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Dhanvarsha Finvest Ltd.

BSE: 540268 Sector: Financials
NSE: N.A. ISIN Code: INE615R01011
BSE 00:00 | 12 Jun 37.25 0
(0.00%)
OPEN

36.80

HIGH

37.25

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36.60

NSE 05:30 | 01 Jan Dhanvarsha Finvest Ltd
OPEN 36.80
PREVIOUS CLOSE 37.25
VOLUME 40346
52-Week high 42.30
52-Week low 18.70
P/E 7.08
Mkt Cap.(Rs cr) 29
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 36.80
CLOSE 37.25
VOLUME 40346
52-Week high 42.30
52-Week low 18.70
P/E 7.08
Mkt Cap.(Rs cr) 29
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dhanvarsha Finvest Ltd. (DHANVARSHAFINV) - Auditors Report

Company auditors report

TO THE MEMBERS OF :

DHANVARSHA FINVEST LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of DHANVARSHA FINVEST LIMITED("the Company") which comprises Balance Sheet as at 31st Mar 2017 theStatement of Profit and Loss account and cash flow statement for the year then ended anda Summary of significant accounting policies and other explanatory information.

Management's responsibility for the Financial Statement

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 financial statements that givea 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) Rules20i4. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provision 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 Judgments 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 materials misstatement whether due to fraudor error.

Auditor's Responsibility

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

We have taken into account the provision 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 thereunder.

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 andthe disclosures in the financial statements. The procedure 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 assessment 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

Opinion

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 at31-Mar-2017 and its Profit and its cash flow for the year ended on that date.

Emphasis Matters

Attention is invited to Note 26 to the financial statements regading dues of Rs.3590943 from one of the borrower company. The litigation is pending in High Court inrespect of the said dues The management is hopeful of recovery of entire amount due. Ouropinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) order 2017 ("the Order")issued by the central Government of the India in the terms of Section 143(11) of the Actwe give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of thesaid order to the extent applicable

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 and 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 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 31stMar 2017 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st Mar 2017 from being appointed as a directors in termsof section 164(2) of the Act.

f) Report on the Internal Financial Controls under Clause (1) of Sub-section 3 ofsection 143 of the companies Act 2013 ("the Act")- is enclosed as an annexure Bto this report.

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. As informed to us the Company has disclosed impact of pending litigations on itsfinancial position in notes forming part of financial statement.

ii. The Company did not have any long-term contracts including derivative contracts forwhich 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 had provided requisite disclosures in its financial statements asregards to its holdings as well as dealings in Specified Bank Notes as defined inNotification S.O. 3407(E) dated 8th November2016 of the Ministry of finance during theperiod from 8th November 2016 to 30th December 2016. Based on audit procedures performedand representations provided to us by the management we report that disclosures are inaccordance with the books of accounts maintained by the Company.

For D.Shah & Associates
Chartered Accountants
D.P. Shah Place:Ahmedabad
Proprietor Date:
Membership No. 30492
FRN 109528

ANNEXURE A REFERRED TO IN PARAGRAPH 3 OF INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'Section of our Independent Auditor's Report of even date.

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

(b) As explained to us a substantial portion of fixed assets has been physicallyverified during the year by the management and no material discrepancies between the bookrecords and the physical inventory have been noticed.

(c ) As per information and explanation given to us and on the basis of our examinationof the records of the Company the title deeds of Immovable properties are held in thename of the Company.

(2) (a) The Company is a finance company and trading in shares & securities and itsholding are in dematerilised form accordingly it does not hold any physical inventories.Thus paragraph 3(ii) of the order is not applicable to the Company.

(3) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties except one of the party covered in theregister maintained under section 189 of the Act.

(a) In our opinion and according to the explanations given to us the rate of interestand other terms and conditions of the aforesaid loan are not prima facie prejudicial tothe interest of the company.

(b) As per information and explanation given to us the company has given loans to thecompanies and other parties covered in the register maintained under section 189 of thecompanies act. The terms of repyament and interest has been specified and the amount hasbeen recovered.

(c) According to the information and explanations given by the manangement no amountis overdue

(4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(5) In our opinion and according to the information and explanations given to us theCompany being a Non-Banking Finance Company (NBFC) registered with Reserve Bank of Indiais not required to comply with the provisions of sections 73 74 75 and 76 or any otherrelevant provisions of the Act and the Rules framed thereunder to the extent notifiedwith regard to the deposits accepted from the public. According to the information andexplanations given to us no order has been passed by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on theCompany in respect of the aforesaid deposits.

(6) According to information and explanation given to us the Company is not requiredto maintain any cost records as specified by the Central Government under section 148(1)of the Act. Accordingly paragraph 3(vi) of the Order is not applicable to the Company.

(7) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of thecompany examined by us there are no disputed amounts payable in respect of income taxsales tax wealth tax service tax value added tax excise duty outstanding at the yearend.

(c) According to the information and explanations given to us there were no amountswhich were required to be transferred to investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesmade there under.

(8) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as at theBalance Sheet date.

(9) The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments). The Term loans obtained by the company wereapplied for the purposes for which those are raised.

(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 material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

(11) The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

(12) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of clause 3(xii) of the Order are not applicable to the Company.

(13) According to information and explanations given to us all the transactions withrelated parties are in compliance with the provisions of Section 177 and 188 of the Actwhere applicable. The details of related party transactions have been disclosed in thefinancial statements as required under Accounting Standard (AS) 18 Related PartyDisclosures specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(14) According to the information and explanations given to us and based on ourexamination of records of the Company the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.

(15) According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into any non-cashtransactions during the year under review with its directors or persons connected with himand hence provisions of section 192 of the Act are not applicable.

(16) The Company is required to and has been registered under section 45-IA of theReserve Bank of India Act 1934 vide no. 01.00094

For D.Shah & Associates
Chartered Accountants
D.P. Shah Place: Ahmedabad
Proprietor Date : 24.05.2017
Membership No. 30492
FRN 109528

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF DHANVARSHA FINVEST LIMITED

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 DHANVARSHAFINVEST LIMITED. ("the Company") as of March 31 2017 in 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 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 FinancialReporting" issued by the Institute of Chartered Accountants of India. 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 safeguarding ofits 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 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 auditor's judgment including the assessment of the risks of materialmisstatement 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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 March 31 2017 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 ofChartered

For D.Shah & Associates
Chartered Accountants
D.P. Shah Place : Ahmedabad
Proprietor Date: 24.05.2017
Membership No. 30492
FRN 109528