| We have audited the accompanying financial statements of V. B. Desai
Financial Services Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
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 of these financial statements that give a true and
fair view of the financial position and 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 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 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 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 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 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 31st March, 2015 and 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 Section
143(11) 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 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 it 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,
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;
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
(iii) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund.
Annexure to Independent Auditor's Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
1. In respect of Company's fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programmed of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
2. In respect of its inventories (securities):
(a) The inventories of shares/stock lying in demat/physical form, have
been verified by the management. In our opinion, the frequency of
verification is reasonable;
(b) The procedures of physical verification of inventories (securities)
followed by the management are reasonable and adequate in relation to
size of the Company and the nature of its business;
(c) The Company is maintaining proper records of inventories
(securities). No material discrepancy was noticed between physical
verification of stocks and book records.
3. During the year the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties covered in the Register
maintained under section 189 of the Companies Act, 2013. Hence, clauses
(iii)(a) and (iii)(b) of paragraph 3 of the Order are not applicable.
4. 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 with regard
to purchase of fixed assets and sale of inventories
(securities)/services. During the course of our audit, we have not
observed any major weakness in such internal control systems.
5. The Company has not accepted any deposits during the year in terms
of the provisions of Section 73 to 76 or any other relevant provisions
of the Companies Act, 2013 and the Companies (Acceptance of Deposits)
Rules, 2014, as amended during the year and no order under the
aforesaid sections has been passed by the Company Law Board or the
National Company Law Tribunal or the Reserve Bank of India or any Court
or any other Tribunal in this regard in respect of the Company.
6. We are informed that the Central Government has not prescribed
maintenance of cost records u/s.148(1) of the Companies Act, 2013 for
any of the services rendered by the Company.
7. In respect of statutory dues:
(a) According to the information and explanations given to us and the
records of the Company examined by us, the Company has generally been
regular in depositing with the appropriate authorities undisputed dues,
including provident fund, employees' state insurance, income-tax, sales
tax, wealth tax, service tax, customs duty, excise duty, value added
tax, cess and other material statutory dues as applicable to it and
there were no such dues outstanding as at 31st March, 2015 for a period
of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there were no disputed amounts
in respect of the aforesaid dues which have not been deposited as at
31st March 2015.
(c) According to the information and explanations given to us the
Company is not required to transfer any sum during the year under
report 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.
8. The Company does not have any accumulated losses at the end of
financial year. The Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
9. The Company has not obtained any loans from the financial
institution or bank nor issued any debentures hence clause
(ix) of paragraph 3 of the Order is not applicable.
10. As informed to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions, hence clause
(x) of paragraph 3 of the Order is not applicable.
11. The Company has not taken any term loans hence clause
(xi) of paragraph 3 of the Order is not applicable.
12. According to the information to and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of the audit.
For A. N. Damania & Co.
Chartered Accountants
Firm Reg. No.102077W
Ashvin Damania
Proprietor
M. No. 040166
Date: 30th July, 2015
Place: Mumbai
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