The Members of
Banas Finance Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Banas Finance Limited ("theCompany") which comprise the balance sheet as at 31 March 2015 the statement ofprofit and loss and the cash flow statement for the year then ended and a summary ofsignificant 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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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 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 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 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 the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell as 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 financial statements.
Basis for Qualified Opinion
The Company is registered as Non Banking Financial Companies (NBFC) having Certificateof Registration under Section 45 IA of RBI Act 1934/rhe company has not complied with fewNBFC prudential norms as prescribed by Reserve Bank of India from time to time asmentioned in Note no. 27.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph the aforesaid financial statements give the information required bythe 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 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 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 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and
(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 - Refer Note no. 21 to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. The company is not liable to transfer any amounts to the Investor Education andProtection Fund. Therefore there has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company.
For Pravin Chandak & Associates
Firms registration number: 116627W
Membership number: 049391
Date: 28th May 2015
Annexure to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of theCompany on the financial statements for the year ended 31 March 2015 we report that:
(i) (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 fixed assets. Thefixed assets were verified in a phased manner during the year; in certain assets it wasnoticed that their useful life had expired. These assets have been suitably written off inthe books of accounts. In our opinion the periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets.
(ii) As informed to us the equity shares held as inventories in dematerialized formhave been verified by the management with supportive evidence during the year. And forother unquoted equity shares held as inventories the procedures performed by themanagement for physical verification were found to be satisfactory.
(iii) (a) The Company has granted loans to two parties covered in the registermaintained under section 189 of the Companies Act 2013 (the Act).
(iv) (b) In the case of the loans granted to any parties in the register maintainedunder section 189 of the Act the borrowers have been regular in the payment of theinterest as stipulated. The terms of arrangements do not stipulate any repayment scheduleand the loans are repayable on demand. Accordingly paragraph 3(iii)(b) of the order isnot applicable to the Company in respect of repayment of the principal amount.
(c) There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to the bodies corporate listed in the register maintained under section 189 of theAct.
(v) In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business with regard to purchase of inventory and fixed assets and for saleof goods and services. We have not observed any major weaknesses in the internal controlsystem during the course of the audit.
(vi) During the year Company has not accepted any deposits from the public.
(vii) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the activities of the Company.
(viii) (a) According to the information and explanations given to us and on the basisof our examination of the records of the Company amounts deducted/ accrued in the booksof account in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees state insurance and duty of excise.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax service tax dutyof customs value added tax cess and other material statutory dues were in arrears as at31 March 2015 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute.
However according to the information and explanation given to us the following duesof Income Tax have not been deposited by the Company. (Also refer note no. 21 to thefinancial statements)
|Name of the statute ||Nature of dues ||Amount (in Rs.) ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act ||Income Tax and Interest ||77450120 ||Assessment Year 2011-12 ||Commissioner of Income Tax (Appeals) |
(c) According to the information and explanations given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules there underhas been transferred to such fund within time. The Company is not required to transfer anyamount to the investor education and protection fund accordingly paragraph (vii) (c) ofthe Order is not applicable to the Company
(ix) Accumulated losses of the Company as at 31st March 2015 do not exceed fiftypercent of its net worth at the end of the financial year. The Company has incurred cashlosses amounting to Rs. 37.16 lakhs in the financial year covered by our audit and therewas no cash loss incurred in the immediately preceding financial year.
(x) The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.
(xi) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(xii) The Company did not have any term loans outstanding during the year.
(xiii) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit.
For Pravin Chandak & Associates
Firms registration number: 116627W
Membership number: 049391
Date: 28th May 2015