To the Members of
AXON FINANCE LIMITED
(Formerly Known as AXON INFOTECH LIMITED)
Report on the Financial Statements
We have audited the accompanying financial statements of AXON FINANCE LIMITED (FormerlyKnown as Axon Infotech Limited) (the Company) which comprise the BalanceSheet as at March 31 2015 and the Statement of Profit and Loss and Cash Flow Statementforthe year then ended and a summary of significant accounting policies and otherexplanatory information.
Managements Responsibility for the Financial Statements
The Board of Directors is responsible for the matters stated in section 134(5) ofthecompanies Act 2013 (the Act) with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprincipal 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 the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent and design implementation and maintenance of internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.
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 accordancewith theStandards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatements. An audit involves performing procedures to obtain audit evidence about theamounts and 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 orderto designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Companys directors as wellas evaluating the overall 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 standalone 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 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 March 31 2015 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 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 inthe paragraph 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 purposes of our audit; b) In ouropinion proper books of account as required by law have been kept by the Company sofar asit appears from our examination of those books.
c) The Balance Sheet the statement of profit and loss account and the Cash FlowStatement dealt 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) Rules 2014;
e) On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) 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. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note No. vii (b) for Annexure tothis report to the financial statements.
II. The Company had short term contracts including derivative contract for currencytrading for which there was loss during the year of Rs. 25.07 Lacs which has beendebited to Profit and Loss Account for the year.
III. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For DMKH & Co
FRN : 116886W
CA. Manish Kankani
ANNEXURE TO INDEPENDENT AUDITORS REPORT
Referred to in Paragraph 1 under the heading of Report on other Legal andRegulatory Requirements of our report of even date
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we state that:-
i. a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
b) We have been informed that the fixed assets of the Company have been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification. In our opinion this periodicity of physical verification isreasonable having regards to the size of the company and the nature of its assets.
ii. a) As explained to us inventories (shares in demat form) have been physicallyverified by the management during the year. In our opinion the frequency of verificationis reasonable.
b) In our opinion and according to the information and explanation given tous theprocedure of physical verification of Inventories referred to in 2(a) above followed bythe management are reasonable and adequate in relation to the size of the Company and thenature of its business.
c) In our opinion and according to the information and explanation given to us thecompany has maintained proper records of inventories. As per the information andexplanation provided to us and having regard to the size of the company no materialdiscrepancies were noticed on physical verification of inventory as compared to bookrecords.
iii. According to the information and explanations given to us the company has notgranted any loans secured or unsecured to or from companies firms or other partiescovered in the register required to be maintained under section 189 of the ActAccordingly paragraph 3(iii) of the Order is not applicable.
iv. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regards to the purchase of inventory (shares)fabrics fixedassets and sale of goods and services. During the course of our audit we have neithercome across nor have been informed of any continuing failure to correct major weaknessesin the aforesaid internal control system.
v. The Company has not accepted any Deposits from any party therefore followingprovisions of Companies Act Sec 73 to 76 and rules made thereunder and permission ofReserve Bank of India the question does not arise.
vi. The maintenance of cost records is not prescribed for the company by the centralgovernment under subsection (1) of sec 148 of the Companies Act 2013. Therefore thecompany has not maintained any cost records during the year.
vii. a) According to the information and explanation given to us and the records of thecompany examined by us in our opinion the company is regular in depositing theundisputed statutory dues including provident fund employees state insuranceincome tax sales-tax wealth tax service tax Duty of custom duty of excise valueadded tax and other and other material statutory dues as applicable with the appropriateauthorities
b) According to the information and explanation given to us no undisputed amountpayable in respect of income tax sales-tax wealth tax service tax Duty of custom dutyof excise value added tax and cess were in arrears as at 31st March 2015 for a periodof more than six months from the date they became payable. Except the Company has receivednotice from Sales Tax Dept. for dues amounting to Rs 49769272/-for the financial year2005-06. The Company has disputed the liability and the matter is pending before Sales TaxDept.
c) The amounts required to be transferred to investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 and rules madethereunder has been transferred to such fund within time.
viii. The company has no accumulated loss as at the end of the financial year and ithas incurred cash losses by Rs. 127166 in the financial year ended on that date or in theimmediately preceding financial year.
ix. According to the records of the company examined by us and the information andexplanation given to us The Company has not taken any loan form financial institutionbank or debenture holders. Therefore the provision of clause 3(ix) of the said order isnot applicable to the company.
x. In our opinion and According to the information and explanation givento us thecompany has not given any guarantee for others for loans taken by them from banks andfinancial institutions during the year.
Therefore the provision of clause 3(x) of the said order is not applicable to thecompany.
xi. There are no term loans taken by the company therefore the question of applyingthe loans for the purpose for which loans taken does not arise.
xii. According to the information and explanations given to us no material fraud on orby the company has been noticed or reported during the course of audit.
For DMKH & Co
FRN : 116886W
CA. Manish Kankani