Mar 31, 2023
Independent Auditorsâ Report
To the members of
Dharani Finance LimitedReport on the audit of the Standalone Financial
Statements
Qualified Opinion
We have audited the accompanying financial
statements of Dharani Finance Limited, (âthe
Companyâ), which comprise of the Balance Sheet as
at March 31, 2023, and the statement of profit and
loss (including other comprehensive income), the
statement of changes in equity and the statement of
cash flows for the year then ended, and notes to the
standalone financial statements, including a summary
of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and
according to the explanations given to us, subject to
the effects of the matter described in the Basis for
Qualified Opinion section of our report, the aforesaid
standalone financial statements give the information
required by the Companies Act 2013 (âthe Actâ) in
the manner so required and give a true and fair view
in conformity with the Indian Accounting Standards
prescribed under Section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules,
2015, as amended, (âInd ASâ) and other accounting
principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2023, and
its loss, total comprehensive income, the changes in
equity and its cash flows for the year ended as on that
date.
Basis for Qualified Opinion
We draw attention to the following matters:
a) Note 40 which explains that a corporate insolvency
resolution process (CIRP) and the appointment
of a resolution professional were admitted in
the case of one of the major customers of the
Company by the Hon''ble National Company Law
Tribunal (NCLT), Chennai Bench vide its order
dated May 5, 2020. The total amount due from the
above referred major customer to the Company
as at March 31,2023 is Rs. 544.30 Lakhs (net of
provisions). The Company has filed its claims with
the Resolution Professional of the said customer.
However, we were informed by the management
that a major part of the assets of the customer
comprises of land and commercial buildings
(including a well-known brand name in the hotel
industry), whose liquidation value is much higher
than the total dues to its financial and operating
creditors (including that of the Company) and the
resolution plan approved is not in line with the
actual value of the assets. The management also
confirmed that the resolution professional has not
followed the due process of CIRP and accordingly,
the resolution plan approved is not proper as per
law. It was also informed to us that the customer
has filed an application before the Hon''ble National
Company Law Appellate Tribunal (âNCLATâ)
praying for quashing the order of the Hon''ble NCLT.
The Hon''ble NCLAT has set aside the resolution
plan approved and ordered to recommence the
CIRP process, including the consideration of 12A
application filed by the promoters of the customer
company. On an appeal against the order of
the Hon''ble NCLAT, the Hon''ble Supreme Court
has delivered their judgement on May 3, 2023
seeking the Adjudicating Authority to deal with
fresh settlement proposal of the promoter, as
approved by the CoC in its Nineteenth meeting
dated October 12, 2022 while keeping in view
the law applicable and the facts of the present
case as also the observations as provided in the
Judgement.
Accordingly, in the opinion of the management,
as per the promoters'' settlement proposal u/s.
12A of the IBC, the dues of all the secured and
unsecured financial creditors, operational creditors
and all other stake holders including shareholders
have been fully accommodated. The major part
of the assets of the customer comprises of land
and commercial buildings (including a well-known
brand name in the hotel industry), whose liquidation
value is much more than the total dues to its
financial and operating creditors (including that of
the Company) and accordingly, the Company will
be able to recover the entire outstanding dues from
the customer, based on the developments in the
CIRP proceedings. Based on the above estimate
and based on the fact that the customer''s account
was a fully performing asset before the admission
of the CIRP, no provision towards allowance for
expected credit loss in respect of the dues from
the aforesaid customer was considered by the
Company in the financial statements.
Due to uncertainties involved in the CIRP process
as detailed above, the impact, if any, on the
financial statements are not presently determinable
in respect of the above matter.
b) Note 41 which explains that the Hon''ble National
Company Law Tribunal, Chennai Bench vide its
order dated July 29, 2021 admitted a corporate
insolvency resolution process (CIRP) and
approved the appointment of an interim resolution
professional, in one of the investee companies.
The carrying amount of investments as at March
31, 2023 is Rs. 21.99 Lakhs. In the opinion of
the management, the major part of the assets
of the investee company comprises of factory
land, buildings and plant and machinery, whose
liquidation value is much higher than the total
dues to its financial and operating creditors.
Accordingly, the Company will be able to recover
the entire carrying value of the investments, even
in the aforesaid CIRP conditions. Based on the
above estimate made by the management, no
adjustment has been made in the fair value of such
investment.
In the absence of a comprehensive external
valuation/ appraisal report of the resolution
professional of the Investee company supporting
the management''s estimate of possible full
recovery of the carrying value of the investments,
we are unable to comment on the appropriateness
of not making any provision for the possible
decrease in fair value of the aforesaid investment.
c) Had the Company considered making provision for
the outstanding balance referred to in (a) above,
the net owned funds of the Company as at March
31, 2023 will be lower than the limits prescribed
under Section 45-IA of the Reserve Bank of India
Act, 1934 for a Non-Banking Financial Services
Company (NBFC). Thus, the Company''s ability
to continue as an NBFC and as a going concern
may depend on infusion of further capital to meet
the minimum net owned funds criteria as per RBI
norms within the prescribed time limit and on
identification of alternative business plans.
d) The matters referred to in (a) to (c) also cast
a significant doubt on the Company''s ability to
continue as a going concern and accordingly, we
are unable to comment on the appropriateness
of management''s assumption of preparing the
standalone financial statements on a going
concern basis.
Our opinion on the financial statements is qualified
in respect of the matters (a) to (d) referred above.
The above matters have also been qualified in the
audit opinion on the financial statements of the
earlier years audited by previous auditors.
We conducted our audit in accordance with the
standards on auditing (SAs) specified under
section 143(10) of the Act. Our responsibilities
under those standards are further described in
the Auditor''s responsibilities for the audit of the
financial statements section of our report. We
are independent of the Company in accordance
with the code of ethics issued by the Institute of
Chartered Accountants of India (âICAIâ) together
with the ethical requirements that are relevant to
our audit of the financial statements under the
provisions of the Act and the Rules thereunder, and
we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI''s
code of ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Material Uncertainty Related to Going Concern
The matters more fully explained in the Basis for
Qualification Section of our opinion cast a significant
doubt on the Company''s ability to continue as a going
concern. Considering the management estimate
of recovering the entire outstanding from the major
customer, we were informed that these financial
statements have been prepared on a going concern
basis. This is a matter of qualification in our opinion on
these financial statements.
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the financial statements of the current
period. These matters were addressed in the context
of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Dues from a major customer
In our opinion and based on the information and
explanations given to us, there are no other key audit
matters to be communicated in our report, other than
those morefully described in the basis of qualified
opinion paragraph of our report which describes the
uncertainties arising from the order of the Hon''ble
Company Law Tribunal in respect of a major customer.
Information other than the financial statements
and auditorsâ report thereon
The Company''s board of directors is responsible for
the preparation of the other information. The other
information comprises the information included in the
Management Discussion and Analysis, Board''s Report
including Annexures to Board''s Report, Business
Responsibility Report, Corporate Governance and
Shareholder''s Information, but does not include the
financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover
the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the standalone financial
statements or our knowledge obtained during the
course of our audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other
information, we are required to report that fact. We
have nothing to report in this regard.
Managementâs responsibility for the financial
statements
The Company''s board of directors is responsible for
the matters stated in Section 134 (5) of the Companies
Act, 2013 (âthe Actâ) with respect to the preparation of
these financial statements that give a true and fair view
the financial position, financial performance including
other comprehensive income, cash flows and changes
in equity of the Company in accordance with the Indian
Accounting Standards (Ind AS) prescribed under
Section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, and
other accounting principles generally accepted in India.
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 Company''s ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The board of directors are also responsible for
overseeing the Company''s financial reporting process.
Auditorsâ responsibility for the audit of the financial
statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor''s report that
includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
⢠Identify and assess the risks of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
⢠Obtain an understanding of internal controls
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for
expressing our opinion on whether the company
has adequate internal financial controls system
in place and the operating effectiveness of such
controls.
⢠Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by management.
⢠Conclude on the appropriateness of management''s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company''s ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor''s
report to the related disclosures in the financial
statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of
our auditor''s report. However, future events or
conditions may cause the Company to cease to
continue as a going concern.
⢠Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events
in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in
the financial statements that, individually or in
aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the
financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i)
planning the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the effect
of any identified misstatements in the financial
statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements of the current period and are therefore the
key audit matters. We describe these matters in our
auditor''s report unless law or regulation precludes
public disclosure about the matter or when, in
extremely rare circumstances, we determine that a
matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory
Requirements
As required by the Companies (Auditor''s Report)
Order, 2020 (âthe Orderâ) issued by the Central
Government in terms of Section 143 (11) of the Act,
we give in Annexure âAâ a statement on the matters
specified in clauses 3 and 4 of the Order.
As required by Section 143 (3) of the Act, based on our
audit 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) In our opinion, subject to our comments in the basis
for qualified opinion section above, the balance
sheet, the statement of profit and loss (including
other comprehensive income), the statement of
changes in equity and the statement of cash flows
comply with the Companies (Indian Accounting
Standards) Rules, 2015 (Ind AS), as amended
from time to time, prescribed under Section 133 of
the Companies Act, 2013;
d) The balance sheet, the statement of profit and
loss (including other comprehensive income), the
statement of changes in equity and the statement
of cash flows dealt with by this report are in
agreement with the books of account;
e) On the basis of the written representations
received from the directors of the Company as
on March 31, 2023 taken on record by the board
of directors, none of the directors are disqualified
as on March 31, 2023 from being appointed as a
director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal
financial controls over financial reporting of the
Company and the operating effectiveness of such
controls, refer to our separate report in Annexure
âBâ. Our report expresses an unmodified opinion
on the adequacy and operating effectiveness of
the Company''s internal financial controls over
financial reporting;
g) With respect to the other matters to be included
in the Auditor''s Report in accordance with the
requirements of section 197 (16) of the Act, as
amended, in our opinion and to the best of our
information and according to the explanations
given to us, the remuneration paid by the Company
to its directors during the year is in accordance
with the provisions of Section 197 of the Act; and
h) With respect to the other matters to be included in
the auditors'' report in accordance with rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
as amended, in our opinion and to the best of our
information and according to the explanations
given to us:
i. The Company does not have any pending
litigation 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; and
iii. There has been no delay in transferring
amounts, required to be transferred, to the
investor education and protection fund by the
Company.
iv. The management has represented that, to the
best of its knowledge and belief, other than as
disclosed in the notes to the accounts,
a) no funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources
or kind of funds) by the company to or in
any other person(s) or entity(ies), including
foreign entities âIntermediaries'', with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
company âUltimate Beneficiaries'' or provide
any guarantee, security or the like on behalf
of the Ultimate Beneficiaries; and
b) no funds have been received by the
company from any person(s) or entity(ies),
including foreign entities âFunding Parties'',
with the understanding, whether recorded in
writing or otherwise, that the company shall,
whether, directly or indirectly, lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party âUltimate Beneficiaries'' or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.
c) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain
any material misstatement.
v. The Company has not declared or paid any
dividends during the year and accordingly
reporting on the compliance with section 123 of
the Companies Act, 2013 is not applicable for
the year under consideration.
Chartered Accountants
Firm Registration Number 014921S
Partner
Place: Chennai Membership Number 230195
Date: May 26, 2023 UDIN:23230195BGUNMU9280
Mar 31, 2014
We have audited the accompanying financial statements of M/s. Dharani
Finance Limited ("the company"), which comprise the Balance Sheet as at
March 31,2014, and the statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). (which continue to be
applicable in terms of the General Circular no 15/2013 dated 13th
September 2013 of the MCA 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 appropriates of accounting policies used and
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014
(b) In the case of the Profit and Loss Account, of the profit /loss for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory
Requirements
Handbook of Auditing Pronouncements-I.A
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India of sub-section (4A)
of section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with this Report are in agreement with the books of ac
count;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
(which continue to be applicable in terms of the General Circular no
15/2013 dated 13th September 2013 of the MCA in respect of section 133
of the Companies Act, 2013.)
e. On the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the auditors'' report
The Annexure referred to in the auditors'' report to the members of
Dharani Finance Limited (the Company) for the year ended March 31,
2014. We report that:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In accordance with
such programme, the management has physically verified fixed assets
during the year and no material discrepancies were noticed on such
verification.
During the year, the Company has not disposed off substantial part of
its fixed assets, which will affect the going concern status of the
Company.
2. The Stock of finished goods, stores, spare parts and raw materials
have been physically verified during the year by the management. In
our opinion, the frequency of verification is reasonable.
The procedures for physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper re cords of the inventory. The
discrepancies noticed on verification between physical stocks and book
records were not material and the same have been dealt with in the
books of account
3. The company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of Companies Act, 1 956.
Accordingly, the provisions of sub claused (b),(c),(d),(f) and (g) of
the clause (iii) of paragraph 4 of Companies (Auditors Report)
Amendment order, 2004 are not applicable to the Company.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchase of inventory, fixed assets and for
its business activities. We have not noted any continuing failure to
correct major weakness in the internal controls during the course of
the audit.
5. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder are not
applicable.
7. The Company has no separate internal audit system. However in our
opinion the existing internal control procedures are sufficient,
considering the size and nature of its business.
8. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under clause (d) of sub-section (1) of Section 209 of the Companies
Act, 1956 in respect of services carried out by the Company.
9. 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 regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employee''s state insurance,
income-tax, sales-tax, customs duty, investor education and protection
fund, wealth tax, service tax and any other material statutory dues
applicable to it.
According to the information and explanations given to us, no
undisputed dues payable in respect of income-tax, sales tax, wealth
tax, service tax, customs duty and cess were outstanding at 31st March
2014 for a period of more than six months from the date they became
payable.
10. The Company''s accumulated losses do not exceed fifty percent of
its net worth. The company has not incurred cash losses in the
financial year covered by our audit and in the immediately preceding
financial year.
11. The Company has not defaulted in repayment of dues to Bank /
financial institution in terms of clause 4 (xii) of the order.
b) Statement of Disputed Dues
Name of the Nature of Amount Period to Forum where
Statute the Dues Rs. Which the dispute is
(lakhs) Amount pending
Relates
-- NIL --
12 According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pletge of shares, debentures and other securites.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the order
is not applicable.
16. The Company has not obtained any term loans. Accordingly, clause
4(xvi) of the order is not applicable.
17. In our opinion, the funds raised on short term basis have not been
used for long term investment during the year.
18. The Company has not made any prefer ential allotment of shares to
parties and companies covered in the register main tained under section
301 of the Act. Accordingly, clause 4(xviii) of the order is not
applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. 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 K. RAMKRISH & CO.,
Chartered Accountants
Firm''s Registration # 003017S)
S.BASKAR SHRINIVAS
Partner
Membership # 209004
Place: Chennai
Date : 29/05/2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Dharani
Finance Limited ("the companyÂ), which comprise the Balance Sheet as at
March 31, 2013, and the statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the ActÂ). 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 appropriates of accounting policies used and
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 Profit and Loss Account, of the profit/loss for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
Handbook of Auditing Pronouncements-I.A
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ) issued by the Central Government of India of sub-section (4A)
of section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books .
c. The Balance sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with in this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
3. 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. Forming an Opinion and
Reporting on Financial Statements
Annexure to the auditors'' report
The Annexure referred to in the auditors'' report to the members of
Dharani Finance Limited (the Company) for the year ended March 31,
2013. We report that:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets
The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In accordance with
such programme, the management has physically verified fixed assets
during the year and no material discrepancies were noticed on such
verification.
During the year, the Company has not disposed off substantial part of
its fixed assets, which will affect the going concern status of the
Company.
2. The Stock of Finished goods, stores, spare parts and raw materials
have been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
The procedures for physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper records of the inventory. The
discrepancies noticed on verification between physical stocks and book
records were not material and the same have been dealt with in the
books of account
3. 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.
4. 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.
5. 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 purchase of inventory, fixed
assets and for its business activities We have not noted any continuing
failure to correct major weakness in the internal controls during the
course of the audit. j
6. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
7. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder are not
applicable.
8. The Company has no separate internal audit system. However in our
opinion the existing internal control procedures are sufficient,
considering the size and nature of its business.
9. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under clause(d) of sub-section (1) of Section 209 of the Companies Act,
1956 in respect of services carried out by the Company.
10. 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 regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employee''s state insurance,
income-tax, sales-tax, customs duty, investor education and protection
fund, wealth tax, Service tax and any other material statutory dues
applicable to it.
According to the information and explanations given to us, no
undisputed dues payable in respect of income-tax, sales tax, wealth
tax, service tax, customs duty and cess were outstanding at 31st March
2013 for a period of more than six months from the date they became
payable.
11. The Company''s accumulated losses do not exceed fifty percent of
its net worth. The company has not incurred cash losses in the
financial year covered by our audit and in the immediately preceding
financial year.
12. The Company has not defaulted in repayment of dues to Bank
/financial institution in terms of clause 4(xi) of the order.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the order
is not applicable.
16. The Company has not obtained any term loans. Accordingly, clause
4(xvi) of the order is not applicable.
17. In our opinion, the funds raised on short term basis have not been
used for long term investment 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. Accordingly, clause 4(xviii) of the order is not
applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. 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 K. RAMKRISH & CO.,
Chartered Accountants
(Firm''s Registration # 003017S)
S.BASKAR SHRINIVAS
Partner
Membership # 209004
Place: Chennai
Date : 30.05.2013
Mar 31, 2012
We have audited the attached Balance Sheet of Dharani Finance Limited
(the Company) as at March 31, 2012, the Profit and Loss Account and
Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. 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 that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
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.
As required by the Companies (Auditor's Report) (Amendment) Order,
2004, issued by the Central Government of India in terms of sub-section
(4A) of Section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
Further to our comments in the Annexure referred to above, we report
that:
(a) we have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report 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, 2012, and taken on record by the Board of
directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956;
(f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure to the auditors' report
The Annexure referred to in the auditors' report to the members of
Dharani Finance Limited (the Company) for the year ended March 31,
2012. We report that:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In accordance with
such programme, the management has physically verified fixed assets
during the year and no material discrepancies were noticed on such
verification.
During the year, the Company has not disposed off substantial part of
its fixed assets, which will affect the going concern status of the
Company.
2. The stock of finished goods, stores, spare parts and raw materials
have been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
The procedures for physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper records of the inventory. The
discrepancies noticed on verification between physical stocks and book
records were not material and the same have been dealt with in the
books of account
3. The Company has not taken any loans, secured or unsecured to or
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
4. The Company has granted unsecured loans amounting to Rs. 25 lakhs
to one Company covered in the register maintained under section 301 of
the Companies Act, 1956 during the current financial year. The total
amount of loan outstanding at the end of the year is Rs. NIL. According
to the Information and explanations given to us, in our opinion the
rate of interest and the terms and conditions on which unsecured loans
have been granted to Companies and other parties listed in the register
maintained under section 301 of the Companies Act, 1956, are not
prima-facie prejudicial to the interest of the company.
5. 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 purchase of inventory, fixed assets and for
its business activities. We have not noted any continuing failure to
correct major weakness in the internal controls during the course of
the audit.
6. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
7. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder are not
applicable.
8. The Company has no separate internal audit system. However in our
opinion the existing internal control procedures are sufficient,
considering the size and nature of its business.
9. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under clause (d) of sub-section (1) of Section 209 of the Companies
Act, 1956 in respect of services carried out by the Company.
10. 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 regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employee's state insurance,
income-tax, sales-tax, customs duty, investor education and protection
fund, wealth tax, Service tax and any other material statutory dues
applicable to it.
According to the information and explanations given to us, no
undisputed dues payable in respect of income-tax, sales tax, wealth
tax, service tax, customs duty and cess were outstanding at 31st March
2012 for a period of more than six months from the date they became
payable.
b) Statement of Disputed Dues
Name of the Nature of Amount Period to Forum where
Statute the Dues Rs. Which the dispute is
(lakhs) Amount pending
Relates
-NIL -
11. The Company's accumulated losses do not exceed fifty percent of
its net worth. The company has not incurred cash losses in the
financial year covered by our audit and in the immediately preceding
financial year.
12. The Company has not defaulted in repayment of dues to
Bank/financial institution in terms of clause 4(xi) of the order.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the order
is not applicable.
16. The Company has not obtained any term loans. Accordingly, clause
4(xvi) of the order is not applicable.
17. In our opinion, the funds raised on short term basis have not been
used for long term investment 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. Accordingly, clause 4(xviii) of the order is not
applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. 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 K. RAMKRISH & CO.,
Chartered Accountants
(Registration # 003017S)
K. RAMKRISHNAN
Partner
Membership # 20963
Place: Chennai
Date : 23.05.2012
Mar 31, 2010
We have audited the attached Balance Sheet of Dharani Finance Limited
(the Company) as at March 31, 2010, the Profit and Loss Account and
Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
As required by the Companies (Auditors Report) (Amendment) Order,
2004, issued by the Central Government of India in terms of sub-section
(4A) of Section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
Further to our comments in the Annexure referred to above, we report
that:
(a) we have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report 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, 2010, and taken on record by the Board of
directors, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of Section
274(1 )(g) of the Companies Act, 1956;
(f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in the auditors report to the members of
Dharani Finance Limited (the Company) for the year ended March 31,2010.
We report that:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In accordance with
such programme, the management has physically verified fixed assets
during the year and no material discrepancies were noticed on such
verification.
During the year, the Company has not disposed off substantial part of
its fixed assets, which will affect the going concern status of the
Company.
2. The Companys nature of operations does not require it to hold
inventories. Accordingly, clause 4(ii) of the Companies (Auditors
Report) (Amendment) Order, 2004 (the Order ) is not applicable.
3. The Company has neither granted nor taken any loans, secured or
unsecured to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of fixed assets and for its business
activities. We have not noted any continuing failure to correct major
weakness in the internal controls during the course of i the audit.
5. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder are not
applicable.
7. The Company has no separate internal audit system. However in our
opinion the existing internal control procedures are sufficient,
considering the size and nature of its business.
8. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under clause (d) of sub-section (1) of Section 209 of the Companies
Act, 1956 in respect of services carried out by the Company.
9. 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 regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees state insurance,
income-tax, sales-tax, customs duty, investor education and protection
fund, wealth tax, Service tax and any other material statutory dues
applicable to it.
According to the information and explanations given to us, no
undisputed dues payable in respect of income-tax, sales tax, wealth
tax, customs duty and cess were outstanding at 31st March 2010 for a
period of more than six months from the date they became payable.
b) Statement of Disputed Dues
Amount Period to Forum
Name of the Statute Nature of the (Rs. in which the where
Dues lakhs) Amount dispute is
Relates pending
NIL NIL NIL NIL NIL
10. The Companys accumulated losses do not exceed fifty percent of
its net worth. The company has not incurred cash losses in the
financial year covered by our audit and in the financial year
immediately preceding such financial year.
11. The Company has not defaulted in repayment of dues to Bank
/financial institution in terms of clause 4(xi) of the order.
12. The Company has granted loans and advances on the basis of
security by way of pledge of shares, securities. In our opinion, the
company has maintained adequate and proper records in respect of the
same.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv) of the
order is not applicable.
16. The Company has not obtained any term loans. Accordingly, clause
4(xvi) of the order is not applicable.
17. In our opinion, the funds raised on short term basis have not been
used for long term investment 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. Accordingly, clause 4(xviii) of the order is not
applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. 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 K. RAMKRISH & CO.,
Chartered Accountants
(Registration # 003017S)
K. RAMKRISHNAN
Partner
Membership # 20963
Place: Chennai
Date : 26.05.2010