Mar 31, 2014
We have audited the accompanying financial statements of Five X Finance
& Investment Limited ("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 ended 2014, 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 in accordance with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
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. 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, 2014.
(b) In the case of the Profit and Loss Account, of the loss for the
year ended March, 2014.
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended March, 2014.
Emphasis of Matter
The company has applied for Certification of Registration to carry on
NBFC business to RBI in current Financial Year to regularize its NBFC
Business which is being carried on. However, the Certification of
Registration is not received till reporting date. The Auditors have
directly informed to Reserve Bank of India in compliance of Non-Banking
Financial Companies Auditor''s Report (Reserve Bank) Directions, 2008
about this matter.
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 and Statement of Profit and Loss 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,
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of Companies Act, 1956 read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013.
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT ON THE FINANCIAL STATEMENT FOR THE
YEAR ENDED 31ST MARCH, 2014
(Referred to in point 1 of "Report on Other Legal and Regulatory
Requirements" of our Report of even date to the members of Five X
Finance & Investment Limited on the financial statements for the year
ended 31st March, 2014)
1. In respect of its fixed assets:
a. The Company has maintained records showing particulars including
quantitative details of fixed assets in fixed assets registered.
However, fixed asset register is in process of reconciliation.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, 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. In our opinion, the Company has not disposed of any part of fixed
assets during the year and the going concern status of the Company is
not affected.
2. As informed to us, the inventories held in dematerialized form,
have been verified by the management with supportive evidence during
the year. In our opinion the frequency of verification is reasonable.
In our opinion, the procedures for 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. On the basis of
our examination of the records of inventory, we are of the opinion that
Company is maintaining proper records of inventory. We are informed
that no discrepancies were noticed on physical verification.
3. (a) The Company has granted unsecured loans to 4 parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding at any time during the year was Rs.
62.35 Lakhs and the yearend balance is Rs. NIL.
(b) In our opinion and according to the information and explanations
given to us, the terms and conditions of the loans given by the Company
are not prima facie prejudicial to the interest of the Company.
(c) No stipulations have been made for the recovery of the loans hence
clause 4 (iii) (c) is not applicable to the company.
(d) No stipulations have been made for recovery of the loans given by
the company hence clause 4(iii) (d) is not applicable to the company.
(e) The Company has taken interest free unsecured loans from 3 parties
covered in the register maintained under Section 301 of the Companies
Act 1956, the maximum amount outstanding at any time during the year
was Rs. 1.02 Crores and the yearend balance is Rs. NIL.
(f) In our opinion and according to the information and explanations
given to us, the terms and conditions of the loans taken by the Company
are not prima facie prejudicial to the interest of the Company.
(g) No stipulations have been made for the repayment of the loans hence
clause 4(iii) (g) is not applicable 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 fixed assets and for the sale of goods. In
our opinion and according to the information and explanations given to
us, there is no continuing failure to correct major weaknesses in
internal control.
5. According to the information and explanations given to us, we are
of the opinion that the company has not entered into any contracts or
arrangements referred to in section 301 of the Companies Act, 1956.
6. No deposits, within the meaning of Section 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and rules framed
there under have been accepted by the Company.
7. The Company does not have adequate internal audit system
commensurate with size of the Company and nature of its business.
8. According to the information and explanation given to us the
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956 for any of the activities of the company.
9. (a) The Company is regular in depositing undisputed statutory dues
including Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, cess and other material statutory dues applicable to the
company with the appropriate authorities. No undisputed amounts payable
in respect of the aforesaid statutory dues were outstanding as at the
last day of the financial year for a period of more than six months
from the date they became payable.
10. The Company has been registered for less than five years as at
31st March 2014, so clause 4 (x) is not applicable to the Company.
11. According to the records made available to us and information and
explanations given to us by the management, the company has not taken
any financial assistance from any financial institutions or banks.
Accordingly Clause 4(xi) of Companies (Auditor''s Report) Order, 2003 is
not applicable.
12. According to the information given to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a Nidhi/ Mutual
benefit fund/ Society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
14. The Company has maintained proper records of the transactions and
contracts for dealing or trading in shares, securities, debentures and
other investments and timely entries have been made therein. All
shares, securities, debentures and other investment have been held by
the company, in its own name except to the extent of the exemption
granted under section 49 of the Companies Act, 1956.
15. In our Opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from Banks or Financial Institutions during the year.
16. As per the information and records furnished to us, the Company
has not accepted any term loans. Accordingly Clause 4(xvi) of the
Companies (Auditor''s Report) Order, 2003 is not applicable to the
company.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, in our
opinion, the funds raised on short-term basis have, prima facie, not
been used for long-term investment.
18. According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
19. During the financial year, company had not issued any debenture.
Accordingly Clause 4(xviii) of Companies (Auditor''s Report) Order, 2003
is not applicable.
20. The Company has not raised any money by way of public issue during
the year. Accordingly Clause 4(xx) of Companies (Auditor''s Report)
Order, 2003 is not applicable.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Pravin Chandak & Associates
Chartered Accountants
(Firm Registration No. 116627W)
SD/-
Pravin Chandak
Partner
Membership No. 49391
Place: Mumbai
Date: 29/05/2014
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