THE MEMBERS OF CONFIDENCE FINANCE AND TRADING LIMITED Report on the StandaloneFinancial Statements
We have audited the accompanying standalone financial statements of CONFIDENCEFINANCE AND TRADING LIMITED ("the Company") which comprise the BalanceSheet as at 31s1 March 2016 the Statement of Profit and Loss- the cashflow statement for the year then ended and a summary of the significant accountingpolicies and other explanatory' information.
Managements Responsibility7 for the Standalone 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 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 atereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls (hat 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 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 there under.
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 arc free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements 'lire 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 standalone 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 (he 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 3151 March 2016 and its Profit and its cash flows for the yearended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order2016 ("theOrder") as amended issued by the Central Government of India in terms of sub section(11) of sectionl43 of the Act we give in the "Annexure A" a statements onthe matters specified in paragraphs 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 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 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified at as 31M March 2016 from being appointed as a director in termsof Section IG4 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditors Report inaccordance with Rule II 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 any pending litigations on its financial position in itsfinancial statements.
ii. The Company does not have long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
| ||For Suresh Anchaliya & Co. |
|Date : 2Slh May 2016 ||Chartered Accountants |
|Place: Mumbai ||Fil m Regn. No. :1124<>2W |
| ||Suresh Anchaliya |
| ||Partner |
| ||M.No. : 044060 |
"Annexure A" to the Independent Auditors' Report
The annexure referred lb Independent Auditor's Report to the members of the t.'onp.nuon the standalone financial statements for the year ended 31"r March2016 n? report that:
(i) (a) The company has maintained proper records showing full particulars includingquantitative; details and situation of fixed assets.
jQ>) t he fixed assets have beef.1 physically verified by the management dining theyear in a phased periodical manner designed to cover all the items over a period of threeyear's which itr pur opinion is reasonable having regard to the size of the company andnature of its business. Pursuant to .the program a portion of the fixed asset has beenphysically verified by the management during the year and no material discrepanciesbetween the books records and the physical fixed assets have been noticed.
ic: The title deeds of immovable prone/tics arc held in the name of the company.
(ii) The physical verification of the inventor ies has beerr verified by the managementat regular intervals during the year and no material discrepancies were noticed.
(iii) During the year the company has rrot granted any loan to the party covered in;the register maintained under' section 183 of the Companies Act 2013 (The Acl)andhence ihe clause (iii) of CARO 2 IS not applicable lo the company.
(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of Ihe Companies. Act201.3.
(V) The Company has not accepted any deposits from the public.
(vi) The central government has not prescribed the maintenance of cost records undersection 148(1) of the Act.
(yii) (a) According to the information and explanations given by the management andbased on our examination of the records of the company amounts deducted accruer. in thebooks of account in respect of undisputed statutory dues including provident fund. Incometax' sales tax- value added tax. duty of customs. Service taxy.cess and othermaterial sjlatulory dues have been regularly deposited during the year by the :cempanywith the appropriate authorities. As explained to us the company did not have any dues onaccount of employees state insurance and duty of excise.
According lo information and explanations given lo us no undisputed amounts payable inrespect of provident funds income tax sales fax valueHSflded tax duty of customsservice fax cess and other material statutory' dues Were in arrear as at 31stMarch 2016 for a period of more than six months from the date they become payable.
p>) According to information and explanations given to City there are no materialdues of dug of customs vPSh have not been deposited with the appropriate authorities onaccount of any dispute. However according lo information and explanations given to usthe following due of Income Tax- has not been deposited by the company onaccount of disputes;
|Name of the statute ||Nature of dues ||Amount ||Period to which the amount Relates ||Forum where dispute is ending |
|Income fax ||Income "jjax Demand || |
|Cl f (Appeal) |
(viii) In our opinion and according to the information qnd explanations given to us.Ihe Company has not defaulted in the repayment of dues to financial institutionsgovernment and banks.
fix) The company did not raise moneys by way of initial public offer or further publicoffer including debt instruments and term 1 oans during the year. Aeeor.iingly paragraph3 fix) is not applicable
(x) According to information and explanations given to us no material fraud by theCompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.
(xi i According to the information and explanations given by the management and basedon our examination $ the records the: company has paid/provided for .managerialremuneration in accordance with the requisite approvals mandated by the provisions'section 19?'read wit h Schedule V to the Companie s: Act.
(xii) In our opinion the Company is not a Hindi Company . Therefore the provisions ofclause 4 (xri) of the Order are not applicable to the Company.
(xiii) According to the information and explanations given by the management and basedon our examination of the records of the; company transactions with the related partiesare in compliance with section 177 and IKS of Companies Aet. 2013 and the details havebeen disclosed in the Financial Statements as required by the applicable accountingstandards.
(xiv) According to the information and explanations given by the management and basedon our examination of the records the company has not made any preferential allotment or.private pie carter. it of shares sir fully or partly convertible debentures during theyear under review.
(xv) According to the information and explanations given by the management and based onour examination of the records the company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly the paragraph 3 ;\v; o: theOulci is not applicable
(xvi) The company is required to be registerel under Section 45 lA of the Reserve Hankof India AI 1934 but the company lias noBegistered under section 45 LA of the Reserve.Bank oflndia Act. 1934 till date.
| ||For Surosh Anchaliya & Co. |
|Date % 28"' May 2016 ||Chartered Accountants |
|Place: Mumbai ||Firm Re gn. No. :112492W |
| ||Suresh Anchaliva |
| ||Partner |
| ||M.No. : 044960 |
"Annexure B" ft* the Independent Auditors Report of even date on theStandalone Financial Statements of
Confidence Finance And Trading Limited.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ConfidenceFinance And Trading Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat dale.
Managements Responsibility1 for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalcontrols over financial .reporting criteria established by the company considering theessential components of internal control stated in the guidance note on Audit of InternalI financial Controls over financial Reporting issued by the Institute of CharteredAccountant on India (ICAI). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to companys policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
Our responsibility is to express art opinion on the Company's internal financialcontrols over reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Exporting (the"Guidance Note") and the Standards ton Auditing issued by ICAI and deemed to beprescribed under section 14lp0) of the .Companies Acl 20.13 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols; operated effectively in all material respects*.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system tavern financial reporting and their operatingeffectiveness. Our audit of inelegantly financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors judgment including the assessment of therisks of material miss statement the: financial statements. whether due Id .fraud or.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys. internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions arc recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being njade only in accordance with auttitirizationsof management and directors of lhe company; and (3) provide reasonable assurance regardingprevention or timely detection ttf unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and noli be detected.Also projections' of any evaluation of the internal financial controls over financialreporting Itt future periods arc subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all materia! respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312016 based on internalcontrols over financial reporting criteria established by the company considering theessential components of internal control stated in the guidance note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountant on India (MCA I"').
| ||For Suresh Anchaliya& Co. |
| ||Chartered Accountants |
| ||Firm Regn. No. :112492W |
| ||Suresh Anchaliya |
|Date : 28th May 2016 ||Partner |
|Place: Mumbai ||M.No. : 0-1-1960 |