| We have audited the accompanying standalone financial statements of
HYBRID FINANCIAL SERVICES LIMITED (formerly known as MAFATLAL FINANCE
COMPANY LIMITED) which comprise the Balance Sheet as at March 31, 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 Standalone Financial Statements
The Company's Board of Directors are responsible for the matters 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, 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 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 standalone
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 there under.
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 mis-statement.
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 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 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 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 aforesaid standalone financial statements
give the information required by the Act (except to the extent of
disclosure required to be made under AS-15 with regard to Group Gratuity
Scheme and Leave Encashment) 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 March
31, 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 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 Companies Act, 2013, we
report that:
a) We have obtained all the information and explanations subject to
Item Nos 5 and 7 of Note No. 21 III) regarding non receipt of
confirmation of certain balances which to the best of our knowledge and
belief were necessary for the purposes of our
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, 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 written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164 (2) of the Companies
Act, 2013.
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:
1. Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No. 21
III). 1 to the financial statements.
2. Company did not have any long-term contracts including derivatives
contracts for which there were any material foreseeable losses.
3. There were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
[The annexure referred to in our Independent Auditors' Report of even
date to the members of the Company on the standalone financial
statements for the year ended 31 March 2015, in paragraph 1 under the
heading "Report on Other Legal and Regulatory Requirements" of HYBRID
FINANCIAL SERVICES LIMITED (formerly known as MAFATLAL FINANCE COMPANY
LIMITED)
1. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme 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. The Company being in the service sector, clause (ii) of paragraph 3
of the Order, is not applicable to the Company.
3. According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to companies,
firms or other parties which are covered in the Register to be
maintained under Section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of fixed assets and for the sale of services. During the
course of our audit we have not observed any continuing failure to
correct major weaknesses in such internal control system.
5. According to the information and explanations given to us, the
Company has not accepted any deposits from the public during the year
and hence the directives issued by the Reserve Bank of India and the
provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under, are not
applicable to the Company
6. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under Section 148(1) of the Act. Therefore, the provisions of clause
(vi) of the Order are not applicable to the Company.
7. According to the information and explanations given to us:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax, service tax, customs duty, excise
duty, value added tax, cess and any other material statutory dues
applicable to it with the appropriate authorities and there are no dues
in arrears as at 31st March, 2015 for a period of more than six months
from the date they became payable.
7 (b) According to the information and explanations given to us,
details of disputed sales tax, income tax, customs duty, wealth tax,
service tax, excise
duty and cess which have not been deposited as on 31st March, 2015 on
account of any dispute are given below:
Name of statute Nature of Amount (Rs.)
the dues
Madhya Pradesh Commercial Tax Sales Tax 48,780/-
Act, 1974
Madhya Pradesh Commercial Tax Act, 1974. Sales Tax 25,491/-
West Bengal Sales Tax Act, 1994. Sales Tax 2,654/-
West Bengal Sales Tax Act, 1994. Sales Tax 143,788/-
West Bengal Sales Tax Act, 1994. Sales Tax 82,415/-
West Bengal Sales Tax Act, 1994. Sales Tax 44,851/-
Sub-Regional Office, Employees' Demand 21,06,154/-
Provident Fund, Vashi Under
Section 7A
proceedings
Name of statute Period to which Forum where
the amount dispute is
relates pending
Madhya Pradesh Commercial Tax 1995-1996 Deputy Commissioner
Act, 1974 of Commercial Taxes
Madhya Pradesh Commercial Tax Act, 1996-1997 Deputy Commissioner
1974. of Commercial Taxes
West Bengal Sales Tax Act, 1994. 1994-1995 Deputy Commissioner
of Commercial Taxes
West Bengal Sales Tax Act, 1994. 1995-1996 Deputy Commissioner
of Commercial Taxes
West Bengal Sales Tax Act, 1994. 1996-1997 Deputy Commissioner
of Commercial Taxes
West Bengal Sales Tax Act, 1994. 1999-2000 Deputy Commissioner
of Commercial Taxes
Sub-Regional Office, Employees' 2013-2014 The Company has
Provident Fund, Vashi appealed against
the order and
obtained a stay
from Employee
Provident Fund
Appellate Tribunal.
(c) 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.
8 The Company's accumulated losses exceeded fifty percent of its
networth as at the end of the financial year. The Company has not
incurred cash losses in the financial year but has incurred cash loss
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 the repayment of dues to
banks. The company has not borrowed from any financial institution or
issued any debentures.
10 In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions
11 In our opinion and according to the information and explanations
given to us, the Company has not taken term loans during the year.
12. To the best of our knowledge and according to the information and
explanations given to us, no material fraud on or by the Company has
been noticed or reported during the course of our audit.
FOR S. RAMANAND AIYAR & CO
Chartered Accountants
Firm Registration No: 000990N
BINOD C. MAHARANA
Partner
Membership No. 056373
Place: Mumbai
Date: 19th May 2015
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