TO THE MEMBERS OF AD-MANUM FINANCE LIMITED
REPORT 0N THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of AD-Marmrn Finance Limited('the Company') which comprise the Balance Sheet as at 31 March 2015 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
MAN AG E MINT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls andensuring their operating effectiveness and the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstardards and raters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder
We conducted our audit in accordance with the Standards on Auditing specified underSection 143.10.4. These Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2015 its profit and its cash flows for the year ended on that date.
REPORTON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section143 of the Act we give in the Annexure a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.
2. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books and proper returnsadequate for the purposes of our audit are been received from branches not visited by us;
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account and with the returnsreceived from branches not visited by us;
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Rs. Act read with Rule 7of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section154 (2) of the Act; and
(f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31 2015 onits financial position in its financial statements - Refer Note 18(B) (1) to the FinancialStatements;
ii. The Company has no material foreseeable losses on long-term contracts includingderivative contracts as required under the applicable law or accounting standards;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March312015.
FOR MAHENDRA BADJATYA & CO
ICAI FRN 001457C
CA M.K BADJATYA
ICAI MNO 070578
Annexure to the Independent Auditors' Report
The Annexure required under CARO 2015 referred to in our Report to the membersof the AD-Manum Finance Limited ("the Company") for the year ended 31 March2015 we report that:
(i) (a) The Company has maintained adequate records on computer showing generalparticulars including quantitative details and situation of Fixed Assets.
(b) As explained to us the fixed assets have been physically verified by themanagement at reasonable intervals; no material discrepancies were noticed on suchverification and the same have been properly dealt with in the books of accounts.
(ii) The nature of business of the Company does not require it to have any inventory.Hence the requirement of clause (ii) of paragraph 3 of the said Order is not applicableto the Company
(iii) The Company has granted unsecured loan to one party covered In the registermaintained under section 189 of the Companies Act 2013. The maximum amount involvedduring the year was Rs.174650 lacs and the year- end balance of loan granted to suchparty was Rs.1596.50 lacs. The receipt of Interest and Principal Amount is regular as perthe terms. There is no overdue amount.
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of theCompany and the nature of its business with regard to purchase of fixed assets and saleof services. The activities of the Company do not involve purchase of inventory and thesale of goods. Further on the basis of our examination of the books and records of thecompany and according to the information and explanations given to us no major weaknesshas been noticed or reported.
(v) The Company has not accepted any deposits within the meaning of directives issuedby Reserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder.
(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub section (1) of section 148 of the Companies Act 2013 in respect of thebusies; of the Company.
(vii) (a) According to the records or me Company and according to the information andexplanations ? management it is generally regular in depositing undisputed statutorydues including Provident Fund Employees state insurance Income Tax. Sales tax WealthTax Service Tax Duty of Custom Duty of Excise Value Added Tax Cess and any otherstatutory dues whichever is applicable to the company with the appropriate authoritiesduring the year and no undisputed amounts were outstanding as at 31st March 2015 for aperiod of more than six months from the date they become payable.
(b) According to the information and explanation given to us there are no dues ofIncome Tax Sales tax Wealth Tax Service Tax Duty of Custom Duty of Excise ValueAdded Tax Cess and any other statutory dues which have not been deposited on account ofany dispute except given below:
|S.No. ||Name of Statute ||Nature of Dues ||Demand in t (Lacs) ||Period to which the amount relates ||Forum where the dispute is pending |
|01 ||Income Tax Act 1961 ||Income Tax ||11.54 ||2000-01 ||ITAT Indore |
|02 ||Income Tax Act 1961 ||Income Tax ||11.07 ||2001-02 ||ITAT Indore |
|03 ||Income Tax Act 1961 ||Income Tax || |
|2007-08 ||ITAT Indore |
|04 ||Income Tax Act 1961 ||Income Tax ||0.83 ||2008-09 ||CIT Indore |
|05 ||Income Tax Act 1961 ||Income Tax ||46.21 ||2009-10 ||CIT Indore |
|06 ||Income Tax Act 1961 ||Income Tax ||2.79 ||2011-12 ||CIT Indore |
|07 ||Income Tax Act 1961 ||Income Tax ||12.14 ||2012-13 ||CIT Indore |
| || ||TOTAL ||366.86 || || |
(c) According to the information and explanations given to us the amount required tobe transferred to investor education and protection fund in accordance with the relevantprovisions of the Companies Act 2013 and rules made there under has been transferred tosuch fund within time.
(viii) The company has no accumulated losses at the end of the financial year and ithas not incurred cash losses during the financial year and in the immediately precedingfinancial year;
(ix) According to the information and explanations given to us and based on the recordsof the Company examined by us the Company has not defaulted in repayment of dues to anyFinancial Institutions or Banks.
(x) According to the information and explanations given to us the company has notgiven any guarantee for loans taken by others from banks or financial institutions.
(xi) The company has not obtained any Term Loan;
(xii) The company has detected certain frauds conducted by its employees in collusionwith brokers/borrowers in the FY13-14 in some branches and also detected some more fraudsin other branches in the current financial year. The matter is still under investigationby relevant police at various levels. Pending such investigations and recovery thecompany has written off a sum of Rs.215.79 Lacs pertaining to the said frauds in thecurrent financial year.
FOR MAHENDRA BADJATYA & CO
ICAI FRN 001457C
CA M.K BADJATYA
ICAI MNO 070578