Auditor Report of Consolidated Finvest & Holdings Ltd.
Mar 31, 2023
Consolidated Finvest & Holdings Limited
Opinion
We have audited the accompanying Ind AS financial statements of Consolidated Finvest & Holdings Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as ''Ind AS financial statements''). In our opinion and to the best of our information and according to the explanations given to us, the aforesaid IND AS 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 accounting principles generally accepted in India including Indian Accounting Standards(" Ind AS") specified 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 (financial position) of the Company as at 31 March, 2023, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing ("SA"s) 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 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 ("ICAI") together with the ethical requirements that are relevant to our audit of the 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 financial statements
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Ind AS financial statements for the financial year ended 31st March, 2023. These matters were addressed in the context of our audit of the 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. We have fulfilled the responsibilities described in the Auditor''s Responsibility for the Audit of the Ind AS Financial Statements.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of the material misstatement of the Ind AS Financial Statements. The results of our audit procedure provide the basis for our audit opinion on the accompanying Ind AS Financial Statements.
We have determined that there are no key audit matters to be communicated in our report.
The comparative financial information of the company for the year ended 31 March 2022 included in this financial statement have been audited by the predecessor auditors. The report of the predecessor auditors on this comparative financial information dated 30 May 2022 expressed an unmodified conclusion/opinion.
Our opinion on the statements is not modified in respect of this matter.
Information Other than the Finandal 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 report, Corporate Governance and shareholder''s information, but does not include the financial statements and our auditor''s report thereon.
Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor''s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and those Charged with Governance 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes the 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the 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.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditors'' Responsibility for the Audit of the Financial Statements
Our 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 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:
Identify 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 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, international 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 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 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 financial statement 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with the 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 financial statements of current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosures 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 the Companies (Auditors'' Report) Order, 2020 (''the Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 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, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rule issued thereunder.
e. On the basis of the written representations received from the directors as on 31 March 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 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 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, remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
g. We have also audited the internal financial controls over financial reporting (IFCoFR) OF THE Company as on 31st March 2023 in conjunction with our audit of the financial statements of the Company for the year ended on that date. In this regard, please refer our separate report in "Annexure-B", to this report attached:
h. With respect to the other matters to be included in the Auditors'' 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 Ind AS financial statements. Refer to Note 31 to the Ind AS financial statements;
ii. The Company had derivative contracts during the year under Audit and earned profit on such derivative contracts (For Details Refer note no. 21 of the financial statements).
iii. There were no amounts which were required to be transferred to the Investor Education and protection Fund by the Company.
iv. (i) The management has represented that,
to the best of its knowledge and belief, 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 Holding Company or its subsidiary companies incorporated in India to or in any other persons or entities, including foreign entities ("Intermediaries"), w''th 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;
(ii) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), w''th 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; and
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representation under sub-clause(iv)(i)and(iv)(ii) contain any material mis-statement.
(iv) in our opinion and based on the information and explanation provided to us, no dividend has been declared or paid during the year by the company.
For Kanodia Sanyal & Associates Chartered Accountants FRN:008396N
(Namrata Kanodia)
Place: New DelhiPartner Date: 22-05-2023 Membership no.: 402909
UDIN: 23402909BGZHIS378
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Consolidated Finvest & Holdings Limited (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the (Standalone) Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 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.
Auditorâs Responsibility
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 the audit report under the provisions of the Act and the Rules made thereunder, and the order under Section 143(11) of the Act.
We conducted our audit of Standalone Financial Statements 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 the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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 Companyâs 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
Opinion
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, of the Company as at March 31, 2018, and its loss and its Cash Flow for the year ended on that date.
Emphasis of Matter
We draw attention to Note 30 in the financial statements. In earlier year , company has invested Rs 2772 Lacs in Zero % Redeemable Preference Shares in Jindal India Powertech Limited (JIPL), Subsidiary of the JPIFCL and which was the holding company of Jindal India Thermal Power Limited (JITPL). JITPL operates thermal power plant (1200 MW) located in Angul, Orissa. In June 2017, the lenders of JITPL have invoked the pledged shares to the extent of 51% holding , consequent thereof, JITPL ceased to be a subsidiary of JIPL. Lenders have further invoked 15% pledged equity shares in the month of February 2018.In view of this development , CFHL will make necessary adjustment in the value of the investment , if any, after final outcome. However company has provided diminution in the value of investment in equity shares of Jindal India Thermal Power Limited, which are shown under exceptional item.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in 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 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 it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the 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, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 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 and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g. with respect to the other matters to be included in the Auditorâs 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 litigation 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.
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. In accordance with this programme, certain fixed assets were physically verified during the year and no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
2) The nature of the companyâs operations does not require it to hold inventories and as such, the provisions of the Order are not applicable.
3) In respect of loans, secured or unsecured, granted by the Company to the parties covered in the register maintained under section 189 of the Companies Act, 2013:
The company has not granted any loans to any company/parties during the year, the Provisions of the Order are not applicable.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments, providing guarantees and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits are not applicable to the Company.
6) The maintenance of Cost records has not been prescribed by the Central Government u/s 148 (1) of the Companies Act, 2013 in respect of the Companyâs products.
7) According to information and explanations given to us and on the basis of our examination of the books of accounts and records, the Company has been generally regular in depositing on undisputed statutory dues including provident fund, Income-Tax, Servâce Tax, GST, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12) The Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.
14) In our opinion and according to information and explanations available to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company.
15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or directors of its holding, subsidiary or associates company or persons connected with them. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
16) The Company is registered under section 45-1A of the Reserve Bank of the India Act, 1934.
We have audited the internal financial controls over financial reporting of Consolidated Finvest & Holdings Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on, âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ(ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ.
For P. L. Gupta & Co.
Chartered Accountants
FRN:011575 C
(Ravindra Kumar Newatia)
Place: New Delhi Partner
Date: 30thMay 2018 Membership no.: 074193
Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
To the Members of Consolidated Finvest & Holdings Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Consolidated Finvest & Holdings Limited ("the Company") which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the (Standalone) 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 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.
Auditor''s Responsibility
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 the audit report under the provisions of the Act and the Rules made there under, and the order under Section 143(11) of the Act.
We conducted our audit of Standalone Financial Statements 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 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 (Standalone) financial statements
Opinion
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, of the state of affairs of the Company as at March 31, 2016, and its Profit and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), as amended, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the "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, 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 it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the 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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 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 and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g. 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 Standalone Financial Statements -Refer Note 23 to the Standalone Financial Statements;
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 A" TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1 under ''Report on other Legal and Regulatory Requirements'' of our report of even date to the financial statements of the company for the year ended March 31, 2016:
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. In accordance with this programme, certain fixed assets were physically verified during the year and no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
2) The nature of the company''s operations does not require it to hold inventories and as such, the provisions of the Order are not applicable.
3) In respect of loans, secured or unsecured, granted by the Company to the parties covered in the register maintained under section 189 of the Companies Act, 2013:
The company has not granted any loans to any company/parties during the previous year, the Provisions of the Order are not applicable.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of grant of loans, making investments, providing guarantees and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits are not applicable to the Company.
6) The maintenance of Cost records has not been prescribed by the Central Government u/s 148 (1) of the Companies Act, 2013 in respect of the Company''s products.
7) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanations given to us, details of dues of income tax, Sales tax, Custom Duty, Wealth Tax, Excise Duty and Cess which have not been deposited as on 31st March, 2016 on account of any dispute are NIL.
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12) The Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.
14) In our opinion and according to information and explanations available to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company.
15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or directors of its holding, subsidiary or associates company or persons connected with them. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
16) The Company is required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and it has obtained the registration.
For Kanodia Sanyal & Associates
Chartered Accountants
FRN:008396N
(Pallav Kumar Vaish)
Place : Delhi Partner
Date :30th May, 2016 Membership no.: 508751
Mar 31, 2015
1) Report on the Financial Statements
We have audited the accompanying standalone financial statements of
Consolidated Finvest & Holdings 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 are responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ('the act') with respect
to the preparation and presentation 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 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
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; design,
implementation and maintenance of adequate internal financial controls,
that are 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 thereunder. 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.
4) 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and t he operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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.
5) 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.
6) Opinion
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 of the state of affairs of the Company as
at 31st March 2015 and its profit and its cash flows for the year ended
on that date.
Emphasis of Matter
We draw attention to Note No. 31 regarding conversion of interest free
loan of Consolidated Finvest & Investment Limited into Equity shares
and received 115,500 shares of Rs. 10/- each at premium of Rs.475/- per
share. Further we refer to Note No. 39 to the Financial Statements,
relating to transaction with related parties wherein the company has
made investment in group companies of non-trade nature by switching out
from the liquid investment of company. Further such investment is in
excess of exposure limit to the net owned fund of the company as
specified by and subject to approval of RBI.
Our Opinion is not qualified in respect of this matter
7) Report on Other Legal and Regulatory Requirements
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.
8) As required by section 143(3) of the Act, we further 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, the Statement of Profit and Loss, and the 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 applicable 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. 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 explanation given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in note
no. 23 to the financial statements.
(ii) The Company has not made any provision, as required under the
applicable law or accounting standards, for material foreseeable losses
and as required on long term forward contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investors Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF CONSOLIDATED FINVEST &
HOLDINGS LIMITED
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
1. 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) The company has a phased 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. As explained to us,
the management during the year has physically verified all the fixed
assets of the Company and no material discrepancies between the book
records and the physical verification were noticed on such
verification.
(c) Fixed assets disposed off during the year, were not substantial
and, therefore, it does not affect the going concern assumption.
2. In respect of its inventories:
The nature of the company's operations does not require it to hold
inventories and as such, the provisions of the Order are not
applicable.
3. In respect of loans, secured or unsecured, granted by the company
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013:
(a) The company has granted loans to one company during the previous
year for amounting Rs.559 lacs. The yearend balance of loan granted to
such company was NIL; during the year whole amount Rs. 559 lacs
converted in to equity share capital. (Refer note no. 31).
(b) In respect of loans granted by the company interest free loan.
(Refer note no.31).
(c) There is no overdue amount in respect of the above loans.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems.
5. According to the information and explanations given to us, the
company has not accepted any deposits during the year from the public
within the provisions of Section 73 to 76 of the Companies Act, 2013
and the rules framed there under.
6. The maintenance of Cost records has not been prescribed by the
Central Government u/s 148 (1) of the Companies Act, 2013 in respect of
the Company's products.
7. (a) The company is generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-Tax, Sales Tax,
Wealth-tax, Custom Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March 2015
for a period of more than six months from the date of becoming payable.
(b) According to the information and explanations given to us, details
of dues of income tax, Sales tax, Custom Duty, Wealth Tax, Excise Duty
and Cess which have not been deposited as on 31st March, 2015 on
account of any dispute are NIL.
(c) There has not been any delay during the year under review any
transfer of sums to the Investor education and protection fund in
accordance with the relevant provisions of the Companies Act 1956 (1 of
1956) and rules made there under.
8. There are no accumulated losses at the end of the year. There are
no cash losses during the financial year and in the immediately
preceding financial year.
9. According to the information and explanations given to us and as
per the books of account examined by us, the company has not defaulted
in repayment of dues to banks.
10. According to the information and explanations given to us, the
Company has not given any guarantees against loans taken by others from
banks & financial institutions.
11. According to the information and explanations given to us by the
management, The Company has not raised any term loans during the year.
12. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management.
For Kanodia Sanyal & Associates
Chartered Accountants
FRN: 008396N
(R.K.Kanodia)
Place : Delhi Partner
Date : 30th May, 2015 Membership no.: 016121
Mar 31, 2014
1) Report on the Financial statements
We have audited the accompanying financial statements Consolidated
Finvest & Holdings Limited (the "Company"), which comprise the Balance
Sheet as at March 31,2014, 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, which we have
signed under reference to this report.
2) Management''s Responsibility for the Financial statements
The Company''s 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 notified under the Companies
Act, 1956'' of India (the "Act") read with the General Circular 15/2013
dated 13 September 2013 of the ministry of Corporate Affairs in respect
of section 133 of the Companies Act 2013. 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 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.
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 auditors'' 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 auditors consider 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, but not for the purpose of expressing an effectiveness
of Company''s internal control. 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 accompanying 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:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
ii) In the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
7) Emphasis of Matter
We draw attention to Note No. 27 & 28 regarding conversion of Loan of
Jindal Photo limited and Jindal India Powertech Limited into 0%
redeemable Non convertible Preference Shares which will be redeemed
after 10/15 years respectively at 10% redemption premium. Further we
refer to Note No. 35 to the Financial Statements, relating to
transaction with related parties wherein the company has made
investment in group companies of non trade nature by switching out from
the liquid investment of company. Further such investment is in excess
of exposure limit to the net owned fund of the company as specified by
and subject to approval of RBI .
Our Opinion is not qualified in respect of this matter
8) Report on Other Legal and Regulatory Requirements
As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub- section (4A)
of Section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate 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.
9) As required by Section 227(3) of the Act, we report that:
i) 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;
ii) 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;
iii) 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;
iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standard 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act 2013
and ;
v) The basis of written representations received from the directors as
on March 31, 2014, and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO AUDITORS'' REPORT OF CONSOLIDATED FINVEST & HOLDINGS LIMITED
(Annexure referred to in our report of even date)
1. In respect of fixed assets:
(a) The company has maintained proper records of its fixed assets
showing the full particulars, including quantitative details and
situation of fixed assets.
(b) As per information given to us, the management of the company has
physically verified the fixed assets during the year. Discrepancies
noticed on such verification, which were not material, have been
properly adjusted in the books of account.
(c) During the year, the Company has not disposed off a major part of
the Fixed Assets and therefore, paragraph 4(i) (c) of the Companies
(Auditor''s Report) Order 2003 (hereinafter referred to as Order) is not
applicable.
2. In respect of its inventories:
(a) The stocks of finished goods, WIP, stores, spare parts and raw
materials have been physically verified by the management during the
year. In our opinion, the frequency of verification is reasonable.
(b) The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining the proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books of accounts.
3. (a) The company has granted loans to one companies
covered in the register maintained under section 301 of the Act. The
maximum amount involved during the year and the year-end balance of
such loans aggregates to Rs.559 lacs and Rs. 559 lacs respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions,
except as refer in Note no.10 (a) to the Financial Statement of the
Company, are not prima facie prejudicial to the interest of the company
(c) In respect of the aforesaid loans, the parties are repaying the
principal amounts as stipulated and are also regular in payment of
interest.
(d) In respect of the aforesaid loans, there is no overdue amount as at
Balance Sheet date.
(e) The company has not taken any loan, secured or unsecured, from any
Company, firm or other party covered in the register maintained under
Section 301 of the Companies Act, 1956.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems. However, the corrective actions were taken
against the minor weaknesses as noticed and informed to them.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, there were
no transactions required to be entered in the register maintained under
section 301 of the Companies Act, 1956
(b) Since there are no transactions required to be entered into the
register maintained under section 301 of the Act, paragraph 4(v) (b) of
the Order is not applicable.
6. According to the information and explanations given to us, the
company has not accepted deposits from the public within the provisions
of Sec 58A & 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) rules, 197.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business.
8. The maintenance of Cost records has not been prescribed by the
Central Government u/s 209(1)
(d) of the Companies Act, 1956 in respect of the Company''s products.
9. (a) The company has been generally regular in
depositing the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income-Tax, Sales Tax, Wealth-tax, Custom Duty, Excise Duty, Cess and
other statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding for a period of
more than six months from the date they became payable.
(b) According to the information and explanation given to us and as per
the books and records examined by us, there are no dues of sales tax,
income tax, custom tax, wealth tax and cess which have not been
deposited on account of any dispute, except as stated below in respect
of Income Tax demands which are shown as contingent liabilities in the
Financial Statements:
Name of Nature of Amount Period to which Forum where
the statute the Dues (Rs.lacs) amount relates dispute is
pending
Income Tax Capital 45.10 AY 2007-08, 2009-10 ITAT
loss and 2010-11
10. There are no accumulated losses as at the end of the year. There
are no cash losses during the financial year and the immediately
preceding financial year.
11. According to the information and explanations given to us and as
per the books of accounts examined by us, the company has not defaulted
in the repayment of dues to the financial institutions or to the banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The company does not fall within the category of Chit
Fund/Nidhi/Mutual Fund/ Society and hence the related reporting
requirements are not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities debentures and
other investments, hence, paragraph 4(xiv) of the Order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantees against loans taken by others from
banks & financial institutions.
16. The company has not raised any term loans during the year. Hence
the paragraph 4(xvi) of the Order is not applicable.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds raised by the company on short term basis have not
been applied for long term investments and vice versa.
18. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the companies Act, 1956.
19. The company does not have any debentures outstanding as on the
Balance Sheet date, hence, the paragraph 4(xix) of the Order is not
applicable.
20. The company has not raised any money through the public issue
during the year. Accordingly, paragraph 4(xx) of the Order is not
applicable.
21. According to the information and explanations given to us, 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, we have not come across any such instance of fraud
on or by the company, noticed and reported during the year.
For KANODIA SANYAL & ASOCIATES
Chartered Accountants
Firm Registration No.008396N
(R.K. KANODIA)
Place : New Delhi PARTNER
Dated : 30th May, 2014 Membership No. 016121
Mar 31, 2013
1) report on the financial statements
We have audited the accompanying fnancial statements of M/s
Consolidated Finvest & Holdings Limited (the "Company"), which comprise
the Balance Sheet as at March 31,2013, the Statement of Proft and Loss
and Cash Flow Statement for the year then ended, and a summary of
signifcant accounting policies and other explanator y information,
which we have signed under reference to this report.
2) Management''s responsibility for the financial statements
The Company''s Management is responsible for the preparation of these
fnancial statements that give a true and fair view of the fnancial
position, fnancial performance and cash fows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of Section 211 of ''the Companies Act, 1956'' of India (the "Act").
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
fnancial 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 fnancial
statements based on our audit. 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 fnancial statements are free
from material misstatement.
4) An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the fnancial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the fnancial
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the
Company''s preparation and fair presentation of the fnancial 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 fnancial statements.
5) We believe that the audit evidence we have obtained is suffcient 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 accompanying fnancial 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:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
ii) In the case of the Statement of Proft and Loss, of the Proft for
the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
7) report on other legal and regulatory requirements
As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub- section (4A)
of Section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specifed in paragraphs 4 and 5 of the Order.
8) As required by Section 227(3) of the Act, we report that:
(i) 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;
(ii) 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;
(iii) The Balance Sheet, Statement of Proft and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Proft and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
(v) The basis of written representations received from the directors as
on March 31, 2013, and taken on record by the Board of Directors, none
of the directors is disqualifed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO AUDITORS''REPORT OF CONSOLIDATED FINVEST AND HOLDINGS
LIMITED
(Annexure referred to in our report of even date)
1. In respect of fixed assets:
(a) The company has maintained proper records of its fxed assets
showing the full particulars, including quantitative details and
situation of fxed assets.
(b) As per information given to us, the management of the company has
physically verifed the fxed assets during the year. Discrepancies
noticed on such verifcation, which were not material, have been
properly adjusted in the books of account.
(c) During the year, the Company has not disposed off a major part of
the and therefore, paragraph 4(i) (c) of the Companies (Auditor''s
Report) Order 2003 (hereinafter referred to as Order) is not
applicable.
2. In respect of its inventories:
(a) The stocks of fnished goods, WIP, stores, spare parts and raw
materials have been physically verifed by the management during the
year. In our opinion, the frequency of verifcation is reasonable.
(b) The procedure of physical verifcation of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining the proper records of inventory. The
discrepancies noticed on physical verifcation were not material and
have been properly dealt with in the books of accounts.
3. (a) The company has granted loans, to three companies covered in
the register maintained under section 301 of the Act. The maximum
amount involved during the year and the year- end balance of such loans
aggregates to Rs. 1532.03 lacs and Rs. 559 lacs respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of the above mentioned loans are prima facie not prejudicial to the
interest of the company.
(c) In respect of the aforesaid loans, the parties are repaying the
principal amounts as stipulated and are also regular in payment of
interest.
(d) In respect of the aforesaid loans, there is no overdue amount as at
Balance Sheet date.
(e) The company has not taken any loan, secured or unsecured, from any
Company, frm or other party covered in the register maintained under
Section 301 of the Companies Act, 1956.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems. However, the corrective actions were taken
against the minor weaknesses as noticed and informed to them.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, there were
no transactions required to be entered in the register maintained under
section 301 of the Companies Act, 1956
(b) Since there are no transactions required to be entered into the
register maintained under section 301 of the Act, paragraph 4(v) (b) of
the Order is not applicable.
6. According to the information and explanations given to us, the
company has not accepted deposits from the public within the provisions
of Sec 58A & 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) rules, 197.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business.
8. The maintenance of Cost records has not been prescribed by the
Central Government u/s 209(1) (d) of the Companies Act, 1956 in respect
of the Company''s products.
9. (a) The company has been generally regular in
depositing the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income-Tax, Sales Tax, Wealth-tax, Custom Duty, Excise Duty, Cess and
other statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding for a period of
more than six months from the date they became payable.
(b) According to the information and explanation given to us and as per
the books and records examined by us, there are no dues of sales tax,
income tax, custom tax, wealth tax and cess which have not been
deposited on account of any dispute, except as stated below in respect
of Sales Tax demands which are shown as contingent liabilities in the
Financial Statements.
Name of the Nature of Amount Period Forum where
statute the Dues (rs. to which dispute is
lacs) amount pending
relates
Central Sales Sales Tax 7.69 2001-02 and In the High Court
Tax Act demand 2002-03 of Judicator of
against Allahabad
stock
transfer
rejected
Income Tax Capital 45.10 AY 2007- ITAT
loss 08,2009-10
and 2010-11
10. There are no accumulated losses as at the end of the year. There
are no cash losses during the fnancial year and the immediately
preceding fnancial year.
11. According to the information and explanations given to us and as
per the books of accounts examined by us, the company has not defaulted
in the repayment of dues to the fnancial institutions or to the banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The company does not fall within the category of Chit
Fund/Nidhi/Mutual Fund/ Society and hence the related reporting
requirements are not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities debentures and
other investments, hence, paragraph 4(xiv) of the Order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantees against loans taken by others from
banks & fnancial institutions.
16. The company has not raised any term loans during the year. Hence
the paragraph 4(xvi) of the Order is not applicable.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds raised by the company on short term basis have not
been applied for long term investments and vice versa.
18. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the companies Act, 1956.
19. The company does not have any debentures outstanding as on the
Balance Sheet date, hence, the paragraph 4(xix) of the Order is not
applicable.
20. The company has not raised any money through the public issue
during the year. Accordingly, paragraph 4(xx) of the Order is not
applicable.
21. According to the information and explanations given to us, 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, we have not come across any such instance of fraud
on or by the company, noticed and reported during the year.
For KANODIA SANYAL AND ASOCIATES
Chartered Accountants
Firm Registration No. 008396N
(R.K.KANODIA)
Place:new delhi PARTNER
Dated : 29th May 2013 Membership no. 016121
Mar 31, 2012
We have audited the attached Balance Sheet of M/S CONSOLIDATED FINVEST
& HOLDINGS LIMITED as at 31st March 2012 and also the annexed Statement
of Profit and Loss Account and the Cash Flow Statement for the year
ended on that date (together referred to as 'financial statements').
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.
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A), of the
Companies Act 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to 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 proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
flow Statement dealt with by this report have been prepared in
compliance with the Accounting standards referred to in Sub Section
(3c) of Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the said directors are disqualified as on 31st March 2012 from
being appointed as directors in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Other Notes(Note no.1 to 35) give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and,
ii. In the case of the Statement of Profit & Loss Account, of the
Profit of the Company for the year ended on that date.
iii. In case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT OF CONSOLIDATED FINVEST & HOLDINGS LIMITED
(Annexure referred to in our report of even date)
1. In respect of fixed assets:
(a) The company has maintained proper records of its fixed assets
showing the full particulars, including quantitative details and
situation of fixed assets.
(b) As per information given to us, the management of the company has
physically verified the fixed assets during the year. Discrepancies
noticed on such verification, which were not material, have been
properly adjusted in the books of account.
(c) During the year, the Company has not disposed off a major part of
the and therefore, paragraph 4(i) (c) of the Companies (Auditor's
Report) Order 2003 (hereinafter referred to as Order) is not
applicable.
2. In respect of its inventories:
(a) The stocks of finished goods, WIP, stores, spare parts and raw
materials have been physically verified by the management during the
year. In our opinion, the frequency of verification is reasonable.
(b) The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining the proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books of accounts.
3. (a) The company has granted loans, to four companies covered in the
register maintained under section 301 of the Act. The maximum amount
involved during the year and the year-end balance of such loans
aggregates to Rs. 1073.04 lacs and Rs. 909 lacs respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of the above mentioned loans are prima facie not prejudicial to the
interest of the company.
(c) In respect of the aforesaid loans, the parties are repaying the
principal amounts as stipulated and are also regular in payment of
interest.
(d) In respect of the aforesaid loans, there is no overdue amount as at
Balance Sheet date.
(e) The company has not taken any loan, secured or unsecured, from any
Company, firm or other party covered in the register maintained under
Section 301 of the Companies Act, 1956.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems. However, the corrective actions were taken
against the minor weaknesses as noticed and informed to them.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, there were
no transactions required to be entered in the register maintained under
section 301 of the Companies Act, 1956
(b) Since there are no transactions required to be entered into the
register maintained under section 301 of the Act, paragraph 4(v) (b) of
the Order is not applicable.
6. According to the information and explanations given to us, the
company has not accepted deposits from the public within the provisions
of Sec 58A & 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) rules, 197.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business.
8. The maintenance of Cost records has not been prescribed by the
Central Government u/s 209(1) (d) of the Companies Act, 1956 in respect
of the Company's products.
9. (a) The company has been generally regular in depositing
the undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income-Tax,
Sales Tax, Wealth-tax, Custom Duty, Excise Duty, Cess and other
statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding for a period of
more than six months from the date they became payable.
(b) According to the information and explanation given to us and as per
the books and records examined by us, there are no dues of sales tax,
income tax, custom tax, wealth tax and cess which have not been
deposited on account of any dispute, except as stated below in respect
of Sales Tax demands which are shown as contingent liabilities in the
Financial Statements:
Name of Nature of the Amount Period to which
the statute Dues (Rs. lacs) amount relates
Central Sales Sales Tax 7.69 2001-02 and
Tax Act demand 2002-03
against stock
transfer
rejected
Income Tax Capital loss 45.10 AY 2007-08,2009-
10 and 2010-11
Name of Forum
the statute where dispute
is pending
Central Sales In the High
Tax Act Court of
Judicator of
Allahabad.
Income Tax ITAT
10. There are no accumulated losses as at the end of the year. There
are no cash losses during the financial year and the immediately
preceding financial year.
11. According to the information and explanations given to us and as
per the books of accounts examined by us, the company has not defaulted
in the repayment of dues to the financial institutions or to the banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities. .
13. The company does not fall within the category of Chit
Fund/Nidhi/Mutual Fund/Society and hence the related reporting
requirements are not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities debentures and
other investments, hence, paragraph 4(xiv) of the Order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantees against loans taken by others from
banks & financial institutions.
16. The company has not raised any term loans during the year. Hence
the paragraph 4(xvi) of the Order is not applicable.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds raised by the company on short term basis have not
been applied for long term investments and vice versa.
18. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the companies Act, 1956.
19. The company does not have any debentures outstanding as on the
Balance Sheet date, hence, the paragraph 4(xix) of the Order is not
applicable.
20. The company has not raised any money through the public issue
during the year. Accordingly, paragraph 4(xx) of the Order is not
applicable.
21. According to the information and explanations given to us, 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, we have not come across any such instance of fraud
on or by the company, noticed and reported during the year.
For KANODIA SANYAL & ASOCIATES
Chartered Accountants
Firm Registration No.008396N
(R. K. KANODIA)
Partner
Membership No.016121
Place : New Delhi
Dated : 30-06-2012
Mar 31, 2011
We have audited the attached Balance Sheet of M/S CONSOLIDATED FINVEST
& HOLDINGS LIMITED as at 31st March 2011 and also the annexed Profit
and Loss Account and the Cash Flow Statement for the year ended on that
date (together referred to as 'financial statements'). 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.
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A), of the
Companies Act 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to 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 proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
flow Statement dealt with by this report have been prepared in
compliance with the Accounting standards referred to in Sub Section
(3c) of Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the said directors are disqualified as on 31st March 2011 from
being appointed as directors in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements read together
with other notes in Schedule "L" of 'Significant Accounting Policies
and Notes on Accounts', give the information required by the Companies
Act, 1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i. In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011 and,
ii. In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date.
iii. In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT OF CONSOLIDATED FINVEST & HOLDINGS LIMITED
(Annexure referred to in our report of even date)
1. (a) The company has maintained proper records of its fixed assets
showing the full particulars, including quantitative details and
situation of fixed assets.
(b) As per information given to us, the management of the company has
physically verified the fixed assets during the year. Discrepancies
noticed on such verification, which were not material, have been
properly adjusted in the books of account.
(c) During the year, the Company has not disposed off a major part of
the and therefore, paragraph 4(i) (c) of the Companies (Auditor's
Report) Order 2003 (hereinafter referred to as Order) is not
applicable.
2. (a) The stocks of finished goods, WIP, stores, spare
parts and raw materials have been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) The procedure of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining the proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books of accounts.
3. (a) The company has granted loans, to four companies covered in the
register maintained under section 301 of the Act. The maximum amount
involved during the year and the year-end balance of such loans
aggregates to Rs. 83.22 lacs and Rs. 82 lacs respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of the above mentioned loans are prima facie not prejudicial to the
interest of the company.
(c) In respect of the aforesaid loans, the parties are repaying the
principal amounts as stipulated and are also regular in payment of
interest.
(d) In respect of the aforesaid loans, there is no overdue amount as at
Balance Sheet date.
(e) The company has not taken any loan, secured or unsecured, from any
Company, firm or other party covered in the register maintained under
Section 301 of the Companies Act, 1956.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems. However, the corrective actions were taken
against the minor weaknesses as noticed and informed to them.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, there were
no transactions required to be entered in the register maintained under
section 301 of the Companies Act, 1956
(b) Since there are no transactions required to be entered into the
register maintained under section 301 of the Act, paragraph 4(v) (b) of
the Order is not applicable.
6. According to the information and explanations given to us, the
company has not accepted deposits from the public within the provisions
of Sec 58A & 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) rules, 197.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business.
8. The maintenance of Cost records has not been prescribed by the
Central Government u/s 209(1) (d) of the Companies Act, 1956 in respect
of the Company's products.
9. (a) The company has been generally regular in depositing the
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax,
Wealth- tax, Custom Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed arrears of
statutory dues were outstanding for a period of more than six months
from the date they became payable.
(b) According to the information and explanation given to us and as per
the books and records examined by us, there are no dues of sales tax,
income tax, custom tax, wealth tax and cess which have not been
deposited on account of any dispute, except as stated below in respect
of Sales Tax demands which are shown as contingent liabilities in the
Financial Statements:
Name of the Nature of the Dues Amount Period to which
statute (Rs. amount relates
lacs)
Central Sales Sales Tax demand 7.69 2001-02 and
Tax Act against stock 2002-03
transfer rejected
Income Tax Capital loss 45.10 AY 2007-08,2009-
10 and 2010-11
Penalty Imposed 19.50 AY 2005-06
14-A, Disallowance 47.85 AY 2007-08
Name of the Forum where dispute
statute is pending
Central Sales In the High Court of
Tax Act Judicator of Allahabad.
Income Tax ITAT
CIT(APPEAL)
CIT(APPEAL)
10. There are no accumulated losses as at the end of the year. There
are no cash losses during the financial year and the immediately
preceding financial year.
11. According to the information and explanations given to us and as
per the books of accounts examined by us, the company has not defaulted
in the repayment of dues to the financial institutions or to the banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The company does not fall within the category of Chit
Fund/Nidhi/Mutual Fund/ Society and hence the related reporting
requirements are not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities debentures and
other investments, hence, paragraph 4(xiv) of the Order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantees against loans taken by others from
banks & financial institutions.
16. The company has not raised any term loans during the year. Hence
the paragraph 4(xvi) of the Order is not applicable.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds raised by the company on short term basis have not
been applied for long term investments and vice versa.
18. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the companies Act, 1956.
19. The company does not have any debentures outstanding as on the
Balance Sheet date, hence, the paragraph 4(xix) of the Order is not
applicable.
20. The company has not raised any money through the public issue
during the year. Accordingly, paragraph 4(xx) of the Order is not
applicable.
21. According to the information and explanations given to us, 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, we have not come across any such instance of fraud
on or by the company, noticed and reported during the year.
For KANODIA SANYAL & ASOCIATES
Chartered Accountants
Firm Registration
NO.008396N
(R. K. KANODIA)
Partner
Membership No.016121
Place : New Delhi
Dated : 28-06-2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/S CONSOLIDATED FINVEST
& HOLDINGS LIMITED as at 31st March 2010 and also the annexed Profit
and Loss Account and the Cash Flow Statement for the year ended on that
date (together referred to as Ãfi nancial statements). These fi
nancial statements are the responsibility of the Companys management.
Our responsibility is to express an opinion on these fi nancial
statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fi nancial statements. An audit also includes
assessing the accounting principles used and signifi cant estimates
made by the management, as well as evaluating the overall fi nancial
statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A), of the
Companies Act 1956, we enclose in the Annexure a statement on the
matters specifi ed in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to 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 proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profi t & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profi t and Loss Account and Cash
fl ow Statement dealt with by this report have been prepared in
compliance with the Accounting standards referred to in Sub Section
(3c) of Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the
Board of Directors, we report that none of the said directors are
disqualifi ed as on 31st March 2010 from being appointed as directors
in terms of clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said fi nancial statements read together
with other notes in Schedule "L" of Signifi cant Accounting Policies
and Notes on Accounts, give the information required by the Companies
Act, 1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i. In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2010 and,
ii. In the case of the Profi t & Loss Account, of the Profi t of the
Company for the year ended on that date.
iii. In case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT OF CONSOLIDATED FINVEST & HOLDINGS LIMITED
(Annexure referred to in our report of even date)
1. (a) The company has maintained proper records of its fi xed assets
showing the full particulars, including quantitative details and
situation of fi xed assets.
(b) As per information given to us, the management of the company has
physically verifi ed the fi xed assets during the year. Discrepancies
noticed on such verifi cation, which were not material, have been
properly adjusted in the books of account.
(c) During the year, the Company has not disposed off a major part of
the and therefore, paragraph 4(i) (c) of the Companies (Auditors
Report) Order 2003 (hereinafter referred to as Order) is not
applicable.
2. (a) The stocks of fi nished goods, WIP, stores, spare parts and raw
materials have been physically verifi ed by the management during the
year.
In our opinion, the frequency of verifi cation is reasonable.
(b) The procedure of physical verifi cation of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining the proper records of inventory. The
discrepancies noticed on physical verifi cation were not material and
have been properly dealt with in the books of accounts.
3. (a) The company has granted loans, to six
companies covered in the register maintained under section 301 of the
Act. The maximum amount involved during the year and the year-end
balance of such loans aggregates to Rs. 226.65 lacs and Rs. 224.65 lacs
respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of the above mentioned loans are prima facie not prejudicial to the
interest of the company.
(c) In respect of the aforesaid loans, the parties are repaying the
principal amounts as stipulated and are also regular in payment of
interest.
(d) In respect of the aforesaid loans, there is no overdue amount as at
Balance Sheet date.
(e) The company has not taken any loan, secured or unsecured, from any
Company, firm or other party covered in the register maintained under
Section 301 of the Companies Act, 1956.
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems. However, the corrective actions were taken
against the minor weaknesses as noticed and informed to them.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, there were
no transactions required to be entered in the register maintained under
section 301 of the Companies Act, 1956
(b) Since there are no transactions required to be entered into the
register maintained under section 301 of the Act, paragraph 4(v) (b) of
the Order is not applicable.
6. According to the information and explanations given to us, the
company has not accepted deposits from the public within the provisions
of Sec 58A & 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) rules, 197.
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business.
8. The maintenance of Cost records has not been prescribed by the
Central Government u/s 209(1) (d) of the Companies Act, 1956 in respect
of the Companys products.
9. (a) The company has been generally regular in
depositing the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income-Tax, Sales Tax, Wealth- tax, Custom Duty, Excise Duty, Cess and
other statutory dues with the appropriate authorities during the year.
According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding for a period of
more than six months from the date they became payable.
(b) According to the information and explanation given to us and as per
the books and records examined by us, there are no dues of sales tax,
income tax, custom tax, wealth tax and cess which have not been
deposited on account of any dispute, except as stated below in respect
of Sales Tax demands which are shown as contingent liabilities in the
Financial Statements:
Name of the Nature of
the Dues Amount Period to which Forum where
dispute
statute (Rs.lacs) amount relates is pending
Central
Sales Tax
Act Sales Tax
demand against 7.69 2001-02 and
2002-03 In the High
Court of
stock transfer
rejected Judicature at
Allahabad
10. There are no accumulated losses as at the end of the year. There
are no cash losses during the fi nancial year and the immediately
preceding fi nancial year.
11. According to the information and explanations given to us and as
per the books of accounts examined by us, the company has not defaulted
in the repayment of dues to the fi nancial institutions or to the
banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The company does not fall within the category of Chit
Fund/Nidhi/Mutual Fund/ Society and hence the related reporting
requirements are not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities debentures and
other investments, hence, paragraph 4(xiv) of the Order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantees against loans taken by others from
banks & fi nancial institutions.
16. The company has not raised any term loans during the year. Hence
the paragraph 4(xvi) of the Order is not applicable.
17. According to the information and explanations given to us and as
per the books and records examined by us, as on the date of balance
sheet, the funds raised by the company on short term basis have not
been applied for long term investments and vice versa.
18. During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under section 301 of the companies Act, 1956.
19. The company does not have any debentures outstanding as on the
Balance Sheet date, hence, the paragraph 4(xix) of the Order is not
applicable.
20. The company has not raised any money through the public issue
during the year. Accordingly, paragraph 4(xx) of the Order is not
applicable.
21. According to the information and explanations given to us, 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, we have not come across any such instance of fraud
on or by the company, noticed and reported during the year.
For KANODIA SANYAL & ASSOCIATES
CHARTERED ACCOUNTANTS
(R.K KANODIA)
Place: New Delhi PARTNER
Dated: 3rd September, 2010 M. No. 016121
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