| We have audited the accompanying financial statements of VAX HOUSING
FINANCE CORPORATION LTD.("the Company"), which comprise the Balance
Sheet as at March 31, 2015, and the Statement of Profit and Loss 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 preparation of
these consolidated financial statements that give a true and fair view
of the consolidated financial position, consolidated financial
performance and consolidated cash flows of the Group in accordance with
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
Group 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 the
design, implementation and maintenance of adequate internal financial
control 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for
purpose of expressing an opinion on the effectiveness of the Company's
Internal Control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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.
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 March 31, 2015 and
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date
Report on Other Legal and Regulatory Requirements
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, the aforesaid consolidated financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
As required by 143(3) of the Act, we report that
a. we have 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 and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account;
d. in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards notify under the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
e. As informed to us, none of the director is a director in any Public
company, hence, provision of section 274(1)(g) of the Act, is not
applicable;
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Vax Housing Finance Corporation Ltd. on the accounts
of the company for the year ended 31st March, 2015.
We refer to our report on the financial statements of Vax Housing
Finance Corporation Limited (the Company) for the year ended March 31,
2015 issued on 30TH MAY 2015. The Gazette version of the Companies
(Auditor's Report) Order, 2015 (CARO 2015) was not available in the
Official Gazette of India on the date of our report. Accordingly, our
report does not contain an Annexure on the matters specified in
paragraphs 3 and 4 of CARO 2015.
Subsequent to the issuance of our report dated 31st March 2015, CARO
2015 has been published in the Official Gazette of India. While it is
not obligatory on our part to issue our report on the matters specified
in paragraphs 3 and 4 of CARO 2015, based on the discussions with the
Company, as a measure of good governance, we give hereinafter a
statement on the matters specified in paragraphs 3 and 4 of CARO 2015.
This may be treated as an Annexure to our aforesaid Report on
standalone financial statements for the year ended March 31, 2015.
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information. b) As explained to us, all the fixed
assets have been physically verified by the management in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
ii. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification 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 are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) c) The Company has maintained proper records of inventories. As per
the information and explanation given to us, no material discrepancies
were noticed on physical verification.
iii. In respect of the loans, secured or unsecured, granted by the
Company to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013:
a) The principal amounts are repayable over varying periods upto five
years, while the interest is payable annually, both at the discretion
of the Company.
b) In respect of the said loans and interest thereon, there are no
overdue amounts.
iv. In our opinion and according to the information and explanations
given to us, the Company has an adequate internal control system
commensurate with its size and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
v. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
vi. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under Section 148(1)(d) of the
Companies Act, 2013 and are of the opinion that, prima facie, the
prescribed accounts and cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
vii. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value
Added Tax, Cess and other material statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at March 31, 2015
for a period of more than six months from the date of becoming payable.
b) According to records of company, there are no dues of income tax or
sales tax or wealth tax or service tax or duty of customs or duty of
excise or value added tax or cess have not been deposited on account of
any dispute.
c) According to the records of the Company, there are no amounts that
are due 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 made there under has been transferred to such fund
within time.
viii. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
ix. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks and
debenture holders.
x. The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
xi. The Company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
xii. In our opinion and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the
Company has been noticed or reported during the year.
We refer to our report on the financial statements of Vax Housing
Finance Corporation Limited (the Company) for the year ended March 31,
2015 issued on 30TH MAY 2015. The Gazette version of the Companies
(Auditor's Report) Order, 2015 (CARO 2015) was not available in the
Official Gazette of India on the date of our report. Accordingly, our
report does not contain an Annexure on the matters specified in
paragraphs 3 and 4 of CARO 2015.
Subsequent to the issuance of our report dated 31st March 2015, CARO
2015 has been published in the Official Gazette of India. While it is
not obligatory on our part to issue our report on the matters specified
in paragraphs 3 and 4 of CARO 2015, based on the discussions with the
Company, as a measure of good governance, we give hereinafter a
statement on the matters specified in paragraphs 3 and 4 of CARO 2015.
This may be treated as an Annexure to our aforesaid Report on
standalone financial statements for the year ended March 31, 2015.
xii. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information. b) As explained to us, all the fixed
assets have been physically verified by the management in a phased
periodical manner, which in our opinion is reasonable, having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
xiii. In respect of its inventories:
d) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
e) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
f) c) The Company has maintained proper records of inventories. As per
the information and explanation given to us, no material discrepancies
were noticed on physical verification.
xiv. In respect of the loans, secured or unsecured, granted by the
Company to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013:
a) The principal amounts are repayable over varying periods upto five
years, while the interest is payable annually, both at the discretion
of the Company.
b) In respect of the said loans and interest thereon, there are no
overdue amounts.
xv. In our opinion and according to the information and explanations
given to us, the Company has an adequate internal control system
commensurate with its size and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
xvi. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
xvii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under Section 148(1)(d) of the
Companies Act, 2013 and are of the opinion that, prima facie, the
prescribed accounts and cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
xviii. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value
Added Tax, Cess and other material statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at March 31, 2015
for a period of more than six months from the date of becoming payable.
b) According to records of company, there are no dues of income tax or
sales tax or wealth tax or service tax or duty of customs or duty of
excise or value added tax or cess have not been deposited on account of
any dispute.
c) According to the records of the Company, there are no amounts that
are due 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 made there under has been transferred to such fund
within time.
xix. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
xx. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks and
debenture holders.
xxi. The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
xxii. The Company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
xii. In our opinion and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the
Company has been noticed or reported during the year.
FOR, NIYATI PATEL & CO.
(Chartered Accountants)
NIYATI PATEL Date: 30-05-2015
Proprietor Place: AHMEDABAD
M.No. 151039
FRN: 137165W
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