THE MEMBERS OF WALL STREET FINANCE LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Wall Street FinanceLimited ("the company") which comprises the Balance Sheet at March 31 2017 theStatement of Profit and Loss the statement of cash flows for the year-ended on that dateand 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 ("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 the Accounting Standards(AS) as 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 of 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 andauditingstandards 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. 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement ofthese financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design auditproceduresthat 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 ourqualified audit opinion on the standalone financial statements.
Basis for Qualified Opinion
We draw attention to Note No. 35 of the Financial Statements regarding reconciliationissues between creditors bank balances and trade receivables due to migration to new ERPsystem during the year. Pending completion of the said exercise we are unable to quantifythe effect of the same on the financial statements if any.
In our opinion and to the best of our knowledge and according to the information andexplanations given to us except for the effects of matter described in the Basis ofQualified Opinion paragraph the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312017 and its profit and its cash flow for the yearended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
a) There is an uncertainty with respect to recovery of amount of Rs. 25 lakhs due sinceDecember 2011 on redemption of preference shares of erstwhile subsidiary company which iscurrently under liquidation as per order of the High court against the petition of windingup filed by the Company. No provision has been made for diminution in the value of suchinvestment in preference shares for reasons specified in the note no. 16.1 of theFinancial Statement.
b) Note No. 30 of the Financial Statements relating to applicability of Service Tax onMTSS Commission Income as per CBEC Circular No. 180/06/2014 dated 14th October 2014. Thecompany has not provided for the service tax on such income for the reasons specified inthe said note.
Our opinion is not modified in respect of these matters.
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 exercise of power conferred by terms ofsub-section (11) of section 143 of the Act we give in the "Annexure A"astatement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) 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 appears from our examination of those books;
c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statementdealtwith by this Report are in agreement with the books of account;
d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting 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 March31 2017and taken on record by the Board of Directors none of the directors isdisqualified as on March 312017 from being appointed as a director in terms of Section164 (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"; and
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. The Company has disclosed the impact of pending litigations that affect itsfinancial position in its financial statements;
ii. The Company has made provision as required under the applicable law or according toAccounting Standards for material foreseeable losses if any on Long term contractsincluding derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year.
iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. However we are unable to obtain sufficient and appropriateaudit evidence to report on whether the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management - Refer Note 36.
| ||For ASA & Associates LLP |
| ||Chartered Accountants |
| ||Firm Registration No: 009571N/N500006 |
| ||Mihir Hindocha |
|Place : Mumbai ||Partner |
|Date : 30th May 2017 ||Membership No. 112766 |