Swarna Securities Ltd Auditors Report.

To the Members of

SWARNA SECURITIES LIMITED.

Report on the Financial Statements

I have audited the accompanying financial statements of M/s Swarna Securities Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2020, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Managements Responsibility for the 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 specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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.

Auditors Responsibility

My responsibility is to express an opinion on these financial statements based on my audit.

I 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.

I conducted my audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. 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. In making those risk assessments, the auditor considers internal financial control relevant to the Companys preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companys Directors, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the standalone financial statements.

Opinion

In my opinion and to the best of my information and according to the explanations given to me, the aforesaid 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, 2020, and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, I give in Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

As required by Section 143(3) of the Act, I report that:

(a) I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.

(b) In my opinion, proper books of account as required by law have been kept by the Company so far as it appears from my 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 my opinion, the aforesaid 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, 2020 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2020 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 my separate report in Annexure-B; and

(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 my opinion and to the best of my information and according to the explanations given to me:

i. the Company does not have any pending litigations which would impact its financial position.

ii. the Company did 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.

PLACE: Vijayawada
DATE : 23/06/2020

(Sd/-)

(V.SHILPA)

Chartered Accountant

M.No.225109

ANNEXURE-A: Statement on the matters specified in paragraphs 3 & 4 of the Companies (Auditors Report) Order, 2016

i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) According to the information and explanations given to me and as per the records of the Company examined by me the management has physically verified the fixed assets and no material discrepancies have been noticed on such verification.

(c) As per the records of the Company examined by me the title deeds to all the immovable properties belonging to the Company are held in the name of the Company itself.

ii) The business of the Company does not involve holding any inventories.

Hence, the clause is not applicable.

iii) The Company has not granted any loans or advances to any of the parties covered in the register maintained under section 189 of the Companies Act, 2013. Hence, the clause is not applicable.

iv) In my opinion and according to the information and explanations given to me, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 with respect to grant of loans, making investments and providing guarantees and securities, wherever applicable.

v) According to the information and explanations given to me and as per the records of the Company examined by me the Company has not accepted any deposits from the public.

vi) The Central Government has not prescribed the maintenance of any cost records in respect to the activities of the Company.

vii) (a) According to the information and explanations given to me and as per the records of the Company examined by me, the Company has been regular in depositing the applicable statutory dues with the appropriate authorities. There are no undisputed amounts of any statutory dues outstanding as at the Balance Sheet date, for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to me and as per the records of the Company examined by me there are no disputed amounts of Income Tax, Sales Tax, Customs Duty, Excise Duty or VAT payable.

viii) According to the information and explanations given to me and as per records of the Company examined by me, the Company has not defaulted in repayment of any loans or borrowings to financial institutions, banks or Government or dues to debentures holders.

ix) According to the information and explanations given to me and as per the records of the Company examined by me, the Company has not raised any moneys by way of any public offer, nor availed any term loans during the year. Hence, the clause is not applicable.

x) No fraud on or by the Company has been noticed or reported during the year under audit.

xi) According to the information and explanations given to me and as per the records of the Company examined by me, no managerial remuneration has been paid or provided by the Company during the year.

xii) According to the information and explanations given to me and based on my examination of the records of the Company, the transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable; and the details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

xiii) According to the information and explanations given to me and as per the records of the Company examined by me, the Company has not made any allotment of shares or debentures during the year.

xiv) According to the information and explanations given to me and as per the records of the Company examined by me, the Company has not entered into any non-cash transactions with any Directors or persons connected with them.

xv) The Company was in to non-banking finance business and as such was registered under the provisions of section 45-IA of the Reserve Bank of India Act, 1934. However, the Board of Directors in their meeting held on 15/10/2015 has decided to come out of NBFC business and accordingly surrendered the certificate of registration to the Reserve Bank of India for cancellation. The Reserve Bank of India has duly passed an order dated 21/03/2016 cancelling the certificate. The Company has thus stopped the business of an NBFI since 15/10/2015.

(Sd/-)

PLACE: Vijayawada

(V. SHILPA)

DATE : 23/06/2020

Chartered Accountant

M.No.225109

ANNEXURE-B: Report on the Internal Financial Controls under clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013

I have audited the internal financial controls over financial reporting of M/s Swarna Securities Limited ("the Company") as of 31st March, 2020 in conjunction with my 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 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

My responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on my audit. I conducted my 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 I 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.

My audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. My 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 standalone Ind AS financial statements, whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my 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 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 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 31st March 2020, 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.

(Sd/-)

PLACE: Vijayawada

(V.SHILPA)

DATE : 23/06/2020

Chartered Accountant

M.No.225109