SHRI NIWAS LEASING & FINANCE LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SHRI NIWAS LEASING &FINANCE LIMITED which comprise the Balance Sheet as at March 31 2017 & theStatement of Profit and Loss & the cash flow statement for the year then ended and asummary of 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 with respect to the preparation and presentation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flow 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequateinternal financial controlthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 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. Anaudit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view In order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by Company's Directors as wellas evaluating the overall presentation of the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; and (b) In the case of the Profit and LossAccount of the Profit Rs1050112.00 for the period ended on 31stMarch 2017. (c) In the case of the cash flow statement of the cash flows for the yearended 31 March 2017.
Report on Other Legal and Regulatory Requirements
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 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the order.
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) In our opinion and based on the information and explanations provided to us thereare no financial transactions or matters which have adverse effect on the functioning ofthe Company.
f) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
g) 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 B"; and
h) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Amendment Rules 2017:
i. There were pending litigations which could impact the financial position in thefinancial statements of the company.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. The Company did not have any amount for transfer to the Investor Education andProtection Fund.
iv. The Company has provided requisite disclosure in financial statement as to holdingsand dealings in Specified Bank Notes (SBN) in notes to account during the period08.11.2016 to 30.12.2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the company and as produced to us by the management (Refer Note).
Annexure A to the Auditors' Report
The annexure a referred to in paragraph 3 and 4 of the our Report of Even date to themembers of SHRI NIWAS LEASING & FINANCE LIMITED on the Accounts of the Company for theyear ended 31st March 2017
(i) In respect of its Fixed Assets:
a) In our opinion and according to the information and explanations given to us thecompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets.
b) According to the information and explanations given to us fixed assets of thecompany have been physically verified by the management at reasonable intervals which inour opinion is reasonable having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such verification.
c) In our opinion and according to information and explanations provided by themanagement all title deeds of lands showing are in the name of the company.
(ii) The inventory has been physically verified during the year by the management.In our opinion the frequency of verification is reasonable and as per information andexplanation provided by the management discrepancies noticed on verification betweenphysical stocks and the book records were not material.
(iii) T he company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 therefore the provision of clause (iii) (a)& (b) of the orders are not applicable to the company.
(iv) Since Company was a Non Banking Financial Company therefore provision u/s 186of Companies Act 2013 was not arise and the company has not given any loan refer tosection 185 of the Company Act therefore clause was not applicable to the company.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost recordsunder section 148(1) of the Act for any of the services rendered by the Company.
(vii) In respect of statutory dues:
a. According to the information and explanations given to us and on the basis of ourexamination of the records of the company amount deducted/accrued in the books of accountin respect of undisputed statutory dues including Provident fund Employees' StateInsurance Income Tax Sales Tax Services Tax Duty of Customs Duty of Excise ValueAdded Tax Cess and other material statutory dues have been regularly deposited during theyear by the company with the appropriate authorities. As explained to us the Company didnot have any undisputed liability at the end of the year which was outstanding for aperiod of more than six months from the date it became payable by the company.
b. There is no outstanding disputed demand exist in the Company
(viii) The company has taken loan from financial institution as per informationand explanation provided by the management there is no default in repayment of the same.And company has not taken any borrowings from Bank Government or dues to debentureholders hence the default in repayment of dues to Banks and Government does not arise.
(ix) I n our opinion and according to the Information & Explanation given tous the company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans so the clause is not applicable for thecompany.
(x) Based on the procedure performed and the information and explanation given tous we report that no fraud on or by the company has been noticed or reported during theyear nor we have been informed of such cases by the management.
(xi) In our opinion and according to the information and explanation given to uscompany has no liability regarding managerial remuneration in accordance with therequisite approval mandated by the provisions of section 197 read with Schedule V to theCompanies Act.
(xii) According to the information and explanations provided by the provided by themanagement and based on our examination of the records of the Company the company is nota Nidhi company hence the provision related to the Nidhi Company is not applicable.
(xiii) In our opinion and according to the information and Explanation given to uscompany has complied the provision of related party transaction refer in sections 177 and188 of Companies Act 2013 and the detail have been disclosed in the financial statementas required by the applicable Accounting Standard.
(xiv) According to the information and explanations provided by the provided by themanagement and based on our examination of the records of the Company the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.
(xv) According to the information and explanations provided by the provided by themanagement and based on our examination of the records of the Company the company has notentered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations provided by the provided by themanagement the company is already registered with RBI vide registration No. B-14.00808registered under section 45-IA of the Reserve Bank of India Act 1934.
For SANJEEV GAURAV & ASSOCIATES (Chartered Accountants)
Firm Registration No: 017483C
CA Gaurav Agarwal Partner (Membership No.: 415745)
Place: New Delhi
Annexure B to the Auditors' Report
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 "SHRINIWAS LEASING & FINANCE LIMITED" as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
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 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 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:-
Pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect 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 expenditures 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 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 2017 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 CharteredAccountant of India.
For SANJEEV GAURAV & ASSOCIATES (Chartered Accountants) Firm Registration No:017483C
CA Gaurav Agarwal Partner (Membership No.: 415745)
Place: New Delhi