Auditor Report of CSL Finance Ltd.
Mar 31, 2023
CSL FINANCE LIMITED''
We have audited the accompanying financial statements of CSL Finance Limited (the "Company"), which comprise the Balance Sheet as at 31 March, 2023, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements including a summary of the significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (the ''Act'') and the directions and guidelines issued by Reserve Bank of India as applicable to Systemically Important Non-Deposit taking Non Banking Financial Company (''NBFC Regulations''), 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 31 March, 2023 and its Profit (including Other Comprehensive Income), its changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ''Auditor''s Responsibilities for the Audit of the 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. 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 matter described below to be the key audit matter to be communicated in our report.
|
Key Audit Matter |
How the matter was addressed in the audit |
|
Impairment of Financial Assets including Loans to the Customers (Expected Credit |
Our Audit Procedure: |
|
Loss) |
We obtained and evaluated the management''s estimations and |
|
Ind AS 109 requires the Company to recognise impairment loss allowance |
specifically performed the work as under: |
|
towards its financial assets including |
- Read and assessed the Company''s |
|
loans to customers (designated at |
accounting policies for impairment |
|
amortised cost) using the expected |
of financial assets and their |
|
credit loss (ECL) approach. Such ECL allowance is required to be measured |
compliance with Ind AS 109. |
|
considering the guiding principles of Ind |
- Evaluated the reasonableness |
|
AS 109 including unbiased, probability |
of the Management estimates |
|
weighted outcome under various |
by understanding the process of |
|
scenarios, time value of money, impact |
ECL estimation and tested the |
|
arising from forward looking macro- |
controls around data extraction and |
|
economic factors and availability of reasonable and supportable information |
validation. |
|
without undue costs. |
- Tested the ECL model, including assumptions and underlying computation. - Assessed the floor/minimum rates of provisioning applied by the Company for loan products with inadequate historical defaults. |
|
Key Audit Matter |
How the matter was addressed in the audit |
|
Applying these principles involves significant estimation in various aspects, such as grouping of borrowers based on homogeneity by using appropriate statistical techniques, staging of loans and estimation of behavioral life, determining macro-economic factors impacting credit quality of receivables, estimation of losses for loan products with no/minimal historical defaults. Considering the significance of such allowance to the overall financial statements (and the degree of estimation involved in computation of expected credit losses), this area is considered as a key audit matter. |
Our Results: The results of our testing were satisfactory and we considered the fair value of the financial assets including loans to customers recognised to be acceptable. |
Information Other than the Financial Statements and Auditor''s Report thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance Report and Directors'' Report, including annexures, if any, thereon, (but does not include the financial statements and our auditor''s report thereon), which is expected to be made available to us after the date of this Auditor''s report.
Our opinion on the financial statements does not cover the other information and we will 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 identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Corporate Governance Report and Directors'' Report, including annexures, if any, thereon, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards ("Ind AS") notified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, and the NBFC Regulations, as amended from time to time.
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.
In preparing the financial statements, the Board of Directors 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 the Board of Directors 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.
Auditor''s Responsibilities 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 judgment 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, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by 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 statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the 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 in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
We draw attention to the fact that corresponding figures for the year ended 31 March, 2022 are based on previously issued financial statements of the Company that were audited by the predecessor auditor who expressed an unmodified opinion on those financial statements dated 24 May, 2022.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by ''the Companies (Auditor''s Report) Order, 2020'' ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure-''A'', a statement on the matters specified in 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 appears from our examination of those books.
c. the Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
d. in our opinion, the aforesaid financial statements comply with the Indian Accounting Standards ("Ind AS") notified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time.
e. on the basis of the written representations received from the directors and 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 adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure-''B'';
g. in our opinion, the remuneration paid by the Company to its Director is in accordance with the provisions of Section 197 read with Schedule V of the Act; and
h. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. There are no pending litigations which may have the impact on Company''s financial position;
ii. The Company has not entered into any long-term contracts including derivative contracts;
iii. There has been no amount, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge
and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The dividend in respect to previous year, declared and paid by the Company during the year, is in accordance with Section 123 of the Act, as applicable. Further, as informed no dividend has been proposed for the current year.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining the books of accounts using accounting software which has the feature of recording audit trail (edit log) facility is applicable to the Company with effect from 01 April, 2023, therefore, reporting under rule 11(g) is not appliable for the financial year ended 31 March, 2023.
For S. P. Chopra & Co.
Chartered Accountants
Firm Registration No.: 000346N
Pawan K. Gupta
Partner
Membership No.: 092529
Place: Noida
Date: 16 May, 2023
Mar 31, 2018
CSL FINANCE LIMITED
We have audited the accompanying financial statements of CSL FINANCE LIMITED ("The Company"), which comprise the Balance Sheet as at 31st March, 2018 and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT RESPONSIBILITY:
The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 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 the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing 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 evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, 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 the 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 management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
OPINION:
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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;
Subject to the above we report that the accounts represent true and fair view
a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31stMarch, 2018;
b) In the case of the Statement of Profit and Loss Account, of the profit/ loss for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") as required by Companies Act,2013 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 annex hereto a statement (Annexure - A) on the matters specified in said Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the company as 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 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 31st March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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 control over financial reporting of the company and the operating effectiveness of such controls, refer to our repot in "Annexure-B" and
g) With respect to the other matters 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 financial statements - Refer to Note 22(a)(A)(iii)(a) to the financial statements.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There were no amounts required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE - A TO THE INDEPENDENT AUDITORSâ REPORT
ANNEXURE-A REFERRED TO IN OUR AUDIT REPORT OF EVEN DATE OF CSL FINANCE LIMITED, PURSUANT TO THE COMPANIES (AUDITORS'' REPORT) ORDER 2016 ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2018
i. (a) The Company has updated its records of fixed assets showing full particulars including quantitative details and situation of Fixed Assets.
(b) According to information and explanations given to us, the fixed assets are physically verified by the management on annual basis which is our opinion is reasonable, having regard to the size of the company and nature of its assets. As per information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to information and explanations given to us on the basis of the company does not have any immovable property as its fixed assets, hence clause (i) (c) of paragraph 3 of the Order is not applicable to the Company.
ii. According to information and explanations given to us, during the financial year there is no inventory of shares held as stock-in-trade. Accordingly, paragraph 3(ii) of the Order is not applicable.
iii. The Company has granted unsecured loan to one company covered in the Register maintained under section 189 of the Companies Act. 2013.
a) In our opinion the rate of interest and other terms and conditions on which loan has been granted to the body corporate covered in the register maintained under section 189 of the Companies, Act 2013 were not prima facie, prejudicial to the interest of the Company.
b) In the case of loans granted to body corporate covered in the register maintained under section 189 of the Companies Act, 2013 the borrower has been regular in the payment of interest. The terms of arrangement does not stipulate any repayment schedule and the loans were repayable on demand.
c) The principal and interest has been received in full and no amount is outstanding.
iv. 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 Act, with respect to the loans and investments made.
v. In our opinion and according to the information and explanation given to us, the company has not accepted any deposits, hence provisions of section 73 to 76 or any other relevant provisions of the Company Act, 2013 and the rules made thereunder.
vi. The Central Government has not prescribed the maintenance of cost records under sub section (1) of section 148 of the Companies Act, 2013, for any of the activities of the company.
vii (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employee''s state insurance, income tax, sales tax, wealth tax, custom duty, excise-duty, cess and other statutory dues applicable to it. According to the information and explanations given to us, there are no undisputed statutory dues were outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax/Sales tax/Wealth tax/Service tax/Custom duty/Excise duty/Cess which have not been deposited on account of any dispute except the following:
|
Name of the Statute |
Nature of dues |
Assessment Year |
Deposit (Rs.) |
Forum where appeal is pending |
|
Income Tax Act, 1961 |
Income Tax |
2006-07 |
5.95 (Deposited under Protest) |
Commissioner of Income Tax - Delhi (Appeals) |
|
Income Tax Act, 1961 |
Income Tax |
2009-10 |
1.26 (Deposited under Protest) |
Commissioner of Income Tax - Delhi (Appeals) |
|
Income Tax Act, 1961 |
Income Tax |
2011-12 |
12.82 (Deposited under Protest) |
Income Tax Appellate Tribunal- Delhi |
|
Income Tax Act, 1961 |
Income Tax |
2014-15 |
17.64 (Deposited under Protest) |
Commissioner of Income Tax - Delhi (Appeals) |
viii. According to the information and explanations given to us the company has not defaulted in repayment of loan or borrowing from any financial institution or bank or dues to debenture holders.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). And term loans raised during the year were applied for the purpose for which those are raised.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has made preferential allotment of 12,22,000 shares during the year. Refer Note 2 to the financial statements. The Company had also made an allotment of warrants in the year. The warrants are to be converted to equity shares on payment of balance consideration. The amounts raised have been used for the purpose for which funds were raised.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is Non Banking Finance Company and is already registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE -BTO THE INDEPENDENT AUDITORSâ REPORT
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of CSL Finance Limited ("the Company") as of 31st March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company''s management is responsible for establishing and maintaining internal financial controls based on the 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 India (''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 company''s 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.
AUDITORS'' 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 "Guidance Note") 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 auditor''sjudgment, 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 Company''s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company''s 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 company''s 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 authorizations 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 company''s 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 31st March, 2018, based on the 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 India.
For Aggarwal & Rampal
Chartered Accountants
F.R.No. 003072N
Sd/-
Vinay Aggarwal
Partner
M.No.082045
Place: New Delhi
Date: 29th May, 2018
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
We have audited the accompanying financial statements of CSL Finance Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these 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 financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing 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, 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 the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, 2016, its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section 11 of section 143 of the Act, we give in the "Annexure-I", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, 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 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 the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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-II"; and
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 financial statements - Refer Note 21 (a) (A)(iii)(a) to the 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our report to the members of CSL Finance Limited (''the Company'') for the year ended 31st March, 2016.
We report that:
1. a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) According to the information and explanations given to us, the fixed assets are physically verified by the management on annual basis which in our opinion is reasonable, having regard to the size of the company and nature of its assets. As per information and explanations given to us, no material discrepancies were noticed on such verification.
c) The company does not have any immovable property as its fixed assets, hence clause (i) (c) of paragraph 3 of the Order is not applicable to the Company.
2. The management has conducted physical verification of inventory of shares held as stock - in - trade at reasonable intervals and no material discrepancies were noticed on physical verification.
3. The company has granted unsecured loan to One company covered in the register maintained under Section 189 of the Companies Act, 2013.
a) In our opinion the rate of interest and other terms and conditions on which the loan has been granted to the body corporate covered in the register maintained under Section 189 of the Companies Act, 2013 were not, prima facie, prejudicial to the interest of the company.
b) In the case of loans granted to body corporate covered in the register maintained under Section 189 of the Companies Act, 2013 the borrower has been regular in the payment of interest. The terms of arrangement does not stipulate any repayment schedule and the loans were repayable on demand.
c) The principal and interest has been received in full and no amount is outstanding.
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 Act, with respect to the loans and investments made.
5. The Company has not accepted deposit from the public covered under Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules made there under.
6. The Central Government has not prescribed the maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013, for any of the activities of the company.
7. a) The company is 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, to the extent applicable to it, with appropriate authorities. According to the information and explanations given to us, there are no undisputed statutory dues outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Service Tax, duty of Customs, duty of Excise,, Value Added Tax Income which have not been deposited on account of any dispute except the following:
|
Nature of the statute |
Nature of dues |
Amount (in Rs) |
Period to which the amount relates |
Forum where dispute is pending |
|
Income Tax Act, 1961 |
Income Tax |
595782/- (Deposited under Protest) |
A. Year 2006-07 |
CIT(Appeal) |
|
Income Tax Act, 1961 |
Income Tax |
1282942/- (Deposited under Protest) |
A. Year 2011-12 |
ITAT |
8. According to the information and explanations given to us, the company has not defaulted in repayment of loan or borrowings from any financial institution, bank, government or dues to debenture holders.
9. The company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year, hence clause (ix) of paragraph 3 of the Order regarding default is not applicable to the Company.
10. Based upon the audit procedures performed and information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year under audit.
11. According to the information and explanations given to us and based on our examination of the records of the company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company, hence clause (xii) of paragraph 3 of the Order is not applicable to the Company.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with the provisions of section 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanation given to us and based on our examination of the records of the company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Therefore provisions of clause (xv) of paragraph 3 of the Order are not applicable to the Company.
16. The company is a Non Banking Finance Company and is already registered under section 45-IA of the Reserve Bank of India Act 1934.
For R. Mahajan & Associates
Chartered Accountants
FRN 011348N
Ratnesh Mahajan
Partner
M.No.085484
Place: New Delhi
Date:30.05.2016
Mar 31, 2015
We have audited the accompanying financial statements of CONSOLIDATED
SECURITIES LIMITED ("The Company"), which comprise 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.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate
accounting policies; making judgements 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 financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
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 judgement, 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 the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure 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
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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 22 (a)(A).
II. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
III. There were no amounts which were required to be transferred, to
the Investor Education and Protection Fund by the Company.
The Annexure referred to in paragraph 1 under the heading of "Report on
other Legal and Regulatory requirements" of Our Report of even date to
the members of CONSOLIDATED SECURITIES LIMITED on the accounts of the
Company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. a. The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
2. a. The management has conducted physical verification of inventory
of shares held as stock-in-trade at reasonable intervals.
b. The procedures of physical verification of inventory 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 proper records of inventory and no
material discrepancies were noticed on physical verification.
3. a. The Company has granted unsecured loans to one company covered in
the register maintained under section 189 of the Companies Act, 2013.
b. In the case of loans granted to the bodies corporate listed in the
register maintained under section 189 of the Act, the borrower have
been regular in the payment of interest as stipulated. The terms of
arrangement do not stipulate any repayment schedule and the loans are
repayable on demand. Accordingly clause (iii)(b) of the Order is not
applicable to the company in respect of principal amount.
c. There is no overdue amount of the loan given to the company
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. The Company has not accepted any deposits from the public covered
under Section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the Rules made there under.
6. We have been informed that the Central government has not prescribed
maintenance of cost records under section 148 (l) of the Companies Act,
2013.
7. a. According to the records of the company, undisputed statutory
dues including Provident Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and any other statutory dues to the extent
applicable have been regularly deposited with the appropriate
authorities. 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 explanation given to us, there are
no dues of Sales Tax, Income Tax, Wealth Tax, Duty of Customs, Duty of
Excise, Value Added Tax, Cess which have not been deposited on account
of any dispute except the following:
Nature of Statute Nature of Period Amount
Dues (Rs.)
Income Tax Act, 1961 Income Tax Year 595782/-
2006-07 (Deposited
under Protest)
Income Tax Act, 1961 Income Tax Year 4968594/-
2008-09
Income Tax Act, 1961 Income Tax Year 1024631/-
2011-12 (Deposited
under
Protest)
Nature of Statute Forum where dispute is pending
Income Tax Act, 1961 CIT (Appeal)
Income Tax Act, 1961 CIT (Appeal)
Income Tax Act, 1961 ITAT
c. There were no amounts which were required to be transferred to
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. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks. Company has not taken any
loans from financial institutions and also not issued any debenture.
Hence question of default does not arise.
10. As explained by the management, company has not given guarantee for
loans taken by other from banks or financial institutions.
11. As per information and explanations given to us No term loan was
obtained by the company during the year.
12. According to the information and explanations given to us, we
report that no fraud on or by the company has been noticed or reported
during the year.
For R.MAHAJAN & ASSOCIATES
Chartered Accountants
F. R. N. 011348N
Place: New Delhi
Date: 29.05.2015 [RATNESH MAHAJAN]
Partner
M. No. 085484
Mar 31, 2014
We have audited the accompanying financial statements of Consolidated
Securities Ltd. (''the company'') which comprise the Balance Sheet as at
March 31, 2014, and 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.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 "the Act") (which continue to be applicable
in respect of section 133 of the Companies Act, 2013 in terms of
General Circular 15/2013 dated 13 September, 2013 of the Ministry of
Corporate Affairs). 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.
Auditor''s 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.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014
(b) in the case of the Statement of Profit and Loss, of the profit of
the company for the year ended on that date; and
(c ) in the case of the Cash Flow statement, of the cash flows of the
company for the year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in annexure a
statement of the matters specified in paragraphs 4 and 5 of the Order
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs).
e. on the basis of written representations from the directors as on
31st March,2014 and taken on record by the Board of directors, none of
the directors is disqualified as on 31st March, 2014 from being
appointed as a director in terms of 274(1)(g) of the Act.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 under the heading of "Report on
other Legal and Regulatory Requirements" of Our Report of even date to
the members of Consolidated Securities Limited. on the accounts of the
company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. a. The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c. During the year, the company has not disposed off substantial part
of fixed assets.
2. a. The management has conducted physical verification of inventory
of shares held as stock-in-trade at reasonable intervals.
b. The procedures of physical verification of inventory 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 proper records of inventory and no
material discrepancies were noticed on physical verification.
3. a. The Company has granted unsecured loans to two companies
covered in the register maintained under section 301 of the Companies
Act,1956. and the amount involved is Rs. 686 Lacs. And the year end
balance of such loan was NIL
b. In our opinion the rate of interest and other conditions of loans
given by the company are prima facie not prejudicial to the interest of
the Company.
c. The loan given by the company has been received back
d. There is no overdue amount of the loan given to the company
e. The Company had taken unsecured loan from one company covered in
the register maintained under section 301 of the companies Act,1956.
The amount involved during the year was Rs. 829 Lacs and the year end
balance of loan taken from such parties was Rs. 342.70 Lacs.
f. In our opinion the rate of interest and other conditions of loans
taken by the company are prima facie not prejudicial to the interest of
the Company.
g. Payment of the principal & interest is also regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. a. Based on the audit procedures performed by us and according to
the information, explanations and representation given to us, we are of
the opinion that the particulars of the contracts or arrangement
referred to in section 301 of the Act, have been entered in the
register required to be maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contract or
arrangement have been made at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58 A, 58 AA or
any other relevant provision of the Companies Act, 1956 and rules made
there under. Hence, the clause (vi) of the order is not applicable.
7. In our opinion the Company does not have a formal internal audit
system which is commensurate with its sizes and nature of its business.
8. We have been informed that the Central government has not
prescribed maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956.
9. a. According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other statutory dues to
the extent applicable have been regularly deposited with the
appropriate authorities. 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, 2014 for a period of more than
six months from the date of becoming payable.
b. According to the information and explanation given to us, there are
no dues of Sales Tax, Custom Duty, Wealth Tax, cess which have not been
deposited on account of any dispute except the following
Nature of Statute Nature of Dues Amount (Rs.) Forum where
dispute is
pending
Income Tax Act, 1961 Income Tax 1089849/- ITAT
Income Tax Act, 1961 Income Tax 595782/- CIT (Appeal)
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks. Company has not taken any
loans from financial institutions and also not issued any debenture.
Hence question of default does not arise.
12. According to the information and explanations given to us, the
company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and
accordingly paragraph 4 (xii) of the order is not applicable.
13. In our opinion, considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to chit fund/ Nidhi/mutual benefit fund/societies are not
applicable to the company.
14. According to the information and explanations given to us, proper
records have been maintained in respect of transaction and contracts in
respect of shares, securities, debentures and other investments and
timely entries have been made therein. The shares and other investment
have been held by the company in its own name except to the exemption,
if any, granted under section 49 of the Act.
15. As explained by the management, company has not given guarantee
for loans taken by other from banks or financial institutions.
16. As per information and explanations given to us term loans were
applied for the purpose for which loans were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
18. During the year, the company has made preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956. The price at which the
shares have been issued are not prejudicial to the interest of the
company.
19. According to the information and explanations given to us and the
records examined by us, the company has not issued any debentures.
Accordingly, the provisions of clause 4 (xix) issued are not applicable
to the company.
20. The company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, we
report that no fraud on or by the company has been noticed or reported
during the year.
For R. Mahajan & Associates
Chartered Accountants
F.R.N. 011348N
Ratnesh Mahajan
Place: New Delhi Partner
Date: 29.05.2014 M. No. 085484
Mar 31, 2013
We have audited the accompanying financial statements of Consolidated
Securities Ltd. (''the company'') which comprise the Balance Sheet as at
March 31, 2013, and 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.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Principles generally accepted in India including
Accounting Standards referred to in subsection (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
AUDITOR''S 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows of the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet , Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On 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 disqualified 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 Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in Paragraph 1 under the heading of "Report on
other Legal and Regulatory Requirements" of our report of even date to
the members of Consolidated Securities Limited on the accounts of the
company for the year ended 31st March,2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. a. The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c. During the year, the company has not disposed off substantial part
of fixed assets.
2. a. The management has conducted physical verification of inventory
of shares held as stock-in-trade at reasonable intervals.
b. The procedures of physical verification of inventory 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 proper records of inventory and no
material discrepancies were noticed on physical verification.
3. a. The Company has not granted any loans secured or unsecured to
companies firms or other parties covered in the register maintained
under section 301 of the Companies Act,1956. and accordingly paragraph
4 (iii) (a), (b), (c) and (d) of the order are not applicable.
b. The Company had taken unsecured loan from two companies covered in
the register maintained under section 301 of the Companies Act,1956.
The amount involved during the year was Rs. 598 Lacs and the year end
balance of loan taken from such parties was Rs.160.43 Lacs.
c. In our opinion the rate of interest and other conditions of loans
taken by the company are prima facie not prejudicial to the interest of
the Company.
d. Payment of the principal & interest is also regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. a. Based on the audit procedures performed by us and according to
the information, explanations and representation given to us, we are of
the opinion that the particulars of the contracts or arrangement
referred to in section 301 of the Act, have been entered in the
register required to be maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contract or
arrangement have been made at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58A, 58AA or any
other relevant provision of the Companies Act, 1956 and rules made
there under. Hence, the clause (vi) of the order is not applicable.
7. In our opinion the Company does not have a formal internal audit
system which commensurate with its sizes and nature of its business.
8. We have been informed that the Central government has not
prescribed maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956.
9. a. According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other statutory dues to
the extent applicable have been regularly deposited with the
appropriate authorities. 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, 2013 for a period of more than
six months from the date of becoming payable.
b. According to the information and explanation given to us, there are
no dues of Sales Tax, Custom Duty, Wealth Tax, cess which have not been
deposited on account of any dispute except the following
Nature of Statute Nature of Amount Forum where dispute is Dues (Rs.)
pending
Income Tax Act, 1961 Income Tax 1089849 ITAT
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks. Company has not taken any
loans from financial institutions and also not issued any debenture.
Hence question of default does not arise.
12. According to the information and explanations given to us, the
company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and
accordingly paragraph 4 (xii) of the order is not applicable.
13. In our opinion, considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to chit fund/ Nidhi/mutual benefit fund/societies are not
applicable to the company.
14. According to the information and explanations given to us, proper
records have been maintained in respect of transaction and contracts in
respect of shares, securities, debentures and other investments and
timely entries have been made therein. The shares and other investments
have been held by the company in its own name except to the exemption,
if any, granted under section 49 of the Act.
15. As explained by the management, company has not given guarantee
for loans taken by others from banks or financial institutions.
16. The company has not taken any term loan from any bank and/or
financial institution.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
18. During the year, the company has made preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956. The price at which the
shares have been issued are not prejudicial to the interest of the
company.
19. According to the information and explanations given to us and the
records examined by us, the company has not issued any debentures.
Accordingly, the provisions of clause 4 (xix) issued are not applicable
to the company.
20. The company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, we
report that no fraud on or by the company has been noticed or reported
during the year.
For R Mahajan & Associates
Chartered Accountants
F.R.N. 011348N
(Ratnesh Mahajan)
Partner
M. No. 085484
Place: New Delhi
Date: 29.05.2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. CONSOLIDATED
SECURITIES LIMITED as at 31st March 2012 and also the Profit & Loss
Account and Cash Flow Statement of the company for the period on that
date. The financial statement is the responsibility of the Company's
management. Our responsibility is to express an opinion on the
financial statement based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order 2003, (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, We enclose
in the annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the annexure referred in paragraph 3
above: -
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books of accounts.
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement complied with the requirements of 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 directors is disqualified as on 31st March 2012 from
being appointed as a director 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 with notes thereon,
give the information as required by the Companies Act, 1956 in the
manner so required and also give a true and fair view: -
(i) In the case of Balance Sheet of the State of affairs of the company
as at 31st March 2012.
(ii) In the case of Profit & Loss Account of the Profit for the year
ended on that date.
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
1. a. The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c. During the year, the company has not disposed off substantial part
of fixed assets.
2. a. The management has conducted physical verification of inventory
of shares held as stock-in-trade at reasonable intervals.
b. The procedures of physical verification of inventory 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 proper records of inventory and no
material discrepancies were noticed on physical verification.
3. a. The Company has not granted any loans secured or unsecured to
companies firms or other parties covered in the register maintained
under section 301 of the companies Act,1 956. and accordingly paragraph
4 (iii) (a), (b), (c) and (d) of the order are not applicable.
b. The Company had taken unsecured loan from two companies covered in
the register maintained under section 301 of the companies Act,1956.
The amount involved during the year was Rs. 813 Lacs and the year end
balance of loan taken from such parties was Nil.
c. In our opinion the rate of interest and other conditions of loans
taken by the company are prima facie not prejudicial to the interest of
the Company.
d. Payment of the principal & interest is also regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. a) Based on the audit procedures performed by us and according to
the information, explanations and representation given to us, we are of
the opinion that the particulars of the contracts or arrangement
referred to in section 301 of the Act, have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contract or
arrangement have been made at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58 A, 58 AA or
any other relevant provision of the Companies Act, 1956 and rules made
there under. Hence, the clause (vi) of the order is not applicable.
7. In our opinion the Company does not have a formal internal audit
system which commensurate with its sizes and nature of its business.
8. We have been informed that the Central government has not
prescribed maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956.
9. a. According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other statutory dues to
the extent applicable have been regularly deposited with the
appropriate authorities. 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, 2012 for a period of more than
six months from the date of becoming payable.
b. According to the information and explanation given to us, there are
no dues of Sales Tax, Custom Duty, Wealth Tax, cess which have not been
deposited on account of any dispute.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks. Company has not taken any
loans from financial institutions and also not issued any debenture.
Hence question of default does not arise.
12. The company has granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
and in our opinion, adequate documents and records are maintained.
13. In our opinion, considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to chit fund/ Nidhi/mutual benefit fund/societies are not
applicable to the company.
14. According to the information and explanations given to us, proper
records have been maintained in respect of transaction and contracts in
respect of shares, securities, debentures and other investments and
timely entries have been made therein. The shares and other investment
have been held by the company in its own name.
15. As explained by the management, company has not given guarantee
for loans taken by other from banks or financial institutions.
16. The company has not taken any term loan from any bank and/or
financial institution.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
18. During the year, the company has made preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956. The price at which the
shares have been issued are not prejudicial to the interest of the
company.
19. According to the information and explanations given to us and the
records examined by us, the company has not issued any debentures.
Accordingly, the provisions of clause 4 (xix) issued are not applicable
to the company.
20. The company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, we
report that no fraud on or by the company has been noticed or reported
during the course of our audit.
For R.MAHAJAN & ASSOCIATES
Chartered Accountants
F. R. N. 011348N
[RATNESH MAHAJAN]
Partner
M.No. 085484
Place: New Delhi
Date : 28.05.2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. CONSOLIDATED
SECURITIES LIMITED as at 31st March 2010 and also the Profit & Loss
Account and Cash Flow Statement of the company for the period on that
date. The financial statement is the responsibility of the Companys
management. Our responsibility is to express an opinion on the
financial statement based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003, (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, We enclose
in the annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the annexure referred in paragraph 3
above: -
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books of accounts.
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this
report are in agreement with the books of accounts.
d. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement complied with the requirements of the accounting
standards referred to in sub- section (3C) of Section 211 of the
Companies Act, 1956 except AS-15 on Employee Benefits as the company
has not provided the liability of gratuity since no employee has put in
the qualified period of service.
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 directors is disqualified as on 31st March 2010 from
being appointed as a director 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 accounts read with notes thereon, give
the information as required by the Companies Act, 1956 in the manner so
required and also give a true and fair view:-
(I) In the case of Balance Sheet of the State of affairs of the company
as at 31st March 2010.
(II) In the case of Profit & Loss Account of the Profit for the year
ended on that date.
(III) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Annexure Referred to in paragraph (3) of our Audit Report of even date
on the Accounts of Consolidated Securities Ltd. for the year ended 31st
March 2010)
1. a) The company has maintained proper
records showing full particulars including quantitative details and
situation of its fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year, which in our opinion is reasonable,
having regard to the size of the company and nature of its assets. No
material discrepancies were noticed on such physical verification.
c) During the year, the company has not disposed off substantial part
of fixed assets.
2. a. The management has conducted physical
verification of inventory of shares held as stock-intrade at reasonable
intervals.
b. The procedures of physical verification of inventory 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 proper records of inventory and no
material discrepancies were noticed on physical verification.
3. a. The Company has granted unsecured loan
to one company covered in the register maintained under section 301 of
the companies Act, 1956. and the amount involved is Rs. 7302 Lacs and
the year end balance of such loan was Rs. 570.55 Lacs.
b. In our opinion the rate of interest and other conditions of loans
given by the company are prima facie not prejudicial to the interest of
the Company.
c. The receipt of principal amount and interest was regular.
d. There is no overdue amount of the loan given to the companies.
e. The Company had taken unsecured loan from one company covered in
the register maintained under section 301 of the
companies Act, 1956. The amount involved during the year was Rs. 713
Lacs and the year end balance of loan taken from such partieswasRs.Nil.
f. In our opinion the rate of interest and other conditions of loans
given by the company are prima facie not prejudicial to the interest of
the Company.
g. Payment of the principal & interest is also regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. a. Based on the audit procedures performed
by us and according to the information, explanations and representation
given to us, we are of the opinion that the particulars of the
contracts or arrangement referred to in section 301 of the Act, have
been entered in the register required to be maintained under that
section. b. In our opinion and according to the information and
explanations given to us, the transaction made in pursuance of such
contract or arrangement have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 58 A, 58 AA or
any other relevant provision of the Companies Act, 1956 and rules made
there under. Hence, the clause (vi) of the order is not
7. bppdboatelpLnion the Company does not have a formal internal audit
system which commensurate with its sizes and nature of its business.
8. We have been informed that the Central government has not
prescribed maintenance of cost records under section 209(1 Yd) of the
Companies Act, 1956.
9.a. According to the records of the company,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues to the extent applicable have been regularly deposited
with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at 31 st March, 2010 for a
period of more than six months from the date of becoming payable. b.
According to the information and explanation given to us, there are no
dues of Sales Tax, Custom Duty, Wealth Tax, cess which have not been
deposited on account of any dispute.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks. Company has not taken any
loans from financial institutions and also not issued any debenture.
Hence question of default does not arise.
12. According to the information and explanations given to us, the
company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities and
accordingly paragraph 4 (xii) of the order is not applicable
13. In our opinion, considering the nature of
activities carried on by the company during the year, the provisions of
any special statute applicable to chit fund/ Nidhi/mutual benefit
fund/societies are not applicable to the company.
14. According to the information and explanations given to us, proper
records have been maintained in respect of transaction and contracts in
respect of shares, securities, debentures and other investments and
timely entries have been made therein. The shares and other investment
have been held by the company in its own name.
15. As explained by the management, company has not given guarantee
for loans taken by other from banks or financial institutions.
16. Based on information and explanations given to us by the
management, term loans were applied for the purpose forwhich loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
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. According to the information and explanations given to us and the
records examined by us, the company has not issued any debentures.
Accordingly, the provisions of clause 4 (xix) issued are not applicable
to the company.
20. The company has not raised any money by public
issuesduringtheyear.
21. According to the information and explanations given to us, we
report that no fraud on or by the company has been noticed or reported
during the course of our audit.
For R.MAHAJAN& ASSOCIATES
Chartered Accountants
F. R. N. 011348 N
Place: New Delhi [RATNESH MAHAJAN]
Dated: 29.05.2010 Partner
M.No. 085484
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