TO THE MEMBERS OF VLS FINANCE LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of VLS FINANCE LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and 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 is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements to 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 adequateinternal financial control 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.
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 and the Rules made there underincluding the Accounting & Auditing Standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards and pronouncement require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone 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 on the effectiveness of the entity's internalfinancial control. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone financialstatements.
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 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 March 31 2017 and its profit and its Cash Flow 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 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (herein afterreferred to as the "Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure "A" a statement on thematters specified in paragraphs 3 and 4 of the Order.
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 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 the Statement of Cash Flowdealt with 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 written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct;
f) On our opinion proper books of accounts and records as specified in Rule 15 of theSecurities Contract (Regulation) Rules 1957 have been kept in so far as it appears fromour examination of such books
g) The company as Stock Broker has complied with the requirements of the stock exchangeso far as they relate to maintenance of accounts and was regular in submitting therequired accounting information to the Stock Exchange;
h) With respect to the adequacy of the Internal Financial Controls over FinancialReporting of the Company and operating effectiveness of such controls refer to ourseparate Report in Annexure- B; and
i) 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 knowledge and belief and according to the information andexplanations given to us:
i. After coming into effect of the Companies Act 2013 the definition of"Associate" covers a company or companies in which holding company holds notless than 20% of the Total Share Capital of that company or those companies irrespectiveof whether they are in the same group or not.
Hence Sunair Hotels Ltd. and BMS IT Institute (P) Ltd which are presently not in thesame group have been considered as Associate. Even though the company is in litigationwith these companies in the opinion of company there is no adverse impact of suchlitigations on investments/advances made by it in these associates.
ii. The Company has informed & explained to us that pending litigations has noadverse effect on its financial position in its financial statements as at 31stMarch 2017.
iii. The Company has made provision as at 31st March 2017 as requiredunder the applicable law or accounting standards for material foreseeable losses if anyon long term contracts including derivative contracts. iv. There has been no requirementto transfer any amount to the Investor Education and Protection Fund as the Company hasno due outstanding during the year ended 31st March 2017.
v. The Company has provided requisite disclosure in its Standalone Financial as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company. Refer Point No.19 of Note 24 to theStandalone Financial Statements.
For Agiwal & Associates Chartered Accountants Firm's registration number :000181N
| ||CA P.C. Agiwal |
|New Delhi ||Partner |
|08th May 2017 ||Membership No. 080475 |