To The Members of ShalibhadraFinanceLimited
Report on financialstatements
1. We have audited the accompanyingfinancial statements of Shalibhadra Finance Limited('the Company') which comprise the Balance Sheet as at 31 Mar 2015the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's responsibility for the financialstatements
2. 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including Accounting Standardsspecified under section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules2014. This responsibility includes the maintenance of adequate accounting records inaccordancewith the provisions of the Act for safeguarding 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 andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofaccounting records relevant to the preparation and presentation of financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
3. Our responsibility is to express an opinion on these financial statement': based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.
4. 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 reasonableassurance about whetherthe financial statements are free from material misstatement.
5. An audit involved performing procedures to obtain audit evidence about the amountsand disclosures in financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of risks of material misstatements of the financialstatements whether due to fraud or error. In making those risk assessmentsthe auditorconsiders internal control relevant to the Company's preparation that give a true and fairview in order to design audit that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsaswell asevaluating the overall presentation of the financial statements.
We believe that the audit evidence that we have obtained is sufficient and appropriateto provide a basis for our audit opinion.
Basis for Qualified Opinion
6. The Company has not provided for leave encashment and other retirement benefits.This constitutes departure from the accounting standards referred to in section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. The impact of such nonprovision if any on the financial statements is not readily ascertainable.
7. In our opinion and to the best of our information and accordingto the explanationsgiven to us except for the remarks in t8? paragraph above in the Basis for QualifiedOpinion the aforesaid financial statements give the information required iiy'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 Companyas at 31 Mar2015
b. In the case of the Statement of Profit and Loss of the profit for the year ended onthat date
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
8. As required by the Companies(Auditor's Report) Order 2015 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure a statement on the matters specified in paragraphs Sand 4 of the saidOrder.
9. 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 except for the remarks in the Basis for Qualified Opinion paragraphabove proper books of accountsas required bylaw have been kept by the Companyso far asappears from our examination of those books
c. Except for the remarks above in the Basis for Qualified Opinion paragraph theBalance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with bythis Report are in agreement with the books of accounts.
d. In our opinion except for the comments in the Basis for Qualified Opinion paragraphabove the aforesaid financial statements comply wit h the Accounting Standards specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
e. On the basis of written representation received from the directors as on 31 Mar 2015and taken on record by the Board of Directors none of the directors is disqualified as at31 Mar 2015 from being appointed as a director in terms of Section 164 (2) of the Act and
.f In our opinion the company has adequate internal financialcontrol system in placeand the operating effectivenessof such control is in place.
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 information and according to the explanations given to us:
i. The Company has disclosedthe impact of pending litigations on its financial positionin its financial statements
ii. There are no long term contracts including derivative contracts. Hence thequestion of provision of for any losses on the same does not arise.
iii. There has been on delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
For K S Sanghvi and Co
Firm Registration Number 116714W
Hitendra A Doshi
Membership No: 040201
Place of signature: Mumbai
Date: 30th May 2015.
Annexure to our report of even date
Re:Shalibhadra Finance Limited
(Referred to in Para 8 of our report of even date)
i [a] The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
[b] Fixed assets have been physically verified by the management and the company hasregular program of verification which in our opinion is reasonable having regard to thesize of the company and the nature of its assets. No material discrepancy was noticed onsuch verification.
ii) [a] The Company does not have inventory and hence this clause along with subclauses (b) and (c) of the Order are not applicable to the Company.
iii) [a] According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to Companies Firms or other parties covered inthe Register maintained under section 189 of the Act and hence this clausealong with subclauses (a) and (b) of the Order are not applicable to the Company.
iv) According to the information and explanations given to us there is adequateinternal control system commensurate with the size of the Company and nature of itsbusiness for purchase of inventory and fixed assets and for sale of goods.
v) The Company has not accepted deposits and hence the question of contravention ofprovisions of sections 73 to 76 of the Act or any other relevant provisions of the Actand the Rules framed thereunder does not arise.
vi) According to the information and explanations given to us the Government has notprescribed maintenance of cost records under section 148 (1) of the Act for any of thegoods sold by the Company.
vii) [a] According to the information and explanations given to us and on the basis ofexamination of records of the Company the Company is regular in depositing undisputedstatutory dues including provident fund employees state insurance income tax sales taxwealth tax service tax duty of customs duty of excise value added tax cess and anyother material statutory dues with the appropriate authorities. As explained to us theCompany did not have any dues on account of wealth tax.
According to the information and explanations given to us no undisputed amounts inrespect of provident fund income tax sales tax wealth tax service tax duty ofcustoms value added tax cess and other material statutory dues were in arrears as at 31March 2015 for a period of more than six months from the date they became payable.
[b] According to the information and explanations given to usthere are no amountswhich have not been deposited on account of any dispute in case of dues of income taxsales tax wealth tax service tax duty of customs or duty of excise.
[c] According to the information and explanations given to us the amount required tobe transferred to the Investor Education and Protection Fund has been transferred.
viii) The Company does not have any accumulated losses at the end of the financialyear. The Company has not incurred cash losses in the current financial year and in theimmediately preceding financial year.
ix) According to the information and explanationsgiven to us the Company has notdefaulted on any dues to banks or financial institutions or debenture holders.
x) According to the information and explanations given to us the Company has not givenguarantee for loans taken by others from banks and financial institutions; the terms andconditions thereof are prima facie not prejudicial to
the interest of the Company.
xi)According to the information and explanations given to us the term loan wereapplied for the purpose for which they were obtained.
xii)According to the information and explanations given to us noi material fraud on orby the company has been noticed and reported during the course of our audit.
For K S Sanghvi & Co
Firm Registration No. 116714W
Hitendra A Doshi
Membership No.: 040201
Date: 30th May 2015.