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First Financial Services Ltd.

BSE: 511369 Sector: Financials
NSE: N.A. ISIN Code: INE141N01025
BSE 05:30 | 01 Jan First Financial Services Ltd
NSE 05:30 | 01 Jan First Financial Services Ltd

First Financial Services Ltd. (FIRSTFINANCIAL) - Auditors Report

Company auditors report

To

The Members of

FIRST FINANCIAL SERVICES LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of M/S FIRSTFINANCIAL SERVICES LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit & Loss and Cash Flow Statement for theyear ended on that date and a summary of Significant Accounting Policies and otherexplanatory 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 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) Rules 2014.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or 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 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 standalone 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 thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation and of the standalone financial statements that give true and fair view inorder to design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on the effectiveness of the company's internal control.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the standalone financial statements.

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

OPINION

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:

(i) In the case of the Balance Sheet; of the State of affairs of the company as at 31stMarch 2017;

(ii) In the case of the Statement of Profit and Loss; of the PROFIT for the year endedon that date;

(iii) In the case of the Cash Flow Statement of the Cash Flows for the year ended onthat date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the companies (Auditors Report) Order 2016 issued by the CentralGovernment of India in terms of section 143 (11) of the Act we give in "AnnexureA" a statement on matters specified in paragraph 3 and 4 of the said order.

2. As required by section 143(3) of the Act based on our audit we report to theextent applicable that:

a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of the audit;

b. In our opinion proper books of accounts 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 relevant books of accounts;

d. In our opinion the Balance Sheet the Statement of Profit and Loss and Cash FlowStatement comply with the mandatory Accounting Standards referred to in section 133 of theCompanies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014.

e. On the basis of the written representation received from the Directors as on 31stMarch 2017 taken on record by the Board of Directors we report that none of theDirectors is disqualified as on 31st March 2017 from being appointed as aDirector in terms of Sub-section (2) of section 164 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";

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements if any.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred ifany to the Investor Education and Protection Fund by the Company.

iv. The company has provided requisite disclosures in its standalone financialstatements as regards its holdings and dealing in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016. Based on the auditprocedures performed and the representations provided to us by the management we reportthat the disclosures are in accordance with the books of accounts maintained by theCompany and as produced to us by the company. (Refer Note ‘30' to the standalonefinancial statements.)

For S A R A & ASSOCIATES

CHARTERED ACCOUNTANTS

FIRM REGN NO.: 120927W

Sd/-

Ramawatar Sharma

(Partner)

M. No. 102644

Place : Mumbai

Date : 29th May 2017

ANNEXURE "A" TO THE AUDITORS' REPORT

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date on the accounts for the year ended 31stMarch 2017 of FIRST FINANCIAL SERVICES LIMITED. On the basis of such checks as weconsidered appropriate and in terms of information and explanations provided to us westate that:

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

b) All the assets have been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable; according to the information andexplanations given to us no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2) Since the company is a service company. Accordingly it does not hold any physicalinventories except shares. Thus paragraph 3(ii) of the Order is not applicable to theCompany.

3) The Company has not granted any loans covered in the register maintained undersection 189 of the Companies Act 2013 (‘the Act').

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 grant of loans making investment and providing guarantees and securities asapplicable.

5) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public in accordance with the provisions ofsections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is not applicable to the Company.

6) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.

7) According to the information and explanations given to us in respect of statutorydues:

a) On the basis of our examination of the records of the company amounts deducted/accrued in the books of account in respect of undisputed statutory dues includingprovident fund income-tax sales tax value added tax duty of customs service tax cessand other material statutory dues have been regularly deposited during the year by theCompany with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of employees' state insurance duty of excise provident fund incometax sales tax value added tax duty of customs service tax cess and other materialstatutory dues were in arrears as at 31 March 2017 for a period of more than six monthsfrom the date they became payable.

b) According to the information and explanations given to us there are no materialdues of sales tax or service tax or duty of customs or value added tax which have not beendeposited with the appropriate authorities on account of any dispute.

8) According to the information and explanations given to us the Company has not takenany loans or borrowings from any financial institution banks government or debentureholders during the year. Accordingly paragraph 3(viii) of the Order is not applicable.

9) The Company did not have any term loans outstanding during the year. The Company hasnot raised money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3 (ix) of the Order isnot applicable.

10) To the best of our knowledge and according to the information and explanationsgiven to us no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.

11) The company has given remuneration to the directors in accordance with therequisite approvals and in accordance with the provisions of section 197 of the Companiesact 2013.

12) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13) According to the information and explanations given to us all transactions withthe related parties are in compliance with Section 177 and 188 of Act where applicableand the details have been disclosed in the Financial Statements as required by theapplicable Indian Accounting Standards.

14) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable.

15) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him and hence provisions of section192 of the Companies Act 2013 are not applicable.

16) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For S A R A & ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Registration No. 120927W

Sd/-

Ramawatar Sharma

Partner

Membership No. 102644

Place : Mumbai

Date : 29th May 2017

ANNEXURE "B" TO THE AUDITORS' REPORT

(Referred to in paragraph 2(f) under "Report on other Legal and RegulatoryRequirements' section of our report of even date)

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 FirstFinancial Services Limited ("the Company") as of 31st March 2017 inconjunction with our audit of standalone financial statements of the Company for the yearended 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 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 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 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 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 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 of CharteredAccountants of India.

For S A R A & ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Registration No.: 120927W

Sd/-

Ramawatar Sharma

(Partner)

Membership Number: 102644

Place: Mumbai

Date: 29th May 2017.