TO THE MEMBERS OF MOONGIPA CAPITAL FINANCE LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of MOONGIPA CAPITAL FINANCELTD. ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss and the Cash Flow Statement for the year endedand a summary of the significant accounting policies and 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 Accounting Standard prescribed undersection 133 of the Act read with rule 7 of the Companies (Account) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 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 made there under
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the 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 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 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 but not purpose of expressing an opinion onwhether are Company has in place an adequate 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 issufficient and appropriate to provide a basis for our audit opinion on the financialstatements
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 31stMarch. 2018 its loss and Its cash flows for the year ended on that date
Report on Other Legal and Regulatory Requirements
1. 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 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 Statementdean with by this Report are in agreement with the books of account
d) In our opinion the aforesaid financial statements comply with Accounting Standardsprescribed under section 133 of the Act as applicable
e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st 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 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 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. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements:
i. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any. on longterm contracts includingderivative contracts:
ii. Delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the company
2 As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder
For Rajesh K. Sachdeva Associates Chartered Accountants Firm Reg No.- 019200N
Akshay Sachdeva Partner
M No.:- S25576
Date:- 28.05.2018 Place:- New Delhi
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ONTHE FINANCIAL STATEMENTSOF MOONGIPA CAPITAL FINANCE 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 MOONGIPACAPITAL FINANCE LIMITED ("the Company") as of March 31 2018 in conjunctionwith our audit of the 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 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.
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 168 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness Ouraudit 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting
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 and dispositions ofthe assets of the company; (2) provide reasonable assurance that transactions are recordedas 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 ofunauthorized acquisition use. or disposition of the company's assets that could have amaterial effect on the financial statements Inherent Limitations of Internal FinancialControls 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 Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 internal financial controlsover financial reporting were operating effectively as on March 31 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 Rajesh K. Sachdeva & Associates Chartered Accountants Firm Reg. No.- 019200N
Akshay Sachdeva Partner M No.;- 525576
Date;- 28.05.2018 Place:- New Delhi
Annexure B to the Independent Auditors' Report to the members of MOONGIPA CAPITALFINANCE LIMITED on the financial statements for the year ended 31st March 2018 we reportthat:
(i) (a) The Company has maintained proper records
shewing full particulars including quantitative details and situation of fixed assets
(b) The fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification
(c) The company does not hold any immovable properties
(ii) The company is a loan company. Therefore it does not keep any inventory.
(iii) The company has not granted unsecured loan to companies firms. Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013.
(iv) The company has not granted loans or made investments guarantees and securitywhere provisions of section 185 and 186 of the Companies Act. 2013 need to be compliedwith.
(v) The company has not accepted any deposits. Therefore compliance of Section 73 to 76of Companies Act 2013 is not required.
(vi) The company is not required to maintain cost records specified by the CentralGovernment under sub-section (1) of section 148 of the Companies Act 2013.
(vii) (a) The company is regular in depositing undisputed
statutory dues including provident fund employees' state insurance income-tax.sales-tax service tax duty of customs duty of excise value added tax. cess and anyother statutory dues to the appropriate authorities
(b) There are no dues of income tax or sales tax or service tax or duty of customs orduty of excise or value added tax have not been deposited on account of any dispute
(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders
(ix) The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans were applied for the purposes for whichthose are raised
(x) 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
(xi) The company has paid managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 of Companies Act 2013
(xii) The company is not a Nidhi Company therefore compliance of Nidhi Rules. 2014 isnot applicable
(xiii All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review
(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him and has complied with the provisions of section 192 ofCompanies Act 2013
(xvi) The company is registered under section 45-IA of the Reserve Bank of India Act1934
For Rajesh K. Sachdeva
Firm Reg. No.- 019200N
M. No.:- 525576
Place:- New Delhi