INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF MANSI FINANCE (CHENNAI! LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of MANSI FINANCE (CHENNAI)LIMITED ('the Company') which comprises the balance sheet as at 31st March 2017 thestatement of Profit & Loss Account and the Cash Flow statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is reponsible for the matters stated in section 134(5) of the Companies Act2013 ("the act") with respect to the preparation ofthese financial statements that give a true and fair fiew 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 relevant rules issued thereunder. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accoutingpolicies; making judgements and estimates that are reasonable and prudent; and designimplementation 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. -
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 mad thereunder.
We have conducted our audit in accordance with the Standards on Auditing specifiedunder section 143 (10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assuarance about whetherthe financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedure selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give 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 overfinancial reporting and operating effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the management as well as evaluating the overallpresentation 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 explanations given to us theaforesaid financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312017and its profit and its cash flows for the year ended on that date.
Report on other legal & regulatory requirements
1. As required by the Companies (Auditor's Report) order 2016 issued by the CentralGovernment of India in terms of sub section (11) of section 143 of the Companies Act2013 We annexed hereto (Annexure B) a statement on the matters specified in paragraphs 3& 4 of the said order to the extent applicable.
2. As required by section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanation 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 such books.
(c) The Balance Sheet Statement of Profit & Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of account of the Company.
(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) Rules2014.
(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms of section 164 (2) of theAct.
(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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule llof 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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note to the financial statements.
(ii) The Company did not have any long term contracts including derivatives contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.
(iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8November2016 to 30 December and these are in accordance with the books of accountsmaintained by the Company. Refer Note to the Financial Statement.
| ||FOR M/S. SIROHIA & CO |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Reg. No.003875S |
| ||(VINOD KUMAR) |
|PLACE : CHENNAI ||PARTNER |
|DATE : 28-06-2017 ||M. No.207094 |
ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph (f) under 'Report on other legal and regulatory requirements'section of our report of even date)
We have audited the internal financial controls over financial reporting of MANSIFINANCE (CHENNAI) LTD as at 31 March 2017 in conjunction with our audit of the stand aloneFinancial 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 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's Internal Financial Controlover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note and the Standards on Auditing ('the Standards') issued by the ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company
2 provide reasonable assurance that transactions are recorded as
necessary 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 authorizations of management and directors of thecompany; and .
3 provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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 interna! 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 M/S. SIROHIA & CO |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Reg. NO.003875S |
|PLACE : CHENNAI DATE : 28-06-2017 ||(VINOD KUMAR) |
| ||PARTNER M.No.207094 |
ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT
The annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statement for the year ended 31 March 2017 we report that:
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) All these assets have been physically verified by the management at reasonableintervals. As Informed to us no material discrepancy have been noticed between thephysical verification and books of the Company.
(c) According to the information and explanations given to us 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. Physical verification of Inventory is not applicable since the company has nottraded in goods during the year.
3. During the year Company has not granted any loans to Companies and firms listed inthe Register maintained under section 189 of the Companies Act 2013.
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. The Company has not received any public deposits during the year.
6. The Central Government has not prescribed the maintanance of cost recrods undersection 148 (1) of the Act in respect of the activities carried on by the Company.
7. (a) According to the records of the Company and information and explanations givento us the Company has generally been regular in depositing undisputed statutory duesincluding Income Tax Tax Deducted at Source and other material statutory dues applicableto it with the appropriate authorities. As explained to us the Company did not have anydues on account of Provident Fund Employees State Insurance duty of exicse and customs.
(b) According to the information and explanations given to us there were no undisputedamounts payable in respect of Income taxWealth Tax Custom Duty Excise Duty Sales TaxVAT Cess and other material statutory dues in arrears/were outstanding as at 31March 2017for a period of more than six months from the date they became payable. However accordingto information and explanations given to us the following dues of Income Tax have notbeen deposited by the Company on account of dispute :
|Particulars ||Amount(Rs) ||Period to which amount relates ||Forum where the dispute is pending |
|Income Tax ||42087 ||Financial year 2003-2004 ||Commissioner of Income tax (Appeals) Chennai |
|Income Tax ||119420 ||Financial year 2004-2005 ||Commissioner of Income tax (Appeals) Chennai |
|Income Tax ||371649 ||Financial year 2007-2008 ||Commissioner of Income tax (Appeals) Chennai |
|Income Tax ||452270 ||Financial year 2011-2012 ||Commissioner of Income tax (Appeals) Chennai |
|Income Tax ||457920 ||Financial year 2012-2013 ||Commissioner of Income tax (Appeals) Chennai |
8. In our opinion and according to the information and explanations given to
usthere is no amount due to a financial institution Government and debenture holders.However in the case of dues to bank the Company has not defaulted in payments. .
9. The Company did not raise any money by way of initial public offer or further publicoffer (Including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the order is not applicable.
10. According to the information and explanations given to us no material fraud on orby the company has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.
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 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.
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 preferntialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
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. Accordingly paragraph 3(xv) ofthe order is not applicable.
16. The Company is registered NBFC under section 45-IA of the Reserve Bank of IndiaAct 1934.
| ||FOR M/S. SIROHIA & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Reg. NO.003875S |
| ||(VINOD KUMAR) |
|PLACE : CHENNAI ||PARTNER |
|DATE : 28-06-2017 ||M.No.207094 |