Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Ladderup Finance Limited, which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit and its cash flows for the year ended on that date.
Other Matters
The Comparative financial information of the Company for the corresponding year ended 31st March 2017, were audited by predecessor auditor who expressed an unmodified opinion on those financial statements on 29th May 2017.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure âAâ statement on the matters specified in the 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 accounts as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the 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 controls over financial reporting of the Company and the operating effectiveness of such controls, refer our separate report in Annexure âBâ;
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 24 (A) (i) 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.
Annexure to the Independent Auditorâs Report
The Annexure âAâ referred to in Paragraph 1 under the heading âReport on Other Legal and Regulatory Requirements in our Independent Auditorâs Report to the members of Ladderup Finance Limited for the year ended 31st March, 2018.
As required by the Companies (Auditors Report) Order, 2016 and amendments thereto and according to the information and explanations given to us during the course of the audit and on the basis of such checks of the books and records as were considered appropriate we report that:
(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
b) The Fixed Assets have been physically verified by the management during the year at reasonable intervals. In our opinion the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets. No discrepancies have been noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) a) Since the Company does not have any inventory, the paragraph 3 (ii) of the said Order is not applicable to the Company.
(iii) The company has granted unsecured loans to companies covered in the register maintained under section 189 of the Companies Act, 2013.
a) In our opinion, the rate of interest and the other terms and conditions of the grant of such loans were not, prima facie, prejudicial to the companyâs interest;
b) The borrowers have been regular in the payment of the interest as stipulated. The terms of arrangements do not stipulate any repayment schedule and the loans are repayable on demand. Accordingly, paragraph 3(iii)(b) of the Order is not applicable to the Company in respect of repayment of the principal amount;
c) There are no overdue amounts in respect of such loans.
(iv) In our opinion and according to the information and explanation given to us, the provision of section 185 are not applicable to the Company. The Company has complied with the provision of sections 186 of the Act to the extent applicable.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act, for the Company.
(vii) a) According to the records of the Company, the undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and other statutory dues, to the extent applicable, have been regularly deposited with the appropriate authorities. There are no undisputed amount payable in respect of such statutory dues which have remained outstanding as at 31st March, 2018 for a period more than six months from the date they became payable.
b) According to the records of the Company, Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax which have not been deposited on account of any dispute with the relevant authorities are given below:
Name of Statute |
Amount (Rs. ) |
Period to which amount relates |
Forum where dispute is pending |
Income Tax |
391,780 |
2012-13 |
Tribunal |
Income Tax |
302,050 |
2013-14 |
Tribunal |
Income Tax |
1,257,380 |
2015-16 |
CIT (Appeals) |
(viii) The Company has not defaulted in repayment of its dues to Non-Banking Financial Company. The Company has not taken any loans from financial institutions and has not issued debenture.
(ix) The company has applied the term loan for the purposes it was raised and the company did not raise money by way of initial public offer or further public offer (including debt instruments).
(x) According to the information & 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 course of our audit.
(xi) According to the information and explanation 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 mandate by the provision of section 197 read with schedule V of 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 explanation given to us and based on our examination of the records of the Company, the Company has complied with section 177 and has not entered into any transactions covered under section 188 of the Act.
(xiv) According to the information and explanations give 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.
(xv) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with the directors or persons connected with him. Accordingly, paragraph 3 (xv) of the Order is not applicable.
(xvi) In our opinion and according to the information and explanation given to us, the Company is registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure âBâ to the Independent Auditorâs Report of even date on the Standalone financial statements of Ladderup Finance Limited for the year ended 31st March 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Ladderup Finance Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on 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. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on 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 Shah Gupta & Co.
Chartered Accountants
Firm Registration No.: 109574W
Vedula Prabhakar Sharma
Partner
M.No. : 123088
Place : Mumbai
Date : 28th May, 2018
Mar 31, 2016
INDEPENDENT AUDITORS REPORT
To the Members of Ladder up Finance Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Ladder up Finance Limited, which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, 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, 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 "A" statement on the matters specified in the 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, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of 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 our separate report in Annexure "B";
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 20 (A) (i) 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 "A" referred to in Paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements "in our Independent Auditor''s Report to the members of Ladderup Finance Limited for the year ended 31st March, 2016.
As required by the Companies (Auditor''s Report) Order, 2016 and amendments thereto and according to the information and explanations given to us during the course of the audit and on the basis of such checks of the books and records as were considered appropriate we report that:
(I) a) The Company has maintained proper records showing full particulars including quantitative
details and situation of fixed assets.
b) The Fixed Assets have been physically verified by the management during the year at reasonable intervals. In our opinion the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets. No discrepancies have been noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties are held in the name of the Company.
(II) a) Since the Company does not have any inventory, the paragraph 3(ii) of the said Order is not applicable to the Company.
(III) The company has granted unsecured loans to companies covered in the register maintained under section 189 of the Companies Act, 2013.
a) In our opinion, the rate of interest and the other terms and conditions of the grant of such loans were not, prima facie, prejudicial to the company''s interest;
b) The borrowers have been regular in the payment of the interest as stipulated. The terms of arrangements do not stipulate any repayment schedule and the loans are repayable on demand. Accordingly, paragraph 3(iii)(b) of the Order is not applicable to the Company in respect of repayment of the principal amount;
c) There are no overdue amounts in respect of such loans
(iv) In our opinion and according to the information and explanation given to us, Sections 185 and 186 of the Act are not applicable, since the Company is a Non-Banking Finance Company''s (NBFC) registered with Reserve Bank of India.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost records under Sections 148(1) of the Act, for the Company.
(vii) a) According to the records of the Company, the undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and other statutory dues, to the extent applicable, have been regularly deposited with the appropriate authorities. There are no undisputed amount payable in respect of such statutory dues which have remained outstanding as at 31st March, 2016 for a period more than six months from the date they became payable.
b) According to the records of the Company, Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax which have not been deposited on account of any dispute with the relevant authorities are given below:
Name of Statute |
Amount (?) |
Period to which amount relates |
Forum where dispute is pending |
Income Tax |
5,10,740 |
2012-13 |
CIT (Appeals) |
Income Tax |
6,06,686 |
2013-14 |
CIT (Appeals) filed on 8th April, 2016. |
(Viii) The Company has not defaulted in repayment of its dues to NBFC and has not taken any loans from banks and financial institutions.
(ix) The company did not raise money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the order is not applicable.
(ix) According to the information & 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 course of our audit.
(x) According to the information and explanation 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 mandate by the provision of section 197 read with schedule V of 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 explanation given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with sections 177 and 188 of the Act, where applicable. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
(xiv) According to the information and explanations 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.
(xv) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with the directors or persons connected with him. Accordingly, paragraph 3 (xv) of the Order is not applicable.
(xvi) In our opinion and according to the information and explanation given to us, the Company is registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure "B" to the Independent Auditor''s Report of even date on the Standalone financial statements of Ladder up Finance Limited for the year ended 31st March 2016.
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 Ladder up Finance Limited ("the Company") as of March 31st, 2016 in conjunction with our audit of the Standalone 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. 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 Company''s 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''s judgment, 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 March 31, 2016, 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 Khurdia Jain & Co.
Chartered Accountants
Firm Regn. No.: 120263W
Abhinav Khurdia
Place : Mumbai Partner
Date : 10th June, 2016 Mem No : 126358
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Ladderup Finance Limited, which comprise the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (herein after referred to
as "the Act") with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 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 the 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of 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)(ii)
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 Paragraph 1 under the heading "Report on
Other Legal and Regulatory Requirements "in our Independent Auditor's
Report to the members of Ladderup Finance Limited for the year ended
31st March, 2015.
As required by the Companies (Auditors Report) Order, 2015 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) As explained to us, all the assets have been physically verified by
the management at the end of the year, which in our opinion is
reasonable, considering the size and the nature of business. No
discrepancies have been noticed on such physical verification.
(ii) a) Since the Company does not have any inventory, the paragraph
3(ii) of the said Order is not applicable to the Company.
(iii) The Company has granted unsecured loans to three body corporates
including two subsidiaries covered in the register maintained under
Section 189 of the Act.
a) The borrowers have been regular in the payment of the interest as
stipulated. The terms of arrangements do not stipulate any repayment
schedule and the loans are repayable on demand. Accordingly, paragraph
3(iii)(a) of the Order is not applicable to the Company in respect of
repayment of the principal amount.
b) There are no overdue amounts of more than rupees one lakh in respect
of the loans granted to the parties covered in the register maintained
under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and for the sale of services. We have not
observed any major weakness in the internal control system during the
course of the audit.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost
records under Section 148 (1) of the Act, for the Company.
(vii) a) The Company is regular in depositing undisputed statutory dues
including service tax and income tax with appropriate authorities.
There are no undisputed amount payable in respect of these statutory
dues which have remained outstanding as at 31st March, 2015 for a period
more than six months from the date they became payable. The laws
relating to Provident Fund, Employees State Insurance, Sales Tax,
Wealth Tax, Duty of Customs, Duty of Excise, Value Added Tax do not
apply to the Company for the year under report.
b) According to the records of the Company, Income Tax, Wealth Tax,
Sales Tax, Service Tax, duty of Customs, Duty of Excise, Value Added
Tax and Cess which have not been deposited on account of any dispute
with the relevant authorities are given below:
Name of StatuteAmount (Rs) Period to which amount relates
Income Tax 5,10,740 2012-13
Name of the sTATUE Forum where dispute is pending
INCOME TAX CIT (Appeals)
c) According to the information and explanations given to us , there is
no amount 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 thereunder.
(viii) The Company has no accumulated losses at the end of the FY and
it has not incurred any cash losses during the FY and in the
immediately preceding FY.
(ix) The Company has not defaulted in repayment of its dues to banks
and financial institutions.
(x) The Company has not given any guarantee for loans taken by others
from banks and financial institutions.
(xi) The Company has not obtained any term loans during the year.
(xii) There were no frauds on or by the Company noticed or reported
during the course of our audit during the year.
For Khurdia Jain & Co.
Chartered Accountants
Firm Regn. No.: 120263W
Sampat Khurdia
Partner
Mem No : 33615
Place : Mumbai
Date : 29th May, 2015
Mar 31, 2014
We have audited the accompanying Financial Statements of Ladderup
Finance Limited, which comprise the Balance Sheet as at 31st March,
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 notified under the Companies Act, 1956 (the
Act) read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. 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 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 procedure 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 risk of material misstatement of the financial statements, whether
due to fraud and 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 and 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 31st March, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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 the 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 accounts 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 & 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 notified
under the Act read with the General Circular 15/2013 dated 13th
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 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 clause (g) of subsection (1)
of section 274 (1)(g) of the Companies Act, 1956.
Annexure referred to in Paragraph 1 under the heading "Report on other
legal & regulatory requirements" of the Auditors Report to the Members
of Ladderup Finance Limited for the year ended 31st March, 2014.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year and in our opinion the
interval of physical verification is reasonable. No material
discrepancies have been noticed on such physical verification.
c) The Company has disposed off certain fixed assets during the year
which do not affect the going concern status of the Company.
(ii) a) Since the Company does not have any inventory, the clauses 4
(ii) (a) (b) and (c) of the said Order are not applicable to the
Company.
(iii) a) The Company has granted unsecured loans (receivable on call
basis) to three of its subsidiaries covered in the register maintained
under section 301 of the Companies Act, 1956. The aggregate maximum
amount outstanding during the year was Rs.1,75,47,809/- and year end
balance of such loans was Rs.1,62,76,246/-.
b) The rate of interest and other terms & conditions on which the loans
have been granted are prima facie, not prejudicial to the interest of
the Company.
c) In view of our comments in para iii (a) & (b) above, clauses 4 (iii)
(c) and (d) of the said Order are not applicable.
d) The Company has not taken unsecured loans from parties covered in
the register maintained under section 301 of the Companies Act, 1956.
e) In view of our comments in para (iii) (d) above, clause 4 (iii) (f)
and (g) of the said Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanation
given to us there is adequate internal control system commensurate with
the size of the Company and the nature of its business with regard to
purchase of fixed assets and sale of services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control systems.
v) a) Based on our audit procedures performed by us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
b) The transaction made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regards to
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system but its
financial and other internal checks, ensures proper recording of the
financial transactions.
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956
for the Company.
(ix) a) The Company is regular in depositing undisputed statutory dues
including income tax and service tax with appropriate authorities.
There are no arrears of outstanding of these dues as at the last day
of the financial year for a period of more than six months from the
date they became payable. The laws relating to provident fund,
investor education protection fund, employee state insurance, sales
tax, wealth tax, custom duty, excise duty and cess do not apply to the
Company for the year under report.
b) According to the information and explanations given to us, the
Company has no dues of income tax, sales tax, wealth tax, service tax,
custom duty, excise duty and cess which have not been deposited on
account of disputes with the related authorities.
(x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of its dues to banks
and financial institutions.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
Company.
(xiv) Based on the records examined by us, the Company is maintaining
proper records of the transactions and contracts and timely entries
have been made in respect of all the securities transactions and the
same have been held by the Company in its own name except to the
exemption , if any , granted under Section 49 of the Act.
(xv) The Company has not given any guarantees for loan taken by others
from banks and financial institutions.
(xvi) The Company has not obtained any term loans during the year.
(xvii) 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 investments.
(xviii) The Company has not made any preferential allotment of shares
to the parties and companies covered in the register maintained under
Section 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) There were no frauds on or by the Company noticed or reported
during the course of our audit during the year.
For Khurdia Jain & Co.
Chartered Accountants
Firm Regn. No.: 120263W
Sampat Khurdia
Partner
Mem No : 33615
Date : 6th May, 2014
Place : Mumbai
Mar 31, 2012
We have audited the attached Balance Sheet of Ladderup Finance Limited
as at 31st March, 2012 and also the annexed Statement of Profit and
Loss and Cash Flow Statement for the year ended on that date. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1 We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing 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.
2. As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto issued by the Central Government of India in terms
of Section 227(4A) of the Companies Act, 1956, we annex hereto a
statement on the matters specified in the paragraphs 4 and 5 of the
said Order
3. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company as it appears from our examination of such books.
c) The Company's Balance Sheet and Statement of Profit & Loss and the
Cash Flow Statement dealt with by this report are in agreement with the
books of account.
d) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Statement
of Profit and Loss and the Cash Flow Statement comply in all material
aspects with the Accounting Standards referred to in Section 211(3C) of
the Companies Act, 1956.
e) On the basis of written representation received from the directors
as on 31st March, 2012 and taken on record by the Board, 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 together with
other notes thereon give the information required by the Companies Act,
1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) In case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
(ii) In case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date.
(iii) In case of Cash flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Annexure referred to in Paragraph 2 of the Auditors Report to the
members of Ladderup Finance Limited
for the year ended 31st March, 2012.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according
to the information and explanations given to us during the course of
the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) a) The Company has maintained proper records showing full
particulars including quantitative
details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year and in our opinion the
interval of physical verification is reasonable. No material
discrepancies have been noticed on such physical verification.
c) The Company has not disposed off substantial fixed assets during the
year.
(ii) a) The inventories of shares & securities have been physically
verified by the management
during the year at reasonable intervals.
b) The procedures of physical verification of the inventories 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 has maintained proper records of inventories and no
discrepancies have been noticed on physical verification of inventories
as compared to book records.
(iii) a) The Company has granted unsecured loan (receivable on call
basis) to its three subsidiaries
covered in the register maintained under Section 301 of the Companies
Act, 1956.The aggregate maximum amount outstanding during the year was
72,99,172/- and year end balance of such loans was Rs.. 20,08,045/-.
b) The rate of interest and other terms & conditions on which loans
have been granted are prima facie, not prejudicial to the interest of
the Company.
c) In view of our comments in para iii (a) & (b) above, Clauses 4 (iii)
(c) and (d) of the said Order are not applicable.
d) The Company has not taken unsecured loans from parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
e) In view of our comments in para (iii) (d) above, Clause 4 (iii) (f)
and (g) of the said Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanation
given to us there is adequate
internal control system commensurate with the size of the Company and
the nature of its business
with regard to sale of services. During the course of our audit, we
have not observed any continuing
failure to correct major weaknesses in internal control systems.
v) a) Based on our audit procedures performed by us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
b) The transaction made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regards to
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system.
However, according to the information
and explanations given to us, operating control systems are
commensurate with the size of the Company and nature of its business.
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1)(d) of the Companies Act, 1956 for the
Company.
(ix) a) The Company is regular in depositing undisputed statutory dues
including Income Tax and
Service Tax with appropriate authorities. There are no arrears of
outstanding of these dues as at the last day of the financial year for
a period of more than six months from the date they became payable. The
laws relating to Provident Fund, Investor Education Protection Fund,
Employee State Insurance, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty and Cess do not apply to the Company for the year under report.
b) According to the information and explanations given to us, the
Company has no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited on
account of disputes with the related authorities.
(x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(xi) The Company has no dues to any financial institution, bank or
debenture holders except in respect of vehicle loans.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
Company.
(xiv) Based on the records examined by us, the Company is maintaining
proper records of the transactions and contracts and timely entries
have been made in respect of all the securities transactions and the
same have been held by the Company in its own name except to the
exemption, if any, granted under Section 49 of the Act.
(xv) The Company has not given any guarantees for loan taken by others
from banks and financial institutions.
(xvi) The Company has applied the term loans during the year for the
purpose they were obtained.
(xvii) 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 investments.
(xviii) 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.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) We report that no fraud on or by the Company has been noticed or
reported during the year.
For Khurdia Jain & Co.
Chartered Accountants
Firm Regn. No.: 120263W
Sampat Khurdia
Place : Mumbai Partner
Date : 26th May, 2012 Mem No : 33615
Mar 31, 2011
We have audited the attached Balance Sheet of Ladderup Finance Limited
as at 31st March, 2011 and also the annexed Profit and Loss Account and
Cash Flow Statement for the year ended on that date. These financial
statements are the responsibility of the CompanyÃs Management. Our
responsibility is to express an opinion on these financial statements
based on our Audit.
1. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing 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.
2. As required by the Companies (Auditors' Report) Order, 2003 and
amendment thereto issued by the Central Government of India in terms of
Section 227(4A) of the Companies Act, 1956, we annex hereto, a
statement on the maters specified in the paragraphs 4 and 5 of the said
Order.
3. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
Audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company as it appears from our examination of such books.
c) The CompanyÃs Balance Sheet, Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet, Profit and Loss
Account and the Cash Flow Statement comply in all material aspects with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956.
e) On the basis of written representation received from the directors
as on 31st March, 2011 and taken on record by the Board, we report that
none of the directors is disqualified as on 31st March, 2011 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 together with
other notes thereon give the information required by the Companies Act,
1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011 and
(ii) In the case of the Proft and Loss Account, of the Profit of the
Company for the year ended on that date.
(iii) In case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT
Annexure referred to in Paragraph 2 of the Auditors' Report to the
members of Ladderup Finance Limited for the year ended 31st March,
2011.
As required by the Companies (Auditors' Report) Order, 2003 and
amendments thereto and according to the informatIon and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year and in our opinion the
interval of physical verification is reasonable. No material
discrepancies have been noticed on such physical verification.
c) The Company has not disposed of any fixed assets during the year.
(ii) a) The inventories of Shares & Securities have been physically
verified by the management during the year at reasonable intervals.
b) The procedures of physical verification of the inventories 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 has maintained proper records of inventories and
discrepancies noticed on physical verificaton of inventories as
compared to book records were not material.
(iii) a) The Company has granted unsecured loan (receivable on call
basis) to its three subsidiaries covered in the register maintained
under Section 301 of the Companies Act, 1956. The aggregate maximum
amount outstanding during the year was Rs. 59.76 Lacs and year end
balance of such loan was Rs. 59.76 Lacs.
b) The rate of interest (except in one case where the said loan is
interest free) and other terms & conditions on which the loans have
been granted are prima facie, not prejudicial to the interest of the
Company.
c) In view of our comments in paras iii (a) & (b) above, clauses 4
(iii)(c) and (d) of the said Order are not applicable.
d) The Company has taken unsecured loan from one party (payable on call
basis) covered in the register maintained under Section 301 of the
Companies Act, 1956. The aggregate maximum amount involved during the
year was Rs. 146 Lacs. The year end balance of such loan was Nil.
e) The above loan is interest free and other terms and conditions on
which the loan has been granted are prima facie, not prejudicial to the
interest of the Company.
f) In view of comments in para (iii) (d) and (e) above, clause 4 (iii)
(g) of the said Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanation
given to us there is adequate internal control system commensurate with
the size of the Company and the nature of its business with regard to
purchase of fixed assets and for the sale of services. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control systems.
v) (a) Based on our audit procedures performed by us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that Section.
(b) The transaction made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regards to
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system but its
financial and other internal checks, ensures proper recording of the
financial transactions.
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1) (d) of the Companies Act, 1956 for
the Company.
(ix) a) The Company is regular in depositing undisputed statutory dues
including Income Tax and Service Tax with appropriate authorities.
There are no arrears of outstanding of these dues as at the last day of
the financial year for a period of more than six months from the date
they became payable. The Laws relating to Provident Fund, Investor
Education Protection Fund, Employee State Insurance, Sales Tax, Wealth
Tax, Custom Duty, Excise Duty and Cess do not apply to the Company for
the year under report.
b) According to the information and explanations given to us, the
Company has no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited on
account of disputes with the related authorities.
(x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(xi) The Company has no dues to any financial institution, bank or
debenture holders except in respect of vehicle loans.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
Company.
(xiv) Based on the records examined by us, the Company is maintaining
proper records of the transactions and contracts and timely entries
have been made in respect of all the securities and the same have been
held by the Company in its own name except to the exemption, if any,
granted under Section 49 of the Act.
(xv) The Company has not given any guarantees for loan taken by others
from Banks and Financial Institutions.
(xvi) The Company has applied the term loan (vehicle loan) during the
year for the purpose they were obtained.
(xvii) 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 investments.
(xviii) The Company has not made any preferential allotment of shares
to partes and Companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) There were no frauds on or by the Company noticed or reported
during the course of our audit during the year.
For khurdia Jain & Co.
Chartered Accountants
Firm Regn. No.: 120263W
Sampat khurdia
Partner
Mem No : 33615
Place : Mumbai
Date : 26th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Ladderup Finance Limited
as at 31st March, 2010 and also the annexed Profit and Loss Account and
Cash Flow Statement for the year ended on that date. These financial
statements are the responsibility of the CompanyÃs management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing 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.
2. As required by the Companies (Auditors Report) Order, 2003 and
amendment thereto issued by the Central Government of India in terms of
Section 227(4A) of the Companies Act, 1956, we annex hereto a statement
on the matters specified in the paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company as it appears from our examination of such
books.
(c) The Companys Balance Sheet and Profit & Loss Account and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.
(d) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Profit and
Loss Account and the Cash Flow Statement comply in all material aspects
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956 except, Accounting Standard 15 (AS - 15) relating
to Accounting of Employees Benefits (as referred to in Note No. B(7) of
Schedule "18")
(e) On the basis of written representation received from the directors
as on 31st March, 2010 and taken on record by the Board, 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 said accounts read together with
other notes thereon give the information required by the Companies Act,
1956 in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010 and
(ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date.
(iii) In case of Cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Annexure referred to in Paragraph 2 of the Auditors Report to the
members of Ladderup Finance Limited for the year ended 31st March,
2010.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, all the fixed assets have been physically
verified by the management during the year and in our opinion the
interval of physical verification is reasonable. No material
discrepancies have been noticed on such physical verification.
(c) The Company has not disposed off any fixed assets during the year.
(ii) (a) The inventories have been physically verified by the
management during the year at reasonable intervals.
(b) The procedures of physical verification of the inventories 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 has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
(iii) (a) The Company has granted unsecured loan (receivable on call
basis) to its two subsidiaries covered in the register maintained under
Section 301 of the Companies Act, 1956.The aggregate maximum amount
outstanding during the year was Rs. 51.97 Lacs and year end balance of
such loans was Rs. 33.81 Lacs.
(b) The above loan is interest free and other terms and conditions on
which the loans have been granted are prima facie, not prejudicial to
the interest of the Company.
(c) In view of our comments in paras iii(a) & (b) above, clauses
4(iii)(c) and (d) of the said Order are not applicable.
(d) The Company has taken unsecured loans from one party (payable on
call basis) covered in the register maintained under Section 301 of the
Companies Act, 1956. The aggregate maximum amount involved during the
year was Rs. 117.25 Lacs. The year end balance of such loans was Rs.
117.25 Lacs.
(e) The rate of interest and other terms and conditions on which the
loans have been granted are prima facie, not prejudicial to the
interest of the Company.
(f) In view of our comments in para (iii)(d) and (e) above, clause
4(iii)(g) of the said Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanation
given to us there is adequate internal control system commensurate with
the size of the Company and the nature of its business with regard to
purchase of fixed assets and for the sale of services. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control systems.
(v) (a) Based on our audit procedures performed by us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
(b) The transaction made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regards to
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system but its
financial and other internal checks, ensures proper recording of the
financial transactions.
(viii) The Central Government has not prescribed for maintenance of
cost records under Section 209(1)(d) of the Companies Act, 1956 for the
Company.
(ix) (a) The Company is regular in depositing undisputed statutory dues
including income tax and service tax with appropriate authorities.
There are no arrears of outstanding of these dues as at the last day of
the financial year for a period of more than six months from the date
they became payable. The laws relating to provident fund, investor
education protection fund, employee state insurance, sales tax, wealth
tax, custom duty, excise duty and cess do not apply to the Company for
the year under report.
(b) According to the information and explanations given to us, the
Company has no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited on
account of disputes with the related authorities.
(x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(xi) The Company has no dues to any financial institution, bank or
debenture holders except in respect of vehicle loans.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
Company.
(xiv) Based on the records examined by us, the company is maintaining
proper records of the transactions and contracts and timely entries
have been made in respect of all the securities transactions and the
same have been held by the Company in its own name except to the
exemption, if any, granted under Section 49 of the Act.
(xv) The Company has not given any guarantees for loan taken by others
from banks and financial institutions.
(xvi) As per the information and explanations given to us, the Company
has not raised any new term loans during the year.
(xvii) 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 investments.
(xviii) 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 except convertible warrants
issued in the previous year has been converted into equity shares
during the year at the predetermined rate as per SEBI guidelines.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) There were no frauds on or by the Company noticed or reported
during the course of our audit during the year.
For Khurdia Jain & Co.
Chartered Accountants
Firm Regn. No. 120263W
(Sampat Khurdia)
Place : Mumbai Partner
Date : 29th May, 2010 Mem. No. 33615