We have audited the accompanying financial statements of the Company
Margo Finance Limited (''the Company''), which comprises the Balance
Sheet as at 31st March, 2015, 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 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. These responsibilities also include
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 these financial
statements based on our audit. We have taken into account the provision
of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provision 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 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 statement 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 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 loss and its cash flows for the year ended
on that date.
Report on other Legal and Regulatory Matters
1. As required by the Companies (Auditors'' Report) Order, 2015 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 paragraph 3 and 4 of the Order, to the extent
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
purpose 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 those
(c) the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flows Statement dealt with by this Report are in agreement with the
books of account;
(d) in our opinion, the aforesaid financial statement comply with the
Accounting Standards specified under Section 133 of the Act, read with
the Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of written representations received from the directors
as on March 31, 2015 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) of the Act.
(f) With respect to the other matters to be included in 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 explanation given to us :
(i) There are no pending litigation affecting financial position hence
no disclosure is required to be made.
(ii) There are no long term contracts including derivatives contracts
hence no provision is required to be made.
(iii) The clause is not applicable as there is no amount required to be
transferred to the Investor Education and Protection Fund by the
Annexure to the Independent Auditors'' Report
(i) (a) The Company is maintaining 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 according to a regular program, which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies with respect to
book records were noticed on such verification.
(ii) There is no inventory, therefore the clause no. (ii) (a), (b) and
(c) of the order are not applicable to the Company.
(iii) The Company has granted loans to parties covered in the register
maintained under Section 189 of the Companies Act, 2013. The total
amount outstanding on 31-03-2015 was nil. The maximum amount
outstanding during the year was Rs. 1,800,000/-.
(a) According to the information and explanations given to us, parties
to whom loans have been granted have repaid the principal amount as per
stipulation, wherever applicable.
(b) According to the information and explanations given to us and on
the basis of examination of records of the Company, Company has taken
reasonable steps for recovery of principal and interest where overdue
amount is more than rupees one lakh.
(iv) 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 for rendering of services. During the course of our
audit, no major weakness has been noticed in the internal controls.
(v) According to the information given to us, the Company has not
accepted any deposits from the public.
(vi) The provisions of Section 148(1) of the Companies Act, 2013
regarding maintenance of cost records are not applicable to the
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of records of the Company, amounts
deducted/accrued in the books of account in respect of 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 any other statutory dues to the extent
applicable, have generally been regularly deposited.
(b) According to the information and explanations given to us, the
Company does not have any Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty
of Excise, Value Added Tax, Cess which have not been deposited with the
appropriate authority on account of any dispute.
(c) According to the information and explanations given to us and based
on our examination of records of the Company, there is no amount which
required to be transferred to Investor Education and Protection Fund.
(viii) The Company does not have any accumulated losses at the end of
the financial year. The Company has not incurred any cash losses during
the current financial year whereas the Company had incurred cash losses
in the immediate preceding financial year.
(ix) According to information and explanations given to us, the Company
has not defaulted in repayment of dues to bank and financial
(x) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from banks or
(xi) According to the information and explanations given to us and on
an overall examination of records of the Company, we report that
Company has not raised any term loan during the year.
(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.
For AVK & ASSOCIATES
Firm Registration No. 002638N
Place : Delhi Partner
Dated : 14th May, 2015 FCA-095539