Mar 31, 2018
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Niyogin Fintech Limited (formerly known as M3 Global Finance Limited) (the âCompanyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and summary of the significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the âActâ) with respect to the preparation of these financial statements that give a true and fair view of the state of affairs, profit/loss 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.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the financial statements in accordance with the Standards on Auditing prescribed 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 are also responsible to conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018, and its loss and its cash flows for the year ended on that date.
OTHER MATTER
The comparative financial information of the Company for the year ended 31 March 2017 as included in these financial statements have been audited by the predecessor auditor who had audited the financial statements for the year ended 31 March 2017. The report of the predecessor auditor on the comparative financial information dated 12 April 2017 expressed an unmodified opinion. Our opinion is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2016 (the âOrderâ) issued by the Central Government in terms of section 143 (11) of the Act, we give in âAnnexure Aâ, a statement on the matters specified in paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit:
b) In our opinion, proper books of account as required by law have been kept by the Company so far as 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 financial statements comply with the Accounting Standards prescribed under Section 133 of the Act:
e) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 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 with reference to the financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ; and
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company does not have any pending litigations which would impact its financial position:
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses:
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company: and
iv. the disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However, amounts as appearing in the audited financial statements for the year ended 31 March 2017 have been disclosed.
The Annexure referred to in the Independent Auditorâs Report to the members of Niyogin Fintech Limited (formerly known as M3 Global Finance Limited)(the ââCompanyââ) on the financial statements for the year ended 31 March 2018, we report that:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which all the fixed assets are verified at the end of the financial year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification in the current year.
(c) The Company does not have any immovable property in its name, accordingly, clause 3(i)(c) of the Order is not applicable to the Company.
ii. The Companyâs business does not involve holding of any inventories. Accordingly, clause 3(ii) of the Order is not applicable to the Company.
iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (the âActâ). Accordingly, clause 3(iii) of the Order is not applicable to the Company.
iv. I n our opinion and according to the information and explanations given to us, the Company has not granted any loans, made investments or provided guarantees and securities under Section 185 and 186 of the Act. Accordingly, clause 3(iv) of the Order is not applicable to the Company.
v. According to the information and explanation given to us, the Company has not accepted any deposits from the public. Accordingly, clause 3(v) of the Order is not applicable to the Company.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any services rendered by the Company. Accordingly, clause 3(vi) of the Order is not applicable to the Company.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, service tax, goods and service tax, cess and other material statutory dues have not been regularly deposited with the appropriate authorities and there have been serious delays in a number of cases. As explained to us, the Company did not have any dues on account of employeesâ state insurance, duty of customs, duty of excise, sales tax value added tax and cess.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, service tax, goods and service tax, cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there are no dues which have not been deposited by the Company on account of dispute.
viii. I n our opinion and according to the information and explanations given to us, the Company did not have any loans or borrowings from financial institutions, banks, debenture holders or the Government during the year. Accordingly, clause 3(viii) of the Order is not applicable to the Company.
ix. According to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, clause 3(ix) of the Order is not applicable to the Company.
x. 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, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during year.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act.
xii. I n our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and on the basis of our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable and the details have been disclosed in the financial statements, as required by the applicable accounting standards. .
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has made private placement of shares during the year in compliance with requirement of Section 42 of the Act and the amount raised have been used for the purposes for which the funds were raised.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, clause 3(xv) of the Order is not applicable to the Company.
xvi. The Company is required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and it has obtained certificate of registration dated 30 December 2013.
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (THE âACTâ)
We have audited the internal financial controls over financial reporting Niyogin Fintech Limited (the âCompanyâ) as of 31 March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENTS 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 (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India (the âICAIâ). 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 the Companyâs policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information, as required under the Act.
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 and the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, 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 ICAI. 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 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
For B S R & Co. LLP
Chartered Accountants
Firmâs Registration No: 101248W/W-100022
Sd/-
Manoj Kumar Vijai
Mumbai Partner
28 May 2018 Membership No: 046882
Mar 31, 2014
We have audited the accompanying financial statements of M3 Global
Finance Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") 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. 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.
Opinions!
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit 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 paragraphs 4 and 5 of the Order
to the extent applicable to the Company.
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 [and proper returns adequate for the purposes of our audit have
been received from branches not visited by us]
c) the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account [and with the
returns received from branches not visited by us]
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956; 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 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 and Section 164(2) of Companies
Act, 2013.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in the Auditor''s Report to the Member of M3
Global Finance Limited on the accounts for the year ended March 31,
2014, we report that:
(i) The Company was not holding any fixed asset during the year; hence
this clause is not applicable.
(ii) (a) The Inventory has been physically verified by management
during the current year. In our opinion, the frequency of such
verification is reasonable.
(b) The procedures for the physical verification of inventory followed
by 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 inventory. No material
discrepancies were noticed on physical verification of inventory.
(iii) (a) According to the information and explanations given to us,
the Company has not Granted any loans, secured or unsecured to
Companies, firms or other parties Covered in the register maintained
under section 301 of the Companies Act 1956.
(b) According to the information and explanations given to us, The
Company has not taken any loans, secured or unsecured from Companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act 1956 have been so entered.
(iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with
regards to the purchases of inventory, fixed assets and for the sale of
goods & services and trading activity . In our opinion, and according
to the information and explanations given to us, there is no major
weakness has been noticed in internal control system.
(v) (a) In our opinion, and according to the information and
explanations given to us, the 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) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 such transaction have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
(vi) According to the information and explanations given to us, the
company has not accepted deposits from the public within meaning of
section 58A and 58AA of the Act and the rules framed there under and
accordingly company has passed the Board resolution.
(vii) In our opinion, the company has internal audit system. However,
there is scope of increasing the coverage, so as to be commensurate
with its size and the nature of its business.
(viii) Considering the nature of business activities of the Company,
maintenance of cost records under Section 209 (i) (d) of the Companies
Act, 1956 are not required.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees'' State Insurance, Investor
Education and Protection Fund, Income Tax, Sales Tax, VAT, Wealth Tax,
service tax, Custom Duty, Excise Duty, Cess and any other dues during
the year with the appropriate authorities. There are no undisputed dues
payable for a period of more than six months from the date they became
payable on 31-03-2014. (b) According to the information and
explanations given to us, the company has no disputed dues of Sales
Tax, Income Tax, Custom duty, Wealth Tax, Service Tax, VAT, Excise
duty, Cess as on the balance sheet date.
(x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred Cash losses in the
financial year and immediately preceding such financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or Debenture holders.
(xii) According to the information and explanations 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.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
societies. Hence, the provisions of sub clauses (a), (b), (c) and (d)
are not applicable.
(xiv) According to the information and explanations given, the company
deals/trades in shares, bonds, debentures, securities, and other
investments and proper records have been maintained of the transactions
and contracts wherein timely entries have been made, and the shares,
bonds, debentures securities and other investments are held by the
company in its name. Further the company has been holding certificate
of registration issued by the Reserve Bank of India relating to NBFC.
(xv) According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from Banks or
Financial Institutions.
(xvi) The Company has not obtained any term loan, accordingly, Para 4
(xvi) of the Order is not applicable.
(xvii) According to the information and explanation given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long term
investment.
(xviii) During the year the company has not made any preferential
allotment of shares to parties & companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company did not have outstanding debentures during the year.
Accordingly, no security or charge has been created.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For Jain Khetan Agarwal & Associates
Chartered Accountants
CA.
N. K. Khetan
Partner
Membership No. : 044687
Place : Mumbai
Date : 14th August, 2013
Mar 31, 2013
We have audited the accompanying financial statements of M3 Global
Finance Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, the Statement of Profit and Loss and Cash Flow for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of 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 paragraphs 4 and 5 of the Order
to the extent applicable to the Company.
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 [and proper returns adequate for the purposes of our audit have
been received from branches not visited by us]29;
c) the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account [and with the
returns received from branches not visited by us]30;
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in the Auditor''s Report to the Member of M3
Global Finance Limited on the accounts for the year ended March 31,
2013, we report that:
(i) The Company was not holding any fixed asset during the year, hence
this clause is not applicable.
(ii) (a) The Inventory has been physically verified by management
during the current year. In our opinion, the frequency of such
verification is reasonable.
(b) The procedures for the physical verification of inventory followed
by 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 inventory. No material
discrepancies were noticed on physical verification of inventory.
(iii) (a) According to the information and explanations given to us,
the Company has not Granted any loans, secured or unsecured to
Companies, firms or other parties Covered in the register maintained
under section 301 of the Companies Act 1956.
(b) According to the information and explanations given to us, The
Company has not taken any loans, secured or unsecured from Companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act 1956 have been so entered.
(iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with
regards to the purchases of inventory, fixed assets and for the sale of
goods & services and trading activity . In our opinion, and according
to the information and explanations given to us, there is no major
weakness has been noticed in internal control system.
(v) (a) In our opinion, and according to the information and
explanations given to us, the 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) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 such transaction have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
(vi) According to the information and explanations given to us, the
company has not accepted deposits from the public within meaning of
section 58A and 58AA of the Act and the rules framed there under and
accordingly company has passed the Board resolution.
(vii) In our opinion, the company has internal audit system. However,
there is scope of increasing the coverage, so as to be commensurate
with its size and the nature of its business.
(viii) Considering the nature of business activities of the Company,
maintenance of cost records under Section 209 (i) (d) of the Companies
Act, 1956 are not required.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees'' State Insurance, Investor
Education and Protection Fund, Income Tax, Sales Tax, VAT, Wealth Tax,
service tax, Custom Duty, Excise Duty, Cess and any other dues during
the year with the appropriate authorities. There are no undisputed dues
payable for a period of more than six months from the date they became
payable on 31-03-2013.
(b) According to the information and explanations given to us, the
company has no disputed dues of Sales Tax, Income Tax, Custom duty,
Wealth Tax, Service Tax, VAT, Excise duty, Cess as on the balance sheet
date.
(x) The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred Cash losses in the
financial year and immediately proceeding such financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or Debenture holders.
(xii) According to the information and explanations 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.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
societies. Hence, the provisions of sub clauses (a), (b), (c) and (d)
are not applicable.
(xiv) According to the information and explanations given, the company
deals/trades in shares, bonds, debentures, securities, and other
investments and proper records have been maintained of the transactions
and contracts wherein timely entries have been made, and the shares,
bonds, debentures securities and other investments are held by the
company in its name. Further the company has been holding certificate
of registration issued by the Reserve Bank of India relating to NBFC.
(xv) According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from Banks or
Financial Institutions.
(xvi) The Company has not obtained any term loan, accordingly, Para 4
(xvi) of the Order is not applicable.
(xvii) According to the information and explanation given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long term
investment.
(xviii) During the year the company has not made any preferential
allotment of shares to parties & companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company did not have outstanding debentures during the year.
Accordingly, no security or charge has been created.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For Jain Khetan Agarwal & Associates
Chartered Accountants
Sd/-
CA. N. K. Khetan
Partner
Membership No. : 044687
Place : Mumbai
Date : 12-08-2013
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. TIBREWAL GLOBAL
FINANCE LIMITED as at 31st March, 2011 and also the Profit and Loss
Account for me year ended on that date annexed thereto and the Cash
Flow Statement or the parted 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.
We conducted our audit in accordance with auditing standards generally
accepted in India Those Standards require trial we seen and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements An eight 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
We report that
1. We have obtained all me information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit
2 In our opinion, propel books of accounts as required by law have been
kept by me company so far as appears from our examination of the books,
3 The Balance Sheet and the Profit and Loss account deaf with by this
report is In agreement with the books of account
4 In our opinion, the Balance Sheet aid the Profit and Loss Account
dealt will by this report comply with the accounting standards referred
to in subsection (3C) of section 211 of the Companies Act 1956,
5 On the basis of written representations received from the directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
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.
6 In our Onion and to the best of our information and according to the
explanations given to us the said accounts give the information
required by the Companies Act, 1955 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 tree balance sheet, of the state of affairs of the
company as at 31st March, 2011, and
b) in the case of profit area loss account, of the Profit for the year
ended on that ante
c) in the use of cash flow statement of the cash flows for the year
ended on that date.
As required by the Companies (Auditor''s Report) Order 2003 issued by
the Central Government of India in terms of Section 227(4A) of
Companies Act, 1955 we further report that:
1. The Company does not have any fixed assets
2. The stock of inventory has been physically verified during the year
by the management at reasonable intervals in our opinion the procedures
of physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the company and the
nature of its business. The company is maintaining proper records of
inventory. No discrepancies were noticed on physical verification of
stocks as compared to book records.
3. The Company has nether granted nor taken any loan, secured or
unsecured to from companies firms or other parties covered in the
register maintained under section 301 of the Act
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
5. In our opinion, and according to the information and explanations
given to us, there are no transactions that need to be entered into a
register in pursuance of section 301 of the Companies Act, 1956.
6. During the year under review the Company has not accepted deposits
from the public.
7. In our opinion the Company has an internal audit system commensurate
with its size and the nature of its business.
8. The maintenance of cost records has not been prescribed by the
Central Government under section 209(1)(d) of the Companies Act, 1956
for any of its products.
9. The Company is regular in depositing with appropriate authorities
undisputed statutory dues and according to the information and
explanations given to us, no undisputed amounts payable in respect of
income tax, wealth tax, service tax, sales tax, customs duty, excise
duty and cess were in arrears as at 31.03.11 for a period of more than
six months from the date they become payable and there are no dues of
sales tax, income tax, customs duty, wealth tax, excise duty and cess
which have not been deposited on account of any dispute.
10. In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The Company has not incurred cash
losses in the financial year under report and in the immediately
preceding financial year.
11. The Company has not defaulted in repayment of dues to a financial
institution, bank or debentures holders.
12. According to information and explanations given to us, the company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. The Company is not a chit fund/nidhi/mutual benefit fund/society.
14. The Company has maintained proper records of transactions and
contracts and timely entries have been made therein and the shares,
securities etc. have been held by the company in its own name.
15. As per information and explanations given to us, the company has
not given any guarantee for loans taken by others from bank or
financial institutions.
16. The company has no term loans outstanding during the year.
17. According to the information and explanations given to us, the
company has not raised any funds on short term basis which have been
utilized for long term basis during the year.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
19. The Company has not issued any debentures during the year.
Accordingly no securities or charge have been created.
20. The company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, no fraud
on or by the company has been notices or reported during the year.
FOR,B. J. BHATT & CO.,
CHARTERED ACCOUNTANTS
B. J. BHATT
PROPRIETOR
ICAI M No 35637
ICAI FRN 101328W
PAN AALP B1297R
Place: Ahmedabad
Date : 27-05-2011
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