TO THE MEMBERS OF
MUKESH BABU FINANCIAL SERVICES LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements ofMUKESH BABU FINANCIAL SERVICES LIMITED ("the company") having CIN:L65920MH1985PLC035504 which comprise the Balance Sheet as at 31 March 2018 the Statementof Profit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information. MANAGEMENT'SRESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS The Company's Board of Directorsare responsible for the matters in section 134(5) of the Companies Act 2013 ("theAct") with respect to the preparation of these standalone financial statements thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014 and other accounting principles generallyaccepted in India. 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 internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.
We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act the Rules made thereunder and the Order issued undersection 143(11) of the Act. We conducted our audit 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 standalone financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the standalone financial statements. 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. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company'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 the overallpresentation of the standalone financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India;
a) in the case of the Balance Sheet of the state of affairs of theCompany as at March 31 2018; b) in the case of the Statement of Profit and Loss of theprofit for the year ended on that date; and c) in the case of the Cash Flow Statement ofthe cash flows for the year ended on that date. REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS
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 the paragraph 3 and 4 of the order.
2. As required by section 143(3) of the Act we report that: a) We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books. c) The BalanceSheet the Statement of Profit and Loss and Cash Flow Statement dealt with by this Reportare in agreement with the books of account. d) In our opinion the aforesaid standalonefinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014. e) On the basis ofwritten representations received from the directors as on 31 March 2018 taken on recordby the Board of Directors none of the directors is disqualified as on 31 March 2018from being appointed as a director in terms of Section 164(2) of the Act. (f) With respectto the adequacy of the internal financial controls over financial reporting of the Companyand 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) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements. ii. the Company has madeprovision as required by applicable law or accounting standards for material foreseeablelosses if any on long-term contracts including derivative contracts;
iii. The company has transferred the required amount of Rs.199140/-to the Investor Education and Protection Fund on 18th January 2018
|ForChaitanya C. Dalal & Co. |
|Firm Reg. No. 101632W |
|Chaitanya C. Dalal |
|Membership No: 35809 |
|Place: Mumbai |
|Date: 29/05/2018 |
Annexure A to the Independent Auditors' Report
Re: MukeshBabu Financial Services Limited
The Annexure referred to in our Independent Auditors' Report withreference to the Companies (Auditor's Report) Order 2016("the Order") to themembers of the Company on the Standalone Financial Statement for the year ended 31st March2018 we report that:
(i) (a) The company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us fixedassets of the company have been physically verified by the management at the reasonableintervals and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us thecompany has proper titles in case of the immoveable property it owns and is found to be inorder.
(ii) In our opinion and according to information and explanations givento us physical verification of inventory has been done by the management at the regularintervals. No material discrepancies were observed during such verification.
(iii) In our opinion and according to information and explanationsgiven to us the Company has granted unsecured loan to its subsidiary company covered inthe register maintained under section 189 of the Act. The terms and conditions are notprejudicial to the interest of the company. Repayment schedule is not stipulated andtherefore sub-clause dealing with overdue amount for more than 90 days is not applicable.
(iv) The Company has not granted any loans or provided any guaranteesor security to the parties covered under Section 185 of the Companies Act 2013. TheCompany has complied with the provisions of Section 186 of the Act in respect ofinvestments made or loans given or guarantee or security provided to the parties coveredunder Section 186.
(v) The company has not accepted any deposits during the year ended31stMarch 2018.
(vi) The Central Government has not prescribed the maintenance of costrecords u/s 148(1) of the Act.
(vii) (a) According to the information and explanations given to us andon the basis of examination of the records of the company amount deducted and accrued inthe books of accounts in respect of undisputed statutory dues including of Provident FundEmployees' State Insurance Income-tax Sales-tax Service Tax Custom Duty Excise DutyValue Added Tax Cess and any other statutory dues with the appropriate authorities haveregularly deposited during the year by the company. Further as per the explanations givento us the company does not have any dues on account ofProvident Fund Employees' StateInsurance Income-tax Sales-tax Service Tax Custom Duty Excise Duty and Cess. Furtheraccording to the information and explanations given to us no undisputed amount payable inrespect of Provident Fund Employees' State Insurance Income-tax Sales-tax Service TaxCustom Duty Excise Duty Cess and any other statutory dues were in arrears as on 31stMarch 2018 for a period of more than 6 months from the date of become payable. (viii) Onthe basis of the books and records produced before us and as per the information andexplanations to us the Company has not defaulted in repayment of any dues to any financialinstitution bank or debenture holders.
(ix) During the year ended 31st March 2018 the company has not raisedany money either through public deposit or through term loan therefore para 3(ix) of theorder is not applicable.
(x) According to the information and explanations given to us and onthe basis of the audit conducted by us no fraud on or by the company has been noticed orreported during the year.
(xi) On the basis of the information and explanations given to us thecompany has paid Managerial Remuneration during the year ended which has been inaccordance of the provisions of Section 197 read with Schedule V to the Companies Act.
(xii) The company is not a Nidhi Company hence para 3(xii) of the orderis not applicable.
(xiii) Based on our audit procedures and according to the informationand explanations given to us the transactions with the related parties are in compliancewith section 177 and 188 of the Companies Act 2013 wherever applicable and details havebeen disclosed in the Financial statements as required by the applicable accountingstandards.
(xiv) According to the information and explanation given to us thecompany has neither made any preferential allotment nor any private placement of shares orfully or partly convertible debentures during the year ended 31st March 2018.
(xv) During the year ended 31st March 2018 the company has not enteredinto any non-cash transactions with the directors or persons connected with him.
(xvi) The company has carried out activities in nature of activitiescarried out by non- banking financial companies and is required to obtain registered undersection 45-IA of the Reserve Bank of India Act 1934 and the same has been obtained.
For Chaitanya C. Dalal & Co.
Firm Registration No.: 101632W
|Chaitanya C. Dalal |
|Membership No.: 035809 |
|Place: Mumbai |
|Date: 29/05/2018 |
Annexure B to the Independent Auditors' Report
Re: Mukesh Babu Financial Services Limited
The Annexure referred to in our Independent Auditors' Report withreference to the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") to the members of the Company on theStandalone Financial Statement for the year ended 31st March 2018.
We have audited the internal financial controls over financialreporting of Mukesh Babu Financial Services Limited ("the Company") as of March31 2018 in conjunction with our audit of the standalone financial statements of theCompany 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 Controlsissued by the Institute of Chartered Accountants of India.
These responsibilities includes design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's InternalFinancial Controls over Financial Reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the"Guidance Note") and the Standards on Auditing issued by TheInstitute of Chartered Accountants of India and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and theguidelines issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy ofthe 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 amaterial weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depends 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 providea basis for our audit opinion on the Company's internal financialcontrols system overfinancial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess 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 control overfinancial reporting includes those policies and procedures that
(a) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(b) 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 authorizations of management and directors of thecompany;
(c) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould 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.
In our opinion the Company has in all material respects an adequateinternal financialcontrols system over financial reporting and such internal financialcontrols over financialreporting were operating effectively as on 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 InternalFinancial Controls issued by the Institute of Chartered Accountants ofIndia.
For Chaitanya C Dalal & Co.
Firm Registration No.: 101632W
Chaitanya C. Dalal
Membership No.: 035809