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Hybrid Financial Services Ltd.

BSE: 500262 Sector: Financials
NSE: MAFATLAFIN ISIN Code: INE965B01014
BSE 05:30 | 01 Jan Hybrid Financial Services Ltd
NSE 05:30 | 01 Jan Hybrid Financial Services Ltd

Hybrid Financial Services Ltd. (MAFATLAFIN) - Auditors Report

Company auditors report

 

 

 

 

 

To

The Members

hybrid financial services ltd (formerly known as

 

MAFATLAL FINANCE COMPANY LIMITED)

Report on the Standalone Ind Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof HYBRID FINANCIAL SERVICES LIMITED (formerly known as MAFATLAL FINANCE COMPANY LIMITED)("The Company") which comprise the Balance Sheet as at March 31 2018 and theStatement of Profit and Loss and Cash Flow Statement and the Statement of Changes inEquity for the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Standalone Ind AS FinancialStatements

The Company’s Board of Directors are responsible for the mattersin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.

This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit of Ind AS financial statements in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmis-statement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is suffficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act (except to the extent of disclosure required to be madeunder Ind AS-19 with regard to Group Gratuity Scheme and Leave Encashment) in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India including the Ind AS of the state of affairs of the Companyas at March 31 2018 its profit its cash flows and changes in equity for the year endedon that date.

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 terms of sub-section(11) of section 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Companies Act 2013 we reportthat:

a) we have sought and obtained all the information and explanationssubject to Item Nos 4 of Note No. 2.18 regarding non receipt of confirmation of certainbank balances which to the best of our knowledge and belief were necessary for the purposeof our audit;

b) in our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss the Cash FlowStatement and Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account;

d) In our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards prescribed under section 133 of the Act.

e) On the basis of written representations received from the directorsas on March 31 2018 and taken on record by the Board of Directors none of

the directors is disqualified as on March 31 2018 from beingappointed as a director in terms of Section 164 (2) of the Companies Act 2013 and

f) with respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such

controls refer to our separate report in "Annexure B"; and

g) with respect to the other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

1. Company has disclosed the impact of pending litigations on itsfinancial position in its financial Statements-Refer Note No. 2.18.1 to the financialstatement.

2. Company did not have any long-term contracts including derivativescontracts for which there were any material foreseeable losses.

3. There were no amounts which required to be transferred to theInvestor Education and Protection Fund by the Company.

FOR S. RAMANAND AIYAR & CO

Chartered Accountants

Firm Registration No: 000990N

BINOD C. MAHARANA

Partner

Membership No. 056373

Place: Mumbai

Date: 22nd May 2018

annexure a to the independent auditors’ report

[The annexure referred to in our Independent Auditors’ Report ofeven date to the members of the Company on the standalone Ind AS financial statements forthe year ended 31st March 2018 in paragraph 1 under the heading "Report on OtherLegal and Regulatory Requirements" of HYBRID FINANCIAL SERVICES LIMITED (formerlyknown as MAFATLAL FINANCE COMPANY LIMITED)

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets

(b) The fixed assets were physically verified during the year by theManagement in accordance with a regular programme of verification which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals.According to the information and explanation given to us no material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) The Company being in the service sector clause (ii) of paragraph3 of the Order is not applicable to the Company.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms or otherparties which are covered in the Register to be maintained under Section 189 of theCompanies Act 2013.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made.

(v) According to the information and explanations given to us theCompany has not accepted any deposits from the public during the year and hence thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions of the Companies Act 2013 and the rules framed there underare not applicable to the Company.

(vi) According to the information and explanations given to us theCentral Government has not prescribed the maintenance of cost records under Section 148(1)of the Act. Therefore the provisions of clause (vi) of the Order are not applicable tothe Company.

(vii) (a) The Company has generally been regular in depositingundisputed statutory dues including Provident Fund Employees’ State InsuranceIncome Tax Sales Tax Service Tax Goods and Service Tax Customs Duty Excise DutyValue Added Tax Cess and any other material statutory dues applicable to it with theappropriate authorities.

 

According to the information and explanations given to us there wereno undisputed amounts payable in respect of Provident Fund Employees’ StateInsurance Income Tax Sales Tax Service Tax Goods and Service Tax Customs Duty ExciseDuty Value Added Tax Cess and any other material statutory dues in arrears as at 31stMarch 2018 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us detailof statutory dues which has not been deposited as on 31st March 2018 on account ofdispute is given below:

Name of Statute Nature of the dues Amount (Rs.) Period to which the amount relates Forum where dispute is pending
Sub-Regional Office Employees’ Provident Fund Vashi Demand Under Section 7A proceedings 2106154/- 2013-2014 The Company had appealed against the order and obtained a favourable decision in its favour from Employee Provident Fund Appellate Tribunal. The Company is unaware of any appeal made by the Department against the same.

 

(viii) The Company does not have any loans or borrowings from anyfinancial institution banks government or debenture holders during the year.Accordingly paragraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and basedon our examination of the records of the Company 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 the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

 

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

for s. ramanand aiyar & CO

Chartered Accountants

Firm Registration No: 000990N

BINOD C. MAHARANA

Partner

Membership No. 056373

 

 

Place: Mumbai

Date: 22nd May 2018

 

 

annexure b to the independent auditors’ report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of HYBRID FINANCIAL SERVICES LIMITED (formerly known as MAFATLAL FINANCE COMPANYLIMITED) ("the Company") as of 31st March 2018 in conjunction with our audit ofthe standalone 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI’). 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 tocompany’s 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.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company’s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that;

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company’s assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

for s. ramanand aiyar & CO

Chartered Accountants

Firm Registration No: 000990N

BINOD C. MAHARANA

Partner

Membership No. 056373

 

Place: Mumbai

Date: 22nd May 2018