Sai Jeevadhara Finance Ltd.
|BSE: 511403||Sector: Financials|
|NSE: N.A.||ISIN Code: N.A.|
|BSE 05:30 | 01 Jan||Sai Jeevadhara Finance Ltd|
|NSE 05:30 | 01 Jan||Sai Jeevadhara Finance Ltd|
Sai Jeevadhara Finance Ltd. (SAIJEEVADHARA) - Auditors Report
Company auditors report
TO THE MEMBERS OF SAI JEEVADHARA FINANCE LIMITED CHENNAI - 600 010.
1. Report on Financial Statements
We have audited the accompanying standalone Financial Statements of SAIJEEVADHARA FINANCE LIMITED Chennai which comprise the Balance Sheet asat March312017theStatement of Profit and Loss and Cash Flow Statement for the year ended on that date andsummary of significant accounting policies and other explanatory information.
2. Management's Responsibility for the Flhinclal Statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and* fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Ru!e7ofthe Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other Irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and Completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
3. Auditors Responsibility
Our Responsibility is to express an opinion on these financialstatements 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 and the Rules made thereunder.
We conducted our audit In accordance with the Standards on Auditingspecified under Section 143(10) of theAct.Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. 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. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
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 2017
(b) In the case of Statement of Profit and Loss of the Loss for theyear ended on that date; and
(c) In the case of Cash Flow Statement of the cash flows for the yearended on that date.
5- Emphasis of Matter
In our opinion the financial status of the company was severelyaffected due to heavy losses and the Management has to take suitable remedial action forthe same.
1 Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2015 (the Order)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a
2 statement on the matters specified in Paragraphs 3 and 4 of theOrder.
As required by section 143(3) of the Jkct we report that:
a. We have sought and obtained all the Information and explanationswhich to the best of 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 beenkept by the Company so far as appears from our examination of those books;
c. The Balance Sheet Statement of Profit and Loss and the Cash FlowStatement dealt with by this Report are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.
e. In our opinion there is no instance or feature which may have anyadverse impact on the functioning of the company or in the preparation of financialstatements on going concern
f. On the basis of the written representations received from thedirectors as on 31st March 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of Section 164 (2) of the Act.
g. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls weare of opinion that the said controls are adequately Implemented by the Company.
h. With respect to the other matters to be included in the Auditor'sReport in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to uswe report that: .
I. There is no pending litigations against the Company and hence notdisclosed in the financial statements of the Company.
ii. The Company has not made any provision for material foreseeablelosses as there is no such long term contracts including derivative contracts or anyother contracts requiring provision.
Iil. The Company does not have any amount required to be transferred toInvestor Educationand Protection Fund. For K.K.B. A ASSOCIATES
Chartered Accountants (B.SHANMUQASUNDARAM) Proprietor
ICAI Membership No.200111. Firm Registration. No.008120-S.
Place: CHENNAI Date : 06.09.2017
Referred to in paragraph 1 under 'Report on Other Legal &Regulatory Requirement of our report of even date to the financial statements of theCompany for the year ended March 31 2017
1. a) The Company is maintaining proper records showing fullparticulars Including quantitative
details and situation of Fixed Assets.
b) The Fixed Assets have been physically verified by the management ina phased manner designed to cover all the items over a period of three years which inour opinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have bedn noticed.
c) The title deeds of immovable properties are held in the name of thecompany.
2. As the company is a Finance Company the clause relating to Stocksis not applicable to the Company.
3. (a) The Company has not granted or taken any Loans secured orunsecured to or from the
Companies Firms or other Parties listed In the register maintainedunder section 189 of the Companies Act 2013.
(b) In our opinion and according to the records of the Company therate of interest and other terms and conditions of the Fixed Deposits (unsecured) taken bythe Company from the Directors are prima facie not prejudicial to the interest of theCompany.
(c) In our opinion and according to the records the Company is regularin repaying the principal amount as stipulated and has been regular in payment of interest(There are no Deposits due by the company).
4. In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and I86 of theCompanies Act 2013 in respect of loans investments guarantees and security.
5. As there are no Deposits accepted by the Company during the yearthe provisions of section 73 of the Companies Act 2013 read with Rules made thereunderare not applicable to the company.
6. The maintenance of cost records under Section 148(1) of theCompanies Act 2013 is not applicable to the Company.
dues including Provident Fund Investor Education and Protection FundEmployees State Insurance Income Tax Wealth Tax Sales Tax Customs Duty Excise DutyCess and other statutory dues applicable to it. However the Listing fees for the periodunder review remains unpaid.
(b) According to the information and explanations given to us noundisputed amounts payable in respect of Income Tax Wealth Tax Sales Tax Customs DutyExcise Duty and Cess were inarrears as at 31" March 2017 for a period of more thansix months from the date they became payable. In respect of Income Tax demand appealshave been decided in favour of the company and the recoveries by the Income tax departmentare pending to be received.
8. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of dues to banks. The Companyhas not taken any term loan either from financial institutions or from the government andhas not issued any debentures.
9. Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and term Loans.Accordingly the provisions of clause 3 (ix) of the Order are not applicable to theCompany and hence not commented upon.
10. Based upon the audit procedures performed and the information andexplanations given by the management we report that no fraud by the Company or on thecompany by its officers or employees has been noticed or reported during the year.
11. There is no managerial remuneration paid and hence this clause isnot applicable.
12. The Company is not a NIDHI Company and being a Finance Company theCompany has complied with the Statutory Regulations and there are no Deposits due by theCompany.
13. In our opinion all transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Financial Statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information andexplanations given by the management the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.i
16. In our opinion the company is already registered under section45IA of the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) of the Order are applicable to the Company and as there are no Deposits beingaccepted or pending during the year under review the same Is not commented upon.
For K.K.B.& ASSOCIATES
ICAI Membership No.200111. Firm Registration. No.008120-S
Place: CHENNAI Date : 06.09.2017
Plot No.6 New No.13 Main Road Vlsalakshipuram Madurai- 625 014. :2538152
ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 1 under Report on Other Legal &Regulatory Requirement of our report of even date to the financial statements of theCompany for the year ended March 312017
Report on the Internal Financial Control! under Clause fit ofSub-section 3 of Section 143 of the Companies Act. 2013
We have audited the internal financial controls over financialreporting of SAI JEEVADHARA FINANCE LIMITED Chennai as of March 31 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal FInanclal 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. Theseresponsibilities include the design Implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 and the Standards on Auditing issued by ICAI and deemed to be prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both 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 evidenceamount the adequacy of the internal financial control system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting assessing the risk that a material weakness exists and operating effectivenessof internal control based on the assessed risk. The procedures selected depend upon on theauditor's judgement including the assessment of the risks of material misstatement of thefinancial 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 interna! financialcontrols system over financial 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 (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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. InherentLimitations of Internal^ Financial Controls over Financial Reporting
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 financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 312017 based onthe 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 K.K.B.& ASSOCIATES
ICAI Membership No.200111. Firm Registration. No.008120-S
Date : 06.09.2017