We have audited the accompanying standalone Ind AS financial statements of S.I. CAPITAL & FINANCIAL
SERVICES LIMITED (the company), which comprise the Balance Sheet as at 31st March 2025, the Statement of Profit
and Loss (Including Other Comprehensive Income), Statement of changes in equity and Statement of Cash Flow for the
year ended and notes to financial statement including a summary of significant accounting policies and other explanatory
information (herein referred to as “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 as amended (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 31st March
2025, its profit including other comprehensive income, change in equity and its cash flow for the year ended on that
date.
Basis for Opinion of the Financial Statement
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 Auditor’s Responsibilities
for the Audit of the standalone 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 standalone 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 on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
standalone financial statements of the current period. These matters were addressed in the context of our audit of the
standalone financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
1. Provision for Expected Credit Losses (ECL) on Loans
Management estimates impairment provision using Expected Credit loss model for the loan exposure. Measurement of
loan impairment involves application of significant judgement by the management. The most significant judgements
are:
Timely identification and classification of the impaired loans, and
Determination of probability of defaults (PD) and estimation of loss given defaults (LGD) based on the value of
collaterals and relevant factors.
The estimation of Expected Credit Loss (ECL) on financial instruments involves significant judgements and estimates.
Following are points with increased level of audit focus: Classification of assets to stage 1, 2, or 3 using criteria in
accordance with Ind AS 109; Accounting interpretations, modelling assumptions and data used to build and run the
models; Measurement of individual borrowers’ provisions assessment of multiple economic scenarios.
The disclosures made in the financial statements for ECL especially in relation to judgements and estimates by the
Management in determination of the ECL. Refer note 43 to the standalone financial statements.
Principle Audit Procedures:
We evaluated the design and operating effectiveness of controls across the processes relevant to ECL. These controls,
among others, included controls over the allocation of assets into stages including management’s monitoring of
stage effectiveness, model monitoring including the need for post model adjustments, model validation, credit
monitoring, individual/collective provisions and production of journal entries and disclosures. We tested the
completeness of loans included in the Expected Credit Loss calculations as of 31 March 2025. We tested assets in
stage 1, 2 and 3 on sample basis to verify that they were allocated to the appropriate stage. For samples of
exposure, we tested the appropriateness of determining Exposure at Default (EAD), PD and LGD. We performed
an overall assessment of the ECL provision levels at each stage to determine if they were reasonable considering
the Company’s portfolio, risk profile, credit risk management practices and the macroeconomic environment. We
assessed the adequacy and appropriate.
We assessed the adequacy and appropriateness of disclosures in compliance with the Ind AS 107 in relation to ECL
especially in relation to judgements used in estimation of ECL provision.
Information other than the financial statements and auditor’s report thereon
The Company’s Board of Directors are responsible for the other information. The other information comprises the
information included in the Annual Report 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 in the audit or otherwise appears to be materially misstated.
When we read the other information included in the above reports, if we conclude that there is material misstatement
therein, we are required to communicate the matter to those charged with governance and determine the actions
under the applicable laws and regulations. We have nothing to report in this regard for the previous financial year.
Management’s Responsibility for the standalone Ind AS Financial Statements
The Company’s 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 financial statements that give a true and fair view
of the financial position and financial performance including other comprehensive income, cash flows and changes in
equity of the company in accordance with Ind AS and other accounting principles generally accepted in India. 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 standalone financial statements, management is responsible for assessing the company’s 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 is also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also.
• Identify and assess the risks of material misstatement of the standalone 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 Companies Act 2013, we are also
responsible for expressing our opinion on whether the company has adequate internal financial control with
reference to standalone financial statements in place and the operating effectiveness of the 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 management’s 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 company’s ability to continue as 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 standalone
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 auditor’s 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 standalone financial statements, including the
disclosures, and whether the standalone 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 standalone 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 standalone 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.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone financial statements for the financial year ended March 31, 2025 and are
therefore the key audit matters. We describe these matters in our auditor’s 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 Companies (Auditors Report) Order, 2020, issued by the 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 the paragraphs 3 and 4 of the order.
2) As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the 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 including other comprehensive income, Statement of
changes in Equity and Statement of cash flow 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 Companies (Indian Accounting Standard) Rules, 2015 as amended.
e) On the basis of written representations received from the directors as on March 31, 2025, and taken on record
by the Board of Directors, none of the directors is disqualified as on March 31, 2025, 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 in
reference to the financial statements and the operating effectiveness of such controls, refer our separate report
in “Annexure- B”.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements
of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according
to the explanations given to us, the remuneration paid by the Company to its directors during the year is
in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s 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 has disclosed the impact of pending litigations on its financial position in its financials.
ii) The company did not have any long-term contract 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) The management has represented that, to the best of its knowledge and belief, other than as disclosed
in the notes to the accounts,
(a) 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, 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; and
(b) 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 Party ‘Ultimate Beneficiaries’ or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on audit procedures carried out by us, that we have 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 (a) and (b) contain any material misstatement.
i) The company has not declared or paid any dividends during the year and accordingly reporting on the
compliance with section 123 of the companies Act,2013 is not applicable for the FY 2024-25.
j) Based on our examination which included test check, the company has used an accounting software for
maintaining its books of accounts which has a feature of recording audit trail (edit log) facility and same
has operated throughout the year for all relevant transactions recorded in the software. Further, during the
course of our Audit we did not come across any instance of audit trail feature being tampered with.
Additionally, the audit trail has been preserved by the company as per the statutory requirements for record
retention.
for Ayyar & Cherian
Chartered Accountants
Firm Registration No. 000284S
Sd/-
Dijo Philip Mathew
Membership No. 224930 Place: Ernakulam
Date: 27-05-2025
UDIN: 25224930BMINTG9226
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