|BSE: N.A.||Sector: N.A.|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan|
|NSE 05:30 | 01 Jan|
|BSE: N.A.||Sector: N.A.|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan|
|NSE 05:30 | 01 Jan|
To the Members of CFL Capital Financial Services Limited Report on the FinancialStatements
1.We have audited the accompanying standalone financial of CFL Capital FinancialServices Limited (the Company) (CIN: L67120WB1983PLC036805) whichcomprise the Balance Sheet as at March 31 2015 the Statement of Profit and Loss and CashFlow Statement for the year then ended and a summary of significant accounting policiesand other explanatory information.
Managements Responsibility for the Financial Statements
2.Management is responsible for the matters stated in Section 134(5) of the CompaniesAct 2013 (the Act) with respect to the preparation of these financialstatements to give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the accounting standards specified under section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial controls that are operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
3.Our responsibility is to express an opinion on these financial based on our audit.
4.We have taken into account the provisions of the Act and the Rules thereunderincluding the accounting standards and matters which are required to be included in theAudit Report
5.We conducted our audit in accordance with the Standards on specified under section143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
6.An audit involves performing procedures to obtain audit evidence the amounts anddisclosures 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 control relevant to the Companys preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaulauting the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Companys Directors as well asevaluating the overall presentation of the Financial statements.
7.We believe that the audit evidence we have obtained is sufficient appropriate toprovide a basis for our audit opinion on the financial statements..
Basis for Qualified Opinion
8. Attention is drawn to :- a. Non-compliance of the provisions of the Non- BankingFinancial (Deposit Accepting or Holding) Companies (Reserve Bank) Directions 2007. (ReferNote 16(11)) b. The company has not been able to maintain minimum Capital Risk Asset Ratio(CRAR) as prescribed by Non- Banking Financial (Deposit Accepting or Holding) Companies(Reserve Bank) Directions 2007. (Refer Note 16(11)) The Company is not in a position tocarry on business of Non Banking Financial Services
9.In our opinion and to the best of our information and according to the explanationsgiven to us except to the possible effects of the matter described in the Basis forqualified Opinion paragraph the financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India.
(a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2015.
(b) In the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and (c) In the case of the Cash Flow Statement of the cash flows for the yearended on that date.
Emphasis of matter
10 i) Note 1.A 1.B and 1.C in the Financial statements indicate that the Company hasaccumulated losses and its net worth has been fully eroded the Company has incurred a netcash loss during the current and previous years and the Companys currentliabilities exceeded the current assets as at the Balance sheet date. These conditionsalong with the other matters set forth in the above note indicate the existence of amaterial uncertainty that may cast significant doubt about the Companys ability tocontinue as a going concern. However financial statements of the Company have beenprepared on a going concern basis for the reasons stated in the said note. ii) Loans fromBanks and UTI and interest charged thereon have been provided as per the claims before /orders passed by the Debt Recovery Tribunals (see notes 6.4 6.5 6.6 and 6.8) Our opinionis not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
11. As required by The Companies (Auditors Report) Order 2015 issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act(hereinafter referred to as Order) and on the basis of such checks of thebooks and records of the Company as we consider appropriate and according to theinformation and explanations given to us we give in the made Annexure a statement in thematters specified in paragraphs 3 and 4 of the Order 12. As required by Section 143(3) ofthe Act we report that;: a. We have obtained all the information and explanations whichto the best of our knowledge and belief were necessary for the purpose of our audit; b. Inour opinion proper books of account as required by law have been kept by the Company sofar as appears from our examination of those books. about c. The Balance Sheet theStatement of Profit and Loss and the Cash Flow Statement dealt with by this Report are inagreement with the books of account. d. In our opinion the aforesaid standalone financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014 e. On the basis of writtenrepresentations received from the directors as on 31st March 2015 taken on record by theBoard of Directors none of the Directors is disqualified from being appointed as director(in terms of Section 164(2) of the Act f With respect to the matters to be included inthe Auditors report in. accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our knowledge and belief andaccording to the information and explanations given to us : and
1.The Company has disclosed the impact of pending litigations as on 31st March 2015 onits financial position in the financial statements
2.The Company has made provision as at 31st March 2015 as required under the applicablelaw or accounting standards for material foreseeable losses if any on long termcontracts including derivative contracts
3.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31st March2015.
Annexure to the Independent Auditors Report
(referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date) The annexure referred to in theIndependent Auditors Report to the members of CFL Capital Financial Services Limited(the Company) for the year ended March 31 2015. We report that:
1.The Company has maintained proper records showing full including quantitative detailsand situation of fixed assets The Company has a phased programme of physical verificationof assets which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. In accordance with such programme the management hasphysically verified fixed assets during the year and no material discrepancies werenoticed on such verification..
2.The Stock of Shares and Securities of the Company has been verified by the Managementduring the year and no discrepancies were noticed between physical and book stock
3.The Company has neither granted nor taken any loans unsecured to or from companiesfirms or other parties covered in the register maintained under section 189 of the Act.
4.In our opinion and according to the information and explanations given to us thereare adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of securities fixed assets and for sale ofsecurities and services. Further on the basis of our examination of the books and recordsof the Company and according to the information and explanations given to us we have notcome across any major weakness in the Internal Control system.
5.In our opinion and according to the information and explanations given to us theCompany has neither accepted or renewed any deposits from the public within the meaning ofSection 73 and 74 of the Act and Rules framed thereunder to the extent notified during theyear. However in our opinion and according to the information and explanations given tous the Company had accepted deposits in earlier years by complying the provisions ofSection 58A 58AA or any other relevant provisions of the Companies Act 1956 and therules thereunder and also the directives of the Reserve Bank of India with regard toacceptance of deposits from the public. The Company had defaulted in repayment of depositsand has got an order from the Company Law Board as per the provisions of Section 58AA ofthe Companies Act 1956. The Company Law Board had permitted the Company to repay thedepositors in installments by 31st December 2012.The Company has repaid infull to depositors who had claimed the same. (Refer note 6.7)
6.According to the information and explanations given to us the Companies (CostAccounting Records) Rules 2011 prescribed by the Central Government are not applicable inrespect of services carried out by the Company.
7. a. According to the information and the explanations given to us and on the basisof our examination of the account the Company has been regular in depositing with theappropriate authorities undisputed statutory dues including provident fund employeesstate insurance income- tax sales tax wealth tax service tax value added tax duty ofcustoms duty of excise and any other material statutory dues as applicable with theappropriate authorities . b. According to the information and explanations given to us andon the basis of the documents and records the following disputed statutory dues onaccount of Income Tax and Sales tax have not been deposited with the appropriateauthorities Annexure 1. c. The amount required to be transferred to the Investor Educationand Protection Fund has been transferred within the stipulated time in accordance with theprovisions of the Companies Act 1956 and the rules made thereunder
8.The Company has accumulated losses of Rs. 85183.83 lakhs at the financial year andhas incurred cash losses in the financial year and in the immediately preceding financialyear.
9.On the basis of the books and records examined by us and the information andexplanations given to us the company has defaulted in repayment of dues to financialinstitutions and banks as per details given below - Annexure II.
10. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from banks or financial institutions.
11. The Company was registered as Non Banking Finance Company with the Reserve bank ofIndia but the same stands cancelled with effect from May 18 2004. (Refer Note 1-C)
12. In respect of shares shares securities debentures and other investments dealt ortraded by the Company proper records are maintained in respect of transactions andcontracts and timely entries have been made therein. All the investments are in theCompanys present or former name.
13. According to the information and explanations given to us on an overall basis theterm loans taken in previous years have been applied for the purpose they were obtained14. During the course of our examination of the books and records of the its fixedCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neitheracross any instance of material fraud on or by the Company noticed or reported during theyear not have been informed of any such case by the Management.
Annexure to Auditors Report for year ended 31st March 2015
Particulars of disputed statutory liability not paid to the authorities
Annex - I
Annex - II Annexure to Auditors Report for year ended 31-Mar-2015
(Rs. in Lakhs)
The principal amount Is as claimed by the lenders in their applications before theappellate authorities. Interest is calculated at the rates demanded by them or as per theorders passed by the Appellate Authorities.