| We have audited the accompanying Standalone financial statements of ASIT
C. MEHTA FINANCIAL SERVICES LIMITED ('the Company') which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
Significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash fows 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 of 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 standalone
financial statements based on our audit. While conducting the 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
specifed 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 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 & 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
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 standalone
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 of the state of affairs of the Company as
at 31st March, 2015, and its Profit and loss and its cash fows 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 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
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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(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 written representations received from the
directors, as on 31st March, 2015 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st 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 litigation on its
financial position in its financial statements Refer Note 26 to the
financial statements;
(ii) The Company did not have any long-term contract including
derivative contract for which there are any material foreseeable
losses.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in paragraph 1 of the Our Independent Auditors
Report of even date to the members of Asit C. Mehta Financial Services
Limited, on the accounts of the company for the year ended 31st March,
2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical Verification of its
fixed assets under which all fixed assets are verified in a phased manner
over a period 3 years In our opinion, this periodicity of physical
Verification is reasonable having regarded to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such Verification.
(2) The Company has not entered into any transactions during the year
involving inventories. Therefore, the provisions of clause 3 (ii)
(a),(b) and (c) of the order are not applicable to the Company.
(3) The company had granted interest bearing unsecured loan to a Wholly
owned subsidiary Company covered in the register maintained under
section 189 of the Companies Act, 2013.
(a) The Company is regular in recovering the principal amount and
interest as stipulated
(b) There were no overdue amounts of more than rupees one lakh in
respect of the loan granted and hence clause 3(iii) (b) of the order,
is not applicable to the Company.
(4) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to the sale of services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system. In our opinion and according to the information and
explanations given to us, there is no purchase of inventory, fixed
assets and sale of goods during the year and therefore, clause 3(iv) of
the Order, to that extent, is not applicable to the Company.
(5) The Company has not accepted any deposits from the public and
consequently the directives issued by the Reserve Bank of India, the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act, and the Rules framed there under are not applicable, and
also no orders were passed by National Company Law Tribunal or Reserve
Bank of India or any court or any other Tribunal and therefore clause
3(v) of the order is not applicable.
(6) According to information and explanations given to us, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of Section 148 of the Companies Act, 2013
in respect of the services rendered by the Company and therefore, the
provision of clause 3(vi) of the Order is not applicable.
(7) (a) According to records of the Company, and on the basis of our
examination of the books of account, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, there
are no disputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess. Details of
disputed dues in respect of Foreign Exchange Regulation Act, Service
Tax and Property Tax as on 31st March, 2015 on account of any dispute
are given below.
Name of the Nature of Dues Amount (Rs,) Period to
Statute which the Forum where
amount the dispute
relates dispute is
pending
Foreign
Exchange Contravention
of FERA 10,000,000 1994-1995 Appellate
Tribunal
Regulation
Act,1973 regulations Foreign
Exchange
Service
Tax Service tax
on Brokerage 6,798,386 1996-2000 Commissioner
Income of Central
Excise
(Appeals)
Property
Tax Property Tax
on Premises 2,991,348 2011-2015 Brihanmumbai
Mahanagar
Palika
(c) According to the information and explanation given to us, there are
no dues of income tax, sales tax, service tax, customs duty, wealth
tax, excise duty and cess which have not been deposited except property
tax as per detail given below:
Name of the Nature of Dues Amount
Property
Tax Property Tax
on Premises 8,416,221 2011-2015 Brihanmumbai
Mahanagar
Palika
(d) According to the information and explanations given to us, the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under have been
transferred to such fund, within the time limits prescribed.
(8) The Company has no accumulated losses at the end of the financial
year. The company has incurred cash losses during the financial year
covered by our audit as well as in the immediately preceding financial
year.
(9) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
bank and financial institution. Further, the Company has not issued any
debentures and therefore, the provision of clause 3 (ix) of the Order
to that extent is not applicable.
(10) According to the information and explanations given to us, the
company has given guarantees for loans taken by others from banks or
financial institutions. We are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the company.
(11) In our opinion, term loan availed by the company were, prima
facie, applied by the Company for the purpose for which the loans were
obtained.
(12) Based on the audit procedures performed and to the best of our
knowledge and belief and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year nor have we been informed about any such case by the
management.
For MANEK & ASSOCIATES
Chartered Accountants
Firm Registration No.: 126679W
MUMBAI (SHAILESH MANEK)
Dated: 29th May, 2015 Proprietor
Membership No.: 034925 |