You are here » Home » Companies » Company Overview » VLS Finance Ltd

VLS Finance Ltd.

BSE: 511333 Sector: Financials
NSE: VLSFINANCE ISIN Code: INE709A01018
BSE LIVE 15:57 | 23 Oct 89.85 0.95
(1.07%)
OPEN

89.20

HIGH

93.05

LOW

89.20

NSE 15:59 | 23 Oct 89.85 1.35
(1.53%)
OPEN

89.00

HIGH

92.70

LOW

89.00

OPEN 89.20
PREVIOUS CLOSE 88.90
VOLUME 109201
52-Week high 99.60
52-Week low 44.30
P/E
Mkt Cap.(Rs cr) 347
Buy Price 0.00
Buy Qty 0.00
Sell Price 89.85
Sell Qty 250.00
OPEN 89.20
CLOSE 88.90
VOLUME 109201
52-Week high 99.60
52-Week low 44.30
P/E
Mkt Cap.(Rs cr) 347
Buy Price 0.00
Buy Qty 0.00
Sell Price 89.85
Sell Qty 250.00

VLS Finance Ltd. (VLSFINANCE) - Auditors Report

Company auditors report

TO THE MEMBERS OF VLS FINANCE LIMITED

REPORT ON THE FINANCIAL STATEMENTS

1. We have audited the accompanying standalone financial statements of VLS FINANCELIMITED ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements to 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 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.

Auditor’s Responsibility

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

4. 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.

5. 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 pronouncement requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances on the effectiveness of theentity’s internal financial control. 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 overallpresentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

8. 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 2016 and its profit and its Cash Flow for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order") and on the basis of such checks of the booksand records of the Company as we considered appropriate and according to the informationand explanations given to us we give in the Annexure "A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

10. 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 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 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.

f) In our opinion proper books of accounts and records as specified in Rule 15 of theSecurities Contracts (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.

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 ITInstitute (P) Ltd which are presently not in the same group have been considered asAssociate. Even though the company is in litigation with these companies in the opinionof company there is no adverse impact of such litigations on investments/advances made byit 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 2016.

iii. The Company has made provision as at 31st March 2016 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 requirement to transfer any amount to the Investor Education andProtection Fund as the Company has no due outstanding during the year ended 31stMarch 2016.

For AGIWAL & ASSOCIATES
Chartered Accountants
(FRN : 000181N)
(P. C. Agiwal)
Place: New Delhi Partner
Date: 28th May 2016 (M. No. 080475)

ANNEXURE "A" TO INDEPENDENT AUDITOR’S REPORT

REFERRED TO IN PARAGRAPH (9) OF OUR REPORT OF EVEN DATE

Re: VLS Finance Ltd. for the year ended 31st March 2016

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

(b) The fixed assets except assets on lease which are in the possession of thelessees have been physically verified by the Management according to the program ofperiodical verification in phased manner which in our opinion is reasonable having regardto the size of the Company and the nature of its fixed assets. The discrepancies noticedon such physical verification were not material.

(c) As per the records and information and explanations given to us title deeds ofimmovable properties are held in the name of the Company.

2. The company generally deals in shares securities and Units of Mutual funds.Primarily these are held in electronic form so inventory of the Company has beenelectronically verified by the management at reasonable intervals and the procedures ofverification of inventory followed by the Management are reasonable in relation to thesize of the Company and nature of its business. There were no discrepancies noticed onsuch verification of inventory as compared to book records.

3. The Company has granted Interest free unsecured loan to one subsidiary companycovered in the register maintained under section 189 of companies Act 2013. The Companyhas not granted any secured/ unsecured loans to the firms and parties covered in theregister maintained under section 189 of the Act.

a) As per the information given to us the aforesaid loan given to the subsidiarycompany is payable on demand.

b) In respect of the aforesaid loan there is no overdue amount at the year end.

4. According to the information explanations and representations provided by themanagement and based upon audit procedures performed we are of the opinion that inrespect of loans investments guarantees and security the Company has complied with theprovisions of the Section 185 and 186 of the Companies Act 2013.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Section 73 to76 or any other relevant provisions under the Act. Accordingly paragraph 3(v) of theOrder is not applicable to the Company.

6. According to the information & explanations given to us maintenance of costrecords has not been specified by Central Government under sub section (1) of section 148of the Companies Act 2013 for the company.

7. (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees’ state insurance income-tax wealth tax service tax andany other statutory dues with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of provident fundemployees’ state insurance income-tax wealth tax service tax and any othermaterial statutory dues in arrears as at 31.03.2016 for a period of more than six monthsfrom the date they became payable.

(c) According to the records and information and explanations given to us there is nooutstanding of any disputed statutory dues as on 31.03.2016.

8. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the Company has not defaulted in the repayment of loansand/or borrowings to financial institutions and banks. No debentures are outstanding as on31.03.2016.

9. During the year no monies have been raised by public offer of shares. Money raisedon term loans has been applied for the purposes for which loans were raised.

10. Based on the audit procedure performed and on the basis of information andexplanations provided by the management no fraud by the Company and on the Company by itsofficers or employees has been noticed or reported during the course of the audit .

11. On the basis of records and information and explanations made available managerialremuneration which has been paid or provided is in accordance with the requisite approvalsmandated under Section 197 read with Schedule V of the Act.

12. In our opinion and according to information & explanation given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.

13. As per the information and explanations and records made available by themanagement of the Company and audit procedure performed for the related partiestransactions entered during the year the Company has complied with the provisions ofSection 177 and 188 of the Act where applicable. As explained details of related partiestransactions are disclosed as per the applicable Accounting Standards.

14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully / partly convertibledebentures during the year.

15. On the basis of records made available to us and according to information andexplanations given to us the Company has not entered into any non-cash transactions withthe directors or persons connected with him.

16. The Company is not required to be registered under 45-IA of the Reserve Bank ofIndia Act 1934.

For Agiwal & Associates
Chartered Accountants
(FRN : 000181N)
P. C. Agiwal
Place: New Delhi Partner
Date: 28th May 2016 Membership No. : 080475

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 VLS FinanceLimited ("the Company") as of 31 March 2016 in conjunction with our audit of thestandalone 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 (‘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 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 Companies Act 2013.

Auditors’ Responsibility

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.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material 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 are subject 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.

Opinion

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 31 March 2016 based 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 by the Institute of CharteredAccountants of India.

For Agiwal & Associates
Chartered Accountants
(FRN : 000181N)
P. C. Agiwal
Place: New Delhi Partner
Date: 28th May 2016 Membership No. : 080475