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Mudra Financial Services Ltd.

BSE: 539819 Sector: Financials
NSE: N.A. ISIN Code: INE967S01014
BSE 05:30 | 01 Jan Mudra Financial Services Ltd
NSE 05:30 | 01 Jan Mudra Financial Services Ltd

Mudra Financial Services Ltd. (MUDRAFINSER) - Auditors Report

Company auditors report

To the members of

Mudra Financial Services Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Mudra Financial ServicesLimited ("the Company") which comprises the Balance Sheet as at 31 March 2017the Statement 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 stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese 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 the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of 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.

Auditor's Responsibility

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

We have taken into account the provisions of the Ac t 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 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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 financial statements give the information required by the Actin the manner 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 state of affairs of the Company as at March31 2017;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat 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 section 143 ofthe Companies Act2013 we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 accounts.

d) In our opinion 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 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.

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 included in the Auditor's Report in accordancewith Rule 11 of Companies (Audit and Auditors) Rules 2014 in our opinion and to our bestof 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 has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the standalone financialstatements as to holding as well as dealings in the Specified Bank notes during the periodfrom 8th November 2016 to 30th December 2016 on the basis ofinformation available with the Company. Based on audit procedures and relying on themanagement's representation we report that the disclosures are in accordance with theBooks of accounts maintained by the Company and as produced to us by the Management.-ReferNote 25.

For Desai Saksena & Associates
Chartered A ccountants
Firm's Registration No : 102358W
Pl ace : Mumb ai Alo k K Saksena
Date: 29th May 2017 Partner
Membership No: 035170

Annexure A to the Independent Auditors' Report:

(Referred to in our report of even date)

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b. As per the explanation given to us fixed assets have been physically verified bymanagement in a phased periodical manner no material discrepancies were noticed on suchphysical verification.

c. The Company does not own any immovable property and hence this clause is notapplicable.

ii) The management has conducted physical verification of inventory of shares atreasonable intervals during the year and no such discrepancies were noticed.

iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered byclause (76) of section 2. Accordingly clause (iii) of the Order is not applicable.

iv) According to the information and explanations given to us the Company has compliedwith the provisions of Sections 185 and 186 of the Act in respect of loans investmentsguarantees and security.

v) The Company has not accepted any deposits from the public in accordance with theprovisions of Sections 73 to 76 of the Act and rules framed there under.

vi) To the best of our knowledge and as explained the Central Government has notprescribed the maintenance of Cost Records under section 148 (1) of the Act for any of theservices rendered by the Company.

vii)

a. According to the information and explanations given to us and on the basis of ourexamination of records of the Company the Company is generally regular in depositing withthe appropriate authorities undisputed statutory dues applicable to it and as on 31stMarch 2017 there is no undisputed amount payable for a period of more than six monthsfrom the date they became payable in respect of statutory dues applicable to it.

b. According to the information and explanations given to us there were no statutorydues outstanding as on 31st March 2017 which were not paid on account ofdispute with the appropriate authorities.

viii) As per the information and explanations given to us by the management theCompany has not taken any loan from banks and financial institutions and hence theprovisions of Clause (viii) of the Order are not applicable to the Company.

ix) According to the information and explanations given to us the Company has notraised monies by way of Initial Public Offer or Further Public Offer (including debtinstruments).

x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing principles in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of any such case by the management.

xi) As per the information and explanations given to us the Managerial Remunerationhas been paid or provided in accordance with the approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions of Clause (xii) of the Orderare not applicable to the Company.

xiii) As per the information and explanation given to us all transactions with therelated parties are in compliance with Sections 177 and 188 of the Act where applicableand the relevant details have been disclosed in the financial statements etc as requiredby the applicable accounting standards.

xiv) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement and hence theprovisions of Clause (xiv) of the Order are not applicable to the Company.

xv) 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 duringthe year; hence the provisions of Clause (xv) of the Order are not applicable to theCompany.

xvi) As per the information and explanation provided to us by the management thecompany has obtained the registration under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Desai Saksena & Associates
Chartered A ccountants
Firm's Registration No : 102358W
Place: Mumbai Alok K Saksena
D ate: 29th May 2017 Partner
Membership No: 035170