TO THE MEMBERS OF ANJANI FINANCE LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of ANJANI FINANCELimited ('the Company') which comprise the Balance Sheet as at 31ST March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the 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 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 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 and theCompanies (Accounting Standards) Amendment Rules 2016. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
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 standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31ST March 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 Actwe 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;
(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;
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014;
(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on 31ST March 2017from being appointed as a director in terms of Section 164 (2) oftheAct;
(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) Rules2014 n i our opinionand to the best of our information and according to the explanations given to us: a. TheCompany has disclosed the impact of pending litigation on its financial position on itsstandalone financial statement-Refer Note 19 (B)(2) to the standalone financial statement.
b. The Company has no material foreseeable losses. On long term contracts includingderivative contracts as required under the applicable Laws or Accounting Standards. c.There is no amount required to be transferred to the Investor Education and ProtectionFund by the Company.
d. The company had provided requisite disclosures in its financial statements as to theholdings as well as dealing in Specified Bank Notes during the period from 8 November 2016to 31 December 2016 as per Note No. 19(B)(13) and these are in accordance with the booksof accounts maintained by the company.
FOR: MAHENDRA BADJATYA & CO
Annexure - A to the Independent Auditors' Report
The Annexure required under CARO 2016 referred to in our Report to the members of theAnjani Finance Limited ("the Company") for the year ended March 31st 2017and 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) The company does not have any immovable property therefore the requirements ofthis clause is not applicable to the company.
(ii) Th e 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 Rs7692151/- to the parties covered in the register maintained U/s 189 ofthe CompaniesAct 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 complied with.The provisions of the section 186 of the companies act 2013 are not applicable to thecompany.
(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 not applicable.
(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 in depositingundisputed statutory dues including Provident Fund Employees state insurance Income TaxSales tax Service Tax Duty of Custom Duty of Excise Value Added Tax Cess and anyother 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) According to the information and explanation given to us there are no dues ofIncome Tax Sales tax Service Tax Duty of Custom Duty of Excise Value Added Tax Cessand any other statutory dues which have not been deposited on account of any dispute.
|Name of Statute ||Nature of Dues ||Demand ||Period to which Amount ||Forum where dispute is pending |
| || ||(InRs) ||Relates (F.Y.) || |
|Income Tax Act 1961 ||Income Tax ||38870 ||2015-16 ||CPC Bengaluru |
(viii) The company has not taken any loan from any financial institution or bank orfrom debenture holders.
(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) and also notobtained 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) n I our opinion the company is not a Nidhi company Accordingly paragraph 3(xii)of the order is not applicable.
(xiii) In our opinion All the transactions with the related parties are in compliancewith section 177 and 188 of Companies Act 2013 wherever applicable and the details havebeen disclosed in the financial statements as required by the applicable accountingstandards.
(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) of paragraph 3 of the order are notapplicable.
(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) According to the information & explanations given to us the company s i aregistered NBFC company U/s 45IA of the Reserve Bank of India Act 1934 vide registrationno B-03.00173 dated 24/11/14 in category of Non-Banking Financial Institutionwithout accepting public deposit and accordingly the company is carrying on financialServices business.
FOR MAHENDRA BADJATYA & CO
CA M.K BADJATYA
Annexure - B to the to the Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section of Section143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financial reporting of ANJANIFINANCE Limited ("the Company") as of 31 March 2017 in conjunction with 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 internal control stated inthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of (the "Guidance Note"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under theAct.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit accordancewith the Guidance Note on Audit of Internal Financial Controls Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies 2013 to the extent applicable to anaudit of internal financial controls applicable to an audit of Internal FinancialControls and both issued by Institute of Chartered Accountants of India. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about adequacy of theinternal financial controls system over financial reporting and operating effectiveness.Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls financial reporting assessing the risk thata material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based the assessed risk. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate
MEANING O F INTERNAL FINANCIAL CONTROLS OVER FINANCIA L REPORTING
A company's internal financial control over financial reporting is a process designed to 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 useor 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.
I n our opinion and to the best of our information and according to the explanationgiven to us the Company hasin all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note.
For Mahendra Badjatya & Co
ICAI FRN 001457C
CA M.K Badjatya
ICAI MNO 070578