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Dharani Finance Ltd.

BSE: 511451 Sector: Financials
NSE: N.A. ISIN Code: INE899D01011
BSE LIVE 15:04 | 20 Nov 10.13 0.19
(1.91%)
OPEN

10.13

HIGH

10.13

LOW

10.13

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 10.13
PREVIOUS CLOSE 9.94
VOLUME 113795
52-Week high 10.13
52-Week low 4.56
P/E 2.19
Mkt Cap.(Rs cr) 5
Buy Price 10.13
Buy Qty 2900.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.13
CLOSE 9.94
VOLUME 113795
52-Week high 10.13
52-Week low 4.56
P/E 2.19
Mkt Cap.(Rs cr) 5
Buy Price 10.13
Buy Qty 2900.00
Sell Price 0.00
Sell Qty 0.00

Dharani Finance Ltd. (DHARANIFINANCE) - Auditors Report

Company auditors report

To the Members of

M/s. Dharani Finance Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of M/s. DharaniFinance Limited ("the Company") which comprise the Balance sheet as at 31stMarch 2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the 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.

Auditor’s Responsibility

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 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 are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s 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 Company’spreparation 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 financialcontrol 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 Company’s Directors aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the standalone financial statements.

Opinion

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 31st 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section143(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 the Balance Sheet Statement of Profit and Loss and CashFlow Statement comply with the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (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 ofsubsection (2) of section 164 of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness o f such controls refer to ourseparate report in "Annexure B".

(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 does not have any pending litigations which would impact its financialposition

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund.

iv. the Company has provided requisite disclosure in its Financial Statements as toholdings as well as dealings in Specified Bank Notes during the period 8 November 2016 to30 December 2016 and these are in accordance with the books of accounts maintained by thecompany. Refer Note 20.12 to the standalone financial statements.

For K. RAMKRISH & CO.
Chartered Accountants
Registration # 003017S)
(S. Baskar Shrinivas)
Chennai Chartered Accountant
25.05.2017 Membership # 209004

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in our Independent Auditors’ Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2017 we reportthat:

1. a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Company has a phased programme of physical verification of fixed assets whichin our opinion is reasonable having regard to the size of the Company and nature of itsassets. In accordance with such programmes the management has physically verified fixedassets during the year and no material discrepancies were noticed on such verification.

c) According to the information and explanation given to us the Company does notpossess any immovable property. Hence paragraph 3(i)(c) of the order is not applicable.

2. The Company’s nature of operations does not require it to hold inventories.Accordingly paragraph 3(ii) of the order is not applicable.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

4. 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 the Companies Act 2013in respect of loans investments guarantees and security.

5. The Company has not accepted any deposits from the public and consequently thedirectives issued by the Reserve Bank of India the provisions of Sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed there under arenot applicable.

6. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under sub section (1) of section 148 ofthe Companies Act 2013.Accordingly clause vi of paragraph 3 of Companies (Auditors Report)Order 2016 is not applicable.

7. a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has been regular whereverapplicable in depositing with appropriate authorities undisputed statutory dues includingprovident fund employee’s state insurance income-tax sales-tax customs dutyexcise duty service tax Value added tax cess and any other statutory dues. According tothe information and explanations given to us no undisputed dues payable in respect ofprovident fund employee’s state insurance income-tax sales tax customs dutyexcise duty service tax Value added tax and cess were outstanding as at 31st March 2017for a period of more than six months from the date they became payable. b Statement ofDisputed Dues

Nature of the statute

Nature of the dues

Amount Rs. In Lakhs

Period to which the amount relates

Forum where dispute is pending

NIL NIL NIL NIL NIL

8. The Company did not have any outstanding dues to Banks /financialinstitutions/debenture holders during the year.

9. In our opinion the Company has not obtained any term loans.. During the year thecompany has not raised money by way of initial public offer or further public offer.Accordingly paragraph 3(ix) of the order is not applicable.

10. In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the year.

11. In our opinion the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV to the Companies Act 2013.

12. In our opinion the Company is not a Nidhi Company. Accordingly clause xii of Para3 of Companies (Auditors Report) Order 2016 is not applicable.

13. In our opinion all transactions with the related parties are in compliance withSection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the financial statements as required by the applicable accounting standards.

14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly clause xiv of Para 3 of Companies(Auditors Report) Order 2016 is not applicable.

15. ln our opinion and according to the information and explanations given to us theCompany has not entered into any non - cash transactions with directors or personsconnected with the Directors. Accordingly clause xv of Para 3 of Companies (AuditorsReport) Order 2016 is not applicable.

16. In our opinion and according to the information and explanations given to us theCompany is required to be registered under Section 45-lA of the Reserve Bank of India Act1934. Accordingly registration has been obtained .

For K. RAMKRISH & CO.
Chartered Accountants
Registration # 003017S)
(S. Baskar Shrinivas)
Chartered Accountant
Chennai Membership # 209004
25.05.2017

ANNEXURE B TO INDEPENDENT AUDITOR’S REPORT

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 M/s.Dharani Finance Limited ("the Company") as of 31st March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 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.

Auditors’ Responsibility

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. Ouraudit 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 judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s 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 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 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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of 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 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.

Opinion

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 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For K. RAMKRISH & CO.
Chartered Accountants
Registration # 003017S)
(S. Baskar Shrinivas)
Chennai Chartered Accountant
25.05.2017 Membership # 209004