We have audited the accompanying Financial Statements of Ladderup
Finance Limited, which comprise the Balance Sheet as at 31st March,
2014 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
Management is responsible for 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 Standards notified under the Companies Act, 1956 (the
Act) read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control 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 financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by 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 procedure 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 risk of material misstatement of the financial statements, whether
due to fraud and 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 the effectiveness of the company''s
internal control. An audit also includes evaluating and 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.
In our opinion and to the best of our information and according to the
explanations given to us, the 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
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the 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, 2003 (the
Order) issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Act, we give in the annexure
a statement on the matters specified in the paragraphs 4 and 5 of the
2. As required by section 227(3) of the Act, 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
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
(c) The Balance Sheet, Statement of Profit & Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement, comply with the Accounting Standards notified
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
(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,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of subsection (1)
of section 274 (1)(g) of the Companies Act, 1956.
Annexure referred to in Paragraph 1 under the heading Report on other
legal & regulatory requirements of the Auditors Report to the Members
of Ladderup Finance Limited for the year ended 31st March, 2014.
As required by the Companies (Auditors Report) Order, 2003 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 fixed
b) As explained to us, all the fixed assets have been physically
verified by the management during the year and in our opinion the
interval of physical verification is reasonable. No material
discrepancies have been noticed on such physical verification.
c) The Company has disposed off certain fixed assets during the year
which do not affect the going concern status of the Company.
(ii) a) Since the Company does not have any inventory, the clauses 4
(ii) (a) (b) and (c) of the said Order are not applicable to the
(iii) a) The Company has granted unsecured loans (receivable on call
basis) to three of its subsidiaries covered in the register maintained
under section 301 of the Companies Act, 1956. The aggregate maximum
amount outstanding during the year was Rs.1,75,47,809/- and year end
balance of such loans was Rs.1,62,76,246/-.
b) The rate of interest and other terms & conditions on which the loans
have been granted are prima facie, not prejudicial to the interest of
c) In view of our comments in para iii (a) & (b) above, clauses 4 (iii)
(c) and (d) of the said Order are not applicable.
d) The Company has not taken unsecured loans from parties covered in
the register maintained under section 301 of the Companies Act, 1956.
e) In view of our comments in para (iii) (d) above, clause 4 (iii) (f)
and (g) of the said Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanation
given to us there is 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 sale of services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control systems.
v) a) Based on our audit procedures performed by us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
b) The transaction made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regards to
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company does not have a formal internal audit system but its
financial and other internal checks, ensures proper recording of the
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956
for the Company.
(ix) a) The Company is regular in depositing undisputed statutory dues
including income tax and service tax with appropriate authorities.
There are no arrears of outstanding of these dues as at the last day
of the financial year for a period of more than six months from the
date they became payable. The laws relating to provident fund,
investor education protection fund, employee state insurance, sales
tax, wealth tax, custom duty, excise duty and cess do not apply to the
Company for the year under report.
b) According to the information and explanations given to us, the
Company has no dues of income tax, sales tax, wealth tax, service tax,
custom duty, excise duty and cess which have not been deposited on
account of disputes with the related authorities.
(x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
current financial year and in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of its dues to banks
and financial institutions.
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
(xiv) Based on the records examined by us, the Company is maintaining
proper records of the transactions and contracts and timely entries
have been made in respect of all the securities transactions and the
same have been held by the Company in its own name except to the
exemption , if any , granted under Section 49 of the Act.
(xv) The Company has not given any guarantees for loan taken by others
from banks and financial institutions.
(xvi) The Company has not obtained any term loans during the year.
(xvii) On an overall examination of the balance sheet of the Company,
we report that no funds raised on short-term basis have been used for
long term investments.
(xviii) The Company has not made any preferential allotment of shares
to the parties and companies covered in the register maintained under
Section 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
(xxi) 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
Date : 6th May, 2014
Place : Mumbai