Asit C. Mehta Financial Services Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of ASIT C. MEHTAFINANCIAL SERVICES LIMITED (the Company) which comprise the Balance Sheet asat 31st March 2015 the Statement of Profit and Loss and Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. While conducting the audit we have taken into account the provisionsof the Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions 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 anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Companys Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone 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 2015 and its profit and loss and its cash flows for the yearended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 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 purpose of our audit; (b) In ouropinion proper books of account as required by law have been kept by the company so faras appears from our examination of those books; (c) The Balance Sheet the Statement ofProfit and Loss and the Cash Flow Statement dealt with by this Report are in agreementwith the books of account; (d) In our opinion the aforesaid financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014;
(e) On the basis of written representations received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors we report that none of theDirectors is disqualified as on 31st March 2015 from being appointed as adirector in terms of Section 164(2) of the Act; and (f) With respect to the othermatters to be included in the Auditors Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigation on its financialposition in its financial statements Refer Note 26 to the financial statements;
(ii) The Company did not have any long-term contract including derivative contract forwhich there are any material foreseeable losses.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
| ||For MANEK & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Registration No.: 126679W |
| ||(SHAILESH MANEK) |
|Mumbai ||Proprietor |
|Dated: 29th May 2015 ||Membership No.: 034925 |
The Annexure referred to in paragraph 1 of the Our Independent Auditors Report of evendate to the members of Asit C. Mehta Financial Services Limited on the accounts of thecompany for the year ended 31st March 2015.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:(1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assetsunder whichallfixedassets are verified in a phased manner over a period 3 years In ouropinion this periodicity of physical verification is reasonable having regarded to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.
(2) The Company has not entered into any transactions during the year involvinginventories. Therefore the provisions of clause 3 (ii) (a)(b) and (c) of the order arenot applicable to the Company. (3) The company had granted interest bearing unsecured loanto a Wholly owned subsidiary Company covered in the register maintained under section 189of the Companies Act 2013.
(a) The Company is regular in recovering the principal amount and interest asstipulated
(b) There were no overdue amounts of more than rupees one lakh in respect of the loangranted and hence clause 3(iii) (b) of the order is not applicable to the Company.
(4) In our opinion and according to the information and explanations given tous there is adequate internal control system commensurate with the size of the companyand the nature of its business with regard to the sale of services. During the course ofour audit we have not observed any continuing failure to correct major weaknesses ininternal control system. In our opinion and according to the information and explanationsgiven to us there is no purchase of inventory fixed assets and sale of goods during theyear and therefore clause 3(iv) of the Order to that extent is not applicable to theCompany.
(5) The Company has not accepted any deposits from the public and consequently thedirectives issued by the Reserve Bank of India the provisions of sections 73 to 76 or anyother relevant provisions of the Companies Act and the Rules framed there under are notapplicable and also no orders were passed by National Company Law Tribunal or ReserveBank of India or any court or any other Tribunal and therefore clause 3(v) of the order isnot applicable.
(6) According to information and explanations given to us the Central Government hasnot prescribed the maintenance of cost records under clause (d) of sub-section (1) ofSection 148 of the Companies Act 2013 in respect of the services rendered by the Companyand therefore the provision of clause 3(vi) of the Order is not applicable.
(7) (a) According to records of the Company and on the basis of our examination of thebooks of account the company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund income tax sales tax wealth taxservice tax custom duty excise duty cess and other material statutory dues applicableto it.
(b) According to the information and explanations given to us there are nodisputed amounts payable in respect of income tax wealth tax service tax sales taxcustoms duty excise duty and cess. Details of disputed dues in respect of ForeignExchange Regulation Act Service Tax and Property Tax as on 31st March 2015 onaccount of any dispute are given below.
|Name of the Statute ||Nature of Dues ||Amount (Rs ) ||Period to which the amount relates ||Forum where the dispute is pending |
|Foreign Exchange Regulation Act1973 Service Tax ||Contravention of FERA regulations ||10000000 ||1994-1995 ||Appellate Tribunal Foreign Exchange |
| ||Service tax on Brokerage Income ||6798386 ||1996-2000 ||Commissioner of Central Excise (Appeals) |
|Property Tax ||Property Tax on Premises ||2991348 ||2011-2015 ||Brihanmumbai |
| || || || ||Mahanagar Palika |
(c) According to the information and explanation given to us there are no duesof income tax sales tax service tax customs duty wealth tax excise duty and cesswhich have not been deposited except property tax as per detail given below:
|Name of the Statute ||Nature of Dues ||Amount (Rs ) ||Period to which the amount relates ||Forum where the amounts not deposited |
|Property Tax ||Property Tax on Premises ||8416221 ||2011-2015 ||Brihanmumbai Mahanagar Palika |
(d) According to the information and explanations given to us the amounts whichwere required to be transferred to the investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesthere under have been transferred to such fund within the time limits prescribed.
(8) The Company has no accumulated losses at the end of the financial the financialyear covered by our audit as well as in the immediately preceding financial year.
(9) In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to a bank and financial institution.Further the Company has not issued any debentures and therefore the provision of clause3 (ix) of the Order to that extent is not applicable.
(10) According to the information and explanations given to us the company has givenguarantees for loans taken by others from banks or financialinstitutions. We are of theopinion that the terms and conditions thereof are not prima facie prejudicial to theinterest of the company.
(11) In our opinion term loan availed by the company were prima facie applied by theCompany for the purpose for which the loans were obtained.
(12) Based on the audit procedures performed and to the best of our knowledge andbelief and according to the information and explanations given to us no fraud on or bythe Company has been noticed or reported during the year nor have we been informed aboutany such case by the management.
| ||For MANEK & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Registration No.: 126679W |
|MUMBAI ||(SHAILESH MANEK) |
|Dated: 29th May 2015 ||Proprietor |
| ||Membership No.: 034925 |