans, the schedule of repayment
of principal and payment of interest has been stipulated. Note no. 5 to the financial
statements explains the Companys accounting policy relating to impairment of financial
assets which include loan assets. In accordance with that policy, loan amount with balance
as at 31 March 2023, aggregating ? 55,00,000 were categorized as credit impaired
(‘Stage 3). Disclosures in respect of such loans have been provided in note no. 32
to the financial statements. In all other cases, the repayment of principal and interest
is regular. Having regard to the nature of the Companys business and the volume of
information involved, it is not practicable to provide an itemized list of loan assets
where delinquencies in the repayment of principal and interest have been identified.
(d) The total amount overdue for more than ninety days, in respect of loans and
advances in the nature of loans, as at the year-end is ? 55,00,000. Reasonable steps are
being taken by the Company for recovery of the principal and interest
(e) Since the principal business of the Company is to give loans, the requirement to
report on clause 3(iii)(e) of the Order is not applicable to the Company.
(f) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has granted loans or advances in
the nature of loans repayable on demand.
| Aggregate amount of loans/ advances innature of loans |
All Parties |
Promoters |
Related Parties |
| - Repayable on demand (A) |
1,10,925.00 |
- |
575.00 |
| - Agreement does not specify any term or period ofrepayment (B) |
- |
- |
- |
| Total (A + B) |
1,10,925.00 |
- |
575.00 |
| Percentage of loans/ advances in nature ofloans to the total loans |
100% |
- |
0.52% |
iv. The Company has not advanced loans or made investments in or provided guaranty or
security to parties covered by section 185 and section 186 is not applicable to the
Company. Hence reporting under paragraph 3(iv) of the Order is not applicable.
v. According to the information and explanations given to us, the Company has not
accepted any deposit during the year and does not have any unclaimed deposit as at March
31, 2023 and therefore, the provisions of Sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules made thereunder are not applicable to
the Company. We are informed by the management that no order has been passed by the
Company Law Board, National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal against the Company in this regard.
vi. The maintenance of cost records has not been specified by the Central Government
under Section 148(1) of the Companies Act, 2013 for the business activities carried out by
the Company. Thus, reporting under paragraph 3(vi) of the Order is not applicable to the
Company.
vii. In respect of statutory dues:
a) According to the information and explanations given to us and according to the books
and records as produced and examined by us, in our opinion, the Company is generally
regular in depositing the undisputed statutory dues including Goods and Service Tax,
provident fund, professional tax, income-tax and other material statutory dues have been
regularly deposited during the year by the Company with the appropriate authorities.
b) According to the information and explanations given to us, no undisputed amounts
payable in respect of Goods and Service Tax, provident fund, professional tax, income-tax
and other material statutory dues were in arrears as at 31 March 2023 for a period of more
than six months from the date they became payable.
c) According to the information and explanation given to us, there are no dues of
income tax, sales tax, goods and service tax, duty of customs, duty of excise, value added
tax which have not been deposited on account of any dispute.
viii. In our opinion and according to the information and explanations given to us, the
company does not have any transactions not recorded in the books of account have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961). Accordingly, clause 3(viii) of the Order is not applicable.
ix. (a) In our opinion, the Company has not defaulted in the repayment of loans or
borrowings or in the payment of interest thereon.
(b) The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company has not taken any term loan during the year and there are no unutilized
term loans at the beginning of the year and hence, reporting under clause (ix)(c) of the
Order is not applicable.
(d) On an overall examination of the Financial Statements of the Company, funds raised
on short-term basis have, prima facie, not been used during the year for long-term
purposes by the Company.
(e) On an overall examination of the Financial Statements of the Company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries, associates or joint ventures.
(f) The Company has not raised loans during the year on the pledge of securities held
in subsidiary, joint ventures or associate companies and hence reporting on clause (ix)(f)
of the Order is not applicable
x. (a) The Company not raised moneys by way of initial public offer or further public
offer (including debt instruments) during the year and hence reporting under clause (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 convertible debentures (fully or partly or optionally) and hence
reporting under clause (x)(b) of the Order is not applicable to the Company.
xi. (a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company or on the Company has been noticed or reported during
the period covered by our audit.
(b) No case or report under sub-section (12) of section 143 of the Companies Act has
been committed to be filed by the auditors in Form ADT-4 as prescribed under rule 13 of
Companies (Audit and Auditors) Rules, 2014 with the Central Government;
(c) According to the information and explanations given to us including the
representation made to us by the management of the Company, there are no whistle-blower
complaints received by the Company during the year.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company. Accordingly, Clause 3 (xii) (a), 3 (xii) (b) and 3 (xii)
(c) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the Financial Statements as required by the applicable
accounting standards.
xiv. (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 issued to the Company during the
year and covering the period up to 31 March 2023 for the period under audit.
xv. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him. Accordingly, clause (xv) of the
Order is not applicable.
xvi. (a) According to the records of the company examined by us and the information and
explanations given to us, the Company is a Non- Banking Financial Corporation and it has
obtained registration under Section 45-IA of the Reserve Bank of India Act, 1934.
(b) The Company has not conducted any Non-Banking Financial or Housing Finance
activities without obtaining a valid Certificate of Registration (CoR) from the Reserve
Bank of India as per the Reserve Bank of India Act, 1934.
(c) The Company is not a Core Investment Company as defined in the regulations made by
Reserve Bank of India. Accordingly, the requirement to report on clause 3(xvi) of the
Order is not applicable to the Company.
(d) There is no Core Investment Company as a part of the Group, hence, the requirement
to report on clause 3(xvi) of the Order is not applicable to the Company.
xvii. The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during
the year.
xix. According to the information and explanations given to us and based on our
examination of the 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.
xx. In our opinion and according to the information and explanations given to us, the
provision of section 135 of the Act is not applicable to the company. Accordingly, Clause
3 (xx) (a) and Clause 3 (xx) (b) of the Order is not applicable.
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For S. Rakhecha & Company |
|
Chartered Accountants |
|
FRN : 108490W |
|
CA. Suresh B. Rakhecha |
| Place: Mumbai |
Proprietor |
| Date: |
Membership No.038560 |
|
UDIN: |
"Annexure-B" to the Auditors Report
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 with reference to financial statements
of SHRI KALYAN HOLDINGS LIMITED ("the Company") as of 31 March 2023 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 for establishing and maintaining internal
financial controls based on the internal control with reference to financial statements
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 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 with reference to financial statements based on our audit. We conducted our audit
in accordance with 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. 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 internal financial controls with reference to
financial statements 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 with reference to financial statements and their
operating effectiveness. Our audit of internal financial controls with reference to
financial statements included obtaining an understanding of internal financial controls
with reference to financial statements, 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
with reference to financial statements.
Meaning of Internal Financial Controls over Financial statement
A companys internal financial control over financial statements 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 with reference to financial statements 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 statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, 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 with
reference to financial statements to future periods are subject to the risk that the
internal financial control with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures maydeteriorate.
Opinion
In our opinion, the Company has, in all material respects, an internal financial
controls system with reference to financial statements and such internal financial
controls with reference to financial statements were operating effectively as at 31 March
2023, based on the internal control with reference to financial statements 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.
|
Chartered Accountants |
|
FRN : 108490W |
|
CA. Suresh B. Rakhecha |
| Place: Mumbai |
Proprietor |
| Date: 26/05/2023 |
Membership No.038560 |
|
UDIN: |
+91-9892691696
