To the Members of Available Finance Limited
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying Standalone financial statements of AvailableFinance Limited (the Company) which comprise the balance sheet as at 31March 2016 the statement of profit and loss and the cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE 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 ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls 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 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 give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall 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 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 31 March 2016 and 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 (Auditors Report) Order 2016 ("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" a statement on thematters specified in the 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;
(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 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 31March 2016 taken on records by the Board of Directors None of the directors disqualifiedas on 31st March 2016 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 Auditors 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements Refer Note 17 (B)(1) to the financial statements;
ii. The Company has no material foreseeable losses on long-term contracts includingderivative contracts as required under the applicable laws or accounting standards;
iii. There is no amount required to be transferred to the Investor Education andProtection Fund by the Company.
For Mahendra Badjatya & Co
ICAI FRN 001457C
CA M.K Badjatya
ICAI MNO 070578
27 May 2016
Annexure "A" to the Independent Auditors Report
The Annexure required under CARO 2016 referred to in our Report to the members of the AvailableFinance Limited ("the Company") for the year ended 31 March 2016 andaccording to information and explanations given to us we report as under:
(i) (a) The company has maintained adequate records showing general particularsincluding quantitative details and situation of its 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 requirement of thisclause is not applicable to the company.
(ii) The nature of the companys business is such that it is not required to holdany inventories.
(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 during theyear amounting in aggregate 10200000/- (Outstanding as at 31/03/2016 61254643/-) to aparty covered in the register maintained U/ s 189 of the 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 principal and payment ofinterest has not been stipulated however the repayment of such loans is received on thebasis of mutual understanding.
(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 March2016 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 by the company on accountof disputes :-
|Name of The Act ||Nature of Dues ||Amount (In Rs.) ||Period to which Amount Relates (F.Y.) ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||60051 ||2006-07 ||ITAT Mumbai |
|Income Tax Act 1961 ||Income Tax ||11958 ||2007-08 ||ITAT Mumbai |
|Income Tax Act 1961 ||Income Tax ||1217365 ||2012-13 ||CIT Appeals Mumbai |
|Income Tax Act 1961 ||Income Tax ||1972100 ||2013-14 ||CIT Appeals Mumbai |
|Total || ||3261474/- || || |
(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) 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 standalone financial statement as required by theapplicable standards.
(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-03.00034 dated 26/02/1998 in category Non-BankingFinancial Institution without accepting public deposit and accordingly the company iscarrying on financial Services business.
| ||For Mahendra Badjatya & Co |
| ||Chartered Accountants |
| ||ICAI FRN 001457C |
| ||CA M.K Badjatya |
|Place : Indore ||Partner |
|Dated : 27 May 2016 ||ICAI MNO 070578 |
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 AvailableFinance Limited ("the Company") as of 31 March 2016 in conjunction with ouraudit of the Standalone financial statements of the Company for the year ended on thatdate.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys 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). 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 companys policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys 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 were 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 auditors judgment including the assessment of the risks ofmaterial misstatement of the Standalone financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 thecompanys 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 2016 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.
| ||For Mahendra Badjatya & Co |
| ||Chartered Accountants |
| ||ICAI FRN 001457C |
| ||CA M.K Badjatya |
|Place : Indore ||Partner |
|Dated : 27 May 2016 ||ICAI MNO 070578 |