| We have audited the accompanying financial statements of AD-Manum
Finance Limited ('the Company'}, which comprise the Balance Sheet as at
31 March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOB 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
and ensuring their operating effectiveness and 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 Standards require that we comply with
ethical requirements and plan and perform the audit to obtain 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 opened 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, of the state of affairs of the Company as
at 31 March 2015, its profit and its 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 in the Annexure, a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to 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 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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit
are been received from branches not visited by us;
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account and with the returns received from branches not
visited by us;
(d) 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) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on 31 March 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(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 has disclosed the impact of pending litigations as at
March 31, 2015 on its financial position in
its financial statements- Refer Note 18(B) (1) to the Financial
Statements; ii. The Company has no material foreseeable losses on
long-term contracts including derivative contracts as required under
the applicable law or accounting standards;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund
by the Company during the year ended March31,2015.
Annexure to the Independent Auditors' Report
The Annexure required under CARO, 2015 referred to in our Report to the
members of the AD-Manum Finance Limited ("the Company") for the
year ended 31 March 2015, we report that:
(i) (a) The Company has maintained adequate records on computer showing
general particulars, including quantitative details and situation of
Fixed Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals; no material discrepancies
were noticed on such verification and the same have been properly dealt
with in the books of accounts.
ii) The nature of business of the Company does not require it to have
any inventory. Hence, the requirement of clause
(ii) of paragraph 3 of the said Order is not applicable to the Company
(iii) The Company has granted unsecured loan to one party covered in
the register maintained under section 189 of the Companies Act, 2013.
The maximum amount involved during the year was Rs.1746.50 lacs and the
year- end balance of loan granted to such party was Rs.1596.50 lacs. The
receipt of Interest and Principal Amount is regular as per the terms.
There is no overdue amount.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, with
regard to purchase of fixed assets and sale of services. The activities
of the Company do not involve purchase of inventory and the sale of
goods. Further on the basis of our examination of the books and records
of the company and according to the information and explanations given
to us, no major weakness has been noticed or reported.
(v) The Company has not accepted any deposits within the meaning of
directives issued by Reserve Bank of india and the provisions of section
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the rules framed there under.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub sector (1) of section 148 of the
Companies Act, 2013 in respect of the business of the.
(vii) (a) According to the records of state insurance, Income Tax.
Sales tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise,
Value Added Tax, Cess and any other statutory dues, whichever is
applicable to the company with the appropriate authorities during the
year and no undisputed amounts were outstanding as at 31st March, 2015
for a period of more than six months, from the date they become
payable.
(b) According to the information and explanation given to us, there are
no dues of Income Tax, Sales tax, Wealth Tax, Service Tax, Duty of
Custom, Duty of Excise, Value Added Tax, Cess and any other statutory
dues which have not been deposited on account of any dispute except
given below:
S.
No.Name of Statute Nature of Dues Demand in
Rs. (Lacs) Period to
which Forum where
the
the amount
relates dispute is
pending
01 income Tax Act,
1961 Income Tax 11.54 2000-01 ITAT, Indore
02 Income Tax Act,
1961 Income Tax 11.07 2001-02 ITAT, Indore
03 Income Tax Act,
1961 Income Tax 282.28 2007-08 ITAT, Indore
04 Income Tax Act,
1961 Income Tax 0.83 2008-09 CIT, Indore
05 Income Tax Act,
1961 Income Tax 46.21 2009-10 CiT, Indore
06 Income Tax Act,
1961 Income Tax 2.79 2011-12 CIT, Indore
07 Income Tax Act,
1961 Income Tax 1.14 2012-13 CIT, Indore
TOTAL 366.86
(c) According to the information and explanations given to us, the
amount required to be transferred to investor education and protection
fund in accordance with the relevant provisions of the Companies Act,
2013 and rules made there under has been transferred to such fund within
time.
(viii) The company has no accumulated losses at the end of the
financial year and it has not incurred cash losses during the financial
year and in the immediately preceding financial year
(ix) According to the information and explanations given to us and
based on the record, of the company examined by us the company has not
default in repayment of dues to any finance institution or banks
(x) According to the information and explanation given to us,the
company has not given any guarantee for loans taken by other from banks
or financial information.
(xi) The company has not obtained any Term Loan.
(xii) The company has detected certain frauds conducted by its
employees in collusion with brokers/borrowers in the FY 13-14 in some
branches and also detected some more frauds in other branches in the
current financial year. The matter is still under investigation by
relevant police at various levels. pending such investigations and
recovery, the company has written off sum of 215.79 Lacs pertaining to
the said frauds in the current financial year
Statutory Auditors
FOR MAHENDRA BADJATYA & CO
CHARTERED ACCOUNTANTS
ICAI FRN 001457C
sd/-
CA M.K BADJATYA
PARTNER
ICAI MNO 070S78
PLACE: INDORE
DATE: 29/05/2015 |