TO THE MEMBERS OF MUDIT FINLEASE LIMITED REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of MUDIT FINLEASE LIMITED,
[CIN: L65993DL1989PLC035635]("the Company"), which comprise of the Balance
Sheet as at March 31, 2017,the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies, notes and other
explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 with respect to the preparation of these standalone
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.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these standalone 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
disclosures in the financial statements. The procedures selected depend on the auditors
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 Companys preparation of the
financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by Companys 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 standalone 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
31.03.2017;
b) In the case of the Statement of Profit and Loss, the Profit of the company
for the year ended on that date.
c) In the case of the Cash Flow Statements, 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 sub - section (11) of Section 143 of the Act, a statement on the
matters specified in paragraphs 3 and 4 of the Companies (Auditors Report) Order, 2016("the
Order") issued by the Central Government of India has been reported in "Annexure-I"
to this report.
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 best
of 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 the
Company so far as appears from our examination of those books;
c) The company has no branch offices and consequently we have not received any report
on accounts of branch of the company.
d) The Balance Sheet, the Statement of Profit & Loss and Cash Flow Statement dealt
with by this report are in agreement with the books of account;
e) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rule, 2014;
f) On the basis of written representations received from the Directors as on 31st
March, 2017 and taken on record by the Board of Directors, none of the Directors is
disqualified as on 31st March, 2017 from being appointed as a director in terms of section
164(2) of the Act;
g) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Annexure-II".
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit & Auditors) Rule, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. Company does not have any pending litigation which would impact its financial
position;
ii. Company did not have any long-term contracts including derivatives contracts for
which there were any material foreseeable losses
iii. No amounts were required to be transferred to the Investor Education and
Protection Fund by the company as on 31.03.2017.
iv. The Company has provided requisite disclosers in its financial statements as to
holdings as well as dealing in Specified Bank Notes during the period from 8th
November, 2016 to 30th December, 2016 and these are in accordance with the
books of accounts maintained by the Company.
|
For G. K. Kedia & Co. |
|
Chartered Accountants |
|
FRN. 013016N |
| Place: New Delhi |
Arvind Sharma |
| Date: 30.05.2017 |
Partner |
|
M. No. 530217 |
ANNEXURE-I TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL
STATEMENTS OF MUDIT FINLEASE LIMITED
(As referred in Paragraph 1 of Other Legal and Regulatory Matters in Independent
Auditors Report)
We report on the matters contained in Paragraph 3 of the Companies (Auditors Report)
Order, 2016 as follows:
i)
a) The company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets;
b) Those fixed assets were physically verified by the management at reasonable
intervals and according to the information and explanation given to us, no material
discrepancies were noticed on such verification;
c) The title deeds of immovable properties are held in the name of the company.
ii) There were no inventory neither at the beginning, nor during the year or at end of
the year, hence clause (ii) is not applicable to the company;
iii) According to the information and explanations given to us and on the basis of our
examination of the books of accounts, the Company has not granted loans, secured or
unsecured, to companies, firms, or other parties covered in the register maintained under
section 189 of the Companies Act, 2013. Hence, sub clause (a), (b), and (c) of this clause
are not applicable to this company;
iv) According to the information and explanations given to us and on the basis of our
examination of the books of accounts, the Company has not granted loans, made investments,
provide guarantees or securities under section 185 & 186 of the Companies Act, 2013;
v) According to the information and explanations given to us and on the basis of our
examination of the books of accounts, the Company has not accepted any deposits.
Therefore, compliances as stated in this clause with respect to directive issued by the
Reserve Bank of India, the provision of section 73 to 76 or any other relevant provisions
of the Companies Act, 2013, the rules framed there under are not required. Further,
according to the information and explanations given to us, no order was passed by Company
Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any
other tribunal for this company. Therefore, question of compliance or contravention with
the same does not arise;
vi) The provision of clause (3) (vi) of the Order are not applicable to the Company as
the Company is not covered by the Companies (Cost Records and Auditors) Rules, 2014;
vii) According to the information and explanations given to us, in respect of statutory
dues:
a. The Company has been regular in depositing undisputed statutory dues, including
provident fund, employees state insurance, Income Tax, sales tax, service tax, duty of
customs, duty of excise, value added tax, cess and other statutory dues applicable to it
with the appropriate authorities and as on 31.03.2017, no amount was outstanding for a
period of more than six months from the date they became payable;
b. No dues were required to be deposited on account of any dispute with income tax or
sales tax or service tax or duty of customs or duty of excise or value added tax.
Therefore, this sub-clause is not applicable for this company;
viii) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of any loans or borrowing from a financial
institution, bank, Government or dues to debenture holders;
ix) In our opinion and according to the information and explanations given to us and on
the basis of our examination of the books of accounts, the Company did not raise any
moneys by way of IPO / FPO (including debt instruments) and term loans during the year,
therefore, this clause of the Order is not applicable to this company;
x) In our opinion and according to the information and explanations given to us, no
fraud by Company or any fraud on the company by its officers or employees has been noticed
or reported during the year;
xi) In our opinion and according to the information and explanations given to us and on
the basis of our examination of the books of accounts, no Managerial Remuneration has been
paid during the year, therefore this clause of the Order is not applicable to this
company;
xii) The Company is not Nidhi company, therefore the provisions of clause (3) (xii) of
the Order are not applicable to the company;
xiii) In our opinion and according to the information and explanations given to us, all
related parties transactions are in compliance with sections 177 and 188 of Companies Act,
2013 and the details of same have been disclosed in Financial Statements etc., as required
by the applicable accounting standards;
xiv) In our opinion and according to the information and explanations given to us and
on the basis of our examination of the books of accounts, the Company has not made any
preferential issue / private placement of shares or debentures during reporting period,
therefore this clause of the Order is not applicable to this company;
xv) According to the information and explanations given to us and on the basis of our
examination of the books of accounts, the Company has not entered into any non - cash
transactions with directors or person connected with him, during the reporting period,
therefore this clause of the Order is not applicable to this company;
xvi) The company is already registered u/s 45-IA of Reserve Bank of India Act, 1934,
having certificate of registration No. 14.00750.
|
For G. K. Kedia & Co. |
|
Chartered Accountants |
|
FRN. 013016N |
| Place: New Delhi |
Arvind Sharma |
| Date: 30.05.2017 |
Partner |
|
M. No. 530217 |
ANNEXURE-II TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE
FINANCIAL STATEMENTS OF MUDIT FINLEASE LIMITED
(As referred in Paragraph 2(g) of Other Legal and Regulatory Matters in Independent
Auditors Report)
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of MUDIT
FINLEASE LIMITED, [CIN: L65993DL1989PLC035635] ("the Company") as of March
31, 2017 in conjunction with our audit of the standalone financial statements of the
Company for the year ended on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the 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 be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
reparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2016, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For G. K. Kedia & Co. |
|
Chartered Accountants |
|
FRN.013016N |
| Place: New Delhi |
Arvind Sharma |
| Date: 30.05.2017 |
Partner |
|
M. No. 530217 |
+91-9892691696
