We have audited the accompanying standalone financial statements of
Ladderup Finance Limited, 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 the significant accounting
policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (herein after referred to
as the Act) with respect to the preparation of these standalone
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 of 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.
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
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 the 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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the 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 standalone
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 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
sub-section (11) of Section 143 of the Act, we give in the annexure a
statement on the matters specified in the paragraphs 3 and 4 of the
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
purposes 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
(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 standalone 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 the written representations received from the
directors as on 31st March, 2015 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
(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 has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 22(A)(ii)
to the financial statements.
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
The Annexure referred to in Paragraph 1 under the heading Report on
Other Legal and Regulatory Requirements in our Independent Auditor''s
Report to the members of Ladderup Finance Limited for the year ended
31st March, 2015.
As required by the Companies (Auditors Report) Order, 2015 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
b) As explained to us, all the assets have been physically verified by
the management at the end of the year, which in our opinion is
reasonable, considering the size and the nature of business. No
discrepancies have been noticed on such physical verification.
(ii) a) Since the Company does not have any inventory, the paragraph
3(ii) of the said Order is not applicable to the Company.
(iii) The Company has granted unsecured loans to three body corporates
including two subsidiaries covered in the register maintained under
Section 189 of the Act.
a) The borrowers have been regular in the payment of the interest as
stipulated. The terms of arrangements do not stipulate any repayment
schedule and the loans are repayable on demand. Accordingly, paragraph
3(iii)(a) of the Order is not applicable to the Company in respect of
repayment of the principal amount.
b) There are no overdue amounts of more than rupees one lakh in respect
of the loans granted to the parties covered 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 is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and for the sale of services. We have not
observed any major weakness in the internal control system during the
course of the audit.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost
records under Section 148 (1) of the Act, for the Company.
(vii) a) The Company is regular in depositing undisputed statutory dues
including service tax and income tax with appropriate authorities.
There are no undisputed amount payable in respect of these statutory
dues which have remained outstanding as at 31st March, 2015 for a period
more than six months from the date they became payable. The laws
relating to Provident Fund, Employees State Insurance, Sales Tax,
Wealth Tax, Duty of Customs, Duty of Excise, Value Added Tax do not
apply to the Company for the year under report.
b) According to the records of the Company, Income Tax, Wealth Tax,
Sales Tax, Service Tax, duty of Customs, Duty of Excise, Value Added
Tax and Cess which have not been deposited on account of any dispute
with the relevant authorities are given below:
Name of StatuteAmount (Rs) Period to which amount relates
Income Tax 5,10,740 2012-13
Name of the sTATUE Forum where dispute is pending
INCOME TAX CIT (Appeals)
c) According to the information and explanations given to us , there is
no amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder.
(viii) The Company has no accumulated losses at the end of the FY and
it has not incurred any cash losses during the FY and in the
immediately preceding FY.
(ix) The Company has not defaulted in repayment of its dues to banks
and financial institutions.
(x) The Company has not given any guarantee for loans taken by others
from banks and financial institutions.
(xi) The Company has not obtained any term loans during the year.
(xii) There were no frauds on or by the Company noticed or reported
during the course of our audit during the year.
For Khurdia Jain & Co.
Firm Regn. No.: 120263W
Mem No : 33615
Place : Mumbai
Date : 29th May, 2015