TO THE MEMBERS OF CUBICAL FINANCIAL SERVICES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of CUBICAL FINANCIALSERVICES LIMITED("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
Managements Responsibility 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 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditors judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Companys preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies 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 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 31 March 2016 and its Loss 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 2016 issuedby the Central Government of India in terms of subsection (11) of section 143 of the Act(hereinafter referred to as the "Order")we give in the Annexure I astatement on the matters specified in paragraphs 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 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 as on31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.
(f) We are enclosing herewith a report in Annexure II for our opinion on adequacy ofinternal Financial Control system in place in the company and the operating effectivenessof such controls.
(g) 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements. ii. According to the information and explanations provided to usthe Company did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses. iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany.
| ||For KRISHAN RAKESH & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Regn No. 009088N |
|PLACE : DELHI ||(K.K.GUPTA) |
|DATED : 27-05-2016 ||PARTNER |
| ||M No. 087891 |
ANNEXURE - I REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS REPORT ON ACCOUNTS FORTHE YEAR ENDED 31st MARCH 2016
1. a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. b) As explained to us all the fixedassets have been physically verified by the management in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the Company and nature ofits assets. No material discrepancies were noticed on such physical verification. c)According to information & explanation given to us company does not have anyimmovable property.
2. As explained to us physical verification has been conducted by the management atreasonable intervals in respect of finished goods stores spare parts and raw materials.The discrepancies noticed on such verification between the physical stocks and bookrecords were not significant and the same have been properly dealt with in the books ofaccount.
3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies firms or other Parties covered inthe register maintained under section 189 of the Companies Act
4. According to the information and explanations given to us the company has notprovided any loan investment guaranty and security during the year.
5. According to the information and explanations given to us the company has notaccepted any deposits in terms of the directives issued by the Reserve Bank of India andthe provisions of sections 73 to 76 or any other relevant provisions of the Companies Actand the rules framed there under.
6. In respect of business activities of the company maintenance of cost records hasnot been specified by the Central Government under sub-section (l) of section 148 of theCompanies Act 2013.
7. a) As per information and explanations given to us the company is regular indepositing undisputed statutory dues including provident fund employees stateinsurance income-tax sales-tax wealth tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues with the appropriateauthorities. There are no outstanding statutory dues as at the last day of the financialyear under audit for a period of more than six months from the date they became payable.b) We According to information and explanations given to us there are no dues of IncomeTax Sales Tax Wealth Tax Custom Duty Excise Duty Cess Octroi entry tax and otherstatutory dues which have not been deposited on account of any dispute.
8. The company has not obtained any loan from Financial Institution Banks andGovernment during the period under Audit. The Company has not issued any debentures.
9. The company has not obtained any Term Loans during the year under audit .The companyhas not raised any money during the year by way initial or further public offer.
10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud by the Company or on the company by its officersor employees has been noticed or reported during the course of our audit for the yearended 31.03.2016.
11. According to the information and explanations given to us the company has notprovided any managerial remuneration for the period under audit.
12. The provisions of clause (xii) of the order are not applicable as the company isnot a Nidhi Company as specified in the clause.
13. According to information and explanations given to us we are of the opinion thatCompany has not entered into any related party transaction for the period under audit.
14. According to information and explanations given to us the company has not made anypreferential allotment or private placement of shares or debentures during the year.
15. According to information and explanation given to us the company has not enteredinto any non-cash transaction with the director or any person connected with him duringthe year.
16. According to the information and explanations given to us In view of its businessactivities the company has obtained registration under section 45IA of Reserve Bank ofIndia Act 1934.
|PLACE : DELHI ||FOR KRISHAN RAKESH & CO. |
|DATED : 27-05-2016 ||CHARTERED ACCOUNTANTS |
| ||Firm Regn No. 009088N |
| ||(K.K. GUPTA) |
| ||PARTNER |
| ||M.No. 087891 |
ANNEXURE- II TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements section of our report of even date)
We have audited the internal financial controls over financial reporting of CUBICALFINANCIAL SERVICES LIMITED ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Companys internal financial controls system over financialreporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys 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 are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompanys 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 not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are 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 material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016based on the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note on"Audit of Internal Financial Controls Over Financial Reporting" issued by theInstitute of Chartered Accountants of India.
|PLACE : DELHI ||For KRISHAN RAKESH & CO. |
|DATED : 27-05-2016 ||CHARTERED ACCOUNTANTS |
| ||Firm Regn No. 009088N |
| ||(K.K. GUPTA) |
| ||PARTNER |
| ||M No. 087891 |