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AUDITOR'S REPORT

Satin Creditcare Network Ltd.
You can view full text of the latest Auditor's Report for the company.
Market Cap. (₹) 1602.49 Cr. P/BV 0.63 Book Value (₹) 230.05
52 Week High/Low (₹) 228/132 FV/ML 10/1 P/E(X) 8.61
Bookclosure 05/08/2020 EPS (₹) 16.85 Div Yield (%) 0.00
Year End :2025-03 

We have audited the accompanying standalone financial
statements of Satin Creditcare Network Limited (the
"Company"), which comprise the Balance Sheet as at
March 31,2025, the Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of Changes
in Equity and the Statement of Cash Flows for the year
ended on that date and notes to the financial statements,
including a summary of material accounting policies and
other explanatory information (hereinafter referred to as the
"standalone financial statements").

In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 (the "Act") in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, ("Ind AS") and other accounting
principles generally accepted in India, of the state of affairs
of the Company as at March 31,2025 and its profit & other
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 standalone financial
statements in accordance with the Standards on Auditing

("SAs") specified under section 143(10) of the Act.
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 ("the ICAI") together with the
ethical requirements that are relevant to our audit of the
standalone financial statements under the provisions
of the Act and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI’s Code of Ethics. We
believe that the audit evidence obtained by us is sufficient
and appropriate to provide a basis for our audit opinion on
the standalone 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 as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.

We have determined the matters described below to be the
key audit matters to be communicated in our report. The
results of our audit procedures, including the procedures
performed to address the matters below, provide the basis
for our audit opinion on the accompanying standalone
financial statements.

Key Audit Matter

Auditor's Response

Reliance on Information Processing Systems for Accounting
and Financial Reporting

The Company operates in the financial services sector, where
the volume and complexity of transactions necessitate
the extensive use of information processing systems for
accounting and financial reporting purposes.

Consequently, the integrity, accuracy, completeness, and
validity of financial information are significantly dependent on
the design and effectiveness of the Company’s information
technology (IT) systems and related internal controls.

Given the pervasive impact of these systems on the
Company’s standalone financial statements, and the reliance
on automated processes and controls, we considered the
use of information processing systems for accounting and
financial reporting to be a key audit matter for the current year
audit.

Principle Audit Procedures

Our audit procedures in respect of this key audit matter
included, but were not limited to, the following:

a) Obtained an understanding of the Company’s IT
environment, including IT General Controls (ITGCs)
and automated controls relevant to financial reporting,
covering key applications, databases, and operating
systems.

b) Performed the following procedures:

i. Tested the design and operating effectiveness of
key ITGCs relating to:

• User access management,

• Change management,

• IT operations, and

• Segregation of duties around security
administration and program maintenance.

Key Audit Matter

Auditor's Response

ii. Assessed the Company’s periodic review processes
for user access rights and evaluated the controls
around approval and authorization of system
changes.

iii. Tested selected automated controls relevant to the
recognition and measurement of loans, interest
income, and other material financial reporting
elements, including application interfaces and
system-generated reports.

iv. Evaluated the design and operating effectiveness of
selected automated controls that were identified as
key internal controls over financial reporting.

c) Obtained written representations from management
confirming the design and operational effectiveness of
relevant IT controls during the period under audit.

Impairment of Financial Assets -

Principle Audit Procedures

Expected Credit Losses (ECL)

Our audit procedures to address this key audit matter included,

[Refer Note No. 3(j) for the accounting policy and Note No.

but were not limited to, the following:

44 for the related disclosures]

a) Obtained an understanding of the Company’s process for

As at March 31, 2025, the Company has financial assets

determining ECL and performed a walkthrough to assess

(loans) amounting to INR 8,57,481.88 lakhs, including loans

the design effectiveness of related controls.

classified at fair value through other comprehensive income

b) Reviewed the Company’s accounting policies and the

of INR 7,50,064.76 lakhs. In accordance with Ind AS 109 -

governance framework for ECL as approved by the Board,

Financial Instruments, the Company is required to recognise

and evaluated their compliance with Ind AS 109 and the

impairment losses on financial assets using the Expected

relevant regulatory guidelines issued by the Reserve

Credit Loss (ECL) model.

Bank of India (RBI).

The determination of ECL involves complex modelling and

c) Gained an understanding of the Company’s ECL model,

requires management to make significant assumptions and

including the methodology, key assumptions, and data

judgments, including:

inputs used. Evaluated how the model captures relevant

• Determining criteria for a significant increase in credit

historical data, current conditions, and forward-looking

risk (SICR);

information.

• Incorporating forward-looking macroeconomic

d) Assessed the competence, independence, and objectivity

assumptions into the model;

• Estimating key parameters such as probability of default

of the external expert appointed by management to
review the ECL model, and evaluated the conclusions

(PD), loss given default (LGD), exposure at default (EAD)

drawn by the expert.

and discounting factor.

e) Evaluated the appropriateness of the Company’s

These estimates are derived using internally developed

definition and application of the SICR criteria in

statistical models, historical data, and involve input from

accordance with Ind AS 109.

external experts engaged by the management.

f) Assessed whether the historical experience used in

Given the materiality of the financial assets, the subjectivity
involved in modelling assumptions, and the degree of

the model remained appropriate and relevant in the
context of current market conditions and recent portfolio

management judgment required, we identified the impairment
of financial assets under the ECL framework as a key audit
matter.

performance.

Key Audit Matter

Auditor's Response

g)

Reviewed the staging of loans based on their past due
status and tested a sample of Stage 1 assets to determine
whether any indicators of SICR or impairment warranted
classification into higher stages.

h)

Tested the design and operating effectiveness of key
controls over the completeness and accuracy of data
and assumptions used in the ECL computation.

i)

Performed substantive procedures to test the accuracy
of data inputs and assessed the reasonableness of
management’s assumptions.

j)

Developed an independent point estimate or range and
compared it with the ECL recognised by the Company to
assess the reasonableness of the overall provision.

k)

Verified the mathematical accuracy of the ECL calculations
and assessed the adequacy and appropriateness of
the related disclosures in the financial statements in
accordance with Ind AS and applicable RBI circulars.

l)

Obtained written representations from management
on the reasonableness of key assumptions used in the
estimation of ECL.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS
AND AUDITOR'S REPORT THEREON

The Company’s Board of Directors is responsible for the
other information. The other information comprises the
information included in the Management Discussion and
Analysis, Board’s Report including Annexures to Board’s
Report, Business Responsibility and Sustainability Report,
Corporate Governance and Shareholder’s Information, but
does not include the consolidated financial statements,
standalone financial statements and our auditor’s report
thereon. The other information is expected to be made
available to us after the date of this auditor’s report.

Our opinion on the standalone financial statements does not
cover the other information and we do not express any form
of assurance conclusion thereon.

In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained during the course of
our audit or otherwise appears to be materially misstated.
When we read the other information identified above, if we
conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged
with governance.

RESPONSIBILITIES OF MANAGEMENT AND THOSE
CHARGED WITH GOVERNANCE FOR THE STANDALONE
FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the
matters stated in Section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,
financial performance, including other comprehensive
income, changes in equity and cash flows of the Company in
accordance with the 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 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 standalone 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, Board of
Directors are 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 Board of Directors 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 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 skepticism
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 financial 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 the 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 the
Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s 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 of the current period 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.

OTHER MATTER

The audit of comparative financial statements of the
company for the year ended March 31,2024 was conducted
by M/s S S Kothari Mehta & Co. LLP Chartered Accountants,
the previous auditors of the Company, whose reports dated
April 29, 2024, expressed an unmodified opinion on those
audited standalone financial statements. Accordingly, we
JC Bhalla & Co., Chartered Accountants, do not express any
opinion on the figures reported in the financial statements
for the year ended March 31,2024.

Our opinion is not modified in respect of above matter.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order,
2020 (the "Order") issued by the Central Government
in terms of section 143 (11) of the Act, we give in
"Annexure A" a statement on the matters specified in
paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, based on our
audit 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 the Statement
of Cash Flows 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 Ind AS 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 March 31,2025
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 with reference to the standalone
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in "Annexure B" to this report;

g) In our opinion and to the best of our information

and according to the explanations given to us, the
managerial remuneration has been paid/provided
by the Company to its directors during the year is
in accordance with the provisions of section 197
read with Schedule V 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,
as amended, 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 standalone financial statements;

ii. The Company has made provision, as
required under the applicable law or Ind
AS, for material foreseeable losses, if any,
on long-term contracts including derivative
contracts;

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 (which are material either
individually or in the aggregate) 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 or entity, including
foreign entity ("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 (which are material
either individually or in the aggregate)
have been received by the Company
from any person or entity, including
foreign entity ("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 the audit procedures that
have been 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 (i)
and (ii) of Rule 11 (e), as provided under
(a) and (b) above, contain any material
misstatement.

v. The Company has not declared or paid any

dividend during the current financial year

and in the previous financial year. Hence, the
compliance of Section 123 of the Act is not
applicable;

vi. Based on our examination which included
test checks, the company has used an
accounting software for maintaining its
books of account for the financial year ended
March 31, 2025 which have the feature of
recording audit trail (edit log) facility and
the same have operated throughout the
year for all relevant transactions recorded
in the software systems. Further, during
the course of our audit and based on the
review of available logs, we did not come
across any instance of audit trail feature
being tampered with. The audit trail has
been preserved by the Company as per
the statutory requirements for the record
retention.

For J C Bhalla & Co.

Chartered Accountants
Firm Regn No. 001111N

Rajesh Sethi

Partner

Membership No. 085669
UDIN: 25085669BMODNV6732
Place: Gurugram
Date: May 07, 2025


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