Jumbo Finance Ltd.
|BSE: 511060||Sector: Financials|
|NSE: N.A.||ISIN Code: INE122N01017|
|BSE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 511060||Sector: Financials|
|NSE: N.A.||ISIN Code: INE122N01017|
|BSE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
Independent Auditor's Report
To the Members of Jumbo Finance Limited
We have audited the accompanying standalone financial statements of Jumbo FinanceLimited ("the Company") which comprises the Balance sheet as at March 312017 the statement of Profit and Loss the Cash Flow statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Management Responsibility for the Standalone Financial Statement:
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 preparationof these 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 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 of 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 an 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 procedurethat 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 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
(a) In the case of the balance sheet of the state of affairs of the company as at 31stMarch 2017
(b) In the case of the statement of profit and loss of the profit for the year endedon that date and
(c) In the case of the cash flow statement of the cash flows for the year ended on thatdate.
Report on other legal and Regulatory Requirements
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 sectionl43 ofthe Act we give in the "Annexure A" to the Independent Auditor's report astatement on the matters Specified in paragraphs 3 and 4 of the Order.
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 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) As per information given to us there is no Branch Office of the company and henceno report on accounts of branch office is applicable;
(d) The balance sheet statement of profit and loss and cash flow statement dealt withby this report are in agreement with the books of account and returns;
(e) 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;
(f) In our opinion there are no observations and comments which have any adverseeffect on the functioning of the company;
(g) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct;
(h) In our opinion there are no qualifications reservation or adverse remark relatingto the maintenance of the accounts and other matters connected therewith;
(i) 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 m "Annexure B" to the Independent Auditor's Report.
(j) 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 opinion and to thebest 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 has no material foreseeable losses on long term contracts (includingderivative contracts) and hence for the same the company has not made any provision;
iii) There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.
iv) The Company has provided requisite disclosures in the standalone financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to December 2016 on the basis of information available with theCompany. Based on audit procedures and relying on management's representation we reportthat disclosures are in accordance with the books of accounts maintained by the Companyand as produced to us by the Management. Refer Note 31.
Annexure A to the Independent Auditor's Report
Jumbo Finance Limited
(Referred to in paragraph "Report on other legal and RegulatoryRequirements")
i) In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information;
b. As explained to us all the fixed assets have been physically verified by themanagement in phased periodical manner which in our opinion is reasonable having regardsto the size of the company and nature of its assets. As Informed to us no materialdiscrepancies were noticed on such physical verification;
c. According to the information and explanation given to us the company does not haveany immovable property hence this sub-clause is not applicable;
ii) There are no Inventories in the Company accordingly clause (ii) of the said Orderis not applicable;
iii) 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. Hence clause (iii) (a) clause (iii) (b) andclause (iii) (c) of paragraph 3 of the order are not applicable;
iv) 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:2013 in respect of loans investments guarantees and security;
v) In our opinion and according to the information and explanations given to us thecompany has not accepted deposits from the public. Therefore the provisions of section 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under and the directives issued by the Reserve Bank of India are not applicable;
vi) We have been informed that the maintenance of cost records has not been prescribedby the Central Government under Section 148(1) of the Companies Act 2013;
vii) According to the information and explanations given to us in respect of statutoryand other dues:
a. Undisputed statutory dues including Income Tax and other material statutory dues asapplicable have generally been regularly deposited by the company during the year with theappropriate authorities;
b. According to the information & explanation given to us no undisputed amountspayable in respect of such statutory dues were outstanding as at March 31 2017 for aperiod of more than six months from the date they became payable;
viii) According to the information and explanation given to us and as per the recordsof the Company examined by us the Company has not defaulted in repayment of dues tofinancial institution. The Company has neither availed any assistance from Banks orGovernment nor has issued any debentures. Accordingly the additional reporting underParagraph 3 (viii) of the Order is not applicable;
ix) According to the information and explanation given to us the company has notraised money by way of Initial Public offer or Further Public offer (including DebtInstrument) and by way of Term Loan;
x) During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management;
xi) According to the information and explanation given to us the Company paid orprovided Managerial Remuneration in accordance with the requisite approvals mandated bythe provisions of Section 197 read with Schedule V to the Companies Act 2013.
xii) The provisions of Nidhi Company under Nidhi Rules 2014 are not applicable.
xiii) During the course of our examination of the books and records of the company alltransactions with related parties are in compliance with Sections 177 and 188 of CompaniesAct 2013 and the details have been disclosed in the Financial Statements etc. asrequired by Applicable Accounting Standards.
xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv) According to the information and explanation given to us the company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provisions of Clause 3(xv) of the Order are not applicable to theCompany.
xvi) According to the information and explanation given to us the company is requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934 and it hasalready obtained the required registration.
We have audited the internal financial controls over financial reporting of JumboFinance Limited ("the Company") as of March 31 2017 in conjunction withour audit 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 Act.
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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued 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 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 financialrepotting 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 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.