Cubical Financial Services Ltd.
|BSE: 511710||Sector: Financials|
|NSE: N.A.||ISIN Code: INE717D01023|
|BSE 15:14 | 18 Jan||Cubical Financial Services Ltd|
|NSE 05:30 | 01 Jan||Cubical Financial Services Ltd|
|BSE: 511710||Sector: Financials|
|NSE: N.A.||ISIN Code: INE717D01023|
|BSE 15:14 | 18 Jan||Cubical Financial Services Ltd|
|NSE 05:30 | 01 Jan||Cubical Financial Services Ltd|
TO THE MEMBERS OF CUBICAL FINANCIAL SERVICES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of CUBICALFINANCIAL SERVICES LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory 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 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 auditor's 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 Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the 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 31 March 2017 and its PROFIT and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016' issued by theCentral 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 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 financial statements.
ii. According to the information and explanations provided to us the Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses.
iii. There are no amounts required to be transferred to the Investor Education andProtection Fund by the Company.
iv. The company had provided requisite disclosures in its Note No. 25 to the financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November2016 to 30th December 2016. Based on auditprocedures and relying on the management representation we report that the disclosures arein accordance with the books of account and records by the Company and as produced by theManagement.
ANNEXURE-I REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS' REPORT ON ACCOUNTS FOR THE YEARENDED 31st MARCH 2017
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 fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed 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 its Inventories. The discrepancies noticed on suchverification between the physical stocks and book records were not significant and thesame have been properly dealt with in the books of account.
3. As informed to us the company has not granted loans secured or unsecured tocompanies firms Limited Liability Partnerships ( LLP ) or other parties covered in theregister maintained under section189 of the Companies Act 2013.
4. According to the information and explanations given to us the company has compliedwith the provisions of Section 185 and 186 wherever applicable in respect of loansinvestments and guarantees given by the company. We are informed that the company has notprovided any 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 Act2013 and the rules framed there under. No order has been passed by Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.
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 ofIncome Tax Sales Tax Wealth Tax Custom Duty Excise Duty Cess Octroi entry tax andother statutory 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 31.03.2017.
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.
ANNEXURE-II TO THE INDEPENDENT AUDITOR'S 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 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's 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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's 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 auditor's 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 Company's internal financial controls system over financialreporting.
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 over financialreporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 2017based 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.
The Board of Directors
CUBICAL FINANCIAL SERVICES LIMITED New Delhi
We have audited the Balance Sheet of CUBICAL FINANCIAL SERVICES LIMITED. as at 31stMarch 2017 the statement of Profit & Loss and Cash flow statement for the year endedon that date.
As required by the Non-Banking Financial Companies Auditor's Report (Reserve Bank)Directions 2008 updated vide notification no. DNBS(PD)CC No. 280/03.02.001/2012-13 dated2ndJuly 2012 issued by Reserve Bank of India (RBI) we give hereunder ourreport on matters specified in paragraphs 3(A) and (C) of the said Directions.
1. The Company is engaged in the business of non banking financial institutionand has accordingly obtained a Certificate of Registration as provided in Section 45-IA ofthe Reserve Bank of India Act 1934 (2 of 1934).
2. The company is entitled to hold the certificate of registration as aforesaid fromthe Bank in terms of asset/income pattern as on 31.3.2017.
3. The company is not an Assets Finance Company in term of criteria set forth by theBank in Circular No. DNBB(PD)CC No. 85/3.02.089/2006-07 dated 6th December2006.
4. The company is not a Micro Finance Institution based on the criteria set forth innotification of the Bank namely" Non Banking finance company-Micro FinanceInstitution (Reserve Bank) Directions 2011.
5. The Board of Directors has passed a resolution for the non-acceptance of any publicdeposits.
6. The Company has not accepted any public deposits during the relevant year.
7. The Company has complied with the prudential norms relating to income recognitionaccounting standards asset classification and provisioning for bad and doubtful debts asapplicable to it in term of Non Banking Financial (Non-Deposit Accepting or Holding)Company prudential norms (Reserve Bank) Directions 2007.
8. The Company is not a systemically important non deposit taking NBFC defined in para2(1(xix) of directions mentioned in para 7 above.