Adharshila Capital Services Ltd.
|BSE: 539493||Sector: Financials|
|NSE: N.A.||ISIN Code: INE269F01012|
|BSE 09:45 | 11 Feb||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 539493||Sector: Financials|
|NSE: N.A.||ISIN Code: INE269F01012|
|BSE 09:45 | 11 Feb||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
TO THE SHAREHOLDERS OF
ADHARSHILA CAPITAL SERVICES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of ADHARSHILA CAPITAL SERVICESLIMITED which comprise the Balance Sheet as at March 31 2017 and Profit and LossStatement and cash flow statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
Management 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 of 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 these financial 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 there under.
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 financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;
b) in the case of Profit and Loss Statement of the Profit for the year ended on thatdate;
c) in the case of Cash Flow Statement of the Cash Flow for the year ended on thatdate;
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government in terms of section 143(11) of the CompaniesAct 2013 we give in Annexure a statement on the matters specified in paragraphs 3 and 4of the Order.
2. As required by section 143(3) of the Act we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as appears from our examination of those books
c. The Balance Sheet and Profit and Loss Statement dealt with by this Report are inagreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards referred to in section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014 ;
e. On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of section 164(2) of theAct.
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 does not have any pending litigations which would impact its financialpositions
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. However we are unable to obtain sufficient and appropriateaudit evidence to report on whether the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management - Refer Note 30
3. Further as required by 'Non Banking Financial Companies Auditors Report(Reserve bank) Direction 1988 we further state that we have submitted a separate reportto the Board of Directors of the Company on the matter specified in said directions asunder:-
a) The company applied for registration as provided in section 451A of the Reserve Bankof India Act 1934 and has obtained certificate of registration from the Reserve bank ofIndia.
b) The company is entitled to continue to hold the Certificate of registration in termsof its asset/income pattern as on 31st march 2017.
c) The Board of Directors of the company has passed a resolution for non-acceptance ofany public deposit.
d) The company has not accepted any public deposit during the year under reference.
e) The company has complied with the prudential norms relating to income recognitionaccounting standards assets classification and provisioning of bad and doubtful debts asapplicable to it in terms of Non-Banking Financial (Non-Deposit Accepting or Holding)Companies Prudential Norms (Reserve Bank) Directions 2007.
"ANNEXURE A" TO THE AUDITORS' REPORT"
(Referred to in paragraph (1) of our Report on other Legal and Regulatory requirementssection of our report of even date)
1. a. The company has maintained proper records to show full particulars includingquantitative details and situation of its fixed assets.
b. The fixed assets of the company have been physically verified during the year by themanagement at reasonable intervals and no material discrepancies between the book recordsand the physical inventory have been noticed on such verification.
c. According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the Company is not applicable.
2. Since the company does not have any inventory information required under Para 3(ii)is not being given.
3. a. According to information made available to us the company has not granted anyloan secured or unsecured to companies firms LLPs or other parties covered in theregister maintained under section 189 of the Act accordingly Para 3(iii)(a) & (c) ofthe Order are not applicable to the company.
4. On the basis of information and explanation given to us the company has not enteredinto transactions mentioned in section 185 and 186 of the Act accordingly paragraph 3(iv)of the Order is not applicable.
5. On the basis of information and explanation given to us and our scrutiny ofcompany's records in our opinion the company has not accepted any public deposits.
6. To the best of our knowledge and belief and according to information given to usCentral Government has not prescribed the maintenance of cost records under sub-section(1) of section 148 of the Companies Act 2013 for the products of the Company.
7. a) According to the information and explanation given to us the company is generallyregular in depositing with appropriate authorities the undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax customduty excise duty value added tax cess and any other statutory dues applicable to it.Further there was no arrears of undisputed statutory dues outstanding as at 31st March2017 for a period of more than six month from the date they became payable.
b) According to the information and explanations given to us there are no tax dues ofincome-tax sales-tax service tax custom duty excise duty value added tax which havenot been deposited on account of any dispute.
8. Based on our examination and according to the information and explanation given usthe company has not taken any loan from banks. There are no dues to financial institutionor debenture holders.
9. The company did not raise money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the Order is not applicable.
10. To the best of our knowledge and belief and according to the information andexplanation given to us no fraud on or by the company has been noticed or reported duringthe course of our audit for the year ended 31 March 2017.
11. According to the information and explanations give to us and based on ourexamination of the records of the Company no managerial remuneration has been paid duringthe year.
12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
16. The Company is required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934 and has obtained certificate of registration from Reserve Bank of India.
Annexure - B to the 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 ADHARSHILACAPITAL SERVICES PRIVATE LIMITED as of 31 March 2017 in conjunction with our audit ofthe financial statements of the Company for the year ended on 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.