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Shree Nath Commercial & Finance | Auditor's Report > Finance - Investments > Auditor's Report from Shree Nath Commercial & Finance - BSE: 512105, NSE: N.A
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Shree Nath Commercial & Finance

BSE: 512105|ISIN: INE490J01032|SECTOR: Finance - Investments
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Mar 13
Auditor's Report (Shree Nath Commercial & Finance) Year End : Mar '14
We have audited the accompanying financial statements of Shree Nath
 Commercial & Finance Limited (The Company) which comprise the Balance
 Sheet as at March 31, 2014, and the Statement of Profit and Loss and
 Cash Flow Statement for the year ended 2014, 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 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.
 
 Auditor''s Responsibility
 
 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.
 
 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.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our audit opinion.
 
 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
 India:
 
 (a) In the case of the Balance Sheet, of the state of affairs of the
 Company as at March, 2014.
 
 (b) In the case of the Profit and Loss Account, of the loss for the
 year ended March, 2014.
 
 (c) In the case of the Cash Flow Statement, of the cash flows for the
 year ended March, 2014.
 
 Emphasis of Matter
 
 The company has initiated process for application for Certification of
 Registration to carry on NBFC business to RBI in current Financial Year
 to regularize its NBFC Business which is being carried on. However, the
 Certification of Registration is not received till reporting date. We
 have directly informed to Reserve Bank of India in compliance of
 Non-Banking Financial Companies Auditor''s Report (Reserve Bank)
 Directions, 2008 about this matter.
 
 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 paragraphs 4 and 5 of the Order.
 
 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
 audit;
 
 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
 books
 
 c.  The Balance Sheet and Statement of Profit and Loss dealt with by
 this Report are in agreement with the books of account
 
 d.  in our opinion, the Balance Sheet, Statement of Profit and Loss,
 comply with the Accounting Standards referred to in sub-section (3C) of
 section 211 of Companies Act, 1956 read with the General Circular
 15/2013 dated 13 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 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.
 
 
 ANNEXURE TO THE AUDITOR''S REPORT ON THE FINANCIAL STATEMENT FOR THE
 YEAR ENDED 31ST MARCH, 2014
 
 (Referred to in point 1 of Report on Other Legal and Regulatory
 Requirements of our Report of even date to the members of Shree Nath
 Commercial & Finance Limited on the financial statements for the year
 ended 31st March, 2014)
 
 1.  In respect of its fixed assets:
 
 a.  The Company has maintained records showing particulars including
 quantitative details of fixed assets in fixed assets registered.
 However, fixed asset register is in process of reconciliation.
 
 b.  As explained to us, the fixed assets have been physically verified
 by the management during the year in a phased periodical manner, which
 in our opinion is reasonable, having regard to the size of the Company
 and nature of its assets. No material discrepancies were noticed on
 such physical verification.
 
 c.  In our opinion, the Company has disposed of part of fixed assets
 during the year and the going concern status of the Company is not
 affected.
 
 2.  As informed to us, the inventories held in dematerialized form,
 have been verified by the management with supportive evidence during
 the year. In our opinion the frequency of verification is reasonable.
 In our opinion, the procedures for physical verification of inventory
 followed by the management are reasonable and adequate in relation to
 the size of the Company and the nature of its business. On the basis of
 our examination of the records of inventory, we are of the opinion that
 Company is maintaining proper records of inventory. We are informed
 that no discrepancies were noticed on physical verification.
 
 3.  (a) The Company has granted unsecured loans to 3 parties covered in
 the register maintained under Section 301 of the Companies Act, 1956.
 The maximum amount outstanding at any time during the year was Rs. 0.86
 crores and the yearend balance is Rs. NIL
 
 (b) In our opinion and according to the information and explanations
 given to us, the terms and conditions of the loans given by the Company
 are not prima facie prejudicial to the interest of the Company.
 
 (c) No stipulations have been made for the recovery of the loans hence
 clause 4 (iii) (c) is not applicable to the company.
 
 (d) No stipulations have been made for recovery of the loans given by
 the company hence clause 4(iii)
 
 (d) is not applicable to the company.
 
 (e) The Company has taken interest free unsecured loans from 5 parties
 covered in the register maintained under Section 301 of the Companies
 Act 1956, the maximum amount outstanding at any time during the year
 was Rs. 0.73 crores and the yearend balance is Rs. NIL.
 
 (f) In our opinion and according to the information and explanations
 given to us, the terms and conditions of the loans taken by the Company
 are not prima facie prejudicial to the interest of the Company.
 
 (g) No stipulations have been made for the repayment of the loans hence
 clause 4(iii) (g) is not applicable to the company.
 
 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 fixed assets and for the sale of goods. In
 our opinion and according to the information and explanations given to
 us, there is no continuing failure to correct major weaknesses in
 internal control.
 
 5.  According to the information and explanations given to us, we are
 of the opinion that the company has not entered into any contracts or
 arrangements referred to in section 301 of the Companies Act, 1956.
 
 6.  No deposits, within the meaning of Section 58A and 58AA or any
 other relevant provisions of the Companies Act, 1956 and rules framed
 there under have been accepted by the Company.
 
 7.  The company does not have adequate internal audit system
 commensurate with size of the Company and nature of its business.
 
 8.  According to the information and explanation given to us the
 maintenance of cost records has not been prescribed by the Central
 Government under clause (d) of sub-section (1) of section 209 of the
 Companies Act, 1956 for any of the activities of the company.
 
 9.  (a) The Company is regular in depositing undisputed statutory dues
 including Investor Education and Protection Fund, Employees State
 Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
 Excise Duty, cess and other material statutory dues applicable to the
 company with the appropriate authorities. No undisputed amounts payable
 in respect of the aforesaid statutory dues were outstanding as at the
 last day of the financial year for a period of more than six months
 from the date they became payable.
 
 10.  Accumulated losses of the company as at 31st March, 2014 do not
 exceed fifty percent of its net worth at the end of the financial year.
 The company has incurred cash loss of Rs. 15,37,874/- during the
 financial year covered by our audit and Rs.  72,59,424/- during the
 immediately preceding financial year.
 
 11.  According to the records made available to us and information and
 explanations given to us by the management, the company has not taken
 any financial assistance from any financial institutions or banks.
 Accordingly Clause 4(xi) of Companies (Auditor''s Report) Order, 2003 is
 not applicable.
 
 12.  According to the information given to us, the Company has not
 granted loans and advances on the basis of security by way of pledge of
 shares, debentures and other securities.
 
 13.  In our opinion, the company is not a chit fund or a Nidhi/ mutual
 benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of
 the Companies (Auditor''s Report) Order, 2003 are not applicable to the
 company.
 
 14.  The Company has maintained proper records of the transactions and
 contracts for dealing or trading in shares, securities, debentures and
 other investments and timely entries have been made therein. All
 shares, securities, debentures and other investment have been held by
 the company, in its own name except to the extent of the exemption
 granted under section 49 of the Companies Act, 1956.
 
 15.  In our Opinion, and according to the information and explanations
 given to us, the Company has not given any guarantee for loans taken by
 others from Banks or Financial Institutions during the year.
 
 16.  As per the information and records furnished to us, the Company
 has not accepted any term loans.  Accordingly Clause 4(xvi) of the
 Companies (Auditor''s Report) Order, 2003 is not applicable to the
 company.
 
 17.  According to the information and explanations given to us and on
 an overall examination of the balance sheet of the company, in our
 opinion, the funds raised on short-term basis have, prima facie, not
 been used for long-term investment.
 
 18.  According to the information and explanations given to us, the
 company has not made preferential allotment of shares to parties and
 companies covered in the register maintained under section 301 of the
 Act.
 
 19.  During the financial year, company had not issued any debenture.
 Accordingly Clause 4(xviii) of Companies (Auditor''s Report) Order, 2003
 is not applicable.
 
 20.  The Company has not raised any money by way of public issue during
 the year. Accordingly Clause 4(xx) of Companies (Auditor''s Report)
 Order, 2003 is not applicable.
 
 21.  During the course of our examination of the books and records of
 the Company, carried out in accordance with the generally accepted
 auditing practices in India and according to the information and
 explanations given to us, we have neither come across any instance of
 fraud on or by the Company, noticed or reported during the year, nor
 have we been informed of such case by the management.
 
 For Pravin Chandak and Associates 
 (Chartered Accountants) 
 Firm Registration No: 116627W
 
 Sd/-
 Pravin Chandak
 (Partner)
 Membership Number: 049391
 
 Place: Mumbai 
 Date: 30th May, 2014
 
 
 
Source : Dion Global Solutions Limited
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