Galada Finance Ltd.
|BSE: 538881||Sector: Financials|
|NSE: N.A.||ISIN Code: INE243E01010|
|BSE LIVE 15:14 | 21 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 538881||Sector: Financials|
|NSE: N.A.||ISIN Code: INE243E01010|
|BSE LIVE 15:14 | 21 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
INDEPENDENT AUDITOR'S REPORT
To the Members of Galada Finance Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Galada Finance Limited("the Company") which comprise the Balance Sheet as at March 312016 and theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summary ofsignificant 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 of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with rule 7 of Companies (Accounts) Rules 2014. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the 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 adequate internal financial controls and ensuring theiroperating effectiveness and the accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the financial statements that give a trueand fairviewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 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 performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the
aforesaid financial statements give the information required by the Act in the mannerso required
and give a true and fair view in conformity with the accounting principles generallyaccepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March312016;
b) in the case of the Statement of Profit and Loss Account of the profit of theCompany for the year ended on that date and
c) in the case of the Cash Flow Statement of the cash flows of the Company forthe yearended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 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 purpose of ouraudit.
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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d) In ouropinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March312016 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2016 from being appointed as a director in terms of Section164(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 we give ourseparate Report in "Annexure 2".
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.Hence the question of any material foreseeable losses does notarise;
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in paragraph 1 of our Report of even date to the members ofGalada
Finance Limited on the accounts of the Company for the year ended 31st March 2016.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. During the year the fixed assets of the Company have been physically verified bythe management and as informed no material discrepancies were noticed on suchverification. In our opinion the frequency of such verification is reasonable havingregard to the size of the Company and the nature of its assets.
c. The title deeds of immovable properties recorded in the books of account of theCompany are held in the name of the Company.
2. The Company is a Non-Banking Financial Company (NBFC) engaged in the business ofFinancing. Hence this clause 2 of the Order is not applicable to the Company.
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. Accordingly paragraph 3(iii) (a) 3(iii)(b) and3(iii)(c) of the Order are not applicable to the Company.
4. Based on information and explanation given to us the Company has not granted/madeloans investments guarantees and securities within the provision of Section 185 and 186of the Companies Act.
5. The Company has complied with the directives issued by the Reserve Bank of India andthe provisions of Section 73 to 76 or any other relevant provisions of the Companies Actand the rules framed there under.
6. The Central Government has not prescribed the maintenance of cost records undersubsection (1) of Section 148 of the Companies Act 2013 in respect of the activitiescarried on by the company.
7. (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees' State Insurance income-taxsales-tax service tax value added tax customs duty excise duty cess and any othermaterial statutory dues applicable to it.
According to the information and explanation given to us no undisputed amounts payablein respect of provident fund employees' state insurance income tax sales tax servicetax value added tax customs duty excise duty cess and any other material statutorydues applicable to it were outstanding at the year end for a period of more than sixmonths from the date they become payable.
(b) According to the information and explanations given to us there are no dues ofincome tax service tax sales tax customs duty and excise duty or value added taxoutstanding on account of any disputes. However according to information and explanationsgiven to us the following dues of income tax have not been deposited by the Company onaccount of disputes:
8. According to the information and explanation given to us the Company has notdefaulted in repayment of loans or borrowing to financial institutions banks governmentsor dues to debenture holders.
9. To the best of our knowledge and belief and according to the information andexplanation given to us the Company did not raise any money by way of initial publicoffer or further public offer. However the term loans availed by the Company primafacie were applied by the Company during the yearforthe purposes forwhich the loans wereobtained.
10. According to the 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.
11. According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has paid the managerialremuneration in accordance with the requisite approvals mandated by the Provision ofSection 197 read with Schedule V to theAct.
12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly Paragraph 3 (XII) of the Order is notapplicable to the Company.
13. According to the information and explanations given to us and based on ourexamination of the record of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.
14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Thereforeparegraph 3(xiv) of the Order is not applicable to the Company.
15. According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransaction with directors or persons connected with him. Accordingly Paragraph 3(XV) ofthe Order is not applicable to the Company.
16. The Company is required to be registered under Section 45-IAof the Reserve Bank ofIndia Act 1934 and the Company had already obtained the required registration from RBI.
ANNEXURE 2 TO INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of Galada Finance Limitedon the financial statements for the year ended March 312016)
Report on the Internal Financial Controls over Financial Reporting under clause(i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of GaladaFinance Limited ("the Company") as of March 312016 in conjunction with ouraudit of the financial statements of the company for the year 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 ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 specified under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system overfinancial reporting and their operatingeffectiveness.
Our audit of internal financial controls overfinancial 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 that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemoverfinancial 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 overfinancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting Because ofthe inherent limitations of internal financial controls overfinancial reporting includingthe possibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting to futureperiods are subject to the risk that the internal financial control overfinancialreporting may become inadequate because of changes in conditions or that the degree ofcompliance 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 March 312016 based on theinternal control overfinancial 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 ICAI.