INDEPENDENT AUDITORS REPORT
To the Members of
Apex Home Finance Limited
Report on the financial statements
We have audited the accompanying financial statements of Apex Home Finance Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rule 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgment and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatements whether due to fraudor error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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. 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 theauditors 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 control relevant to the Companys preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Companys Directors as well as evaluatingthe overall presentation of 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows for the year ended on the date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government in terms of sub-Section (11) of Section 143of the Act we give in Annexure A a statement on matters specified inparagraphs 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 purpose 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 Statementdealt with by this Report are in agreement with the books of account.
d) in our opinion the aforesaid financial statement comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rule 2014.
e) on the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect of 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"
g) with respect to the other matters to be included in the Auditors Reports 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 does not have any pending litigations which would impact itsfinancial position.
(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
(iv) The Company has provided requisite disclosures in the financial statements asregards its holding and dealings in Specified Bank Notes as defined in the NotificationS.O. 3407(E) dated November 8 2016 of the Ministry of Finance during the period fromNovember 8 2016 to December 30 2016. Based on audit procedures performed and therepresentations provided to us by the management we report that the disclosures are inaccordance with the books of account by the Company and as produced to us by theManagement.
For BLY & Associates
(CA B.L. Yadav)
Membership No. : 091601
Place: New Delhi
Date: May 25 2017
Annexure-(A) to the Independent Auditors Report
The Annexure referred to in paragraph 1 under the heading "Report on other legaland regulatory requirements" of Our Report of even date.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. The Company does not have any fixed assets therefore no comments are requiredregarding maintenance of records disposed off situation and physical verification of itsfixed assets.
2. The Company does not have any inventories therefore no comments are required inrespect of physical verification and maintenance of its inventories.
3. The Company has not granted any loans or advances in the nature of loans to theCompanies firms Limited Liability Partnerships or other parties covered in the registermaintained u/s 189 of the Companies Act 2013. Hence the sub-clauses of the clause (iii)are not applicable to the Company.
4. The Company has neither given any loans to the associate companies nor provided anyguarantees for the loans taken by associate companies from banks and financialinstitutions or provided securities nor made any investments hence reporting oncompliance of the provisions of section 185 of the Companies Act 2013 does not requiredhowever the company has complied the provisions of section 186 of the companies Act 2013in respect of advances given by the company.
5. The Company has not accepted any deposits from public during the year ended31.03.2017 and consequently the directives issued by the RBI the provisions of 73 to 76or any other relevant provision of the Companies Act and the rules framed there under arenot applicable to the Company.
6. The maintenance of the cost records prescribed by the central government U/s 148(1)of the Act is not applicable to the company.
7. According to the information and explanations given to us the Company isregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund Employees State Insurance Income tax Sales Tax Service TaxExcise duty tax Value Added Tax Custom Duty Cess and other statutory dues whichever isapplicable to it.
According to the information and explanations given to us no undisputed amountspayable in respect of income tax sales tax value added tax custom duty and excise dutywere outstanding as at March 31 2017 for a period of more than six months from the datethey became payable.
According to information and explanations given to us there are no dues in respect ofincome tax wealth tax sales tax value added tax custom duty and excise duty which havenot been deposited with the appropriate authorities on account of any dispute
8. The company has not taken any term loan from financial institution or bank or issueddebentures till 31st march 2017. Hence in our opinion the question ofreporting on default in repayment of dues to financial institution or bank or debentureholders does not arise.
9. As per the information and explanations given to us and as per the records producedbefore us the Company has not raised any moneys by way of initial public offer or furtherpublic offer or term loans so reporting on application of such moneys does not arise.
10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of such case by the management.
11. The Company has not paid or provided any Managerial remuneration during thefinancial year ended on 31.03.2017.
12. As per the information and explanations given to us and as per the records producedbefore us by the management of the Company We are of the opinion that the company is nota nidhi company hence the requirement of clause 3 (xii) of the order do not apply to thecompany.
13. As per the information and explanations given to us and as per the records producedbefore us by the management of the Company We are of the opinion that the company has notentered into any transaction with the related party hence the requirement of reporting ofcompliance with sections 177 and 188 of the Companies Act 2013 is not applicable.
14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
15. According to the information and explanations given by the management and based onour examination of the records of the Company the Company has not entered into anynon-cash transactions with directors or persons connected with him. Accordingly paragraph3(XV) of the order is not applicable.
16. The Company has been registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
For BLY & Associates
(CA B.L. Yadav)
Membership No. : 091601
Place: New Delhi
Date: May 25 2017
The Annexure (B) to the Independent 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 Apex HomeFinance Limited ('the Company') as of 31st March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompanys policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
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 168 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Companys internal financial controls system over financialreporting.
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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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.
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 March 2017.
For BLY & Associates Chartered Accountants FRN: 012899N
(CA B.L. Yadav)
Membership No. : 091601
Place: New Delhi
Date: May 25 2017