1. We have audited the attached Balance Sheet of FINAVENTURE CAPITAL
LIMITED (together ''the Company'') as at 31st March, 2014 and also the
Profit & Loss Account of the Company and the Cash Flow Statement for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the company''s management. Our responsibility
is to express an opinion on these financial statements based on our
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order 2004
(together the Order) issued by the Central Government of India, in
terms of section 227(4A) of Companies Act, 1956, we enclose in the
annexure a statement on the matters specified in paragraph 4 & 5 of the
4. Further to our comments in the Annexure referred to in paragraph
(3) above, 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 purposes of our
b. In our opinion, proper books of accounts as required by Law have
been kept by the Company so far as appears from our examination of the
c. The Balance Sheet, Profit and Loss account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
d. In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statements dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
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, we report that none of the directors is disqualified as on
31st March, 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the accounts read together with the notes
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(ii) in the case of the Profit and Loss account, of the loss of the
Company for the year ended on that date; and
(iii) in case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
FINAVENTURE CAPITAL LIMITED
Referred to in paragraph 3 of our report of even date for the financial
year ended 31st March 2014.
i. (a) The Company does not have any fixed assets during the year and
hence this clause is not applicable.
ii. (a) The Company does not have inventory of raw material, finished
/ semi finished and other traded materials during the year and hence
this clause is not applicable.
iii. (a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under section 301 of the Act.
(b) The Company has not taken any secured loans from parties covered in
the register maintained under section 301 of the Act. The Company has
taken unsecured loans from One Party covered in the register maintained
under section 301 of the Act. The maximum amounts involved during the
year and the year end balances of such loans aggregates to Rs. 1781.43
lacs and Rs.9.57 lacs respectively.
(c) In our opinion and according to the information and explanations
given to us, there is no interest to be paid on the unsecured loans as
they are interest free in nature and other terms and conditions of the
loans taken are not prima facie prejudicial to the interest of the
(d) In respect of unsecured loans taken by the company, as informed to
us no interest has been provided as the loans are interest free and
repayable on demand. Hence there is no payment of principal and
interest at regular intervals.
(e) There is no overdue amount in respect of loans taken by the
iv. In our opinion and according to information & explanations given to
us, there are adequate internal control system commensurate with the
size of the company and the nature of its business with regard to
purchase of inventory, fixed assets and with regard to sale of goods
and services. However, during the year, there are no purchases or sales
of inventory or fixed assets.
v. As per the information and explanations given to us, there are no
transaction made in pursuance of contracts or arrangements, that needed
to be entered into the register maintained u/s. 301 of the Companies
vi. The company has not accepted any deposits from public during the
year, hence provision of section 58- A & 58-AA of the Companies Act,
1956 are not applicable.
vii. The Company have an Internal Audit System commensurate with the
size and the nature of its business.
viii. The central Government has not prescribed maintenance of cost
record under section 209 (1) (d) of Companies Act, 1956.
ix. (a) According to information and explanations given to us, the
Company is generally regular in depositing undisputed statutory dues
with the appropriate authorities during the year. Further, since the
Central Government has till date not prescribed the amount of cess
payable under section 441A of the Companies Act. 1956, we are not in a
position to comment upon the regularity or otherwise of the company in
depositing the same.
(b) As per the information and explanations given to us, no undisputed
statutory dues were in arrears, as at 31/03/2014 for the period of more
than 6 Months from the date they become payable.
(c) According to information and explanations given to us, there are no
statutory dues which have not been deposited on account of any dispute.
x. According to information and explanations given to us and as per
verification of the records of the Company, the Company has not taken
any loans from banks, financial institution or debenture holders during
the year under audit and hence this clause is not applicable.
xi. The company has not granted any Loans & Advances on the basis of
any security by way of pledge of shares, debentures and other
xii. In our opinion, the Company is not a chit fund or Nidhi / Mutual
benefit fund society.
xiii. In our opinion and based on the verification of the documents of
the Company, the Company is not dealing in or trading in shares,
securities, debenture & other investments during the year under audit.
xiv. The company has given guarantees for loans taken by its subsidiary
company from banks or financial institutions during the year, the terms
of which, in our opinion and as per information & explanation furnished
to us, are not prejudicial to the interest of the company.
xv. According to information and explanation given to us, the Company
has not taken any term loans from banks during the year.
xvi. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that the funds raised on short-term basis have not been used for long-
xvii. During the year, the company has not made any preferential
allotment of equity shares to parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
xviii. The company has not issued debentures during the year under
xix. The company has not raised any money by way of public issue during
xx. According to the information & explanation given to us and based on
our verification of the documents of the Company, no fraud on or by the
company has been noticed or reported during the course of our audit.
For Agarwal Desai & Shah.
Firm Regn. No. 124850W
Rishi A. Sekhri
M. No. 126656