Mar 31, 2015
We have audited the accompanying standalone financial statements of AKME STAR HOUSING FINANCE LIMITED, which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss, the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 Companies (Accounts) Rules, 2014. 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error
Our responsibility is to express an opinion on these standalone 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 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 specified under Section 143(10) of the Act. 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 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 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 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 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 Profit and Loss Account, of the profit/ loss 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 Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section143 of the Act, we give in the Annexure a statement on the matters Specified in paragraphs 3 and 4 of the Order, to the extent applicable
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 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, 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 standalone 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 written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164(2) of the Act.
f. In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
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; as such the question of commenting on any material foreseeable losses thereon does not arise
iii. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 7 of our Report of even date)
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:
1) . The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets. All these fixed assets have been physically verified by the management at reasonable intervals and there is a regular program for such verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification. During the year, the Company has not disposed off any of the Fixed Assets.
2) . The company does not have inventory due to the nature of its business of housing finance.
3) . As per the information and records made available, the company has granted Unsecured Loans to four companies listed in the register maintained under section 189 of the Companies Act, 2013. The maximum amount involved during the year was Rs. 138.90 Lac and the year-end balance of loan to such parties was NIL (Previous Year - Rs.139.34 Lac).
As per the information and records made available, the rate of interest and other terms and conditions on which loans granted by the company, secured or unsecured, are not, prima facie, prejudicial to the interest of the company except to the extent that there are no covenants with regard to the repayment/payment of loan and interest thereon and security.
As per the information and records made available, the company has taken Unsecured Loans from a company listed in the register maintained under section 189 of the Companies Act, 2013. The maximum amount involved during the year was Rs. 26.50 Lac and the year-end balance of loan of such parties was NIL (Previous Year - Rs. 212).
In our opinion, the rate of interest and other terms and conditions on which loans taken by the company, secured or unsecured, are not, prima facie, prejudicial to the interest of the company. The Company is regular in repaying the principal amounts as stipulated and has been regular in payment of interest. There is no overdue amount of loans taken by the Company.
4) . 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 to purchase of fixed assets and sale of services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control.
5) . The company has not accepted deposits from the public and hence the provisions of section 73 to 76 and any other relevant provisions of the companies act or any other directives of RBI are not applicable to the Company.
6) . Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Companies Act, 1956 for any of the product or services of the Company.
7) . The company is regular in depositing with the appropriate authorities, undisputed statutory dues including Provident Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, and any other statutory dues, to the extent applicable to the Company.
According to the information and explanations given to us, no undisputed dues of income tax, service tax were in arrears as at 31st March, 2015 for a period of more that six months from the date they become payable.
The Company is not required to transfer amount to Investor Education and Protection Fund (IEPF) in accordance with relevant provision of the 1956 Act and the Rules made there under.
8) . The Company has positive net worth which is more than its Equity Capital and has neither any accumulated losses nor it has incurred any cash losses in the current financial half year.
9) . In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to any financial institution or bank or debenture holders.
10) . In our opinion and according to the information and explanations given to us, Company has not given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company.
11) . The company has not raised any term loans during the year.
12) . 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.
13) . The company is engaged in the housing finance business and is governed by National Housing Bank (NHB) directions for raising and deployment of funds in its business and the company has followed the NHB guidelines for fund raising and deployment of funds and is adhering to the Asset Liabilities Management guidelines prescribed by NHB and accordingly based on the above information, we report that the company has generally not used its short term funds in long term investments.
14) . In our opinion and according to the information and explanations given to us, the company has complied with the provisions of the directions issued by the NHB from time to time.
15) . In our opinion and according to the information and explanations given to us company has complied with the prudential norms guidelines as per the directions of NHB.
16) . The Company has not issued any debentures during the period under audit.
For NYATI MUNDRA & CO. Chartered Accountant ICAI FRN: 08153C
Sd/- AKASH JAIN Place: Udaipur Partner Dated: 13.05.2015 M. No. 079052