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Kailash Auto Finance Ltd.

BSE: 511357 Sector: Financials
NSE: N.A. ISIN Code: INE410O01022
BSE LIVE 15:15 | 08 Aug Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 0.64
PREVIOUS CLOSE 0.65
VOLUME 23541
52-Week high 0.64
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 38
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.64
Sell Qty 148044.00
OPEN 0.64
CLOSE 0.65
VOLUME 23541
52-Week high 0.64
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 38
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.64
Sell Qty 148044.00

Kailash Auto Finance Ltd. (KAILASHAUTOFIN) - Auditors Report

Company auditors report

To

The Members of KAILASH AUTO FINANCE LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Kailash AutoFinance Limited (‘the Company’) which comprise the Balance Sheet as at 31stMarch 2015 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors are 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 flow of the company in accordance with theaccounting policies 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 provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudence ; and design implementation and maintenance of adequate internal financialcontrols that are operating effectively for ensuring the adequacy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into accounts 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 rules made thereunder.

We have conducted our audit in accordance with the Standards on Auditing specifiedunder section 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 theauditors’ 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 consider internal financial control relevant to the Company’s preparationof the financial statements that give a true and fair view in order to design auditprocedures 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 control.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by Company’s directors as wellas evaluating the overall presentation of 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.

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 2015 its profit or loss and its cash flows for the yearended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 (" 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 statement on the matters specified inthe paragraph 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 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 Statement of Profit and Loss and Cash Flow Statement dealt withby 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 written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms ofsection 164(2) of the Act; and

f. With respect to the other matters to be included in the Auditor’s Reports 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 explanation given to us:

i. The Company has disclosed the impact of pending litigation on its financial positionin its financial statements – refer Note 23 of the financial statement.

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 InvestorEducation and Protection Fund by the Company

For Anil Agrawal
Chartered Accountants
Anil Agrawal
Proprietor
Membership No: 79054
Place: Mumbai
Date: May 30 2015

ANNEXURE TO INDEPENDENT AUDITORS’ REPORT

With reference to the Annexure referred to in paragraph 1 in Report on Other Legal& Regulatory Requirements of the Independent Auditors Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2015 we reportthat:

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

b The company has a regular programme of the physical verification of its fixed assetsby which all fixed assets are verified in the phased manner. In our opinion thisperiodicity of physical verification in reasonable having regard to the size of thecompany and the nature of its assets. According to the information and explanation givento us no material discrepancies were noticed on such verification.

ii. a The inventories have been physically verified by the management during the year.

In our opinion the frequency of such verification is reasonable.

b The procedures for the physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the company and thenature of its business.

c The Company is maintaining proper records of inventories. There was no materialdiscrepancies noticed on verification between the physical stock and the book records.

iii. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the Register maintained under section 189 of the Companies Act 2013

iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of the business with regard to purchase of inventories and fixed assets and withregard to the sale of goods and services. We have not observed any major weakness in theinternal control system during the course of the audit.

v. According to the information and explanations given to us the company has notaccepted any deposits from the public during the year and accordingly the question ofcomplying with section 73 and 76 of the Companies Act 2013 does not arise.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for the Company.

vii. a According to the information and explanations given to us and on the basis ofour examination of the records of the company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees StateInsurance Income- tax sales tax Wealth tax Service tax Duty of excise Value addedtax and any other material statutory dues have been generally regularly deposited duringthe year by the company with the appropriate authorities.

b According to the information and explanations given to us the dues of Income- taxsales tax Wealth tax Service tax Duty of customs Duty of excise Value added Tax andany other material statutory dues which were not deposited on account of any disputes areas follows

1. Interest Tax:

Assessment Year 1998-99 1999-2000 and 2000-2001 cases are pending before AllahabadHigh Court by the Income Tax Department against the order of ITAT where in it is held thatthe Finance Charges on Hire Purchase is not interest but a profit.

2. Income Tax:

a. Assessment Year 2001-2002 and 2002-2003 are pending before Allahabad High Court (bythe Deptt.) against the order of the ITAT wherein depreciation is allowed at the rate of40% on leased vehicles.

b. Assessment Year 1996-1997 is pending before Allahabad High Court against the penaltyorder passed by the ITAT.

c. Assessment Year 2004-05: Case is pending before ITAT (u/s 254) and before High Courtagainst the legal ground that case cannot be opened u/s 148 before completion of 12 monthsin which return of income was originally filed.

d . Assessment Year 2006-07: Case is pending before CIT (Appeals) Kanpur against theorder of the Assessing Officer.

e . Assessment Year 2007-08: Case is pending for assessment before DCIT – 6Kanpur.

f . Assessment Year 1995-96: We have filed a Writ Petition before Lucknow High Courtunder the KAR VIVAD SAMADHAN SCHEME and matter is pending before Lucknow High Court.

g . Assessment Year 1992-93: Application is pending for appeal effect to be givenbefore the Assessing Officer.

The quantification of above liabilities has not been done on account of cases pendingbefore the authority.

3. Legal Cases:

a. Disputed Case of Bhubaneswar Branch for recovery of Rs. 4.45/- Lacs deposited incourt.

b. Disputed Case of Citi Corp for recovery of Rs. 3.04/- Lacs of Alwar Branch.

c. Disputed Case liabilities of Rs 3.08/- Lacs repayable if claimed by the customer

c According to the information and explanations given to us there was no amount whichwere required to be transferred to the Investor Education and Protection Fund inaccordance with the relevant provisions of the companies Act 1956 and rules framed thereunder.

viii. The company has accumulated losses of Rs. 204.29 lacs at the end of the financialyear and has not incurred cash losses in the financial year covered by our Audit and inthe immediately preceding financial year.

ix. In our opinion and according to the information and explanations given to us thecompany does not have any outstanding dues to any bank or financial institution ordebenture holders.

x . In our opinion and according to the information and explanations given to us thecompany has not given any guarantee for loans taken by others from banks or financialinstitutions.

xi. According to the information and explanations given to us the Company has not takenany term loan during the year.

xii. According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the year.

For Anil Agrawal
Chartered Accountants
Anil Agrawal
Proprietor
Membership No: 79054
Place: Mumbai
Date: May 30 2015