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Latent Light Finance Ltd.

BSE: 539909 Sector: Financials
NSE: N.A. ISIN Code: INE515K01018
BSE 05:30 | 01 Jan Latent Light Finance Ltd
NSE 05:30 | 01 Jan Latent Light Finance Ltd

Latent Light Finance Ltd. (LATENTLIGHT) - Auditors Report

Company auditors report

TO THE MEMBERS OF

LATENT LIGHT FINANCE LIMITED

(formerly known ns Galaxy Commercial Limited)

Report on the Financial Statements

We have audited the accompanying financial statements of Latent Light Finance Limited(formerly known as Galaxy Commercial Limited) ("the Company") which comprisethe Balance Sheet as at 31 March 20 i 8. the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand 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 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. Thisresponsibility also includes maintenance of adequate accounting records m 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 appropriateaccouniing 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 material misstatement whether due to fraud orerror.

Auditor's Responsibility

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 arc 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 perforin 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 procedures selected depend on the auditors judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments 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 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 at 31March 2018 and its profit and its cash flows for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended 31 March 2017prepared in accordance with accounting principles generally accepted in India included inthese financial statements have been audited by the predecessor auditor. The report of thepredecessor auditor on the comparative financial information dated 30th May2017 expressed an unmodified opinion. Our report is not modified in respect of thesematters.

Report on Other Legal and Regulatory Requirements

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 ofthe Companies Act 2013 we give in the "Annexure (A)" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143 (3) of the Act we report to the extent applicable 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 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 statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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. There is no pending litigation which would have its impact on financial statement ofthe Company.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There are no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made since they do not pertain to the financial year ended 31 March 2018.

For Divyank Khuilar & Associates
Chartered Accountants
1CAI Firm Registration No. -025755N
SD/-
Divyank Khuilar
(Proprietor)
Membership No.: 528399
Place: New Delhi
Date : 30"'May 2018

ANNEXURE (A) TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE

FINANCIAL STATEMENTS OF LATENT LIGHT FINANCE LIMITED (formerly known as

Galaxy Commercial Limited)

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31 March 2018. we report that:

(i) (a) According to the information and explanations given to us the Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets (property plant and equipment).

(b) According to the information and explanations given to us the Company has aregular programme of physical verification of its property plant and equipment by whichall fixed assets (property plant and equipment) are verified at reasonable intervals. Nomaterial discrepancies were noticed during physical verification of fixed assets(property plant and equipment).

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company didn't have any immovable propertyin its fixed assets (property plant and equipment) and therefore the paragraph 3(i)(c) ofthe Order is not applicable to the Company.

(ii) As per the information and explanations provided to us the Company is in thebusiness of Non-Banking Financial Institution (‘NBFC') without accepting publicdeposits and does not have any phy sical inventories; hence the paragraph 3(ii) of theOrder is not applicable to the Company.

(iii) In our opinion and according to the information and explanations provided to usthe Company has granted loans to companies and firm covered in the register maintainedunder section 189 of the Companies Act 2013 ('the Act').

(a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the parties listed in the register maintained under section 189of the Act were not prima facie prejudicial to the interest of the Company.

(b) In the case of the loans granted to Company listed in the register maintained undersection 189 of the Act the borrower has been regular in the repayment of the principaland payment of interest on such loans as and when demanded by the Company as stipulated;

(c) There is no overdue amount in respect of the loans granted to a Company listed inthe register maintained under section 189 of the Act;

(iv) In our opinion and according to the information and explanations provided to usthe Company has complied with provisions of section 186 of the Act with respect to theloans investments guarantees and securities made. Further the Company is exempted fromcompliance of section 185 of the Act.

(v) According to the information and explanations provided to us the Company has notaccepted any deposits from the public. Accordingly the directives issued by Reserve Bankof India and the provisions of section 73 to 76 or any other relevant provisions of theAct and rules framed thereunder are not applicable.

(vi) According to the information and explanations provided to us the CentralGovernment has not specified for maintenance of cost records under section 148(1) of theCompanies Act 201 j in respect of the activities carried on by the Company. Hence theprovisions of paragraph 3(vi) of the Order is not applicable to the Company.

(vii) In respect of statutory dues;

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company is regular in depositing withappropriate authorities undisputed statutory dues including income-tax service tax goodsand service tax and other material statutory dues as applicable. As explained to us theCompany did not have any dues on account of provident fund employees' state insurancesales tax duty of customs value added tax and excise duty.

Further there are no undisputed amounts payable outstanding as at 31 March 2018 tor aperiod of more than six months from the date they become payable.

(b) According to the information and explanations given to us. there are no materialstatutory dues which have not been deposited with the appropriate authorities on accountof any dispute.

(viii) In our opinion and according to the information and explanations given to usthe Company has not raised loan or borrowings from banks financial institutionsGovernment or debenture holders during the year under audit and therefore paragraph3(viii) of the Order is not applicable.

(ix) According to the information and explanations provided to us the company has notraised any moneys by way of initial public offer or further public offer (including debtinstruments) and not availed the facility of term loans during the year under audit andtherefore paragraph 3(ix) of the Order is not applicable.

(x) 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 no fraud on or by the companyor any fraud by its officers or employees was noticed or reported during the year.

(xi) To the best of our knowledge and according to the information and explanationsgiven to us no managerial remuneration has been paid or provided during the year underaudit. Accordingly paragraph 3(xi) of the Order is not applicable on the Company.

(xii) 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.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) 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 under audit.

(xv) 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. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) To the best of our knowledge and according to the information and explanationsgiven to us the company has registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Divyank Khullar & Associates
Chartered Accountants
ICAI Firm Registration No. -025755N
Sd/-
Divyank Khullar
(Proprietor)
Membership No. : 528399
Place : New Delhi
Date : 30 May 2018

ANNEXURE- (B) TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF LATENT LIGHT FINANCE LIMITED (formerly known us Galaxy Commercial 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 LATENTLIGHT FINANCE LIMITED (formerly known as Galaxy Commercial Limited) ("theCompany") as of 31 March 2018 in conjunction with our audit of the financialstatements 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 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's interna! 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 1CAI 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 judgement 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 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 31 March 2018 based on"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 Divyank Khullar & Associates
Chartered Accountants
1CA1 Firm Registration No. -025755N
Sd[~~
Divyank Khullar
(Proprietor)
Membership No.: 528399
Place : New Delhi
Date : 30"' May 2018