Mar 31, 2015
We have audited the accompanying financial statements of M/S. SHUBHRA
LEASING FINANCE AND INVESTMENT COMPANY LTD ("the company"), which
comprise the Balance Sheet as at 31 March 2015, the Statement of Profit
and Loss, the 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
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
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 principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material mis-statement.
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 financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) The going concern matter described in sub-paragraph (b) under the
Emphasis of Matters paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company.
g) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
h) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our report to the members of M/S. SHUBHRA
LEASING FINANCE AND INVESTMENT COMPANY LTD (the Company') for the year
Ended on 31/03/2015. We report that:
1. a) Whether the company is maintaining proper records showing full
Particulars, including quantitative details and situation of fixed
Assets: - The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
b) Whether these fixed assets have been physically verified by the
Management at reasonable intervals; whether any material discrepancies
were noticed on such verification and if so, whether the same have been
properly dealt with in the books of account:- The fixed assets are
physically verified by the Management according to a phased programme
designed to cover all the items every year which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. Pursuant to the programmer, a portion of the fixed assets
has been physically verified by the Management during the year and no
material discrepancies have been noticed on such verification.
2. a) Whether physical verification of inventory has been conducted at
Reasonable Intervals by the management: - The inventory has been
physically verified by the Management during the year. In our opinion,
the frequency of verification is reasonable and no material
discrepancies were found.
b) Are the procedures of physical verification of inventory followed by
the management reasonable and adequate in relation to the size of the
company and the nature of its business If not, the inadequacies in such
procedures should be reported: - 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) Whether the company is maintaining proper records of inventory and
whether any material discrepancies were noticed on physical
verification and if so, whether the same have been properly dealt with
in the books of Account: - On the basis of our examination of the
inventory records, in our opinion, the Company is maintaining proper
records of inventory and no material discrepancies were noticed.
3. The company has granted loans, secured or unsecured to companies,
Firms or other parties Covered in the register maintained under section
189 of the Companies Act.
a) Whether receipt of the principal amount and interest are also
regular;- There are no such loans and hence the said clause is not
applicable
b) If overdue amount is more than rupees one lakh, whether reasonable
steps have been taken by the company for recovery of the principal and
interest: - There are no such loans and hence the said clause is not
applicable.
4. Is there an adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services
whether there is a continuing failure to correct major weaknesses in
internal control system:- -In our opinion, and according to the
information and explanations given to us, there is an adequate internal
control system commensurate with the size of the Company and the nature
of its business for the purchase of inventory and fixed assets and for
the sale of goods and services. Further, on the basis of our
examination of the books and records of the Company, and according to
the information and explanations given to us, we have neither come
across, nor have been informed of, any continuing failure to correct
major weaknesses in the aforesaid internal control system.
5. In case the company has accepted deposits, whether the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under, where applicable, have been complied with? I
not, the nature of contraventions should be stated; If an order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal, whether the
same has been complied with or not: -The Company has not accepted any
deposits from the public within the meaning of Sections 73 and 74 of
the Act and the rules framed there under to the extent notified.
6. Where maintenance of cost records has been specified by the Central
Government under sub-section (1) of section 148 of the Companies Act,
whether such accounts and records have been made and maintained: -
Maintenance of Cost records is not applicable to the company pursuant
to the rules made by the Central Government of India regarding the
maintenance of cost records under sub- section (1) of Section 148 of
the Act.
7. a. Is the company 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 statutory dues with the appropriate
authorities and if not, the extent of the arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable, shall
be indicated by the auditor: -According to the information and
explanations given to us and the records of the Company examined by us,
in our opinion, the Company is regular in depositing the 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 and other material statutory dues, as
applicable, with the appropriate authorities.
b. In case dues of income tax or sales tax or wealth tax or service tax
or duty of customs or duty of excise or value added tax or cess have
not been deposited on account of any dispute, then the amounts involved
and the forum where dispute is pending shall be mentioned. (A mere
representation to the concerned Department shall not constitute a
dispute): - According to the information and explanations given to us
and the records of the Company examined by us, there are no dues of
income-tax, wealth-tax and service tax which have not been deposited on
account of any dispute.
c. Whether the amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time: - The said clause is not
applicable to the company.
8. Whether in case of a company which has been registered for a period
not less than five years, its accumulated losses at the end of the
financial year are not less than fifty per cent of its net worth and
whether it has incurred cash losses in such financial year and in the
immediately preceding financial year: - The Company has no accumulated
losses as at the end of the financial year and it has not incurred any
cash losses in the financial year ended on that date or in the
immediately preceding financial year.
9. Whether the company has defaulted in repayment of dues to a
financial institution or bank or debenture holders? If yes, the period
and amount of default to be reported: - According to the records of the
Company examined by us and the information and explanation given to us,
the Company is not having any such term loans as at the balance sheet
date.
10. Whether the company has given any guarantee for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company: - In our
opinion, and according to the information and explanations given to us,
the company has not given the guarantees for loans taken by others from
banks or financial institutions during the year.
11. Whether term loans were applied for the purpose for which the loans
were obtained: - In our opinion, and according to the information and
explanations given to us,there are no such loans as at the balance
sheet date.
12. Whether any fraud on or by the company has been noticed or reported
during the year; If yes, the nature and the amount involved is to be
indicated: - During the course of our examination of the books and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, and according to the information
and explanations given to us, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For TDK & Co.
(Chartered Accountants)
CA NEELANJ SHAH
(Partner)
Membership No.121057
FRN.109804W
Place : DELHI
Date : 29/05/2015