| Report on the Financial Statements
We have audited the accompanying financial statements of ARAVALI
SECURITIES & FINANCE LIMITED (The Company"), which comprise the Balance
Sheet as at 31 st March, 2015 and 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 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 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 thereunder.
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 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 st March, 2015;
(b) In the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
(c) In the case of the 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 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 under the provisions of 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 form 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 representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, 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 does not have any pending litigations which would impact
its financial position except the sales tax liablity pending in
appeals/ rectification of Rs. 160969, as refered in note 1.9
ii The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iil There has been no delay in transferring amounts, required to be
transferred, to the investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 1 of Report on Other Legal and Regulatory
Requirements of our report of even date to the members of
Aravali Securities & Finance Limited as at and for the year ended 31st
March, 2015)
i. a. The Company is maintaining proper records showing full
particulars, including quantitative details and situation of its
fixed assets.
b. The fixed assets of the Company were physically verified by the
management during the year. In our opinion, frequency of physical
verification is reasonable having regard to the size of the operation
of the Company, n the basis of explanation received, in our opinion, no
discrepancy between the book records and physical inventory has been
noticed in respect of assets physically verified.
ii. a. As explained to us, the inventories were physically verified
during the year by the management at reasonable intervals. In our
opinion, having regard to the nature of stocks, the frequency is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of its inventories
and no material discrepancy was noticed on physical verification except
to the extent of shares not registered in the name of the Company as
mentioned in Note 11.
iii a. The Company has given loan to a Company covered in the register
maintained under Section 189 of the Companies Act, 2013.
b In the case of the loans granted to the bodies corporate listed in
the register maintained under section 189 of the Act, the borrowers
have been regular in the payment of the interest as stipulated. The
terms of arrangements do not stipulate any repayment schedule and the
loans are repayable on demand. Accordingly, paragraph 3(iii)(b) of the
Order is not applicable to the Company in respect of repayment of the
principal amount.
c There are no overdue amounts of more than rupees one lakh in respect
of the loans granted to the bodies corporate isted in the register
maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor we have been informed of any instance of major weaknesses in the
aforesaid internal control systems.
v. As informed, the Company has not accepted any deposits from the
public.
vi. The Central Government has not prescribed maintenance of the cost
records under section 148(1) of the Companies Act, 2013 in respect of
any of the company's activities.
vii. a. According to the information and explanations given to us and
the books and records as produced and examined by us, in our opinion,
the undisputed statutory dues including in respect of provident fund,
employees' state insurance, income- tax, sales tax, wealth tax, service
tax, customs duty, excise duty, value added tax, cess and other
statutory dues as applicable have been regularly deposited by the
Company during the year with the appropriate authorities. There were no
undisputed statutory dues as at the last day of the financial year
outstanding for a period of more than six months from the date they
became payable.
b. According to the records of the company, there were no dues of
income tax, wealth tax, service tax, custom duty, excise duty, value
added tax, cess which have not been deposited on account of disputes.
The particulars of dues of sales tax as at 31st March, 2015 which have
not been deposited on account of disputes are as under:
Name of Period Amount under Forum before whom pending
the dues dispute not
yet deposited
Sales Tax Financial year Asst. Commissioner
1984-85,1985-86, Rs. 1,60,969 of Sales Tax
2000- 01 and (Appeals) Delhi
2001- 02
viii. The Company losses as at 31st March, 2015 are less than fifty
percent of its net worth. The Company has incurred cash losses in the
financial year covered by our audit but has not incurred cash losses in
the immediately preceding financial year
ix. The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year except sum of
Rs. 142000 received from Fully Convertible partly paid up Debentures
which were convertible into fully paid up equity shares and which have
not been converted pending allotment money in arrears, as mentioned in
Note 1.2 & Note 4.
x. The Company has not given any guarantee for loans taken by others
from bank or financial institutions except those mentioned in Note 8.
xi The Company did not have any term loans outstanding during the year.
xii. 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.
For SALARPURIA & PARTNERS
CHARTERED ACCOUNTANTS
(Registration No.302113E)
Sd/-
KAMAL KUMAR GUPTA
Place: Camp Gurgaon PARTNER
Date:21 st May,2015 MembershipNo.89190 |