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Auditor Report of Abirami Financial Services (India) Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of ABIRAMI FINANCIAL SERVICES (INDIA) LIMITED ("The Company"), which comprises the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the 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, 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.

3. Auditor's Responsibility *

Our responsibility is to express an opinion on these financial statements based on our audit. We 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 there under.

We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we 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 auditor's 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 Company's 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 Company's Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

5. Emphasis of Matters

(a) The company has surrendered its NBFC license during April 2014 and hence it has discontinued its operations as a Non Banking Finance Loan Company during the year under review.

(b) The company has a proposal to demerge. The necessary procedures are being carried out subject to the approval of the regulatory authorities.

6. Report on Other Legal and Regulatory Requirements

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 appears from our examination of those books;

(c) The Balance Sheet, 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 financial statements comply with the Accounting Standards specified under Section 13 3 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 31 st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31 st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) 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 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 has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

ANNEXURE REFERRED TO IN PARAGRAPH 5(1) OF OUR REPORT OF EVEN DATE TO THE SHAREHOLDERS OF ABIRAMI FINANCIAL SERVICES (INDIA) LTD

(b) a) The company has maintained requisite records showing required particulars including quantitative details and situation of its fixed assets.

b) According to the information and explanation given to us by the management of the company, most of the fixed assets of the company have been physically verified by the management during the year and the intervals of such verification had also been reasonable.

(c) a) in respect of Inventories: the Company, being Non Banking Financial Company, does not have any inventory.

(d) (a) Based on our scrutiny and as per information and explanations provided to us by the management, the company has not granted loans to persons covered in the registers maintained under section 189 of the Companies Act, 2013 ('theAct').

(b) In our opinion, the rate of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the company

(c) The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the company

(d) There is no overdue amount in excess of Rs. 1 lakh in respect of loans granted to companies, firms or other parties listed in the register maintained under section 189 of the Companies Act, 2013 ('theAct').

(e) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and its nature of business with regard to purchases, fixed assets and sales. During our course of audit, no major weakness was noticed by us in the existing internal control system in vogue.

(f) a) The company has not accepted any deposits from the Public.

b) The company has not received any order passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal (h) We have been informed by the management that the maintenance of cost records has not been prescribed by the Central Govt, under section (1) of section 148 of the Companies Act, 2013.

(I) a) According to the books and records as produced and examined by us in accordance with Generally Accepted Auditing Practices in India and also based on management representations, undisputed statutory dues in respect of provident fund, employee state insurance, income tax, wealth tax, service tax, sales tax, value added tax, excise duty, cess and other material statutory dues have generally been regularly deposited by the company subject to certain exceptions during the year with the appropriate authorities in India.

b) According to information and explanations given to us, no undisputed amounts payable in respect of income tax, service tax and excise duty were outstanding as on 31 st March, 2015 for a period more than six months from the date the same became payable.

c) The company does not have any such fund that is required to be transferred to investor education and protection fund in accordance with the relevant provisions of the CompaniesAct, 1956(1 of 1956) and rules during the year under audit.

(j) The Company does not have accumulated losses; hence our comments as regards erosion of net worth of the company are not applicable.

(k) The Company did not have any outstanding dues to financial institutions, Banks or Debenture holders during the year under audit.

(l) As per the information and explanations given to us, the company has not given any guarantee for loans taken by others from any bank or financial institutions. Hence, reporting on terms and conditions of any such guarantee is irrelevant to our reporting.

(m) The Company did not have any term loans outstanding during the year.

(n) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the year under audit and even upto the date of our audit.

For R. BHASKAR & Co., Chartered Accountants F.NO:008860S

Place: Chennai R.BHASKAR Date: 27.05.2015 PROPRIETOR M.NO:026584


Mar 31, 2013

Report on the Financial Statements

1. We have audited the accompanying financial statements of M /S Abirami Financial Services (India) Limited, (''the company"), which comprises the Balance Sheet as at 31st March 2013, and Cash Flow Statement for the year then ended, and Significant Accounting Policies and other explanatory information.

2. Management''s Responsibility for the Financial Statements

Management is responsible for 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 Standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control 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.

3. Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on A uditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s 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 control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

6. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2013;

b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

7. Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4 A) of section 227 of the Act, and on the basis of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2) As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the

Company so far as appears from our examination of those books;

c) The Balance Sheet, and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act;

e) Disclosure in terms of clause (g) of sub-section (1) of Section 274 of the Act is not required for Government Companies as per Notification No. GSR 829(E) dated October 21,2003 issued by the Department of Company Affairs.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Act nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure to the Auditors'' Report

(Referred to in paragraph 7.1 of our report to the members of Abirami Financial Services (India) Limited (''the Company'') for the year ended 31 st March 2013.

i. In respect of its fixed assets:

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

b) In accordance with a program of verification, which in our opinion provides for physical verification for all the fixed assets at reasonable intervals, a portion of the fixed assets were physically verified during the year by the management. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c) In our opinion and according to the information and explanations given to us, during the year, the Company has not disposed off a major part of the fixed assets.

ii) In respect of its inventories:

(a) The company, being Non-Banking Financial Company, does not have any inventory.

iii. (a) The company has in its normal course of business granted loans to a company listed in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion, the rate of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the company.

(c) The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the company.

(d) There is no overdue amount in excess of Rs. 1 lakh in respect of loans granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the company.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard for purchase of inventory, fixed assets. During the course of our audit, we have not observed any continuing failure to correct major weaknesses, if any, in the internal control system.

v. a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding value Rs. 5 lakhs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi. The Company has not accepted any deposits from the public covered under section 58A and 5 8AAofthe Companies Act, 1956.

vii. In our opinion, the Company has an internal audit system which is commensurate with the size and nature of its business.

viii. According to the information and explanations given to us maintenance of cost records are not applicable to the company.

ix. a) According to the records of the Company, Provident fund, Investor Education and Protection Fund, Employees'' State Insurance, Income tax, Sales tax, Wealth tax, Customs Duty, Cess and other material statutory dues applicable to it have been generally regularly deposited during the year with the appropriate authorities.

b) According to the information and explanations given to us, no undisputed amount payable in respect of above were in arrears, as at March 31, 2013 for a period of more than six months from the date on which they became payable.

x. The company has neither accumulated losses at end of the financial year nor has it incurred cash losses during the current financial year and in the immediately preceding financial year.

xi. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks and debenture holders.

xii. The company has granted loans or advances on the basis of security of shares and proper records of the same are maintained.

xiii. The provisions of special statute applicable to chit fund and nidhi/mutual benefit fund/society are not applicable to the Company.

xiv. The Company is dealing in or trading in shares and securities and proper records have been maintained of the transactions and contracts and timely entries have been made therein. The investments have been held by the company in its own name.

xv. The company has not given any guarantees during the year for loans taken by others from banks or financial institutions.

xvi. In our opinion and according to the information and explanations given to us, the company has not availed any term loan.

xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, funds raised on short term basis have prima facie, not been used during the year for long term investment.

xviii. The Company has not made preferential allotment of shares to companies, firms and parties covered in the register maintained under section 301 of the Act.

xix. The Company has not issued any debentures during the year. Hence paragraph (xix) of the Order is not applicable.

xx. The Company has not raised any money by way of public issue during the year. Hence paragraph 4(xx) of the Order is not applicable.

xxxi.According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For R.BHASKAR & Co.

Chartered Accountants

F.N0.OO886OS

R. BHASKAR,

Place: Chennai Proprietor

Date: 02-05-2013. M.No.026584


Mar 31, 2012

1. We have examined the attached Balance Sheet of ABIRAMI FINANCIAL SERVICES (INDIA) LIMITED as at 31 st March 2012 and the annexed Profit and Loss Account for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies Auditor's Report Order, 2003 issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in the said order.

4. Further to the comments in the annexure referred to paragraph 3 above, we report that:

(a) We have 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, the Company has kept proper books of account as required by law so far as it appears from our examination of such books.

(c) The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account.

(d) As per the information and explanations given to us and on the basis of the written representation received from Directors, we report that none of the directors of the company are prima facie disqualified from being appointed as directors of the Company as at 31st March 2012, in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

(e) The said profit and loss account and the balance sheet comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations furnished to us, the accounts read with the notes thereon give the information required by the Companies Act, 1956 in the manner so required, give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) In the case of the Balance Sheet of the state of affairs of the Company as at 3 f March 2012; and

(ii) In the case of the Profit and Loss Account of the PROFIT for the year ended on that date.

ANNEXURE TO PARA 3 OF THE COMPANIES AUDITOR'S REPORT ORDER, 2003

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

(b) The Company has a regular programme of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. In accordance with this programme, fixed assets have been physically verified by the management during the year and no material discrepancies have been identified on such verification.

(c) The Company has not during the year disposed off a substantial part of its Fixed Assets.

II. (a) The Company, being Non-Banking Financial Company, does not have any inventory

III. (a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under section 301 of the Act.

IV. In our opinion, the company has an internal control system commensurate with the size of the company and the nature of its business for purchase of inventory and fixed assets and for the sale of goods and services.

V. a) The particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required and these transactions have been entered in the prevailing market rates.

VI. The company has not accepted any deposits from the public during the year of audit to which provisions of section 58A and 58 AA of The Companies Act, 1956 are applicable.

VII. The company has an internal audit system commensurate with its size and the nature of its business.

VIII. According to the information and explanation given to us maintenance of cost records arc not applicable to the company.

IX. (a) According to the information and explanation given to us the company is regular in depositing undisputed statutory dues including income tax, Sales tax, etc to the appropriate authorities.

X. As the Company has not incurred any cash loss this clause is not applicable to the company.

XI. According to the information and explanations given to us and to the extent of our examination of the records of the company it has not defaulted on repayment of dues to the financial institution or bank.

XII. The company has granted loans on the basis of any security and proper records of the same are maintained.

XIII. The company is not a Chit Fund, and hence this clause is not applicable to the company.

XIV. As the company is dealing in shares, securities and proper records have been maintained of the transactions and contracts and timely entries have been made therein. The investments have been held by the company, in its own name.

XV. As the company has not given any guarantee and hence this clause is not applicable to the company.

XVI. The company has not availed any term loan except corporate borrowings.

XVII. In so far as our examination of the books of accounts the company has not applied Short Term Funds for Long Term purposes.

XVIII. The company has not made any preferential allotment of shares.

XIX. Debentures have not been issued by the company.

XX. No public money has been raised during the year of audit.

XXI. There is no fraud on or by the company has been noticed or reported during the year.

XXII. We further report that the company is engaged in the business of Non Banking Financial Institution and it has obtained a Certificate of Registration.

XXIII. Company has fulfilled the norms in terms of Assets/Income pattern as on 31st March 2012.

XXIV. Based on the criteria set forth by RBI, the company is not an AFC.

XXV. The Board of Directors have passed a resolution for Non-acceptance of any public deposits and the company has not accepted the same during the financial year ended 31st March 2012.

XXVI. The company has complied with the prudential norms relating to income recognition, accounting standards, asset classification and provisioning for bad and doubtful debts as applicable to it in terms of Non-Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

For R. BHASKAR & Co.

Chartered Accountants

F.N0.OO886OS

R. BHASKAR,

Place : Chennai Proprietor

Date: 03-05-2012. M.No.026584

 
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