To the Members of
Bhagyashree Leasing & Finance Limited
Report on Financial Statements
We have audited the attached Balance Sheet of Bhagyashree Leasing & FinanceLimited as at 31st March 2015 and the Statement of Profit & Loss forthe year ended on that date and a summary of significant accounting policies and otherexplanatory 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting 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 provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofthe appropriate accounting policies; making judgements and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and fair presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 there under. We conducted our audit in accordancewith the Standards 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 materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditors judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompanys preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompanys Directors as well as evaluating the overall presentation of the financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 and its loss 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 inparagraphs 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 appears from our examination of those books.
c. The Balance Sheet & Statement of Profit and Loss dealt with by this report arein 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 written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2015 from being appointed as a director in terms of section164(2) of the Act.
f. With respect to the other matters to be included in the Auditors Report inaccordance with Rules 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 does not have pending litigations which will impact the financialposition in its financial statements except for the note 14 on contingent liability.
ii) The Company did not have any long term contracts including derivative contractsthat require provision under any law or accounting standards for which there were anymaterial foreseeable losses.
iii) There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company during the year.
For RSVA & Co
Place : Pune
ANNEXURE TO AUDITORS REPORT
Referred to in Paragraph 1 of our Report of even date
i) In respect of Fixed Assets:
The Company does not hold fixed assets therefore clause (i) of paragraph 3 of theorder is not applicable to the company.
ii) In respect of its Inventories:
The Company does not hold any inventories therefore clause (ii) of paragraph 3 of theorder is not applicable to the company.
iii) The Company has not granted any loans secured or unsecured to companies firm orother parties covered in the register maintained under Section 189 of the Act.Consequently the requirement of Clause (iii) (a) and Clause (iii) (b) of paragraph 3 ofthe Order not applicable to the Company.
iv) 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 for the purchase of fixed assets and sale of services. During thecourse of our audit we have not observed any continuing failure to correct major weaknessin internal control systems in respect of same.
v) According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore the directives issued by the ReserveBank of India and the provision of section 73 to 76 or any other relevant provisions ofthe Companies Act 2013 and the rules framed there under. Therefore the provisions ofClause (v) of paragraph 3 of the Order are not applicable to the Company.
vi) To the best of our knowledge and as explained the Central Government has notprescribed the maintenance of cost records under sub section (1) of Section 148 of theAct.
vii) In respect of statutory dues:
(a) According to the records of the Company undisputed statutory dues including Incometax and other applicable statutory dues have been generally regularly deposited withappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2015 for a period of more than six months from the date of becoming payable.
(b) According to the information and explanations given to us there are no dues ofIncome tax Sales tax Wealth tax Service tax Custom duty Excise duty and Cess whichhave not been deposited on account of any dispute.
viii) The Company does have accumulated losses at the end of the financial year. TheCompany has incurred cash losses during the financial year covered by the audit and in theimmediately preceding financial year.
ix) The company has not raised loans from Financial Institutions or Banks or by issueof debentures and hence Clause (ix) of paragraph 3 of the Order are not applicable to theCompany.
x) In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for loans taken by others from Banks or FinancialInstitutions during the year. Therefore the provisions of clause (x) of paragraph 3 ofthe Order are not applicable to the Company.
xi) In our opinion and according to the information and explanations given to us theCompany had not taken any term loans during the financial year. Therefore the provisionsof clause (xi) of paragraph 3 of the Order are not applicable to the Company.
xii) In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the year.
For RSVA & Co
Membership No.: 106810
Place : Pune