| We have audited the attached Balance Sheet of M/s. INSTA Finance Ltd.,
as at 31st March, 2014 and the annexed Profit and Loss Account and cash
flow statement for the year ended on that date. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these financial statements
bases on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India, Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditor's Report) Order 2003 issued by
the central Government of India in terms of section 227 (4A) of the
Companies Act, 1956 we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, 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 accounts as required by law have
been kept by the Company so far as appears from our examination of such
books.
(c) The Balance Sheet and the Profit & Loss Account referred to in this
report are in agreement with the books of account.
(d) In our opinion and to the best of our information the said Balance
Sheet and Profit & Loss Account and cash flow statement comply with the
Accounting standard referred to in section 211(3c) of the companies
act, 1956.
(e) On the basis of written representations received from the
directors, as on 31st, March, 2014 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and
gives a true and fair view in conformity with the accounting principles
generally accepted in India:-
i. In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March, 2014 and
ii. In so far as it relates to the Profit & Loss Account of the Loss
of the company for the year ended on that date.
iii. In the case of the cash flow statement, of the cash flow for the
year ended on that date.
i) The Company has maintained proper records to show full particulars
including quantitative details and situation of fixed assets.
ii) The fixed assets have been physically verified by the management at
reasonable intervals during the year and no material discrepancies were
noticed on such verification as compared with the available records.
iii) None of the Fixed Assets of the company have been disposed off
during the year .
iv) The stock of finished goods, and raw materials have been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
v) The procedure followed by the management for physical verification
of stocks is reasonable and adequate in relation to the size of the
company and the nature of its business.
vi) On our basis of examination of stock records, we are of the opinion
that the record of stocks is fair and proper in accordance with the
normally accepted accounting principle and no material discrepancies
were noticed on physical verification.
vii) There is no loans, secured and unsecured, taken by the company
to/from companies, firm or other parties covered in the register
maintained u/s. 301 of the Co. Act, 1956.
viii) Interest free Loans and Advances in the nature of loans have been
given to employees and other parties who were generally regular in
repaying the principal as stipulated. Where there is delay in
repayment, the company has taken reasonable steps to recover the same.
ix) In our opinion and according to information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for financial
activities.
x) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
xi) In our opinion and according to the information and explanations
given to us, the provisions of section 58-A of the Companies Act, 1956
and Companies (acceptance of deposits) Rules, 1957 are not applicable
as the company has not accepted and deposits from the public.
xii) The company does not have any formal system of internal audit.
However in our opinion and according to information and explanations
given to us, the internal control procedures are adequate. Considering
the size and nature of business of the Company.
xiii) The Provisions of section 209(1)(d) of the Companies Act, 1956
regarding the maintenance of cost records are not applicable to the
company.
xiv) As informed to us the provision of Provident Fund Act, Employees
State Insurance Act provisions of investor education and protection
fund, customs duty, excise duty and cess are not applicable to the
Company during the year under review.
xv) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Income-Tax, Wealth Tax, Service Tax
and other material statutory dues applicable to it.
xvi) According to the information and explanations given to us no
disputed amounts in respect of Income-Tax, Wealth-tax, Sales-Tax,
Customs-Duty and Excise-Duty were outstanding as at 31st, March, 2014
for a period of more than six months from the date they become payable.
(xvii) According to the information and explanations given to us and
based on the generally accepted audit procedures carried out by us no
personal expenses of employees or directors have been charged to
Revenue Account, other than those payable under contractual obligations
or in accordance with generally accepted business practice.
xvii) The Company has accumulated losses at the end of the financial
year and it has incurred losses in the current and immediately
preceding financial year.
xviii) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institution, banks or debenture holders.
xix) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xx) The provisions of any special statute applicable to Chit Funds,
Nidhi, or Mutual Benefit Society/fund do not apply to the Company.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 (as amended) are not applicable to the Company.
xxi) The Shares and other securities have been held by the Company, in
its own name as explained to us and proper records in respect thereof
have been maintained.
xxii) According to the information and explanation given to us, the
Company has not given counter guarantee for loans taken by anybody.
xxiii) According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, we report that no funds raised on short-term basis have
been used for long-term investment.
xxiv) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained u/s 301 of the
Co. Act, 1956.
xxv) The Company did not have any outstanding secured debentures during
the year.
xxvi) The Company has not raised any money through a public issue
during the year under review.
(xxviii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
(xxix) The Company is not a sick Company as per the provisions of SICA,
1985.
PLACE : VADODARA FOR C B MEHTA & Co
DATE : 01/09/2014 CHARTERED ACCOUNTANTS
Sd/-
Chinmay Mehta
(PROPRIETOR)
M.No. 517103 |