TO THE MEMBERS OF AD-MANUM FINANCE LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Ad-Manum Finance Limited ('theCompany') which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profitand Loss the Cash Flow Statement for the year then ended and a summary of the significantaccounting policies and other explanatory information.
MANAGEMENT'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 that wereoperating effectively for ensuring 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 thesefinancial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters 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) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 31stMarch 2017 its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inthe paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the 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 Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and
(g) 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 impactof pending litigations as at 31st March 2017 onits financial position in its financial statements - Refer Note 18(B) (2) to the FinancialStatements;
ii. The Company has no material foreseeable losseson 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 31stMarch 2017.
iv. The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 as per Note No 18(B) (15) and these are in accordance with thebooks of accounts maintained by the company.
FOR: MAHENDRA BADJATYA & CO
ICAI FRN 001457C
CA M.K BADJATYA
ICAI MNO 070578
DATE: 29th May 2017
Annexure "A" to the Independent Auditors' Report
The Annexure required under CARO 2016 referred to in our Report to the members of the Ad-ManumFinance Limited ("the Company") for the year ended 31st March2017 and according to information and explanations given to us we report as under:
(i) (a) The company has maintained adequate records on computer showing generalparticulars including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during the year inaccordance with a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. The discrepanciesnoticed on such verification which were not material have been properly dealt with in thebooks of account.
(c) On the basis of our examination of the records of the company the title deed ofimmovable properties is held in the name of company.
(ii) The nature of the company's business is such that it is not required to hold anyinventories.
(iii) The company is a registered Non Banking Financial company (NBFC) and during theordinary course of its business the company has granted certain unsecured loans amountingin aggregate to ' 31200000/- to the parties covered in the register maintained U/s 189 ofthe companies act 2013 and
(a) The terms and conditions of the grant of such loans are not prejudicial to theinterest of the company.
(b) The schedule of repayment of the principal and payment of interest has not beenstipulated however the repayment of such loans is received on the basis of mutualunderstanding.
(c) In the absence of any stipulation as to repayment the element of overdue amountcannot be ascertained.
(iv) The company is a registered Non Banking Financial company (NBFC) and providedloans in its ordinary course of business and in respect of such loans the interest ischarged over and above the bank rate declared by Reserve Bank of India (RBI). Accordinglyin our opinion the provisions of section 185 of the companies act 2013 are compliedwith. The provisions of the section 186 of the companies act 2013 are not applicable tothe company.
(v) The company has neither invited nor accepted any deposits from the public duringthe period under audit. As such requirement of clause (v) of the aforesaid order is notapplicable.
(vi) Since the company is a registered NBFC company and is carrying on the business offinancial services therefore the requirement of maintenance of cost records under subsection (1) of section 148 of the Companies Act 2013 are not applicable to the company.
(vii) (a) According to the records of the Company it is generally regular indepositing undisputed statutory dues including Provident Fund Employees state insuranceIncome Tax Sales tax Service Tax Duty of Custom Duty of Excise Value Added Tax Cessand any other statutory dues whichever is applicable to the company with the appropriateauthorities during the year and no undisputed amounts were outstanding as at 31st March2017 for a period of more than six months from the date they become payable.
(b) The Following dues of Income Tax have not been deposited as on March 31st2017 by the company on account of disputes:-
|Name of Statute ||Nature of Dues ||Demand In ^ (lacs) ||Period to which Amount Relates (F.Y.) ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||11.54 ||2000-01 ||ITAT Indore |
|Income Tax Act 1961 ||Income Tax ||11.07 ||2001-02 ||ITAT Indore |
|Income Tax Act 1961 ||Income Tax ||282.28 ||2007-08 ||ITAT Indore |
|Income Tax Act 1961 ||Income Tax ||0.83 ||2008-09 ||CIT Indore |
|Income Tax Act 1961 ||Income Tax ||46.21 ||2009-10 ||CIT Indore |
|Income Tax Act 1961 ||Income Tax ||2.79 ||2011-12 ||CIT Indore |
|Income Tax Act 1961 ||Income Tax ||9.40 ||2012-13 ||CIT Indore |
| ||Total ||364.12/- || || |
(viii) The Company has not defaulted in repayment of dues to banks and financialinstitution. There are no debenture holders and loan from government.
(ix) During the year under report the company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) during the yearand also not obtained any term loan.
(x) Based upon the audit procedures performed during the year no fraud by the companyor on the company by its officers or employees has been noticed or reported during thecourse of our audit;
(xi) To the best of our knowledge and belief and according to the information andexplanation given to us managerial remuneration has been paid/provided in accordance withthe requisite approvals mandated by the provisions of Section 197 read with Schedule V tothe act.
(xii) In our opinion the company is not a Nidhi company. Accordingly paragraph 3(xii)of the order is not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 wherever applicable and the details of suchtransaction have been disclosed in the financial statement as required by the applicablestandards.
(xiv) To the best of our knowledge and belief the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Consequently requirements of clause (xiv) ofparagraph 3 of the order are not applicable.
(xv) In our opinion the company has not entered into any non cash transaction withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the order is notapplicable.
(xvi) The company is a registered NBFC company U/s 45IA of the Reserve Bank of IndiaAct 1934 vide registration no B- 03.00081 dated 27/02/2004 in category Non-BankingFinancial Institution without accepting public deposit and accordingly the company iscarrying on financial Services business.
FOR MAHENDRA BADJATYA & CO
ICAI FRN 001457C
CA M.K BADJATYA
ICAI MNO 070578
29th May 2017
Annexure - B to the Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Ad-ManumFinance Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (the "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards onAuditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion andto the best of our information and according to the explanationgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note.
| ||Statutory Auditors |
| ||FOR MAHENDRA BADJATYA & CO |
| ||CHARTERED ACCOUNTANTS |
| ||ICAI FRN 001457C |
| ||Sd/- |
| ||CA M.K BADJATYA |
|INDORE ||PARTNER |
|29th May 2017 ||ICAI MNO 070578 |