We have audited the accompanying financial statements of MUDIT FINLEASE
LIMITED ("the Company") which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss, the Cash Flow Statement for
the year then ended, and a summary 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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance 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 the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the Profit of
the company for the year ended on that date; and
(c) In the case of Cash Flow Statement, of the cash flows of the
company 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 in the annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a. We have obtained all the information and explanations which 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 been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards specified
under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e. On the basis of the written representation received from the
directors as on March 31, 2015 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2015 from being appointed as a director in terms of Section
164(2) of the Act.
f. With respect to the other matters 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 and
according to the explanations given to us:
i. The Company does not have any pending litigations as on March 31,
2015, which would impact its financial position.
ii. As required under applicable accounting standards issued by the
Institute of Chartered Accountants of India, the Company has made
appropriate provision on derivative contract outstanding as on March
31, 2015.
iii. No amount is required to be transferred to the Investor Education
and Protection Fund by the Company as on March 31, 2015.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 & 4 of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. (b) According to the information and explanation given to us
fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verification.
(ii) (a) According to the information and explanation given to us, the
stock-in- trade (securities) are kept in demat and physical form. The
same are reconciled/ verified with the demat account statements and
physical stock by the management at the reasonable intervals. In our
opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business
(c) The Company is maintaining proper records of inventory. No material
discrepancy was noticed during the verification.
(iii) According to the information and explanation given to us, the
Company has granted loans to one person covered in the register
maintained u/s 189 of the Companies Act, 2013. The maximum amount
outstanding during the year was Rs.25.00 lacs and the year-end balance
was Rs.21.75 lacs.
(a) The receipt of the principal and interest amount is regular; and
(b) Since receipt of interest and principal amount is regular, no
amount is overdue, therefore reasonable steps for recovery of principal
and interest is not required.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory (securities) and fixed assets
and for the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
(v) According to the information and explanations given to us, no
deposits within the meaning of Sections 73 and 76 or any other relevant
provision of the Companies Act, 2013 and rules framed there under has
been accepted by the company.
(vi) The Company is not required to maintain cost records pursuant to
the Company (Cost Records and Audit) Rules, 2014 made by the Central
Government for the maintenance of cost records under Section 148(1) of
the Companies Act, 2013.
(vii)(a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Investor Education and Protection Fund,
Wealth Tax, Service Tax, Custom Duty, Excise Duty / Cess and other
material statutory dues applicable to it and no arrears of such dues
were outstanding as at 31.03.2015 for a period exceeding six months
from the date they become payable.
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, custom duty, wealth tax, excise duty
and cess that have not been deposited on account of any dispute.
(c) No amount is required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules made there under.
(viii)The Company does not have any accumulated losses at the end of
the financial year and has not incurred any cash loss in the current
financial year, or immediately preceding financial year
(ix) The Company has not defaulted in repayment of any dues to a
financial institution or bank.
(x) According to the information & explanation given to us the company
has not given any guarantee for loans taken by others from bank or
Financial Institutions.
(xi) According to information and explanations given to us, the company
has not taken any term loans during the year.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For G. K. Kedia & Co.
Chartered Accountants
Firm Registration No.: 013016N
Piyush Kedia
Place: New Delhi Partner
Date : 29.05.2015 Membership No. - 536648 |