To The Members of INDERGIRI FINANCE LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of INDERGIRI FINANCE LIMITED.("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors are responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the act") with respect to 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 Companies Act 2013 read with Rule 7 of Companies
(Accounts) Rules 2014. This responsibility includes the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the company and for prevention and detection of the frauds and otherirregularities; selection and application of the appropriate accounting policies ; makingjudgments and estimates that are responsible and prudent; and design implementation andmaintenance of internal control that are operating effectively for ensuring 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 financial statements based on ouraudit. We have considered the provisions of the Act the accounting and auditing standardsand the matters that are required to be included in the audit report under the provisionsof 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 ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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 control relevant to the Company's preparation and fair presentation ofthe financial statements to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; profit (b) In the case the Profitand Loss Account the for the year ended on that date.
(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditor's Report) Order 2016 issued by centralgovernment of India in terms of Section 143(11) of the Act (hereinafter referred to as the"Order") and on the basis of such checks of the books and records of the Companyas we considered appropriate and according to the information and explanation given to uswe give in the "Annexure A" a statement on the matters specified in paragraph 3and 4 of the Order.
II As required by section 143(3) of the Act we report that: a. We have obtainedall the information and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit; b. In our opinion proper books of account asrequired by law have been kept by the Company so far as appears from our examination ofthose books; c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statementdealt with by this Report are in agreement with the books of account; d. In our opinionthe aforesaid financial statements comply with the accounting standards specified underSection
133 of the Act read with Rule 7 of the companies (Accounts) Rules 2014. e. On thebasis of the written representations received from the directors as on 31 March 2017taken on the records by the Board of Directors none of the director is disqualified as on31 March 2017 from being appointed as the director in terms of Section 164(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 beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditor's) Rules 2014 in our opinion and to the best of our information and according tothe 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 contract including derivatives contract forwhich there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investors Education and Protection Fund by the Company.
(iv) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management.
|For S.K.Rathi & Co. |
|Chartered Accountants |
|Firm Registration No.108724W |
|CA S.K. Rathi |
|Membership No. 031071 |
|Place: Mumbai |
|Date : 29th May 2017 |
Annexure A- To the Independent Auditors' Report:
The Annexure referred to in paragraph 1 under the Report on Other Legal andRegulatory Requirements' our report in the members of Indergiri Finance Limited (TheCompany) for the year ended on 31st March 2017 We report that:-(1) In respect of itsFixed Assets: a) The company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets; b) Fixed assetshave been physically verified by the management at reasonable intervals; and no materialdiscrepancies were noticed on such verification c) The company does not hold any immovableproperty. Hence clause 3(i)(c) about title deeds of immovable properties is notapplicable in the present case (2) In respect of its Inventories:
Physical verification of inventory has been conducted at reasonable intervals by themanagement and no material discrepancies were noticed
(3) In respect of Loans and Advances to parties covered U/s 189
The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. a) as the company has not granted any loans toparties covered under section 189 clause 3(iii)(a) which deals with terms and conditionsof the grant of such loans is not applicable; b) as the company has not granted any loansto parties covered under section 189 clause 3(iii)(b) which deals with schedule ofrepayment of principal and payment of interest is not applicable; c) as the company hasnot granted any loans to parties covered under section 189 the question of amount beingoverdue does not arise;
(4) Compliance with provision of Section 185 and Section 186
In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantee or security to the partiescovered under Section 185 and hence provisions of Clause 3(iv) of the aforesaid Order inthis regard are not applicable to the Company.
Further the Company has complied with provision of Section 186 of the Act in respectof the investments made by it.
(5) Rules followed while accepting Deposits
In our opinion and according to the information and explanations given to us TheCompany has not accepted any deposits. Hence clause 3(v) which deals with directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under are notapplicable
(6) Maintenance of Cost Record
In our opinion and according to the information and explanations given to us TheCompany is not required to maintain cost records pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under subsection (l) of section 148 of theCompanies Act.
(7) Statutory Dues a) According to the records of the Company the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income-tax sales tax wealth taxduty of customs duty of excise value added tax or cess and other statutory duesapplicable to it. No undisputed amounts payable in respect of provident fund employees'state insurance income-tax sales tax wealth tax duty of customs duty of excise valueadded tax or cess and other statutory dues were outstanding as at 31-03-2017 fora period of more than six months from the date they became payable. b) According to therecords of the Company and information and explanations given to us no dues of income taxsales tax wealth tax service tax duty of customs duty of excise value added tax orcess that have not been deposited on account of any disputes except as follows:
|Name of the Statue ||Nature of Dispute ||Amount Rs in ||Amount paid under Protest ||Period to which the amount relates ||Forum where dispute is pending |
| || ||lakhs ||(Rs in lakhs) || || |
|Income Tax Act 1961 ||Income Tax ||9.47 ||- ||AY 2014-15 ||C.I.T (Appeals) Mumbai |
(8) Repayment of Loans taken from Bank or Financial Institutions
Based on our audit procedures and according to the information and explanations givento us by the management we are of the opinion that the Company has not defaulted inrepayment of dues to financial institutions and bank.
(9) Utilization of moneys raised by Public Offers
Based on our audit procedures and according to the information and explanations givento us by the management the Company has not raised any money during the year underreview.
(10) Reporting of Fraud
During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof material fraud by the Company or on the Company by its officers or employees noticedor reported during the year nor we have been informed of any such case by the management.
(11) Managerial Remuneration
Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct;
(12) Nidhi Company
The company is not a Nidhi Company. Hence clause 3(xii) will not be applicable
(13) Transaction with Related Parties
The Company has entered into the transaction with the related parties in compliancewith the provisions of the Section
177 and 188 of the Act. The details of such related party transactions have beendisclosed in the standalone financial statements as required under Accounting Standard(AS)18 Related Party Disclosures specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.
(14) Preferential allotment of shares
The Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review and hence provisionsof Clause 3(xiv) of the aforesaid Order are not applicable to the Company.
(15) Non-Cash Transaction
The Company has not entered into any non-cash transactions with its directors or thepersons connected with him and hence provisions of Clause 3(xv) of the aforesaid Order arenot applicable to the Company.
(16) Registration U/s 45-IA of RBI Act 1934
The company is registered under section 45-IA of the Reserve Bank of India Act 1934and the registration is enforced for the same.
For S.K.Rathi & Co.
Chartered Accountants Firm Registration No.108724W
CA S.K. Rathi
(Partner) Membership No. 031071
Place: Mumbai Date : 29th May 2017
Annexure B- to the 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 IndergiriFinance Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
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 Reporting (the"Guidance Note") issued by the Institute of Chartered
Accountants of India(ICAI). These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the 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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 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 over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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 systemover 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 over financialreporting 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 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.
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 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance
Note issued by the Institute of Chartered Accountants of India.
For S.K.Rathi & Co.
Chartered Accountants Firm Registration No.108724W
CA S.K. Rathi
(Partner) Membership No. 031071
Place: Mumbai Date : 29th May 2017