We have audited the accompanying financial statements of Action
Financial Services (India) Ltd (the Company) which comprise the
balance sheet as at 31st March 2015, the Statement of Profit and Loss
and the 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 the preparation of the 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 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 the 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 financial
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 (the
Order), as issued by Central Government of India in terms of sub
section (11) of section 143 of Companies Act, 2013 (18 of 2013) we give
in the Annexure a statement on the matters specified in paragraphs 3
and 4 of the Order.
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
purpose 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
iii. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
iv. in our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in Section 133 of the Act read with Rule 7 of the Companies
(Accounts) Rules, 2014 ; and
v. on the basis of written representations received from the directors
as on 31st March 2015, and 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 sub section (2) of section 164 of
the Companies Act, 2013.
3. 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 24 to the
ii. As represented by the company, there are no foreseeable material
losses in respect of long-term contracts including derivative contracts
iii. As represented by the company, there are no amounts required to be
transferred to Investor Education and Protection Fund by the Company.
Annexure to the Auditors'' Report
[Referred to in paragraph pertaining to Report on Other Legal and
Regulatory Requirement of our Report of even date to the members of
Action Financial Services (India) Ltd on the financial statements for
the year ended 31st March, 2015]
1. a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
b) Fixed Assets have been physically verified by the management during
the year and no material discrepancies between the book records and the
physical inventory have been noticed. In our opinion, the frequency of
verification is reasonable.
2. The Company does not have any stocks of raw materials, stores,
spares parts and finished goods. Hence clause (ii) of the Order does
not apply to the company.
3. The Company has not granted any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013.
4. 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, for the purchase of shares and fixed asset and for providing
services. Further, on the basis of our examination of the books and
records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control system.
5. The Company has not accepted any deposits from the public, within
the meaning of Sections 73 to 76 of Companies Act 2013 and the rules
framed there under.
6. The Central Government has not prescribed maintenance of cost
records under Section 148 of the Companies Act 2013.
7. a)According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing undisputed statutory dues including
provident fund, investor education and protection fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and any other material statutory dues as applicable
with the appropriate authorities. There are no undisputed statutory dues
payable for a period of more than six months from the date they became
payable as at 31st March, 2015.
b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of wealth tax,
service tax, customs duty and cess as at 31st March 2015, which has not
been deposited on account of dispute, except the following:-
Sr. Name of dues Forum where
No. Dispute is pending
1 Income Tax ITAT Mumbai
2 Tax Deducted Commissioner of Income
at Sources (Appeals), Mumbai
3 Tax Deducted Commissioner of Income
at Sources (Appeals), Mumbai
4 Tax Deducted ITO/TDS - Rectification
at Sources file / to be filed
Sr. Name of dues Period to which Amount
No. amount relates involved Rs.
1 Income Tax A.Y. 2008-09 10,130,835/-
2 Tax Deducted A.Y. 2010-11 129,990/-
3 Tax Deducted A.Y. 2011-12 143,056/-
4 Tax Deducted Various Years 344,290/-
1. The Company had contested Income Tax demand of Rs 10,130,835/- for
Assessment Year 2008-09. The Company has paid Rs. 87, 51,819/-. The
company has preferred an appeal in the ITAT against the CIT (A) order.
2. a. The Company had contested Income Tax Deducted at Sources of Rs
129,990/- and Rs 143,056/- for Assessment Year 2010-11 and 2011-12. The
company has preferred an appeal in CIT (A).
3. During the year company received notice u/s 131 of the Income Tax
Act -1961 and the company officials attended to the notice survey
carried out at the premises of the company on 13th June, 2014. No
further notice has yet been received from the Income tax Department
with regards to this matter.
c) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, there are no
amounts payable to Investor Education and Protection Fund u/s 125 of
the Companies Act, 2013.
8. The Company is registered over 5 years. The Company has not incurred
any cash losses in the current financial year or in the immediately
preceding financial year. The company does not have accumulated losses
at the end of the financial year (PY accumulated loss of Rs.13.01
9. According to the information and explanations given to us and
records of the Company examined by us the company does not have any
Borrowing from any financial institution or bank or by way of debenture
as at the Balance Sheet date.
10. According to the information and explanations given to us the
Company has not given any guarantees for loans taken by others from
banks or financial institution during the year.
11. The Company has not obtained any term loans.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that we have not come
across any instances of fraud on or by the Company, noticed or reported
during the year, nor have we been informed of such case by management.
For Ford, Rhodes, Parks & Co.
ICAI Firm Registration No.102860W
Date: 29th May, 2015 Membership No.11549