TO THE MEMBERS OF
SAI BABA INVESTMENT & COMMERCIAL ENTERPRISES LIMITED.
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of SAI BABA
INVESTMENT& COMMERCIAL ENTERPRISES LIMITED (‘the company) , which
comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss
including the statement of other comprehensive income, the Cash flow statement and the
Statement of change in Equity for the year ended, and a summary of significant accounting
policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Ind AS financial statements give the information required by
the Companies Act, 2013 (the ‘Act) in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted in India, of the
state of affairs of the Company as at 31st March, 2019 and its profit /(loss) (including
Other Comprehensive Income) , its changes in equity and its cash flows for the year ended
on that date subject to following qualifications-:
Qualifications-:
(a) The company is required to get registered with the RBI as Non-Banking financial
company, as required under section 45 IA of the Reserve Bank of India Act 1934 and the
rules made there under which has not been complied with.
(b) The only source of Income to the company is Interest on Loans given to the various
parties. Howsoever, the amount of loan and interest thereon cannot be verified in the
absence of supporting evidences. The loan has been given by the management on the basis of
verbal agreement.
(c) The Company has yet to deposit its Income tax of Rs.17,45,850 for the Ay 2017-18
and file its return of Income for the A.Y 2017-18.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the Ind AS financial statements under the
provisions of the Act and the Rules there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
The Companys 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 (Standalone) Ind AS financial statements that give a true and fair view of the
financial position, financial performance including other comprehensive income, cash flows
and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and
the Companies (Indian Accounting Standards) Rules, 2015, as amended by the Companies
(Indian Accounting Standards) Rules, 2017 under Section 133 of the Companies Act, 2013.
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 Ind AS
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, the Board of Directors is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these Standalone financial statements.
As part of an audit in accordance with Accounting Standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Standalone financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of
the Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
- Evaluate the overall presentation, structure and content of the Standalone financial
statements, including the disclosures, and whether the Standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
, as amended, 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" 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 sought and obtained all the information and explanations subject to our
qualifications in the report 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 it appears from our examination of those books;
c) the Balance Sheet and the Statement of Profit and Loss including the statement of
other comprehensive income, the Cash Flow statement and the statement of changes in equity
dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid Ind AS financial statements comply with the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014, Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of written representations received from the directors as on March 31,
2019 taken on record by the Board of Directors, none of the directors is disqualified as
on March 31, 2019 from being appointed as a director in terms of Section 164 (2) of the
Act.
f) 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 B"; and
g) With respect to the other matters to be included in the Auditors 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:
f) The Company does not have any pending litigations which would impact its financial
position;
g) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses;
h) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
|
For S. Agarwal & Co. |
|
Chartered Accountants |
|
FRN: 000808N |
|
B.S. Chaudhary |
| Place: New Delhi |
(Partner) |
| Date: 29th May , 2019 |
M. No. : 406200 |
"Annexure A" to the Independent Auditors Report
Referred to in paragraph 1 under the heading ‘Report on Other Legal &
Regulatory Requirement of our report of even date to the financial statements of the
Company for the Period ended March 31, 2019:
(i) The company does not own any Property Plant & Equipment.
(ii) According to the information and explanations given to us, the Company does not
have any inventory and hence reporting under clause 3(ii) of the Order is not applicable.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Sections 185 and 186 of the Companies Act,
2013 in respect of grant of loans, making investments and providing guarantees and
securities, as applicable.
(v) The Company has not accepted any deposits from the public within the meanings of
section 73 to 76 of the Act and the rules framed there under to the extent notified.
(vi) To the best our knowledge and according to the information and explanations given
to us, the Central Government has not prescribed the maintenance of cost records under
section 148(1) of the Act, in respect of the services rendered by the Company.
(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
Income- tax, Service Tax, Goods and Service Tax, Provident Fund, Employees State
Insurance, cess and other material statutory dues applicable to it to the appropriate
authorities except Income Tax as given in our Qualification report.
(b) There are no undisputed amounts payable in respect of Income-tax, Service Tax,
Goods and Service Tax, Provident Fund, Employees State Insurance, cess and other material
statutory dues in arrears as at 31st March, 2019 for a period of more than six months from
the date they became payable except Income Tax as per our qualification report.
(c) There are no dues of Income-tax and Service Tax/GST as on 31st March, 2019 on
account of disputes.
(viii) In our opinion and according to the information and explanations given to us,
the Company has not defaulted in the repayment of loans or borrowings to banks and dues to
debenture holders. The Company has not taken any loan from government and financial
institution.
(ix) In our opinion and according to the information and explanations given to us, the
money raised by way of the term loans and debentures if any have been applied by the
Company during the year for the purposes for which they were raised other than temporary
deployment pending application of proceeds. The Company has not raised moneys by way of
initial public offer/ further public offer (including debt instruments) .
(x) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company and no material fraud by its officers or employees on
the Company has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the
Company has paid / provided managerial remuneration in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable. (xiii) In our opinion and according to the information and
explanations given to us the Company is in compliance with Section 188 and 177 of the
Companies Act, 2013, where applicable, for all transactions with the related parties and
the details of related party transactions have been disclosed in the financial statements
etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures and hence reporting under
clause 3(xiv) of the Order is not applicable to the Company.
(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 its
directors or persons connected with him and hence provisions of section 192 of the Act are
not applicable.
(xvi) In our opinion, the company is required to be registered under section 45 IA of
the Reserve Bank of India Act, 1934.
|
For S. Agarwal & Co. |
|
Chartered Accountants |
|
FRN: 000808N |
|
B.S. Chaudhary |
| Place: New Delhi |
(Partner) |
| Date: 29th May , 2019 |
M. No. : 406200 |
+91-9892691696
