The Members of
Shanti Educational Initiatives Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ShantiEducational Initiatives Limited (the company") which comprise the BalanceSheet as at 31 March 2018 the Statement of Profit and Loss and the Cash Flow statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.
Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased 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 there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the 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 the
Company's preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the financialstatements. 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 the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India i. In the case of the Balance sheet ofthe state of affairs of the Company as at March 31 2018; ii. In the case of the Statementof Profit and Loss of the profit for the year ended on that date; and iii. In the case ofCash Flow Statement of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 of the Act we give inthe Annexure a statement on the matters specified in the paragraph 3 and 4 of the Orderto 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 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to adequacy of the internal financial controls over financialreporting of company and joint operation and operating effectives of such controlsrefer to our separate Report in
"Annexure A". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the company's internal financial over financial reporting (g)With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest 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 28 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The disclosures regarding details of specified bank notes held and transactedduring 8
November 2016 to 30 December 2016 have not been made since the requirement does notpertain to financial year ended 31 March 2018.
For M/S Anil S Shah & Co.
Anil S Shah
M.No : 016613
Date: 30 .05.2018
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31st March 2018 wereport that: I. In respect of Fixed Assets
A. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
B. As per information and explanation given to us the physical verification of itsfixed assets have been carried out by the management at the end of the year which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. According to the information & explanation given to us no materialdiscrepancies were noticed on such verification.
C. According to the Information and explanation given to us and the records examined byus as disclosed in Note No. 11 on Fixed Assets and Note No. 12 on Investment based on theexamination of the registered sale deed/purchase deed provided to us we report that thetitle deed comprising all the immovable properties of land and buildings which arefreehold are held in the name of the company except in one case the land amounting Rs.27761160/- the deed is in the form of Banakhat Right as at the Balance sheet date.
II. In respect of Inventories as per the information and explanation given to us theinventories have been physical verified by the management at the end of the year which inour opinion is reasonable having regard to the size of the company and the nature of itsactivity. As per the information and explanation given to us no material discrepanciesnoticed on physical verification.
III. In respect of Loans and Advances Granted during the year.
The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Hence the provisions of clauses (iii)(a)(iii)(b) and (iii)(c ) of the order are not applicable to the company.
IV. In our opinion and according to the information and explanations given to us theCompany has complied with the provision of Section 185 and 186 of the companies Act 2013in respect of loans and investments made.
V. According to the information and explanation given to us the company has notaccepted deposits from the public. VI. As per the information and explanation provided tous the company is not required to maintain the cost records as per the provisions ofCompanies (Cost Records and Audit) Rules 2014 hence Clause (vi) of the Companies(Auditor's Report) order 2015 is not applicable.
VII. In respect of Statutory Dues According to the information and explanation given tous in respect of statutory dues:
1. The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Investor education and protection fund Employees' stateInsurance income tax
Sales Tax Service Tax Custom Duty Excise duty GST Cess and any other materialstatutory dues applicable to it with the appropriate authorities.
According to information and explanation given to us no undisputed amounts payable inrespect of the aforesaid dues were outstanding as at March 31 2018 for a period of morethan six months from the date of becoming payable.
2. According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax service tax duty of customsvalue added tax GST Cess and other material statutory dues were outstanding as at 31March 2018 for a period of more than six months from the date they became payable.
3. During the year no amount is required to transfer to the Investor Education andProtection Fund and hence clause (c) of clause (vii) of the Companies (Auditor's Report)Order 2015 is not applicable to the Company.
VIII. According to records of the company the company has not defaulted in repaymentof loans or borrowings from financial institutions or banks or issued debentures duringthe year.
IX. In our opinion and according to the information and explanations given by themanagement during the previous financial year 2016-17 monies raised by the company byway of Initial Public Offer have been applied for the purpose for which they are obtainedthough idle funds which were not required for immediate utilization have been gainfullyinvested in liquid investment payable on demand out standing at the yearendRs.15661354/- (P.Y. Rs.516593/-) (Refer Note No .40 of notes on account) The maximumamount of idle funds invested during the year was Rs.516593/- of which Rs. 516593/- wasoutstanding at the end of the year. Further according to the information and explanationsgiven by the management the company has raised money by way of SME property term loanamounting to Rs 5.00 crores from Dewan Housing Finance Corporation Ltd. utilized forshort term working capital purpose.
X. According to the information and explanation given to us no material fraud by thecompany or on the Company by it's officers or employees has been notices or reportedduring the course of audit. XI. In our opinion and according to the information andexplanations given to us the Company has paid / provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013. XII. The Company is not a Nidhi Company andhence reporting under clause (xii) of the CARO 2016 Order is not applicable.
XIII. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.
XIV. According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not made private placement ofshares or fully or partly convertible debenture during the year. However during financialyear 2015-16 the company had made preferential allotment of shares amounting Rs. 11.70Crore the company had complied with requirement of Section 42 of the Companies Act 2013except the Company has unutilized balance Refer Note No 39 of notes on account as on31.03.2018 Rs 7.36 Crores (P.Y.Rs.2.36 crores) pending utilization temporarily depositedwith NBFC/ utilized for working capital.
XV. In our opinion and according to the information and explanations given to us during the year the Company has not entered into any non-cash transactions with itsdirectors or directors of the holding subsidiary or associate company as applicable orpersons connected with them and hence provisions of section 192 of the Companies Act 2013are not applicable. XVI. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
For M/S Anil S Shah & Co.
Anil S Shah
M.No : 016613
Date: 30 .05.2018
ANNEXURE"A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF SHANTI EDUCATIONAL INITIATIVES 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 SHANTIEDUCATIONAL INITIATIVES LIMITED ("the Company") as of March 31 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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's 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 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 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 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for my /our audit opinion on the Company's internal financial controls system overfinancial 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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.
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 internal financial controlsover financial reporting were operating effectively as at March 31 2018 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 Anil S Shah & Co.
Anil S Shah
M.No : 016613
Date: 30 .05.2018