To the Members of M/S PURSHOTTAMINVESTOFIN LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of M/s Purshottam Investofinlimited ('the Company) which comprises the Balance Sheet as at 31st March 2017 thestatement of Profit and Loss and Cash Flow Statement of the company for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013("theAct") 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 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 financial statements based on ouraudit. 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us aforesaid standalone financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccountingpiinciples generally accepted in India:
Emphasis of Matters
We draw attention to following matters in the notes to the financial statements:
a) As certified by the management and relied upon by us in the matter that no lawsuitfiled against the company.
b) Note "BS-B" in the financial statements which indicate that the companyhas accumulated losses but net worth of the company is not substantially eroded. Thecompany had incurred the losses during the current financial year. But the company hassufficient balance of reserves. The management is of the view that the company is goingconcern and our opinion is not modified in respect of this matter. Hence the financialstatements of the company have been prepared on a going concern basis.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure "A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
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 thebooks of account.
d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as onMarch 31st2017 taken on record by the Board of Directors none of the directors is disqualified ason March 31st 2017 from being appointed as a director 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. As certified by the management and relied upon by us in the matter that no lawsuitfiled against the company.
ii. The Company did not have any long-term contracts including derivate contracts forwhich 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 STRG & ASSOCIATES
CA Rakesh Gupta
M. No.: 094040
Place: New Delhi
Date: April 18th 2017
"Annexure A" to the Auditors' Report
The Annexure referred to in our report to the members of Purshottam Investofin Limited(the Company*) for the year Ended on 31 ST March 2017. We report that:
1. The Company does not own any fixed assets; so this paragraph is not applicable tothe company.
2. (a) The physical verification of the inventory is not possible as the company is aNon Banking Financial
Company and holds inventory in the form of investment in shares in their D-mat accountsand hence clause (b) is not applicable.
(c) The Company is maintaining proper records of inventory (shares) and nodiscrepancies between inventory and book records were noticed on verification.
3. Yes the Company has granted unsecured loan to companies firms or other partiescovered in the register maintained under Section 189 of the Act.
(a) Receipt of the principal amount and the interest is regular.
(b) No amount of loan & advances is overdue.
(c) The terms and conditions of the grant of such loans are not prejudicial to theCompany's interest;
4. 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 Act with respectto the loans and investments made.
5. The Company has not accepted any deposits within the meaning of Sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules2014 (as amended).
6. To the best of our knowledge and belief the Central Government has not specifiedmaintenance of cost records under sub-section (1) of Section 148 of the Act in respect ofCompany's products/ services. Accordingly the provisions of clause 3(vi) of the Order arenot applicable.
7. (a) The Company is generally regular in depositing undisputed statutory duesincluding provident
fund employees' state insurance income-tax sales-tax wealth tax service tax dutyof customs duty of excise value added tax cess and other material statutory dues asapplicable with the appropriate authorities (except in few cases where the amount of TDSis deposited late with interest). Further no undisputed amounts payable in respectthereof were outstanding at the year- end for a period of more than six months from thedate they become payable.
(b) According to the information & explanations given to us there are outstandingdemand of Rs. 223220/- in respect of income-tax and outstanding demand of Rs. 154275/-in respect to TDS which have not been deposited with the appropriate authority on accountof dispute. There are no amount of sales-tax wealth tax service tax duty of customsduty of excise value added tax and cess that have not been deposited with the appropriateauthorities on account of any dispute.
(d) According to the informations and explanations given to us there are no amountwhich was required to be transferred to the investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of1956) and rulesmade there under.
8. In our opinion the Company has not defaulted in repayment of dues to any financialinstitution or a bank or to debenture-holders during the year.
9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.
10. No fraud on or by the Company has been noticed or reported during the periodcovered by our audit.
11. The managerial remuneration has been paid/provided in accordance with the requisiteapprovals mandated by the provision of Section 197 read with schedule V to the Act duringthe year.
12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act wherever applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.
16. The company is registered under section 45 LA of the Reserve Bank of India Act1934 and. Further as the company has incurred losses during the current year no amounthas been transferred to the Statutory Reserves created under section 45-IC of the ReserveBank of India Act. 1934.
| ||For STRG & ASSOCIATES |
| ||CHARTERED ACCOUNTANTS |
| ||FRN: 014826N |
|Place: New Delhi ||CA Rakesh Gupta |
|Date: April 18th 2017 ||Partner |
| ||M. No: 094040 |
"Annexure B" to the Auditors' 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 PurshottamInvestofin Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
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 ('ICAT). 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 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 forexternal purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting indudes those polides 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 finantial statements inaccordance with generally accepted accounting prindples 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 Finandal Controls over Finandal Reporting
Because of the inherent limitations of internal finandal 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 finandal controls over finandalreporting to future periods are subject to the risk that the internal finandal controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the polides or procedures may deteriorate.
Opinion: In our opinion the Company has in all material respects an adequateinternal finandal controls system over finandal reporting and such internal financialcontrols over finandal reporting were operating effectively as at 31 March 2017 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Finandal Controls Over Finandal Reporting issued by the Institute ofChartered Accountants of India.
For STRG & ASSOCIATES
CHARTERED ACCOUNTANTS (FRN: 014826N)
CA RaJkesh Gupta
M. No.: 094040
Place: New Delhi
Date: April 18th 2017