The Members of Centrum Capital Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Centrum CapitalLimited ("the Company") which comprise the Balance Sheet as at June 30 2015the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's 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 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 and ensuring their operating effectiveness and the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial control system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the standalone financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea 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 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 30 June 2015 its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to the following matters in the notes to the standalone financialstatements:
1 Note No. 38 wherein the Company has not made provision for diminution/nonrecoverability in the carrying value of investments of Rs 19428125 (P.Y: Rs19428125) & loans and advances of Rs 6272559 (P.Y: Rs 5919173) respectively inCentrum Capital Holdings LLC a Subsidiary Company based on the facts as fully explainedin the said note.
2 Note No. 36 wherein in the opinion of the management long outstanding tradereceivables of Rs 45832632 (P.Y: Rs 45832632) are considered good and fullyrecoverable.
Our Opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors' Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 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 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 written representations received from the directors as on June 302015 and taken on record by the Board of Directors none of the directors aredisqualified as on June 30 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 Auditor's 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 standalone financial statements - Refer Note 27a on ContingentLiabilities;
(ii) The Company did not have any long-term contracts including derivative contractshence the question of any material foreseeable losses does not arise;
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For Haribhakti & Co. LLP
ICAI Firm Registration No.103523W
Membership No. 034828
Place : Mumbai
Date : 29th August 2015
Annexure to Independent Auditor's Report
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of Centrum Capital Limitedon the standalone financial statements for the year ended June 30 2015.
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and
situation of fixed assets.
(b) During the year the fixed assets of the Company have been physically verified bythe management and as informed no material discrepancies were noticed on suchverification. In our opinion the frequency of verification is reasonable having regard tothe size of the Company and the nature of its assets.
(ii) (a) The inventory (Securities & Bonds) which are held in dematerialized fromhave been physically verified by the
management during the year. In our opinion the frequency of verification isreasonable.
(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory. As informed no materialdiscrepancies were noticed on physical verification carried out during the year.
(iii) The Company has granted unsecured loans to companies covered in the registermaintained under Section 189 of
(a) As regards repayment of principal there are no stipulations for repayment.Further the party has been regular in payment of interest to the company.
(b) In respect of the aforesaid loans there is no overdue amount of loans granted tocompanies listed in the register maintained under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to usthere exists an adequate internal control system commensurate with the size of the Companyand the nature of its business for the purchase of inventory and fixed assets and for thesale of and services. During the course of our audit we have not observed any continuingfailure to correct major weaknesses in internal control system of the Company.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of Sections 73to 76 of the Act and the rules framed there under.
(vi) The Central Government of India has not prescribed the maintenance of cost recordsfor any of the products of the Company under sub-section (1) of Section 148 of the Act andthe rules framed there under.
(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax wealth tax service tax cess and any other material statutory dues applicable to ithowever there have been slight delay in few cases and
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax wealth taxservice tax cess and any other material statutory dues applicable to it wereoutstanding at the year end for a period of more than six months from the date theybecame payable.
(b) According to the information and explanation given to us the dues outstanding withrespect to service tax and income tax wealth tax service tax cess and any othermaterial statutory dues applicable to it on account of any dispute are as follows:
|Name of the statute ||Nature of dues ||Amount (Rs) ||Period to which the amount relates ||Forum where dispute is pending |
|The Finance Act 1994 (Service Tax provisions) ||Service Tax ||1477923 ||F.Y. 2002-06 ||Additional Commissioner of Service Tax |
|Income Tax Act 1961 ||Income Tax ||848030 * ||A.Y. 2008-09 ||CIT (A) |
|Income Tax Act 1961 ||Income Tax ||11310700 ||A.Y. 2010-11 ||CIT (A) |
|Income Tax Act 1961 ||Income Tax ||8326840 ||A.Y. 2011-12 ||CIT (A) |
* Net of Rs 1848030 paid under protest.
(c) According to the information and explanations given to us there has been no delayin transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company.
(viii) The Company does not have accumulated losses at the end of the financial yearnor has incurred cash losses in the current and immediately preceding financial year.
(ix) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to banks or debenture holders. Also according to theinformation and explanations given to us the company has not borrowed moneys from anyfinancial institutions.
(x) In our opinion and according to the information and explanations given to us theterms and conditions of the guarantees given by the Company for loans taken by othersfrom banks or financial institutions are not prejudicial to the interest of the Company.
(xi) According to the information and explanations given to us the term loans havebeen applied for the purpose for which the loans were obtained.
(xii) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of any such instance by the management.
For Haribhakti & Co. LLP
ICAI Firm Registration No.103523W
Membership No. 034828
Place : Mumbai
Date : 29th August 2015