Siddhartha Investment Growth Scheme-2 Auditor's Report & Financial Statements for the FY 2079-80 (2022-23) BK. Agrawal & Co. Member Crowe Global Chartered Accountants Audit / Tax / AdvisoryB.K. AGRAWAL & Co. ‘Saraswati Vata CHARTERED ACCOUNTANTS. 122 Pannani Mara MEMBER CROWE GLOBAL PO, do 8, Kahane, opal 1: +977-1-4584865, 4567694, 4567568 E: bkag@erowe com.np We won crowe.comnp Independent Auditors’ Report to the Stakeholders’ of “Siddhartha Investment Growth Scheme - 2" Opinion We have audited the accompanying financial statements of M/s Siddhartha Investment Growth Seems 2, which comprise Statement of Financial Position as at Ashad 31, 2080 (duly 16, 2059) snatement of Profit or Loss, Statement of Gash Flows and Statement of Changes in Equity for tho yor fen ended, and the Significant Accounting Policies and explanatory information dealt wih by thie report In aw pinion, the accompanying financial statements read together with Significant Accounting Policies and Notes to the Accounts, present fairy, in all material respects, the financial position of the Sohore as. on Ashad 31. 2080 (July 16, 2023), its financial performance and its cash flows for the year ten ‘ended in accordance with Nepal Financial Reporting Standards (NFRS). Basis for Opinion We conducted our audit in accordance with Nepal Standards on Auciting (NSAs). Our responsibilities under those Standards are further described in the Auditors’ Responslbilties for the Audit of the Financial Statements section of our report. We are independent of the Entity in accordance with the {CAN's Handbook of Code of Ethies for Professional Accountants together withthe ethical requirements that are relevant to our audit of the financial statements, and we have fulfled our otfier ethical Fesponsibllties in accordance with these requirements and the ICAN's Handbook of Code of Ethics for Professional Accountants. We believe that the audit evidence we have obtained is sufficient and ‘appropriate to provide a basis for our opinion, Key Audit Matters Issues Our Approach Investment Valuatior 1a) Review of the investment portfolio and its valuation, cross. The investment portfolio consists | reference against Nopal Stock Exchange close pre oe on nae of listed and unlisted equities, | July, 2023. including IPO equities. "The | b) Assessed the valuation of allotted but unlisted IPO investment investments are classified and | using management's valuation sheet. falued in compliance with NFRS | c) Evaluated the value of unlisted investments, referencing the 8. Net Asset Values (NAVs) on the respective websites ‘The investments aro stated as | 4) Assessed the nature of expected cash flow of the investment Per the provisions stated on the | as well as the business mode! adopted by the management on Mutual’ Fund regulations and | the basis of available evidences and ensured the classification of guidelines ‘and. valuation policy | investment is correct with the nature of cash flow and Set out by Siddhartha Mutual management intention of holding the investments. Fund Investment Policy, 2022. Income Recognition: (Our procedures included, among the others: |neome includes income from | - analysis ofthe internal control environment with respect to the interest from bank deposits with | recognition and presentation of revenue recognition Le. interest, bank and financial institutions | dividend and capital gains. and capital gain and dividend | _ Assessment of revenue recognition policy adopted by the come from Investments made | company in compliance with relevant accounting slondorde: SUSE SEIT ENPOOR: | assessrrani ol nas for tha Mafeet ale ot eres income, including automatic controls in the Scheme’s IT systems, = Checking the revenue stream individually with manual calculations based on the relevant documents SU) ye —\e\B.K. Agrawal & Co. Chartered Accountants Responsibiliti Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Nepal Financial Reporting Standards (NFRS), and for such internal contro! as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. ‘of Management and those charged with Governance for the Financial In Preparing the financial statements, management is responsible for assessing the Scheme'sabilly to continue as @ going concer, disclosing, as applicable, matters related to going concem and using the g9ing concern basis of accounting unless management either intends to liquidate the Scheme or to ‘cease operations, or has no realistic alternative but to do $6. ‘Those charged with govemance are responsible for overseeing the Scheme's financial reporting process. Auditors’ Responsibility for the Audit of the Financial Statements Cur 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 NSAs 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 decision of users taken on the basis of these financial statements, ‘As part of an audit in accordance with NSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: + Wdentify 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 obi 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 feror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of intemal control relevant to the audit in order to design audit Procedures that are appropriate in the circumstances, but net for the purpose of expressing an pinion on the effectiveness of the Scheme’s internal control * 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 the Scheme ‘s 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 Scheme to cease to continue as a going concem, 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BK. Agrawal & Co. Chartered Accountants Report on Other Legal and Regulatory Requirements (On the basis of our examination, we would lke to further report that: ‘We have obtained information and explanations, which, to the best of our knowledge and belief, were necessary for the purposes of our audit; "In our opinion, proper books of account as required by law have been kept by the Scheme so far as appears from our examination of such books: i four opinion, the Statement of Financial Position, Statement of Prof or Loss, Statement of Cash Flows and Statement of Changes in with the books of account maintained by the Scheme; W(t our opinion, so far as appeared fom our examination of the books, the business of the ‘Scheme has been conducted satisfactorily; and To the best of our information and according to the explanations given to us and from our vr raation of the books of accounts of the Scheme necessary for the purposes of the audit jhe have not come across cases where the Board of Directors or any employees ofthe Scheme, have acted contrary to legal provisions relating to accounts, or committed any misappropriation or caused loss or damage to the Scheme or committed any accounting frauds in the Schome, RK, P.K. Swarnkar, Partnar Kathmandu For: B.K, Agrawal & Co, Date: 2080,04,32 Chartered Accountants UDIN: 230820CA00103A4IsQSiddhartha Mutual Fund (A Mutual Fund Registered by Siddhartha Bank Limited under Mutual Fund Regulations, 2010) Fund Mar Siddhartha Investment Growth Scheme 2 jer & Depository: Siddhartha Capital Limited Statement of Financial Position As at Ashadh 31, 2080 (July 16, 2023) ee ae a = ie a a cca 1 Other Financial Assets 2 1,988,340 9,154,275, Financial Assets at Fair Value through Profit/Loss 3 998,067,473 | 1,042,238,969 Financial Assets at Amortized Cost 4 114,502,959 144,002,959 [Total Assets, 3,292,233,454 | _1,328,258,363 Liabilities current Liabities 5 8,858,548 6,417,922 [rotat Liabilities 8,858,848 6,417,922 Equity luni Holder's capital 6 1,200,000,000 | _1,200,000,000 Reserves end Surplus ? 83,374,606 121,840,441 [Total Equity 1,283,374,606 | 1,321,840,441 [Total Capital @ Liabilities 1,292,233,454 | _1,328,256,363 WAV Per Unit I I 10-65] i] [Significant Recounting PoTeies iz Totes to Accounts 13 Schedules 1 to 13 form Integral part of Financial Statements On Behalf of Siddhartha Capital Limited (Fund Management Company) RS 6 nentient! Rupesh Rout Mukti Nath Subedt Sandee? Karki Head, Finance & Operations Chief Operating Officer Chief Executive Officer wr Mohit kedia Director Chairman, As per our attached report of even date ‘On Behalf of 8.K. Agrawal & Co., Chartered Accountants Rishi RayGautam fi Independent Director Independent Director : August 17, 2023, Place: Kathmandu, Nepal RK P.K, Swarnkar, FCA PartnerSiddhartha Mutual Fund (A Mutual Fund Registered by Siddhartha Bank Limited under Mutual Fund Regul Siddhartha Investment Growth Scheme 2 Fund Manager & Depository: Siddhartha Capital Limited Statement of Profit or Loss For the period from Shrawan 1, 2079 to Ashadh 31, 2080 fae . a eg a i meee 239,551,466 ns, 2010) 1.1 Reaised Income 8 70,716,066 239,416,837 1.2 Unrealised Income 9 10,958 134,629 2. expenses 22,267,909 30,194,584 2.1 Arnal Regular Expenses 10 22,267,909, 30,184,594 [Realized Profit / (Loss) 48,459,116 | 209,366,882 Net Unreaised Gay (Loss) froma Financial ASGetS Hed at Far Value through Pratt or Loss (FVTPL) n 33,075,049 | (636,608,354) [Net Profit7 (Loss) ror the period Bi,534,i68 | (447,243,472) ‘Schedules 1 to 13 form Integral part of Financial Statements ‘On Behalf of Sidanartha Capital Limited (Fund Management Company) Rupesh Raut Multi Nath Subed Sondeep Karka Head, Finance & Operations Chiet Operating Oficer chief Executive Oficer Mae Rahul Agrawal Director Independent Director ye Independent Director Dete: August 17, 2023, Place: Kathmandu, Nepal P.K, Swarnkar, FCA Partner [As per our attached report of even date ‘On Behalf of B.K. Agrawal & Co,, Chartered AccountantsSiddhartha Mutual Fund (A Mutual Fund Registered by Siddhartha Bank Limited under Mutual Fund Regulations, 2010) ‘Siddhartha Investment Growth Scheme 2 Fund Manager & Depository: Siddhartha Capital Limited Statement of Cash Flow For the period from Shrawan 1, 2079 to Ashadh 31, 2080 /A. Cash Flows From Operating Activities 135,312,521 159,446,682 1. Cash Receipts 70,727,025 239,551,466 4.1 Interest income from Financial Asset at Amortized Cost 16,396,577 14,121,162 41.2 Dividend Income from Financial Assets at FVTPL. 7,866,721 3,662,526 1.3 Unrealised Income 10,959 134,629 41.4 Interest Income from Financial Asset at FVTPL 46,452,768 221,619,036 1.5 Other Income : 14,114 2. Cash Payments 22,267,909 30,184,584 2.2 Annual Regular Expenses 22,267,909 30,184,584 (Cash Flows before Changes in Working Capital 48,459,116 209,366,882 |(Gncrease)/Decrease in Current Assets & Securities 184,412,480 (46,820,021) [Increase/(Decrease) in Current Liabilities 2,440,925 (3,100,179) [B. Cash Flows From Investing Activities 729,500,000 (30,690,672) 1, (Increase)/Decrease in Investments 29,500,000 (30,690,572)} |¢. Cash Flows from Financing Activities (420,000,000)! (360,000,000)| 1, Increase/(Decrease) in Unit Holder's Capital : = 2. Dividend Paid (120,000,000)} (360,000,000) ID. Income/Expenses from changes In exchange rate on Cash 7 5 land Bank Balances E. Prior period adjustment: Bond Interest = = [F. Net Cash Flow For The Year from all activities (AtB4C+D) 44,812,521 | (231,243,989) IG. Opening Cash and Bank Balance 132,862,160 [364,106,150 IH. Closing Gash and Bank Balance 177,674,681 132,862,160 On Behalf of Siddhartha Capital Limited (Fund Management Company) Rupesh Raut Mukti Nath Subedi Sandeep Karki Head, Finance & Operations Chet Operating Oicer Chief Executive Officer Rahul Agrawal Mohit Kedia Director Chairman. & val Wa LY whe fom BEDI ou snes gat er son Gh Raf Gout aa (On Behalf of B.K. Agrawal & Co., a Independent Direr Chartered Accountants ye a Independent Director Partner Date: August 17, 2023 Place: Kathmandu, Nepaleden ‘npueunney ‘200g ‘02 "cr nbn “seg sermang wepuedopuy eta! ee wr “09 @ 1emedBy “y'G Jo sleYOR UO. 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