We have audited the accompanying financial statements of Gowra Leasing
and Finance Limited ("the Company"), 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 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 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 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 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 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 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 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 control
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 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 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 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Companies Act, 2013, based on such checks as we
considered appropriate and according to the information and
explanations given to us, we state that:
i. a) The company has maintained adequate records of fixed assets with
full particulars including quantity and location.
b) The fixed assets have been physically verified by the management
during the year, which in our opinion, is reasonable having regard to
the size of the company and the nature of its assets and no material
discrepancies have been noticed on such verification. Hence the
question of dealing with such discrepancies in the books of account
does not arise.
ii. As the company has not purchased/ sold goods during the year nor
are there any opening stocks, requirement of reporting on physical
verification of stocks or maintenance of inventory records, in our
opinion, does not arise.
iii. a) The company has given loan to one company covered in the
register maintained under section 189 of the Act.
b) The party has repaid the principal amount as stipulated and has been
regular in the payment of interest.
c) There is no overdue amount of loan granted to such company listed 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 procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of fixed assets and with regard to the
sale of services. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal control
system.
v. In our opinion and according to the information and explanations
given to us by the management, the company has not accepted any
deposits from public and the Board of Directors of the company has
passed a resolution for the non-acceptance of any deposits. The Company
has complied with the directions 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
as per clause (v) of the Order.
vi. According to the information and explanations provided by the
management, the company is not engaged in production of any such goods
or provision of any such services for which the Central Government has
prescribed particulars relating to utilisation of material or labour or
other items of cost. Hence, the provisions of section 148(1) of the Act
do not apply to the company and in our opinion, no comment on
maintenance of cost records under section 148(1) of the Act is required
to be given.
vii. (a) According to the records of the Company, the company is
regular in depositing with the appropriate authorities 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 to
the extent applicable to it.
(b) According to the information and explanations given to us and based
on the records verified by us, we state that there were no undisputed
amounts payable in respect of Income Tax, Wealth Tax, Service Tax,
Sales Tax, Value Added Tax, Duty of Customs, Duty of Excise or Cess
which have remained outstanding as at 31st March 2015 for a period of
more than six months from the date they became payable.
(c) According to the information and explanation given to us, there are
no dues of Income tax, Wealth tax, Sales tax, Value Added Tax, Service
Tax, Duty of Customs, Duty of Excise or Cess, which have not been
deposited on account of any dispute.
(d) The company has transferred the amounts due to be remitted to
Investors Education and Protection Fund with in the due dates under
relevant provisions of The Companies Act, 1956 and Rules framed there
under.
viii. The company has not incurred cash loss during the financial year
covered by our audit as well as in the immediate previous financial
year and has no accumulated losses as at the end of the financial year.
ix. According to the records of the company, the company has not
borrowed any funds from financial institutions or banks nor has issued
debentures till 31st March 2015. Hence, in our opinion, the question of
reporting on defaults in repayment of dues to financial institutions or
banks or debentures does not arise.
x. As informed to us, the Company has not given guarantees for loans
taken by others from banks or financial institutions.
xi. The company has not raised any term loans from Banks or Financial
Institutions during the year under audit. Hence the question of
application of loan funds for the purpose for which they were obtained
does not arise.
xii. Based on the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
2) As required by Section 143(3) of the Act, we report that
i. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
ii. 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;
iii. The Balance Sheet, Profit and Loss Statement and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
iv. 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;
v. 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) the Act.
vi. With respect to the other matters to be included in the Auditor's
Report in accordance with the 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,
a) The Company does not have any pending litigations which would impact
its financial position
b) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses
c) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
For Dagliya and Co.
Chartered Accountants
FRN: 00671S
Sd/-
Place : Secunderabad Jitendra Kumar Jain
Date : 25-05-2015 (Partner) M No.: 018398 |