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Auditor Report of Shalibhadra Finance Ltd.

Mar 31, 2015

1. We have audited the accompanying financial statements of Shalibhadra Finance Limited, ('the Company'), which comprise the Balance Sheet as at 31 Mar 2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's responsibility for the financial statements

2. 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 and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

3. Our responsibility is to express an opinion on these financial statement'; 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.

4. 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.

5. An audit involved performing procedures to obtain audit evidence about the amounts and disclosures in financial statements. The procedures selected depend on the auditor's judgment, including the assessment of risks of material misstatements 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 that give a true and fair view in order to design audit that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Qualified Opinion

6. The Company has not provided for leave encashment and other retirement benefits. This constitutes departure from the accounting standards referred to in section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. The impact of such non provision, if any, on the financial statements, is not readily ascertainable.

Opinion

7. In our opinion and to the best of our information and according to the explanations given to us, except for the remarks in the paragraph above in the Basis for Qualified Opinion, 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;

a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31 Mar 2015

b. In the case of the Statement of Profit and Loss, of the profit for the year ended on that date

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

8. As required by the Companies (Auditor's Report) Order, 2015 ('the Order'), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the said Order.

9. As required by section 143 (3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion, except for the remarks in the Basis for Qualified Opinion paragraph above, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books

c. Except for the remarks above in the Basis for Qualified Opinion paragraph, 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 accounts.

d. In our opinion, except for the comments in the Basis for Qualified Opinion paragraph above, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e. On the basis of written representation received from the directors as on 31 Mar 2015 and taken on record by the Board of Directors, none of the directors is disqualified as at 31 Mar 2015, from being appointed as a director in terms of Section 164 (2) of the Act and

f. In our opinion, the company has adequate internal financial control system in place and the operating effectiveness of such control is in place.

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 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.

ii. There are no long term contracts, including derivative contracts. Hence the question of provision of for any losses on the same does not arise.

iii. There has been on delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.

Armexure to our report of even date

Re: Shalibhadra Finance Limited

(Referred to in Para 8 of our report of even date)

i) [a] The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

[b] Fixed assets have been physically verified by the management and the company has regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancy was noticed on such verification.

ii) [a] The Company does not have inventory and hence this clause, along with sub clauses (b) and (c) of the Order, are not applicable to the Company.

iii) [a] According to the information and explanation 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 189 of the Act, and hence this clause, along with sub clauses (a) and (b) of the Order, are not applicable to the Company.

iv) According to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and nature of its business, for purchase of inventory and fixed assets and for sale of goods.

v) The Company has not accepted deposits and hence the question of contravention of provisions of sections 73 to 76 of the Act, or any other relevant provisions of the Act and the Rules framed thereunder does not arise.

vi) According to the information and explanations given to us, the Government has not prescribed maintenance of cost records under section 148 (1) of the Act, for any of the goods sold by the Company.

vii) [a] According to the information and explanations given to us and on the basis of examination of records of the Company, the Company is regular in depositing undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other material statutory dues with the appropriate authorities. As explained to us, the Company did not have any dues on account of wealth tax.

According to the information and explanations given to us, no undisputed amounts in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues were in arrears as at 31 March 2015 for a period of more than six months from the date they became payable.

[b] According to the information and explanations given to us, there are no amounts which have not been deposited on account of any dispute in case of dues of income tax, sales tax, wealth tax, service tax, duty of customs or duty of excise.

[c] According to the information and explanations given to us, the amount required to be transferred to the Investor Education and Protection Fund has been transferred.

viii) The Company does not have any accumulated losses at the end of the financial year. The Company has not incurred cash losses in the current financial year and in the immediately preceding financial year.

ix) According to the information and explanations given to us, the Company has not defaulted on any dues to banks or financial institutions or debenture holders.

x) According to the information and explanations given to us, the Company has not given guarantee for loans taken

by others from banks and financial institutions; the terms and conditions thereof are prima facie, not prejudicial to the interest of the Company.

xi) According to the information and explanations given to us, the term loans were applied for the purpose for which they were obtained

xii) According to the information and explanations given to us, no material fraud on or by the Company has been noticed and reported during the course of our audit.

for K S Sanghvi & Co Chartered Accountants Firm Registration No. 116714W

Hitendra A Doshi Partner Membership No.: 040201

Place: Mumbai Date: 30th May, 2015.


Mar 31, 2014

1. Wo have audited the accompanying financial statements of Shall hlutdra Finance Limited. ^the Company'), which comprise the Uuhince Sheet as *1 31 Mar 2014. file Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant aecnunting policies and other explanatory information.

Management's responsibility for the financial statements

2. The Management is responsible for the preparation of these financial statements that give a true and lair view of the financial position anil financial performance 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 dined 13 Sep 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act. 2013. 1 his responsibility includes the design, ijnplemenlaiiun and maintenance of internal eonlxu] relevant to the prep ami inn and presentation of the financial statements that give a true and lair view and are free from material misstatement, whether due la fraud or error.

Auditor's responsibility

3. Our responsibility is lu express an opinion on these financial statements based on our audit We conducted our audit in accordance with the Standards on Auditing issued by die Institute of Chartered Accountants of India. Those Standards require that we comply will) ethical requirements and plan, and perforin die audit to obtain reasonable assurance about whether the financial statements; arc tree from material misstatement.

4. An audit involved performing procedures to obtain audit evidence about the amounts and disclosures in financial statements, The procedures .selected depend on the auditor's judgment, including the assessment of risks of material misstatements 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 includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements,

We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion

Basis for Qualified Opinion

5. The Company has not providedfor have encashment and other retirement benefits. This constitutes departure from the accounting standards referred la in .sub section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 Sep 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013, the impact of such non provision, if airy, on the financial statements, is not readib ascertainable.

Qunlified Opinion

6, In our opinion and to the best of our information and according to the explanations given to its, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements give the information required by the Act in the maimer so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

a. In the ease of the Balance Sheet, of the state of affuiis of the Company aa at 31 Mar 2014

b. In the case of the Statement of Profit and Loss, of the profit fur the year ended on that dale

c. In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report ou other legal and regulatory requirements

7. As required by the Companies (Auditor's Report) (Amendment) Order, 2004 ("the Order'), issued by the Central Government of India in terms of sub-roctiun (4A) of section 227 of the Companies Act, 1956, we give In the Anncxure a statement in the matters specified in paragraphs 4 and 5 of the said Order.

8, As required by section 227 (3) of the Act, we report that:

n. We have obtained all the information and explanations which to the best of out knowledge and belief were necessary fur the purpose of out audit, except information on the batik reconciliations af certain hank accounts.

b, In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books.

c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow- Statement dealt with by this report are ttl agreement with the books of accounts.

d- 'Hie Balance Sheet, Statement of Profit and Loss and Caah Flow Statement comply wilh the Accounting Standards referred to in sub - section 3(C) of section 211 of the Companies Act 1956 read with the Genera! Circular 15/2013 dated 13 Sep 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013,

e. On the basis of written representation received from the directors as on 31 Mar 2014 and taken on record by the Board of Directors, none of the dtrcciors is disqualified as at 31 Mar 2014, from being appointed as a director in terms of clause (g) of sub - section (l)of section 274 of the Companies Act, 1956.

Annexure to our report of even date (Refer to paragraph 7 of our report of even date)

Re: Shalihhadrs Finance Limited

(A) Having regard to the nature of the Company's business / activities and results for the year, clauses (xiii) and (xiv) of Companies (Auditor's Report) Order (As amended), 2004 are not applicable.

(i) (a) According to the information and explanations given to us, the Company has maintained proper records showing full particulars, including the quantitative details and situation of fixed assets.

(b) According to ibe information and explanations given to us, a substantial portion of fixed assets Ms been physically verified by the Management at reasonable interval, which ill our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were observed on such verification.

(c) During the year, the Company has not disposed off a major port of the fixed assets.

(ii) (a) The company does not hove inventories and hence this clause, along with sub clauses (b) and (c| of the Companies (Auditor's Report) order (as amended), 2004 are not applicable to the Company.

(iii) (a) According to the information and explanations given to us, the Company lias not grunted loans, secured or unsecured, to companies, firms or other parties whose names are required to be entered in the register to be maintainned under section 301 of the Companies Act. 1956, Accordingly, sub-clause (b), (c) and (d) of clause 4(iii) of the Companies (Auditor's Report) Order (as amended), 2004 arc not applicable to the Company

(c) According to the information and explanations given to us the Company bus take unsecured Loans from 11 parries covered in the register required to be maintained under section 301 of the Companies Act, 1956, Ihe total amount of loan accepted during the year is Rs 26.67 lukiis. The balance outstanding at the year end was Fis 1131,75 lakhs

(f) According to the information and explanations given to us, the rate of interest and other terms and conditions of the loan taken by the Company, are. prima facie. mol prejudicial lo die interest of the- Company.

(g) According to the information and explanations given to us, the repayment of interest and principal is regular,

(iv) In our opinion nnd according to the information and explanation given to us, there is an adequate intermit control system commensurate with the sire of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

(v)(a) According to the information and explanations given to us. there have been no contracts or arrangements that need to be entered in the register required to be maintained under section 301 of the Companies Act, 1956

(vi) The Company lias not accepted any deposits from the public.

(vil) the Company does not have tin internal audit system.

(viii) According to the information trod explanation given to us, the cost records under sub clause (d) of clause (1) of section 209 of the Act have not Men prescribed.

(ix) (a) The Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, income-tax. sales lax and other material statutory dues applicable to it.

(b) According to ihc information and explanation given to us, no undisputed amounts payable m respect of provident fund, employees' state insurance, saies-ttix and other undisputed statutory dues were outstanding, at the year end, tor a period of mere than six months from the date they became payable, There are outstanding income tax demands aggregating to Rs 09.76 lakhs pertaining to various years, the outcome of which is not known. Hence we are unable tv comment on the impact of the same on the financial statements.

(x) The Company does not have accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year,

(xi) On the basis of verification of records and as per information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or bank.

txii) According to the information and explanation given to us and based on the documents and records produced to us, the Company has not granted loans and advances tra the basis of security by way of pledge of shares, debentures and other securities,

(xv) According to the information and explanation given to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

(xvi) There are no term loans.

(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) The Company lias not made any preferential allotment of shares to the parties nr companies covered in the register required to be maintained under section 301 of the Companies Act, 1956,

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money by way of public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanation given by the Management, we report that tvo fraud on or by the Company has been noticed or reported during the course of our audit.

For K S Sanghvl and Co Chartered Accountants Firm Registration Number 1167 MW

Hitcndra Doshi Partner Membership No:04Q201 Date: 31st May 2014 Place: Mumbai


Mar 31, 2013

1. We have audited the attached Balance Sheet of Shalibhadra Finance Limited as at 31st March, 2013 and Statement of Profit or Loss account for the year ended on that date and the 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

2. 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 tree of material misstatement. An audit includes examining, on a test basis evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principals used and significant estimates made by Management, as well as evaluating the overall presentation of financial statement. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003, issued by the Government of India in terms of sub section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure, a statement on the matter specified in Para 4 mid 5 of the said order to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph 3 above:

a. We have obtained all the information and explanations necessary for the purpose of our audit except (i) information about the amount of liability in respect of provision for leave encashment and other retirement benefits as prescribed by AS 15 "Employee Benefits " issued by the Institute of Chartered Accountants of India, and (ii) the information on Bank Reconciliation Statement of few bank accounts.

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 the books.

c. The Company has not made provision for leave encashment and other retirement benefits as prescribed by AS 15 "Employee Benefits " issued by the Institute of Chartered Accountants of India. In the absence of the information as regard the amount of the liability, the impact of non- provision on the he profit of the Company for the year ended 31 March 2013 is unascertainable and overstated to the extent of the non provision and the provisions of the Company are understated to the extent of the non provision.

d. Subject to our comment in point (a) and (c) above, Cash basis of accounting followedin FD in our opinion the Balance Sheet and Statement of Profit or Loss complies with the accounting standards referred to in Sub-section (3C) of Section 211 ofthe Companies Act, 1956.

e. On the basis of written representation received from Directors as on 31st March, 2013 and taken on record by the Board of Directors, We report that none ofthe Directors are disqualified as on 31s'' March, 2013 from being appointed as a Director in terms of Clause (g) of sub-section (1) of Section 274 ofthe Companies Act 195 6.

a. Subject to paragraphs 4(a) and 4(c) above, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon give the information required by the Companies Act 1956, in the manner as required give a true and fair view in conformity with the accounting principles generally accepted in India:

i. In the case of the Balance Sheet of the State of Affairs of the Company as at March 31s,,2013.

ii. In the case of the Statement of Profit or Loss, of the profit of the Company for the year ended on that date.

iii. In case of the Cash Flow Statement, of the cash flows for the year ended on that date. Annexure to the Auditor''s Report

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, physical verification of fixed assets as at March 31,2013 was conducted by the management of the company during the year. In our opinion the frequency of physical verification is reasonable. Having regards to the size of the operations of the company and on the basis of explanations received, in our opinion, there were no differences found on physical verification.

(ii) (a) Except for the stocks on hire, the legal ownership of which is to be transferred to the hirers on receipt of the last installment from them, the Company does not have any stocks of inventory. The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) 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.

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

(iii)(a) The company has not granted any unsecured loans to companies, firms and other parties as covered in the register maintained under section 301 of the Companies Act, 1956. As a result, this clause along with sub clauses (b), (c) and (d) are not applicable.

(e) There are 24 (Twenty-four) parties covered in the register maintained under section 301 of the Companies Act, 1956 from whom the loans have been taken. The year end balance was Rs 7.91 crores.

(a) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions as stipulated on which the company has taken the loans from firms and other parties required to be listed in the register maintained under section 301 of the Companies Act, 1956, are prima facie not prejudicial to the interest of the company.

(b) The Company is regular in repaying the principal amounts as stipulated and has been regular in payment of interest stipulated to the firms and companies or other related parties listed in the register maintained under section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, there is adequate

internal control procedure commensurate with the size of the company and nature of its business for purchase of inventories and fixed assets and for sale of services. During the course of our audit no major weakness has been observed in the internal control procedures.

(v) (a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under Section 301 ofthe Companies Act, 1956 have been so entered.

(b) In our opinion and having regard to our comments in paragraph (iii) above, and according to the information and explanations given to us, particulars of contracts or arrangements referred toin Section 301 of the Companies Act,1956 have been entered in the register required to be maintained under that section and the transactions exceeding the value of Rupees Five Lacs in respect of any party during the year have been made at price which are reasonable having regard to prevailing market prices at the relevant time where such market prices are available.

(vi) The Company has not accepted any deposits from the public within the meaning of Section 58A and Section 58 AA ofthe Companies Act 1956 and the rules framed there under.

(vii) The Company does not have an internal audit system.

(viii) As informed to us, the maintenance of cost records has not been prescribed by the Central

Government under Section 209( 1 )(d) ofthe Companies Act, 195 6, in respect of activities carried on by the Company.

(ix) (a) According to the information an explanation given to us, the company is generally regular in depositing with the appropriate authorities in India the undisputed statutory dues under income Tax act and other material statutory dues as applicable to it.

(b) At the end ofthe financial year there were no undisputed amounts payable in respect of income tax and other statutory dues as applicable, for a period of more then six months from the date they become payable.

(x) The Company does not have accumulated losses. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding Financial Year.

(xi) In our opinion and according to the information and explanation given to us the company has not defaulted in repayment of its dues to any bank or financial institution during the year.

(xii) In our opinion and according to the information and explanation 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.

(xiii) In our opinion and according to the information and explanation given to us the company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) ofthe Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

(xiv) In our opinion and according to the information and explanation given to us the, the company is not dealing in or trading in shares, securities, debentures and other investment. Accordingly the provisions of clause 4(xiv) ofthe Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

(xv) In our opinion and according to the information and explanation given to us the Company has not given any guarantee for loans from bank and financial institutions on behalf of others.

(xvi) In our opinion and according to the information and explanation given to us the term loans have been applied for the intended purpose for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long - term investment. No long - term funds have been used to finance short-term assets except permanent working capital.

(xviii) In our opinion and according to the information and explanations given to us, 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 raised any funds by the way of debenture issue. Accordingly, the provisions of clause 4(xix) of the Companies (Auditor''s Report) Order, 2003 is not applicable to the company.

(xx) During the period covered by our audit report, the Company has not raised any money by public issues.

(xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, we have not come across any instance of fraud on or by the Company nor have we been informed by the management of any such instance being noticed or reported during the year.

K S Sanghvi & Co Chartered Accountants

Firm Registration Number: 116714W (Hitendra Doshi)

Partner

(Membership No.:40201)

PLACE: MUMBAI

DATED: 30th May, 2013.


Mar 31, 2010

1 We have audited the attached Balance Sheet of Shalibhadra Finance Limited as at 31st March, 2010 and Profit & Loss account for the year ended on that date and the Cash Flow statement for the year ended on that date. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit

2. 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 tree of material misstatement. An audit includes examining, on a test basis evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principals used and significant estimates made by Management, as well as evaluating the overall presentation of financial statement. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003, issued by the Government of India in terms of subsection (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure, a statement on the matter specified in Para 4 mid 5 of the said order to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph 3 above:

a. We have obtained all the information and explanations necessary for the purpose of our audit except (i) information about the amount of liability in respect of provision for gratuity, leave encashment and other retirement benefits as prescribed by AS 15 "Employee Benefits" issued by the Institute of Chartered Accountants of India, and (ii) the information on Bank Reconciliation Statement of certain bank accounts.

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 the books.

c. The Company has not made provision for gratuity, leave encashment and other retirement benefits as prescribed by AS 15 "Employee Benefits" issued by the Institute of Chartered Accountants of India. In the absence of the information as regard the amount of the liability, the impact of non-provision on the he profit of the Company for the year ended 31 Mar 2010 is unascertainable and overstated to the extent of the non provision and the provisions of the Company are understated to the extent of the non provision.

d. Subject to our comment in point (c) above, in our opinion the Balance Sheet and Profit & Loss complies with the accounting standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956.

e. On the basis of written representation received from Directors as on 31st March, 2010 and taken on record by the Board of Directors. We report that none of the Directors are 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. Subject to paragraphs 4(a), 4(b) and 4(c) above, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon give the information required by the Companies Act 1956, in the manner as required give a true and fair view in conformity with the accounting principles generally accepted in India:

i. In the case of the Balance Sheet of the State of Affairs of the Company as at March 31st, 2010.

ii. In the case of the Profit & Loss account, of the profit of the Company for the year ended on that date.

iii. In case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Annexure to the Auditors Report

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, physical verification of fixed assets as at March 31, 2010 was conducted by the management of the company during the year. In our opinion the frequency of physical verification is reasonable. Having regards to the size of the operations of the company and on the basis of explanations received, in our opinion, there were no differences found on physical verification.

(ii) (a) Except for the stocks on hire, the legal ownership of which is to be transferred to the hirers on receipt of the last installment from them, the Company does not have any stocks of inventory. The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) 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.

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

(iii) (a) The company has not granted any unsecured loans to companies, firms and other parties as covered in the register maintained under section 301 of the Companies Act, 1956. As a result, this clause alongwith sub clauses (b), (c) and (d) are not applicable.

e. There are 16 (sixteen) parties covered in the register maintained under section 301 of the Companies Act, 1956 from whom the loans have been taken. The year end balance was Rs 7.91 crores.

f. In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions as stipulated on which the company has taken the loans from firms and other parties required to be listed in the register maintained under section 301 of the Companies Act, 1956, are prima facie not prejudicial to the interest of the company.

g. The Company is regular in repaying the principal amounts as stipulated and has been regular in payment of interest stipulated to the firms and companies or other related parties listed in the register maintained under section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the company and nature of its business for purchase of inventories and fixed assets and for sale of services. During the course of our audit no major weakness has been observed in the internal control procedures.

(v) (a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and having regard to our comments in paragraph (iii) above, and according to the information and explanations given to us, particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section and the transactions exceeding the value of Rupees Five Lacs in respect of any party during the year have been made at price which are reasonable having regard to prevailing market prices at the relevant time where such market prices are available.

(vi) The Company has not accepted any deposits from the public within the meaning of Section 58A and Section 58AAof the Companies Act 1956 and the rules framed there under.

(vii) The Company does not have an internal audit system.

(viii) As informed to us, the maintenance of cost records has not been prescribed by the Central Government under Section 209(1 )(d) of the Companies Act, 1956, in respect of activities carried on by the Company.

(ix) (a) According to the information an explanation given to us, the company is generally regular in depositing with the appropriate authorities in India the undisputed statutory dues under income Tax act and other material statutory dues as applicable to it.

(b) At the end of the financial year there were no undisputed amounts payable in respect of income tax and other statutory dues as applicable, for a period of more then six months from the date they become payable.

(x) The Company does not have accumulated losses. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding Financial Year.

(xi) In our opinion and according to the information and explanation given to us the company has not defaulted in repayment of its dues to any bank or financial institution during the year.

(xii) In our opinion and according to the information and explanation 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.

(xiii) In our opinion and according to the information and explanation given to us the company is not a chit fund or a nidhi / mutual benefit fund / society Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

(xiv) In our opinion and according to the information and explanation given to us the, the company is not dealing in or trading in shares, securities, debentures and other investment. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

(xv) In our opinion and according to the information and explanation given to us the Company has not given any guarantee for loans from bank and financial institutions on behalf of others.

(xvij In our opinion and according to the information and explanation given to us the term loans have been applied for the intended purpose for which they were obtained,

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long term investment. No long term funds have been used to finance short-term assets except permanent working capital.

(xviii) In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment of shares to parlies and Companies covered in the register maintained under section 301 of the Companies Act 1956.

(xix) The Company has not raised any funds by the way of debenture issue. Accordingly, the provisions of clause 4(xix) of the Companies (Auditors Report) Order, 2003 is not applicable to the company.

(xx) During the period covered by our audit report, the Company has not raised any money by public issues.

(xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, we have not come across any instance of fraud on or by the Company nor have we been informed by the management of any such instance being noticed or reported during the year.

For K S Sanghvi& Co.,

Chartered Accountants,

Firm Registration Number: 116714W

PLACE: MUMBAI

DATED: 8th SEPTEMBER 2010

(Hitendra Doshi)

Partner

(Membership No 40201)


Mar 31, 2009

1. We have audited the attached Balance Sheet of Shalibhadra Finance Limited as at 31sl March, 2009 and also the annexed Profit & Loss of the Company for the year ended on that date. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit

2. 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 tree of material misstatement. An audit includes examining, on a test basis evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principals used and significant estimates made by management, as well as evaluating the overall presentation of financial statement. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003, issued by the Government of India in terms of sub section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure, a statement on the matter specified in Para 4 mid 5 of the said order to the extent applicable.

4. Furtherto our comments in the Annexure referred to in paragraph 3 above:

a. We have obtained all the information and explanations except bank balance reconciliation statements in respect of certain bank accounts which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of account as required by law have been kept by the company so far as it appears from our examination of the books.

c. The Balance Sheet and Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

d. In our opinion the Balance Sheet and Profit & Loss complies with the accounting standards referred to in Sub-section (IC) of Section 211 of the Companies Act, 1956 except the accounting standard relating to Accounting for Taxes on Income.

e. On the basis of written representation received from Directors as on 31" March, 2009 and taken on record by the Board of Directors. We report that none of the Directors are disqualified as on 31* March, 2009 from being appointed as a Director in terms of Clause (g) of sub-section (1) of Section 274 of the Companies Act 1956.

f. The Company has not followed the accounting standards: Accounting for Taxes on income and accounting standard on Employees Benefits. It is not possible to quantify the effect of non observance of these accounting standards on the results of the company. Subject to this, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon give the information required by the Companies Act 1956, in the manner as required give a true and fair view in conformity with the accounting principles generally accepted in India.

i. In the case of the Balance Sheet of the State of Affairs of the Company as at March 31", 2009.

ii. In the case of the Profit & Loss account, of the PROFIT of the Company for the year ended on that date.

iii. In case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, physical verification of fixed assets as at March 31, 2009 was conducted by the management of the company during the year. In our opinion the frequency of physical verification is reasonable. Having regards to the size of the operations of the company and on the basis of explanations received, in our opinion, there were no differences found on physical verification.

(ii) (a) Except for the stocks on hire, the legal ownership of which is to be transferred to the hirers on receipt of the last installment from them, the Company does not have any stocks of inventory. The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) 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.

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

(iii) (a) There are parties as covered in the register maintained under section 301 of the Companies Act 1956 from which the company has taken loan. The year-end balance of loans taken from such parties is Rs. 7,01,41,733/-

(b) The company has not granted any unsecured loans to companies, firms and other parties as covered in the register maintained under section 301 of the Companies Act, 1956.

(c) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions as stipulated on which the company has taken the loans from firms and other parties required to be listed in the register maintained under section 301 and section 370(1 B) of the Companies Act, 1956, are prima facie not prejudicial to the interest of the company.

(d) The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest stipulated to the firm and companies, or other related parties listed in the register maintained under section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the company and nature of its business for purchase of inventories and fixed assets and for sale of goods. During the course of our audit no majorweakness have been observed in the internal control procedures.

(v) (a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under Section 301 of the Companies Act,1956 have been so entered.

(b) In our opinion and having regard to our comments in paragraph (iii) above, and according to the information and explanations given to us, particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section and the transactions exceeding the value of Rupees Five Lacs in respect of any party during the year have been made at price which are reasonable having regard to prevailing market prices at the relevant time where such market prices are available.

(vi) The Company has not accepted any deposits from the public within the meaning of Section 58Aand Section 58AAof the Companies Act 1956 and the rules framed there under.

(vii) As informed to us, the Company has no formal internal audit department as such but its internal control procedures ensure reasonable internal check of its financial and other records.

(viii) As informed to us, the maintenance of cost records has not been prescribed by the Central Government under Section 209(1 )(d) of the Companies Act, 1956, in respect of activities carried on by the Company.

(ix) (a) According to the information an explanation given to us, the company is generally regular in depositing with the appropriate authorities in India the undisputed statutory dues under income Tax act and other material statutory dues as applicable to it. However the provisions of the Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues are not applicable.

(b) At the end of the financial year there were no undisputed amounts payable in respect of income tax and other statutory dues as applicable, for a period of more then six months from the date they become payable.

(x) The Company does not have accumulated losses. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding Financial Year

(xi) In our opinion and according to the information and explanation given to us the company has not defaulted in repayment of its dues to any bank or financial institution during the year.

(xii) In our opinion and according to the information and explanation 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.

(xiii) In our opinion and according to the information and explanation given to us the company is not a chit fund or a nidhi/mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

(xiv) In our opinion and according to the information and explanation given to us the, the company is not dealing in or trading in shares, securities, debentures and other investment. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

(xv) In our opinion and according to the information and explanation given to us the Company has not given any guarantee for loans from bank and financial institutions on behalf of others.

(xvi) In our opinion and according to the information and explanation given to us the term loans have been applied for the intended purpose for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long - term investment. No long - term funds have been used to finance short- term assets except permanent working capital.

(xviii) In our opinion and according to the information and explanations given to us, 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 raised any funds by the way of debenture issue. Accordingly, the provisions of clause 4(xix) of the Companies (Auditors Report) Order, 2003 is not applicable to the company.

(xx) During the period covered by our audit report, the Company has not raised any money by public issues.

(xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, we have not come across any instance of fraud on or by the Company nor have we been informed by the management of any such instance being noticed or reported during the year.

For K. S. SANGHAVI & Co., Chartered Accountants,

Place: Mumbai (HITENDRAA.DOSHI)

Partner

Dated: 8th September, 2009. (Membership No,40201)

 
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