SATIN CREDITCARE Auditors Report

We have audited the accompanying financial statements of Satin
Creditcare Network Limited (''''the Company'''') which comprise the Balance
Sheet as at 31st March 2016, 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.


2. 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 (hereinafter referred to
as "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. This responsibility also
includes for 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 the 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.


3. Auditors'''' Responsibility


Our responsibility is to express an opinion on these financial
statements based on our audit. While conducting the audit, we have
taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made
thereunder. We conducted our audit in accordance with the Standards on
Auditing, issued by the Institute of Chartered Accountants of India, as
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 statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''''s Board of 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 the financial
statements.


4. Opinion


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 2016, its profit, and its cash flows for the year ended
on that date.


5. Report on Other Legal and Regulatory Requirements


A. As required by the Companies (Auditor''''s Report) Order, 2016 ("the
Order"), 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"
a statement on the matters specified in paragraphs 3 and 4 of the Order.


B. 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
purposes 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 books.


(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow statement 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 and
the Cash Flow statement comply with the accounting standards specified
under section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules 2014,as applicable


(e) On the basis of written representations received from the Directors
as on 31st March 2016 and taken on record by the Board of Directors,
none of the directors of the Company is disqualified as on 31st March
2016, from being appointed as a director in terms of section 164(2) of
the Act.


(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness
of such controls, refer to our separate report in "Annexure B" .Our
report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''''s internal financial controls over
financial reporting.


(g) With respect to the other matters to be included in the 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 explanations given to us:


i. The company has disclosed the impact of pending litigations on its
financial positions in its financial statements - Refer Note 26(2) to
the financial statements.


ii. The company does not have any material foreseeable losses in
respect of outstanding long term contracts including derivative
contracts as at 31st March 2016 -Refer Note 5B(2) to the financial
statements.


iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.


ANNEXURE A TO THE INDEPENDENT AUDITORS'''' REPORT


(Referred to in paragraph B under ''''Report on Other Legal and Regulatory
Requirements of our report of even date)


(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.


(b) The fixed assets were physically verified during the year by the
management in a phased periodic manner in accordance with a regular
program of verification, which in our opinion provides for physical
verification of all fixed assets at reasonable intervals having regard
to the size of the company and the nature of its assets. According to
the information and explanations given to us, no material discrepancies
were noticed on such verification.


(c) According to information and explanations given to us, there are
certain cases where the title deeds of immovable properties are not in
the name of the company. The fixed assets acquired on amalgamation of
Satin Intellicomm Limited with the company with the appointed date of
1.4.2006 and the effective date as on 3.12.2007 are still in the name
of the erstwhile company, Satin Intellicomm Limited. The process of
transfer of these assets in the name of the company is still under
process.


(ii) The Company''''s business does not deal with inventories and
accordingly the requirements of clause 3(ii) of the Order are not
applicable to the company and hence not commented upon.


(iii) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to companies,
firms, Limited Liability Partnerships or other party covered in the
register maintained under section 189 of the Act. Accordingly, the
provisions of clause 3(iii) (a), (b) and (c) of the order are not
applicable to the company.


(iv) The Company has not granted any loans and provided any guarantees
or security to the parties covered under section 185 of the Act. The
company has complied with the provisions of Section 186 of the Act in
respect of investments made or loans or guarantee or security provided
to the parties covered under section 186.


(v) According to the information and explanations given to us, the
Company has not accepted any deposits during the year under section 73
to 76 or any other relevant provisions of Companies Act,2013. The
company is a regsitered ''''Non Banking Financial Company-Micro Finance
Institution.'''' (NBFC- MFI),with Reserve Bank of India.


(vi) To the best of our knowledge and as explained , the Central
Government of India has not prescribed the maintenance of cost records
under Section 148(l)of the Act for any of the products/services rendered
by the company.


(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the company, the
company has been regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees'''' state
insurance, income tax, sales tax, service tax, custom duty, excise
duty, value added tax, cess and other material statutory dues
applicable to it.


(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees''''
state insurance, income tax, service tax, value added tax, customs
duty, excise duty and cess were in arrears as at 31.03.2016 for a
period of more than six months from the date they became payable.


(c) According to the information and explanation given to us, there are
no dues of value added tax, custom duty, wealth tax, service tax,
excise duty and cess which have not been deposited on account of any
dispute. However, according to information and explanation given to us,
there is an income tax case pending in appeal for the year 2011 with
the Commissioner of Income Tax (Appeals),New Delhi for an amount of Rs.
2.47 lacs (Previous Year Rs.2.47 lacs)against which the Company has
already deposited the entire amount.


(viii) Based on our audit procedures and according to the information
and explanations given to us, the company has not defaulted in
repayment of loans or borrowings to banks or to any financial
institution, or debenture holders or government.


(ix) In our opinion and according to the information and explanations
given to us by the management, the Company has not raised any money by
way of Public offer or further public offer ,and hence not commented
upon. Further the monies raised by the company through debt instruments
and term loans (both secured and unsecured) were prima facie applied by
the company during the year for the purposes for which they were
obtained, though idle/surplus funds which were not required for
immediate utilization have been gainfully invested in liquid assets,
payable on demand.


(x) According to the information and explanations given to us by the
management ,we have been informed that during the year there were two
instances of misappropriation of cash by the employees of the company
aggregating Rs.8,507,520/-( Previous Year Rs.Nil) and out of which
Rs.7,500,000/- has been recovered and is in the police custody pending
final hearing of the case. The outstanding balance (net of recovery)
aggregating Rsl,007,520/- has been written off. As informed, services
of employees involved have been terminated and legal action has been
initiated against these employees. Further we report that no material
fraud by the company or on the company by the officers and employees of
the company has been noticed or reported during the year.


(xi) In our opinion and according to information and explanations given
to us, the managerial remuneration has been paid/provided in accordance
with the requisite approvals mandated by the provisions of section 197
read with schedule V to the Companies Act,2013


(xii) In our opinion and according to information and explanations
given to us, the company is not a nidhi company. Accordingly, paragraph
3(xii) of the order is not applicable.


(xiii) Based on our audit procedures and according to information and
explanations given to us, transactions with related parties are in
compliance with section 177 and 188 of the Act, where ever applicable.
The details of such related party transactions have been disclosed in
the notes to the financial statements as required by the applicable
Accounting Standards.


(xiv) Based on our audit procedures and according to information and
explanations given to us, the company has made preferential allotment /
private placement of shares during the year under review and it has
complied with requirements of Section 42 of the Act. The amounts raised
have been used for the purposes for which the funds were raised.


(xv) Based on our audit procedures and according to information and
explanations given to us, the company has not entered into non- cash
transactions with directors or directors of its holding, subsidiary, or
associate company or persons connected with them and hence provisions
of Section 192 of the Companies Act,2013 are not applicable to the
company.


(xvi) The company being a NBFC (MFI) is registered under section 45-IA
of the Reserve Bank of India Act, 1934



For A.K.Gangaher & Co.


Chartered Accountants



A.K.Gangaher


Proprietor.


Membership No.083674.


Firm ICAI Registration No.004588N

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