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Sakthi Finance Ltd.

BSE: 511066 Sector: Financials
NSE: SAKTHIFIN ISIN Code: INE302E01014
BSE 16:00 | 20 Apr 14.65 0
(0.00%)
OPEN

13.10

HIGH

15.75

LOW

13.10

NSE 05:30 | 01 Jan Sakthi Finance Ltd
OPEN 13.10
PREVIOUS CLOSE 14.65
VOLUME 1157
52-Week high 19.40
52-Week low 12.05
P/E 9.77
Mkt Cap.(Rs cr) 95
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.10
CLOSE 14.65
VOLUME 1157
52-Week high 19.40
52-Week low 12.05
P/E 9.77
Mkt Cap.(Rs cr) 95
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sakthi Finance Ltd. (SAKTHIFIN) - Auditors Report

Company auditors report

To

The Members of Sakthi Finance Limited

Report on the Financial Statements

We have audited the accompanying financial statements of SAKTHI FINANCE LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 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 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 mis-statement whether due to fraudor error.

Auditors' 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 are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

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 perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material mis-statement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material mis-statement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls 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 31stMarch 2018 and its profit and its cash flows for the year ended on that date.

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 exercise of the powers conferred bysub-section (11) of Section 143 of the Companies Act 2013 we give in the"Annexure-A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

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 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 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 ofSection 164(2) of the Act. (f) With respect to the adequacy of internal financial controlsover financial reporting of the company and the operating effectiveness of such controlsrefer to our separate report in"Annexure B"; and (g) With respect to othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us; (i) The Company has disclosed the impact ofpending litigations on its financial position in its financial statements as referred toin Note No.26 to the financial statements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; (iii) There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

For P K Nagarajan & Co.
Chartered Accountants
Firm Regn. No.:016676S
P K Nagarajan
Coimbatore Partner
30th May 2018 Membership No.025679

The Annexure- 'A' referred to in our Independent Auditors' report to the members of thecompany on the financial statements for the year ended 31st March 2018 we report that: i.a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) These fixed assets have been physically verified by the management at reasonableintervals.

No material discrepancies were noticed on such verification.

c) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note No.10 to the financial statements are held inthe name of the company.

ii. The company does not hold any inventory. Therefore the provisions of Clause 3(ii)of the Order are not applicable to the company.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Therefore the provisions of Clause 3(iii) (a) to (c) of the orderare not applicable to the company.

iv. In our opinion and according to the information and the explanations given to usthe company has not given/provided any loans guarantee and securities to partiesmentioned in Section 185 of the Companies Act 2013. The provision of Section 186 is notapplicable to the Company as it is a Non-Banking Financial Company.

v. The company has accepted deposits from the public. The directives issued by theReserve Bank of India (RBI) and provisions of Section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder wherever applicablehave been complied with. No order has been passed by National Company Law Tribunal orReserve Bank of India or any Court or any other Tribunal.

vi. The Central Government has not specified the maintenance of Cost Records undersub-section (1) of Section 148 of the Companies Act 2013 for the activities of thecompany.

vii. a) The company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax service tax sales tax cess andany other applicable material statutory dues with the appropriate authorities. There areno such statutory dues as at the last day of the financial year remaining in arrears fora period of more than six months from the date they became payable.

b) According to the information and explanations given to us the disputed statutorydues (in case of income tax service tax and cess) aggregating to Rs. 1338.12 Lakhs thathave not been deposited on account of matters pending before appropriate authority are asunder:

Name of the Statute Nature of dues Amount (Rs. in Lakhs) Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 9.83 AY 2012-13 Income Tax Appellate Tribunal Chennai
Finance Act 1994 Service Tax 1328.29 Oct 2009 to Sept 2014 High Court of Madras
Total 1338.12

viii. According to the information and explanations given to us the Company has notdefaulted in repayment of dues to financial institutions banks Government and debentureholders during the year. ix. In our opinion and according to the information and theexplanations given to us the Company has utilized the money raised by way of term loansduring the year for the purpose for which those were raised. The Company has not raisedany money by way of public offer. x. According to the information and explanations givento us no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year. xi. According to the information andexplanations given to us and based on the examination of the records the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Act. xii. In ouropinion and according to the information and explanations given to us the Company is nota Nidhi Company. Accordingly para 3(xii) of the Order is not applicable. xiii. Accordingto the information and explanations given to us and based on our examination of therecords of the Company transactions with the related parties are in compliance withSections 177 and 188 of the Act wherever applicable. The details of such related partytransactions have been disclosed in the notes to the financial statements as requiredunder the Accounting Standard (AS) 18. xiv. During the year under review the company hasmade private placement of preference shares and the requirements of Section 42 of the Acthave been complied with. The amounts raised have been used for the purpose for which theywere raised. Further during the year the company has neither made any fully or partlyconvertible debentures nor any preferential allotment of shares.

xv. According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withthe Directors or persons connected with them. Accordingly para 3(xv) of the Order is notapplicable. xvi. According to the information and explanations given to us we report thatthe company has registered as required under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For P K Nagarajan & Co.
Chartered Accountants
Firm Regn. No.:016676S
P K Nagarajan
Coimbatore Partner
30th May 2018 Membership No.025679

Annexure-'B' to the Independent Auditors' report of even date on the FinancialStatements of SAKTHI FINANCE LIMITED

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of SakthiFinance Limited ("the Company") as of 31st March 2018 in conjunction with ouraudit 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 controls over financial reporting criteriaestablished by the Company considering the essential components of the internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by The Institute of Chartered Accountants of India (ICAI). 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.

Auditor's responsibility

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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofInternal Financial Controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofinternal financial controls system over financial reporting and their operatingeffectiveness.

Our audit 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 controls based on the assessed risks. The procedures selecteddepend on the auditor's judgment including the assessment of the risk of materialmis-statements 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 control systemover financial reporting.

Meaning of Internal Financial Control 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 controls over financialreporting includes those policies and procedures that:

1) pertains 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 permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditure of the company are being made only inaccordance with authorizations of management and directors of the company; 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 Financial Controls over Financial Reporting

Because of the inherent limitation 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 internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in condition 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2018 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued

For P K Nagarajan & Co.
Chartered Accountants
Firm Regn. No.:016676S
P K Nagarajan
Coimbatore Partner
30th May 2018 Membership No.025679

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