TO THE MEMBERS OF M/s.VJTF EDUSERVICES LIMITED
REPORT ON THESTANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone Financial statements of M/sVJTFEDUSERVICES LIMITED(the Company') which comprise the Balance Sheet as at31stMarch 2017theStatement of Profit and Lossandthe Cash FlowStatementfor the year thenendedand notes to the Financial Statements including a summary of significant accountingpolicies and other explanatory information.
MANAGEMENT'S RESPONSIBILITYFOR THE FINANCIAL STATEMENTS:
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 preparation andpresentation of these standalone Financial statements that give a true and fair view ofthe Financial position Financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal Financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Financial statements that give a true and fair view and are free frommaterial misstatement 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 and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Financial statements are free from materialmisstatement.
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 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 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 of the state of affairs of the Companyas at31st March2017and itsProfitand its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:
1. 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 Acton the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to uswegive in the Annexure A a statement on the matters specified in theparagraphs3 and 4 ofthe Order.
2. As required by Section 143 (3) of the Act we report that :
a. Wehave sought and obtained all the information and explanations which to the best ofour 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 the Cash Flow Statement dealtwith by 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 the written representations received from the Directors as on 31stMarch 2017andtaken on record by the Board of Directors none of the Directors isdisqualified as on 31st March2017from being appointed as a Director in terms of Section164 (2) of the Act; f. With respect to the adequacy of the internal Financial controlsover Financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in Annexure B'; and
g. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule11 of the Companies (Audit and Auditors)Rules 2014 in our opinionand to the best of our information and according to the information and explanations givento us :
i. The Company has disclosed the impact of pending litigations on its Financialposition in its standalone Financial statements-Refer Clause 1 (a) of Note 24to theFinancial statements.
ii. The Company does not have any Long-term contracts including derivative contractsfor which there were any material foreseeable losses.
iii. No amounts were required to be transferred to the Investor Education andProtection Fund by the Company.
iv. The Company has provided requisite disclosures in its Financial statements as toholding as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the Company.
J. KALA & ASSOCIATES
M/s.VJTF EDUSERVICES LIMITED
ANNEXUREA'TO INDEPENDENT AUDITORS' REPORT (Referred to in Paragraph (1) of ourreport of even date)
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Financial statements for the year ended 31st March2017andon the basisof such checks of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As informed to us all fixed assets have been physically verified by the managementat reasonable intervals. No material discrepancies were noticed on such physicalverification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable property held asfixed asset are held in the name of the Company.
(ii) As the Company does not have any inventory the provisions of Clause 3 (ii) of theOrder are not applicable to the Company.
(iii) The company has granted unsecured loans to one company covered in the registermaintained under section 189 of the Act
(a) The rate of interest and other terms and conditions on which the loans have beengranted are not prima facie prejudicial to the interest of the company. (b)We have beeninformed that repayment of principal and payment of interests are on demand. In ouropinion and based on the information and explanation provided to us we did not notice anydelay in repayment of principal and payment of interest if demanded by the company duringthe year.
(c) There are no amounts overdue for more than ninety days in respect of the loansgranted.
(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or security in connectionwith any loan to any party covered under Section 185 of the Act except those mentioned inClause 5 of Note 24of accompanying Financial statements.In respect of loans granted andsecurity cum guarantee given during the year the provisions of Section 186 of the Act areto be complied with.However the Company has not made any Investments during the year.
(v) The Company has not accepted any deposits from the public.
(vi) As informed to us the maintenance of cost records has not been prescribed by theCentral Government under Section 148(1) of the Act in respect of the activities carried onby the Company. Therefore the provisions of Clause 3(vi) of the Order are not applicableto 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 the Company is regular in depositing theundisputed statutory dues including provident fund employees' stateinsuranceincome-tax sales tax service tax duty of customsduty of excise value addedtax cessandany ot her statutory dues with the appropriate authorities.
According to the information and explanations given to us no undisputed amounts inrespect of the aforesaid statutory dues were outstanding as at the last day of theFinancial year for a period of more than six months from the date they became payable.
(b)According to the information and explanations given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise and value added taxwhich have not been deposited by the Company on account of disputes except for following:
|Name of the statute ||Nature of dues ||Amount in Rs. ||Period to which the amount relates ||Forum where the dispute is pending |
|The Income ||Tax ||6642500 ||2013-14 ||Being in process to file appeal with ITAT |
|Tax Act1961 || || || || |
|The Income ||Tax ||1580280 ||2014-15 ||CIT Mumbai |
|Tax Act1961 || || || || |
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings from Financialinstitutions and banks except for minor delays in payment of interest. As the Company hasnot borrowed any money from Governments or issued any Debentures the question of duespayable to them does not arise.
(ix) In our opinion and according to the information and explanations given to us theterm loans have been applied for the purpose for which those were obtained. However theCompany has neither raised any moneys by way of Initial Public Offer or Further PublicOffer (including debt instruments).
(x) Based upon the audit procedures performed and information and explanations given bythe management we report that neither fraud on the Company by its officers or employeesnor any fraud by the Company has been noticed or reported during the course of our audit.
(xi) The Company has paid or provided for managerial remuneration in accordance withthe requisite approvals mandated by the provisions of Section 197 read with Schedule V ofthe Act.
(xii) As the Company is not a Nidhi company the provisions of Clause 3(xii) of theOrder are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with Section177 and188 of the Act wherever applicable and details have beendisclosed in the Financial Statements (Refer Clause 5 of Note 24) as required by theapplicable accounting standards.
(xiv) As the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the yearthe provisions of Clause3(xiv) of the Order are not applicable to the Company.
(xv) As the Company has not entered in to any non-cash transactions covered underSection 192 of the Act with the directors or persons connected with him the provisions ofClause3(xv) of the Order are not applicableto the Company.
(xvi) As the Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934 the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.
|J. KALA & ASSOCIATES |
|JAYESH KALA |
M/s.VJTF EDUSERVICES LIMITED ANNEXUREB'TO THE AUDITORS' REPORT
REFERRED TO IN PARAGRAPH 2 (f) OF THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE TO THEMEMBERS of VJTF Eduservices Limited on the standalone Financial statements for the yearended 31stMarch2017.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Act
We have audited the internal Financial controls over Financial reporting of M/s.VJTFEDUSERVICES LIMITED (the Company') as of 31st March2017in conjunction with ouraudit 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 down 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalFinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable Financialinformation as required 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 issued by ICAI and deemed to beprescribed under Section 143(10) of the Actto the extent applicable to an audit ofinternal Financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI.Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal Financial controls over Financial reporting wereestablished and maintained and if such controls operated effectively in all materialrespects.
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 auditors' 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 Financialreporting 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 authorizations of the management and directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 aresubject 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 31st March2017based 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 byICAI.
ForJ. KALA & ASSOCIATES CHARTERED ACCONTANTS FIRM REGISTRATION. NO.: 118769W
JAYESH KALA PARTNER MEMBERSHIP NO.:101686
PLACE: MUMBAI DATE:8th August2017