1. We have audited the accompanying financial statements of Pasupati
Fincap Limited, which comprise the Balance Sheet as at March 31, 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.
2. 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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act). 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.
3. 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 the 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.
4. An audit involves performing procedures 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 risks of material misstatement of the financial
statements, whether due to fraud or 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. An audit also includes evaluating the 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6. 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 India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Profit and Loss Account, of the Loss for the year
ended on that date.
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
7. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4 A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. 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 account as required by law have been
kept by the Company so far as appears from our examination of those
c) The Balance Sheet, Statement of Profit and 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 referred to in
subsection (3C) of section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE REFERRED TO IN PARAGRAH 4 & 5 OF THE AUDITORS REPORT OF EVEN
DATE TO THE MEMBERS OF PASUPATI FINCAP LIMITED ON THE ACCOUNTS FOR THE
YEAR ENDED MARCH 31, 2014.
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 of the
company during the year which is in our opinion is reasonable having
regards to the size of the company and nature of its fixed assets.
(c) There was no disposal of fixed assets during the year, which would
affect the going concern of the company.
2. (a) The management has been conducting physical verification of
inventory at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. (a) During the year, the Company has given loan to One party
covered in the register maintained u/s 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs.4,62,46,660.00 and
the year end balance of loans given to such parties was Rs.
(b) There is no overdue amount of loans granted to companies, firms and
other parties listed in the register maintained u/s 301 of the
Companies Act, 1956.
(c) The company has no taken loans from the parties covered in the
register maintained u/s 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal procedures commensurate with
the size of the Company and nature of its business for the purchases of
inventory and fixed assets and for the sale of goods. During the course
of our audit no major weaknesses were found in internal control.
5. In our opinion and according to the information and explanations
given to us, we are of the opinion that there have been no transaction
that need to be entered into register maintained under Section 301 of
the Companies Act, 1956, and hence Clause 4(v)(b) is not applicable.
6. In our opinion and according to the information and explanations
given to us the company has not accepted any Deposits from the public
within the meaning of section 58A of the Companies Act, 1956, and the
Companies (Acceptance of Deposit) Rules, 1975.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that the maintenance of cost records has not been
prescribed by the Central Government Under Section 209(1 )(d) of the
Companies Act, 1956.
9. (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the Company is generally regular in depositing undisputed
statutory dues with the appropriate authorities. According to the
information and explanation given to us, there are outstanding arrears
as mentioned above as at 31st March, 2014 for a period of more than six
months from the date they became payable.
(b) There are no dues outstanding of Sales Tax, Income Tax, Custom Tax,
Wealth Tax, Excise Duty and Cess on account of any dispute.
10. The Company has accumulated losses of Rs. 22,61,082.92 at the end
of the financial year and it has incurred cash loss of Rs. 1,40,902.14
in the current and cash loss of Rs. 2,63,116.00 in immediately
preceding financial year.
11. According to the information and explanations given to us, the
company has not defaulted in repayment of dues to any financial
institution, and bank.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute as specified under paragraph
(xiii) of the Order are not applicable to the company.
14. In our opinion and according to the information and explanations
given to us, the Company is trader in securities.
15. 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 institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were obtained.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the Company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issue during the
21. According to the information and explanations given to us, during
the year, no fraud on or by the company has been noticed or reported.
For M. C. JAIN & CO.