We have audited the accompanying financial statements of Fortune
Financial Services (India) Limited (the Company), which comprise the
Balance Sheet as at March 31, 2014, 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
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 notified under the Companies Act, 1956 (the
Act) read with the general circular 15/2013 dated 13th September, 2013
of Ministry of Corporate affairs in respect of section 133 of Companies
Act, 2013. 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.
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
entity''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
effectiveness of entity''s internal control. 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.
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
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; and
c) in the case of the Cash Flow Statement, of the 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, 2003 (the
Order) issued by the Central Government of India in terms of section
227(4A) 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
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 notified under
the Companies Act, 1956 (the Act) read with the general circular
15/2013 dated 13th September, 2013 of Ministry of Corporate affairs in
respect of section 133 of 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 Section 274(1)(g) of the Act;
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 Act
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
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Annexure referred to in Paragraph 1 under the heading Report on Other
legal and Regulatory Requirements of our Report of even date.
On the basis of such checks as we considered appropriate and in our
opinion and according to the explanations given to us, we report as
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situations of
b. The Management has not physically verified its fixed assets during
c. Based on the information and explanations given by the Management
and on the basis of audit procedures performed by us, Company has not
sold any asset during the year.
2. a. In our opinion and according to the explanations given to us,
the Company has granted unsecured loans to three companies covered in
the register maintained under Section 301 of the Act. The maximum
amount outstanding in respect of the loans given during the year was
Rs. 2,642.58 lakhs and the year end balance of such loans is Rs.
b. In our opinion, the rate of interest, and other terms and
conditions of the loan granted to the company covered in the Register
maintained under Section 301 of the Act are not prima facie prejudicial
to the interests of the Company.
c. The receipt of principal and interest is regular, wherever there
are stipulations with respect to the same.
d. There is no amount overdue in respect of the loans granted by the
e. The Company has taken loan from a company covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount of the loan taken during the year was Rs.811.46 lakhs and the
yearend balance of such loan is Rs. 413.81 lakhs.
f. The repayment of principal and interest is regular wherever there
are stipulations with respect to the same.
3. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and for the sale of
services. Further on the basis of our examination and according to the
information and explanations given to us, neither have we noticed nor
have we been informed of any major weakness in the internal control
4. Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that there are no contracts or arrangements which are required
to be entered in the register maintained under Section 301 of the
Companies Act, 1956. Accordingly, paragraph 4(v) (b) of the Order is
5. In our opinion and according to the information and explanations
given to us the Company has not accepted any deposits from the public.
As per the information and explanations given to us, no Order has been
passed by the Company Law Board or the National Company Law Tribunal or
the Reserve Bank of India or any Court or any other Tribunal on the
6. The Company has an adequate internal audit system commensurate with
the size of the Company and the nature of its business.
7. a. According to the records of the Company and the information and
explanations given to us, the Company has generally been regular in
depositing with the appropriate authorities undisputed statutory dues
including Provident Fund, Income Tax and other statutory dues,
applicable to it.
b. According to the information and explanation given to us there are
no arrears of statutory dues as at the last day of the financial year,
outstanding for more than six months from the date they become payable.
c. According to the information and explanations given to us, there
are no statutory dues, which are disputed by the Company.
8. The Company does not have an accumulated loss as at March 31, 2014.
The Company has not incurred a cash loss during the current financial
year or in the immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to banks.
10. According to the information and explanations given to us and on
an overall examination of the financial statements of the Company, we
are of the opinion that as at the close of the year, no funds raised on
a short term basis has been used for long term investments.
11. 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 period nor
have we been informed of such case by the Management.
Matters specified in clauses (ii), (viii), (xii), (xiii), (xiv), (xv),
(xvi), (xviii), (xix), (xx) of paragraph 4 of the CARO 2003 do not
apply to the Company.
For NIPUN SUDHIR & ASSOCIATES
ICAI Firm Registration Number 0126168W
Sudhir V. Nair
(Membership Number 45893)
Mumbai, May 28, 2014