TO THE MEMBERS OF
SRI AMARNATH FINANCE LIMITED
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the accompanying Standalone financial statements of Sri Amarnath
Finance Limited ("the company"), which comprises the Balance Sheet as at 31st
March 2023, the Statement of Profit and Loss and the Cash Flow Statement for the year then
ended, and notes to the financial 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 standalone financial statements give the information required
by 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 31st March 2023 and its profit/loss and its cash flows for the year ended on that
date.
Basis of Opinion
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 of 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.
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.
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
and presentation of these standalone 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 maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding 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 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 are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility 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 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 presentations, 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 Act, we give in the Annexure A, a statement on the Matters specified in the paragraph
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 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 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 Indian
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
e) The basis of the written representations received from the directors as on 31 March,
2023, taken on record by the Board of Directors, none of the directors is disqualified as
on 31 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 control with reference to financial
statements of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure B"; and
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11of 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 derivate 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,
other than as disclosed in the notes to the Accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kinds of funds ) by the company to or in any other person(s) or entities 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, other
than as disclosed in the notes to the accounts, no funds have been received by the company
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 parties ("ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
ultimate beneficiaries; and
c) Based on the audit procedures that the auditor has considered reasonable and
appropriate in the circumstances, nothing has come to their notice that has caused them to
believe that the representation under sub point (a) and (b) contain any mis-statement.
v. The company does not declare or paid any dividend during the year.
vi. Reporting on accounting software for maintaining its books of account which has a
feature of recording audit trail (edit log) facility is not applicable as proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014 is applicable for the company w.e.f. April 1,
2023.
| Place: New Delhi |
Rajender Kumar Singal & Associates LLP |
| Date: 26.05.2023 |
(Chartered Accountants) |
|
FRN NO. - 016379N |
|
Pankaj Gupta |
|
Partner |
|
M. No. - 094909 |
|
UDIN- 23094909BGWRWJ7701 |
Annexure - A to the Auditors Report
The Annexure referred to in Independent Auditors Report to the members of the Company
on the standalone financial statements for the year ended 31st March 2023, we report that:
(i) a) A. The Company has maintained proper records showing full particulars, including
quantitative details and situation of property plant, and equipment B. According to the
information and explanations given to us the company has not held any Intangible Assets as
on 31.03.2023.
b) According to explanation given to us, property plant, and equipment have been
physically verified by the management at reasonable intervals and no material
discrepancies were noticed on such verification.
c) According to the information and explanations given to us the company has not held
any immovable property as on 31.03.2023.
d) According to the information given to us the Company has not revalued its property
plant, and equipment during the year
e) According to explanation given to us, no proceedings have been initiated or are
pending against the company for holding any benami property under the Benami Transactions
(prohibition) Act, 1988 and rules made thereunder.
(ii) a) The Company is a service company, primarily rendering Finance services.
Accordingly, it does not hold any physical inventories. Thus, sub-clause (a) of clause
(ii) of para 3 of the Order is not applicable to the Company.
b) According to information, the company has not been sanctioned working capital limits
in excess of five crore rupees, in aggregate, from banks or financial institutions on the
basis of security of current Assets.
(iii) According to information and Explanation given to us, the company has granted
loans or advances in the nature of loans, secured or unsecured, to companies, firms, LLP
or any other parties:
a) The companys principal business is to given loans, therefore, sub-clause (a) of
clause (iii) of para 3 of the order is not applicable to companies whose principal
business is to give loans.
b) According to information given to us, the terms and conditions of the grant of all
loans and advances in the nature of loans are not prejudicial to the companys interest.
c) According to information given to us, in respect of loans and advances in the nature
of loans, the schedule of repayment of principal and payment of interest has been
stipulated and the repayments or receipts are regular.
d) According to information given to us, no amount is overdue for more than ninety
days.
e) The companys principal business is to given loans, therefore sub-clause (e) of
clause (iii) of para 3 of the order is not applicable on the company
f) According to information and Explanation given to us, the company has not granted
any loans or advances in the nature of loans either repayable on demand or without
specifying any terms or period of repayment.
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of section 185 and 186 of the companies act, with
respect to the loans.
(v) According to information and explanation given to us, the company has not accepted
any deposits from the public.
(vi) According to the information and explanation given to us, the provision of the sub
clause (vi) of para 3 of the order are not applicable to the company as the company is not
engaged in the production of goods or providing services covered by the companies (cost
records and audit) rules, 2014.
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the company is regular in depositing undisputed
statutory dues including provident fund, employees state insurance, income-tax, sales
tax, service tax, duty of customs, duty of excise, value added tax, cess and other
statutory dues to the appropriate authority and arrears of outstanding statutory dues as
on the last date of the financial year not more than six months from the date they become
payable.
(b) According to information and explanations given to us, there are no material dues
of income tax or sales tax or service tax or duty of custom or duty of excise or value
added tax have not been deposited by the Company on account of any dispute
(viii) According to information and explanation given to us, there is not any
transactions which have been surrender or disclosed as income during the year in the tax
assessment under the income Tax 1961 and not recorded in the books of accounts.
(ix) a) Based on our audit procedure and as per the information and explanation given
to us, we are of the opinion that the company has not defaulted in repayment of loan or
borrowing to a financial institution or bank.
b) According to information given to us, the company has not declared wilful defaulter
by any bank or financial institution or other lender.
c) According to information and explanation given to us, the company has not utilised
funds for long term purposes for those funds which were raised for short term basis.
d) According to information and explanation given to us, the company has not any
subsidiaries, associates or joint ventures. Accordingly, sub-clause (e) and (f) of clause
(ix) of para 3 of the order is not applicable.
(x) a) The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) during the year. Accordingly sub-clause (a) of
clause (x) of para 3 of the order is not applicable.
b) According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or convertible debentures (fully, partially or
optionally convertible) during the year. Accordingly sub-clause (b) of clause (x) of para
3 of the order is not applicable.
(xi)a) According to the information and explanations given to us, no material fraud by
the company or on the company has been noticed or reported during the year.
b) According to the information and explanations given to us, no report under sub-
section (12) of section 143 of the Companies Act has been filed by auditors in Form ADT-4
as prescribed under rule 13 of companies (audit or auditors) rules, 2014 with the central
government.
c) According to information and Explanation given to us, there is 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, sub clause (a), (b) and (c) clause (xii) of
para 3 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) According to the information and explanations given to us, the company has
internal Audit system commensurate with the size and nature of its business.
b) We have considered report of the internal auditor for the period under audit.
(xv) According to the information and explanations given to us, the company has not
entered into any non-cash transactions with directors or persons connected with him.
(xvi) a) The Company is required to be registered under section 45-IA of the Reserve
Bank of India Act 1934 and the registration has been obtained.
b) According to information and explanation given to us, the company has conducted
NonBanking Financial activities with a valid Certificate of Registration (COR) from the
RBI as per Reverse bank of India Act, 1934.
c) According to information and explanation given to us the company is not a Core
Investment Company (CIC) as defined in the regulation made by the Reverse Bank of India.
Accordingly, sub-clause (c) of clause (xvi) para 3 of the order is not applicable to the
company.
d) According to information and explanation given to us, there have not any CIC in the
group. Accordingly, sub-clause (d) of clause (xvi) para 3 of the order is not applicable
to the company.
(xvii) According to information and explanation given to us, the company has not
incurred any cash losses in the current financial year and in the immediately preceding
financial year.
(xviii) According to information and explanation given to us, the statutory auditors
has not been resigned during the year. Accordingly, clause (xviii) para 3 of the order is
not applicable to the company
(xix) According to information and explanation given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial liabilities, other information accompanying the financial statements,
auditors knowledge of boards of directors and managements plan, our opinion is that there
is no material uncertainty exists as on the date of audit report that company is capable
is meeting its liability 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) According to information and explanation given to us, section 135 of the Companies
Act is not applicable on the company. Accordingly, clause (xx) of paragraph 3 of the order
is not applicable.
(xxi) According to information and explanation given to us, the company does not have
joint venture, subsidiary and Associates and has not required prepared consolidated
financial statement. Accordingly clause (xxi) of paragraph 3 of the order is not
applicable to the company.
| Place: New Delhi |
Rajender Kumar Singal & Associates LLP |
| Date: 26.05.2023 |
(Chartered Accountants) |
|
FRN NO. - 016379N |
|
Pankaj Gupta |
|
Partner |
|
M. No. - 094909 |
Annexure - B to the Independent Auditors Report of even date on the Financial
Statements of Sri Amarnath Finance Limited
[Referred to in paragraph 2(f) under Report on Other Legal and Regulatory
Requirements in the Independent 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 Sri Amarnath Finance Limited ("the Company") as of 31 March 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 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 (TCAF). 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 control with
reference to I financial statements based on our audit. We conducted our audit in
accordance with the Guidance I Note on Audit of Internal Financial Controls over Financial
Reporting (the "Guidance Note") and I 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 control 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 control with reference to financial statements and their operating
effectiveness. Our audit of internal control with reference to financial statements
included obtaining an understanding of internal control 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 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 control with reference to
financial statements.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal control with reference to 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 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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised 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 control 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 control with reference to financial
statements to future periods are subject to the risk that the internal control with
reference to financial statements 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 control
with reference to financial statements and such internal control with reference to
financial statements were operating effectively as at 31st 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.
| Place: New Delhi |
Rajender Kumar Singal & Associates LLP |
| Date: 26.05.2023 |
(Chartered Accountants) |
|
FRN NO. - 016379N |
|
Pankaj Gupta |
|
Partner |
|
M. No. - 094909 |
+91-9892691696
