Indo Credit Capital Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of INDO CREDITCAPITAL LIMITED which comprise the Balance Sheet as at March 31 2017 the Statementof 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 standalone the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance and Cash Flow 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 the Companies (Accounts) Rule 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the 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 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 31st March 2017 and its loss and its cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditor's Report) Order 2016 ("The Order")as amended 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 thematters specified in paragraph 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 Cash Flow Statement dealtwith 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 termsof 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 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 derivatives contractsfor which there were any material foreseeable losses
(iii) There were no amounts which were required to be transferred to the InvestorsEducation and Protection Fund by the Company.
(iv) The Company has provided requisite disclosers in its standalone financialstatements as to holdings as well as dealings in specified bank notes during the periodfrom November 8 2016 to December 30 2016 and these are in accordance with the books ofaccount maintained by the Company.
"ANNEXURE A" TO AUDITOR'S REPORT
The annexure referred to in our report to the members of INDO CREDIT CAPITAL LIMITED onthe financial statements as of and for the year ended 31st March 2017. Wereport that:
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As informed to us the fixed assets have been physically verified by the managementduring the year and no material discrepancies were noticed on such verification.
(c) The Company does not have any immovable property hence requirement of verifyingtitle deeds in the name of Company does not apply.
2. According to the information & explanations given to us company does not haveany inventory.
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 and therefore further comments are not applicable.
4. As per the information furnished to us the Company has not given any loans to itsDirectors and has not advanced any loans or made any investments or given any guaranteesor provided any securities in terms of provisions of the section 185 and 186 of theCompanies Act 2013.
5. According to information and explanations given to us the Company has not acceptedany deposits from the public within the meaning of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under to the extentnotified.
6. As per information and explanations given to us by the management the CentralGovernment has not prescribed the maintenance of cost records under section 148 (1) of theCompanies Act 2013 for the Company.
7. (a) The Company is generally regular in depositing undisputed statutory dues inrespect of provident fund employees state insurance service tax and tax deducted atsource investor education and protection fund sales tax duty of custom duty of excisevalue added tax cess and other statutory dues as applicable with the appropriateauthorities during the year. There was no undisputed amount outstanding & payable inrespect of statutory dues as at 31st March 2017 for a period of more than sixmonths from the date they became payable.
(b) According to the information and explanations given to us by the management thereare no dues of income tax or service tax or duty of custom or duty of excise or valueadded tax or cess which have not been deposited on account of any dispute.
8. Based on our audit procedures and on the information and explanations given by themanagement no amounts is outstanding as dues to any financial institution or bank.
9. In our opinion and according to the information and explanations given to us theCompany has not raised any monies by way of initial public offer or further public offer(including debt instruments) during the year. As per the information furnished by theCompany it has not raised any Term Loan during the year.
10. According to the information and explanations given to us no fraud by the Companyor any fraud on the Company by its officers/ employees has been noticed or reported duringthe course of our audit.
11. According to the information and explanation given to us the Company has not paidany managerial remuneration hence not applicable.
12. The Company is not a Nidhi Company therefore further comments are not applicable.
13. According to information and explanations provided to us there are no relatedparty transactions under section 188 of the Companies Act 2013 and the Company hascomplied with provisions of section 177 of the Companies Act 2013 and details have beendisclosed in the Financial Statements etc. as required by the accounting standards.
14. As per the information and explanations provided to us and on the basis ofverification of records the Company has not made any preferential allotment/privateplacement of shares or fully or partly convertible debentures during the year underreview.
15. According to the information and explanations given to us the Company has notentered into any non-cash transactions with Directors or persons connected with him.
16. The Company is required to be registered under section 45IA of the Reserve Bank ofIndia Act 1934 and as per the information and explanations provided to us the Company isregistered as an NBFC vide Registration No.01.00039 dated 27th February 1998with RBI.
"ANNEXURE B" TO 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 Indo CreditCapital 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 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 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 judgement 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||FOR M/S. NIRAJ N THAKKAR & CO |
| ||Chartered Accountants |
| ||(F.R. No.: 131394W) |
|Place : Ahmedabad ||CA. NIRAJKUMAR N. MADHAWANI |
|Date : 11/05/2017 ||Proprietor |
| ||Membership No. 121562 |