Mar 31, 2023
Edelweiss Financial Services Limited
We have audited the ac-companymg standalone financial statements of Edelweiss Financial Services Limited ("the Company ), which comprise the Balance Sheet os at March 31 2023, the Statement of Profit and Loss, including the statement of Othc-r Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us. the aforesaid standalone financial statements give the information required by the Companies Act 2013. as amended (ââhe Act'') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, ot the state ot affairs of the Company as at March 31,2023, its profit including other comprehensive income its cash flows and the changes in equity for the year ended on that date
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified undersection 143( 10) of the Act. Our responsibilities under those Standards are further described in th e ''Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report We are independent of the Company in accordance with the âCode of Ethics'' issued by the institute of Chartered Accountants of India together with the ethical requirements that are relevant tG our audit of the financial statements under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropnate to provide a basis for our audit opinion on the standalone financial statements
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31, 2023 These matters were addressed in the context of our audit ot the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters For each matter below, our description ot now our audit addressed the matter is provided in that context
We have determined the matters descnbed below to be the key audit matters to be communicated in our report We have fulfilled the responsibilities described in the Auditor s responsibilities for the audit of the standalone financial statements section of our report including in relation to these matters. Accordingly our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement ot the standalone financial statements The results of our audit procedures, including the procedures performed to address the matters below, provide the Dasis for our audit opinion on the accompanying standalone financial statements
Key audit matters How our audit addressed the key audit matter |
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Impairment of investments in subsidiary companies (as described in note 1.4.1.3 and note 6 of the standalone financial statements) |
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The Company has investments in vanous subsidiaries aggregating ? 48456.95 million which are not listed (equity) or quoted, these investments are valued at cost and are required to be assessed for impairment in accordance with Ind AS 36, when any indicators of impairment are observed. In carrying out such impairment assessment, a significant judgement of the management is Involved In estimating the investee company''s "value in use*, in accordance with Ind AS 36. Estimation of the value in use requires the management to apply appropriate assumptions with respect to the growth rates for future cash flow projections of the investee company and discount rates for determining present value of such cash flows In view of the high degree of management''s Judgement involved In estimation of the recoverable amount of investments in unlisted subsidiaries and the inherent uncertainty relating to the assumptions supporting such estimates, we considered this area as a key audit matter. |
Our audit procedures included considering the appropriateness of the processes laid down by the management for assessment of impairment in the value of investments in subsidianes combined with procedures performed as follows ⢠Considered management''s assessment of impairment from the management experts wherever considered necessary and assessed whether any impairment indicators existed for investment in individual subsidiaries ⢠Traced the net-worth of the individual subsidianes to their audited financial statements to assess whether any impairment indicators were present. ⢠Assessed information used to determine the key assumptions including growth rates and discount rates. ¦ Assessed the disclosures relating to investments in subsidianes included in the standalone financial statements In accordance with the requirements of Ind AS |
IT systems and controls |
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Financial accounting and reporting processes, especially In the financial services sector are fundamentally reliant on IT systems and IT controls to process significant transaction, hence we identified IT systems and controls as a key audit matter for the Company Automated accounting procedures and II environment controls, which indude IT governance, general IT controls over program development and changes, access to programs and data and IT operations, are required to be designed and to operate effectively to ensure reliable financial reporting |
Our audit procedures focused Dn the IT infrastructure and applications relevant to financial reporting of the Company: ¦ Tested the design and operating effectiveness of the Company''s IT access controls over the information systems that are important to financial reporting and various interfaces configuration and other identified application controls. ⢠Tested IT general controls (logical access, changes management and aspects of IT operational controls). This included testing requests tor access to systems were reviewed and authorized ⢠Tested the Company''s periodic review of access rights. Also tested requests of changes to systems for approval and authorization. ⢠In addition to the above, tested the design and operating effectiveness of certain automated controls that were considered as key internal controls. ⢠Tested the design and operating effectiveness of compensating controls in case deficiencies were identified and. where necessary extended the scope of our substantive audit procedures |
The Company''s Board of Directors is responsible for the other information The other information comprises the information included in the Board report, but does not include the standalone financial statements and our auditor''s report thereon which we obtained prior to the date of this auditors report, arid the Annual report, which is expected to me made available to us after that date.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon
In connection with our audit of the standalone Financial statements, our responsibility is to read the other information and, in doing so. consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed we conclude that there is a material misstatement of this other information, we are required to report that fact We have nothing to report in this regard.
When we read the Board report if we conclude that there is a material misstatement therein, we ate required to communicate the matter to those charged with governance.
The Company''s Board of Directors is responsible for the matters stated in section 154(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended This responsibility also includes maintenance of adequate accounting records In accordance with the provisions of the Act for safeguarding of 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 standalone financial statements that give a true and fair view and are free from matenal misstatement, whether due to fraud or error
In preparing the standalone financial statements, management is responsible far assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but tD do so
Those Board af Directors are also responsible for overseeing the Companyâs financial reporting process.
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are tree from matenal misstatement, whether due to fraud or error and to issue an auditor''s report that includes our opinion Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a matenal misstatement when it exists Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As pan of an audit in accordance with SAs. we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess The risks of matenal misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropnate to provide a basis for our opinion The risk of not delecting a matenal misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
⢠Obtain an understanding of intEmal control relevant to the audit in order to design audit procedures that are appropriate m the circumstances. Under section 143{3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and. based an the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s abifity to continue as a going concern If we conclude that a matenal uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures m the financial statements or if such disclosures are â¢inadequate, to modify our opinion. Oui conclusions are based on the audit evidence obtained up to the date of our auditor s report However future events or conditions may cause the Company to cease to continue as a going concern
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events ir. a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in Internal control that we identify during our audiL
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards
From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the standalone financial statements for the financial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditor s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public Interest benefits of such communication
1 As required by the Companies (Auditor''s Report) Order, 202Q ("the Order''), issued by the Central Government of India in terms of sub-section 111) of section 143 of the Act, we give in the ''Annexure V'' a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 including the Statement of Other Comprehensive Income, the Cash Flow Statement arvd Statement of Changes in Equity dealt with by this Report are in agreement with the bGoks of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act. read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the confirmation received from the directors as on March 31. 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31. 2023 from bc-mg appointed as a director in terms of Section 164 (2) of the Act
(0 With respect to the adequacy of the interna! financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in ''Annexure 2â to this report
ig) In our opinion the managenal remuneration for the year ended March 31. 2023 has been paid / provided by the Company to ns directors in accordance with the provisions of section 197 read with Schedule V to the Act,
(h) 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, as amended 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 rts financial position in its standalone financial statements - (Refer Note 32(1 ){a) and (b) to the standalone financial statements);
il. The Company lias made provision as required under the applicable law or accounting standards, for material foreseeable losses, if any. on long-term contracts including derivative contracts - (Refer Note 68 to the standalone financial statements),
hi There has been no delay In transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv a) The management has represented that, to the best of its knowledge and belief, other than as disclosed irt the note 51 (A) to the standalone financial statements, nG funds have been advanced or loaned or invested (e/ther from borrowed funds or share premium or any other sources or kind of funds) bv the Company to or in any other person(s) or entityfies), including foreign entities ("Intermediaries-1) with the understanding, whether recoided in writing or otherwise, that the Intermediary shall, whether; directiy or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate 3eneficianes") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
b) The management has represented that, to the best of its knowledge and belief other than as disclosed in the note 51 (B) to the standalone financial statements no funds have been received by the Company from any person(s) or entity(ies) including foreign entities (âFunding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficianes; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b'' contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 125 of the Act to the extent it applies to payment of dividend
The intenm dividend declared and paid by the Company during the year 3nd until the date of this audit report is m accordonce with section 123 of the Act
As stated in note 55 to the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend
vi. As proviso ro Rule 3(1) of the Companies (Accounts) Rules. 2014 is applicable for the Company only w.e.f. April 1. 2023, reporting under this clause is not applicable.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number. 301003E/E300005
por Shrawan Jalan
Partner
Membership Number 102102
UDIN: 23102102BGXJET6638
Place of Signature: Mumba.i
Date: May 26. 2023
Mar 31, 2022
To the Members of Edelweiss Financial Services Limited Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Edelweiss Financial Services Limited (" the Company"), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, as amended (" 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 March 31, 2022, its profit including other comprehensive income its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ''Auditor''s Responsibilities for the Audit of the Standalone Financial Statements'' section of our report. We are independent of the Company in accordance with the ''Code of Ethics'' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
We draw attention to note 48 of the standalone financial statements, which describes the economic and social disruption as a result of continued COVID-19 pandemic of the Company''s business and financial metrics including the Company''s estimates of impairment of investments and other financial assets, which are highly dependent on uncertain future developments. Our opinion is not modified in respect of this matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31, 2022. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.
Key audit matters |
How our audit addressed the key audit matter |
Impairment of investments in subsidiary companies (as described in note 1.4.1.3 and note 7 of the standalone financial statements) |
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The Company has investments in various subsidiaries and associate aggregating Rs. 49,540.49 million which are not listed or quoted. These investments are valued at cost and are required to be assessed for impairment in accordance with Ind AS 36, when any indicators of impairment are observed. In carrying out such impairment assessment, a significant judgement of the management is involved in estimating the investee company''s " value in use", in accordance with Ind AS 36. Estimation of the value in use requires the management to apply appropriate assumptions with respect to the growth rates for future cash flow projections of the investee company and discount rates for determining present value of such cash flows. In view of the high degree of management''s judgement involved in estimation of the recoverable amount of investments in unlisted subsidiaries and associate and the inherent uncertainty relating to the assumptions supporting such estimates, we considered this area as a key audit matter. |
Our audit procedures included considering the appropriateness of the processes laid down by the management for assessment of impairment in the value of investments in subsidiaries and associate combined with procedures performed as follows: ⢠Considered management''s assessment of impairment from the management experts wherever considered necessary and assessed whether any impairment indicators existed for investment in individual subsidiaries and associate. ⢠Traced the net-worth of the individual subsidiaries and associate to their audited financial statements to assess whether any impairment indicators were present. ⢠Assessed information used to determine the key assumptions, including growth rates and discount rates. ⢠Assessed the disclosures relating to investments in subsidiaries and associate included in the standalone financial statements in accordance with the requirements of Ind AS. |
IT systems and controls |
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Financial accounting and reporting processes, especially in the financial services sector, are fundamentally reliant on IT systems and IT controls to process significant transaction, hence we identified IT systems and controls as a key audit matter for the Company. Automated accounting procedures and IT environment controls, which include IT governance, general IT controls over program development and changes, access to programs and data and IT operations, are required to be designed and to operate effectively to ensure reliable financial reporting. |
Our audit procedures focused on the IT infrastructure and applications relevant to financial reporting of the Company: ⢠Tested the design and operating effectiveness of the Company''s IT access controls over the information systems that are important to financial reporting and various interfaces, configuration and other identified application controls. ⢠Tested IT general controls (logical access, changes management and aspects of IT operational controls). This included testing requests for access to systems were reviewed and authorized. ⢠Tested the Company''s periodic review of access rights. Also tested requests of changes to systems for approval and authorization. ⢠In addition to the above, tested the design and operating effectiveness of certain automated controls that were considered as key internal controls. ⢠Tested the design and operating effectiveness of compensating controls in case deficiencies were identified and, where necessary, extended the scope of our substantive audit procedures. |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Board report, but does not include the standalone financial statements and our auditor''s report thereon, which we obtained prior to the date of this auditors report, and the Annual report, which is expected to me made available to us after that date.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the Board report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements for the financial year ended March 31, 2022 and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (" 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 1" a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the email confirmation received from the directors as on March 31, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 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 with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in " Annexure 2" to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) 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, as amended 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 position in its standalone financial statements - (Refer Note 35(1)(a) and (b) to the standalone financial statements);
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - (Refer Note 68 to the standalone financial statements);
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. a) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the
note 55 (A) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the note 55 (B) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with section 123 of the Act.
As stated in note 59 to the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
Partner
Membership Number:102102
UDIN: 22102102AJSYBG5060
Place of Signature: Mumbai
Date: May 27, 2022
Mar 31, 2019
Report on the Audit of the Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying standalone Ind AS financial statements of Edelweiss Financial Services Limited (âthe Companyâ), which comprise the Balance sheet as at March 31 2019, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone Ind AS financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013 (âthe Actâ) 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 March 31, 2019, its profit including other comprehensive income its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the âAuditorâs Responsibilities for the Audit of the standalone Ind AS financial statementsâ section of our report. We are independent of the Company in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Ind AS financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements for the financial year ended March 31, 2019. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditorâs responsibilities for the audit of the standalone Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements.
Key audit matters |
How our audit addressed the key audit matter |
Transition to Ind AS accounting framework (as described in note 52 of the standalone Ind AS financial statements) |
|
The Standalone Ind AS Financial Statements are the |
Our audit procedures included considering the processes |
first financial statements the Company has prepared in |
laid down by the management to implement such transition |
accordance with Ind AS. For periods up to and including |
combined with procedures performed as follows: |
the year ended March 31, 2018, the Company prepared its |
|
standalone Ind AS financial statements in accordance with |
accounting standards notified under the section 133 of - |
We obtained managementâs assessment of |
the Companies Act 2013, read together with Rule 7 of the |
applicability of various accounting standards under |
Companies (Accounts) Rules, 2014 (Indian GAAP or previous |
Ind AS and their impact on the Companyâs standalone |
GAAP). Accordingly, for transition to Ind AS, the Company |
Ind AS financial statements and reviewed the nature |
has prepared standalone Ind AS financial statements |
of the Ind AS adjustments based on the applicable Ind |
which comply with Ind AS applicable for periods ending on |
AS and previous period accounting policies prepared |
March 31, 2019, together with the comparative period data as at and for the year ended March 31, 2018. In preparing |
in accordance with IGAAP. |
these standalone Ind AS financial statements, the Companyâs |
We tested the exemptions taken by the Company for |
first time adoption of Ind AS of the standalone Ind AS |
|
opening balance sheet was prepared as at April 1, 2017, the Companyâs date of transition to Ind AS. |
financial statements. |
- The transition has involved significant change in the |
We tested the details of Ind AS adjustments carried |
out by the Company as described in the reconciliation |
|
Companyâs policies and processes for financial reporting, including generation of supportable information and applying estimates to inter alia determine impact of Ind AS |
of equity as at the transition date and comparative year end date reported under erstwhile Indian GAAP |
to Ind AS and reconciliation of the statement of profit |
|
on accounting. |
and loss for the comparative year end date reported |
In view of the material impact and the complexity of implementation of the Ind AS framework and significance |
under erstwhile Indian GAAP to Ind AS. |
- of the various disclosure, the transition to Ind AS was of |
Performed test of details by inspection of contracts, |
particular importance for our audit as any error could lead to material misstatement in the preparation and presentation |
documents and policies to assess the appropriateness |
of the Ind AS adjustments. |
|
of the standalone Ind AS financial statements. - |
We assessed the disclosures with respect to the transition in accordance with the requirements of Ind AS 101 and other applicable disclosures in the standalone Ind AS financial statement in accordance with the requirements of relevant Ind AS. |
Information Other than the Standalone Ind AS Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone Ind AS financial statements and our auditorâs report thereon.
Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements for the financial year ended March 31, 2019 and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
The comparative financial statement of the Company for the year ended March 31, 2018 and the transition date opening balance sheet as at April 01, 2017 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with accounting principles generally accepted in India including the Accounting Standard specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rule, 2014, audited by the predecessor auditors whose report for the year ended March 31, 2018 and March 31, 2017 dated May 3, 2018 and May 17, 2017 respectively expressed an unmodified opinion on those standalone Ind AS financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure 1â a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 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 with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2019 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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 position in its standalone Ind AS financial statements - Refer Note 39 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 55 to the standalone Ind AS financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Re: Edelweiss Financial Services Limited (âthe Companyâ)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management and based upon the audit procedures performed, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.
(ii) The Companyâs business does not involve inventories and, accordingly, the requirements under paragraph 3(ii) of the Order are not applicable to the Company.
(iii) According to the information and explanations given to us and based upon the audit procedures performed, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given by the management, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) To the best of our knowledge and as explained, the Company is not in the business of sale of any goods. Therefore, in our opinion, the provisions of clause 3(vi) of the Order are not applicable to the Company.
(vii) (a) Undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, goods and service tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases. The provisions relating to duty of custom, duty of excise, value added tax and sales tax are not applicable to the Company.
(b) According to the information and explanations given to us and based upon the audit procedures performed, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, goods and service tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable. The provisions relating to duty of custom, duty of excise, value added tax and sales tax are not applicable to the Company.
(c) According to the information and explanations given to us and based upon the audit procedures performed, the dues of income-tax, goods and service tax, and cess on account of any dispute, are given below. The provisions relating to duty of custom, duty of excise, value added tax and sales tax are not applicable to the Company.
Name of the statute |
Nature of the dues |
Amount (Rs. in mn.) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
0.88 |
AY 2014-15 |
The Commissioner of Income Tax (Appeals) |
Service Tax |
Service Tax and penalty |
414.60 |
2008-09 to 2011-12 |
CESTAT, Mumbai |
(viii) In our opinion and according to the information and explanations given by the management and based upon the audit procedures performed, the Company has not defaulted in repayment of loans or borrowing to a financial institution and banks, government or dues to debenture holders.
(ix) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not raised any money by way of initial public offer or further public offer, hence not commented upon.
(x) 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 accordingly to the information and explanations given to us by the management, we have neither come across any instance of material fraud by the Company or on the Company by the officers and employees, noticed or reported during the year, nor have we been informed of any such case by the management.
(xi) According to the information and explanations given by the management and based upon the audit procedures performed, the Company has paid or provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management and based upon the audit procedures performed, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the standalone Ind AS financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet and based upon the audit procedures performed, the Company has not made any preferential allotment or private placement of shares during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon.
(xv) According to the information and explanations given by the management and based upon the audit procedures performed, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us and based upon the audit procedures performed, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ) To the Members of Edelweiss Financial Services Limited
We have audited the internal financial controls over financial reporting of Edelweiss Financial Services Limited (âthe Companyâ) as of March 31, 2019 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Shrawan Jalan
Partner
Membership Number: 102102
Place : Mumbai
Date : May 14, 2019
Mar 31, 2018
Report on the abridged standalone financial statements
1. The accompanying abridged standalone financial statements of Edelweiss Financial Services Limited (the âCompanyâ) comprise the abridged balance sheet as at March 31, 2018, the abridged statement of profit and loss and abridged cash flow statement for the year then ended together with the related notes, which we have signed under reference to this report.
2. These abridged standalone financial statements are derived from the statutory audited financial statements of the Company for the year ended March 31, 2018 prepared by the Companyâs Management in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Companies Act, 2013 (the âActâ) read with Rule 7 of the Companies (Accounts) Rules, 2014, covered by our attached report of even date to the Members of the Company pursuant to section 143 of the Act, in which we have expressed an unmodified audit opinion.
3. The abridged standalone financial statements do not contain all the disclosures required by the Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 and Schedule III to the Act, applied in the preparation and presentation of the audited financial statements of the Company. Reading the abridged standalone financial statements, therefore, is not a substitute for reading the audited financial statements of the Company.
Managementâs Responsibility for the Abridged Standalone financial Statements
4. The Companyâs Management is responsible for the preparation of the abridged financial statements in accordance with Rule 10 of the Companies (Accounts) Rules, 2014 (the âRulesâ). The Companyâs Management (including Directors) are ultimately responsible for the designing, implementing and maintaining internal control relevant to the preparation and presentation of the abridged standalone financial statements that are consistent with the audited standalone financial statements and are free from material misstatement, whether due to fraud or error; and also includes appropriate interpretation and application of the relevant provisions of the Rules and the Act.
5. The Companyâs Management (including Directors) are also responsible for ensuring that the Company complies with the requirements of the Rules.
Auditorsâ Responsibility
6. Our responsibility is to express an opinion on the abridged standalone financial statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, âEngagements to Report on Summary Financial Statementsâ, issued by the Institute of Chartered Accountants of India.
Opinion
7. In our opinion, the accompanying abridged standalone financial statements, are consistent, in all material respects, with the audited statutory standalone financial statements of the Company as at and for the year ended March 31, 2018 prepared in accordance with Schedule III to the Act, covered by our attached report of even date to the Members of the Company pursuant to section 143 of the Act, in accordance with the Rules.
Other Matter
8. The Company had prepared the abridged standalone financial statements for the year ended March 31, 2017 in accordance with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, which were audited by another firm of chartered accountants, who vide their report dated May 17, 2017 issued unmodified opinion on those abridged standalone financial statements.
Our opinion is not modified in respect of this matter.
Other Matter
9. The standalone financial statements of the Company for the year ended March 31, 2017, were audited by another firm of chartered accountants under the Companies Act, 2013 who, vide their report dated May 17, 2017, expressed an unmodified opinion on those financial statements.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
10. As required by âthe Companies (Auditorâs Report) Order, 2016â, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act (hereinafter referred to as the âOrderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. 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 aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A;
g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone financial statements - Refer Note 2.36;
ii. The Company has made provision as at March 31, 2018, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 2.5, 2.9 and 2.46;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018; and
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
Referred to in paragraph 10 of the Independent Auditorsâ Report of even date to the members of Edelweiss Financial Services Limited on the standalone financial statements as of and for the year ended March 31, 2018
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification;
(c) The title deeds of immovable properties, as disclosed in Note 2.10 on fixed assets to the financial statements, are held in the name of the Company.
ii. The Company is in the business of rendering services, and consequently, does not hold any inventory. Therefore, the provisions of Clause 3(ii) of the said Order are not applicable to the Company.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii) (b) and (iii)(c) of the said Order are not applicable to the Company.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. The Central Government of India has not specified the maintenance of cost records under sub-section (1) of Section 148 of the Act for any of the products of the Company.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employeesâ stock option scheme, income tax, service tax, duty of customs, duty of excise, value added tax, cess, goods and service tax with effect from July 1, 2017 and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of duty of customs, duty of excise, value added tax or goods and service tax which have not been deposited on account of any dispute. The particulars of dues of income tax and service tax as at March 31, 2018 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs. mn) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
0.28 |
AY 2009-10 |
Income Tax Appellate Tribunal (ITAT) |
Income Tax Act, 1961 |
Income Tax |
1.26 |
AY 2012-13 |
Commissioner of Income Tax (Appeals) |
Income Tax Act, 1961 |
Income Tax |
0.88 |
AY 2014-15 |
Commissioner of Income Tax (Appeals) |
Service Tax |
Service tax and penalty |
414.60 |
2008-2009 to 2011-2012 |
CESTAT, Mumbai |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. In our opinion, and according to the information and explanations given to us, the moneys raised by way of further public offer (Qualified Institutional Placement) have been applied for the purposes for which they were obtained. The Company has not raised any money by way of initial public offer of equity or further public offer of debt instruments or term loan during the year.
x. 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 material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non -cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Russell I Parera
Mumbai Partner
May 03, 2018 Membership Number: 042190
Mar 31, 2017
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Edelweiss Financial Services Limited (the âCompanyâ), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the âActâ) with respect to the preparation and presentation of these standalone 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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our 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 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31 March 2017, and its profits and its cash flows for the year ended on that date.
We draw attention to Note 2.39 to the standalone financial statements which describes that from quarter ended 30 June 2016, the Company is presenting interest income recovered from the group companies on a gross basis under the head interest income based on the opinion of the Expert Advisory Committee of the Institute of Chartered Accountants of India. Till before that date, the same was reflected on a net basis. Our opinion is not qualified in respect of this matter.
Report on other legal and regulatory requirements
As required by the Companies (Auditorâs Report) Order, 2016 (the âOrderâ) 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 paragraph 3 and 4 of the Order, to the extent applicable.
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 aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 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 âAnnexure Bâ; and
g) with respect to the other matters to be included in the Auditorâs 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 position in its standalone financial statements - Refer Note 2.35 to the standalone financial statements;
ii. the Company has made provision as required under the applicable law or accounting standards, for material foreseeable losses, on long-term contracts including derivative contracts - Refer Note 2.48 to the standalone financial statements;
iii. there has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company; and
iv. the Company has provided requisite disclosures in the standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management - Refer Note 2.46 to the standalone financial statements.
The Annexure referred to in Independent Auditorsâ Report to the members of Edelweiss Financial Services Limited (âthe Companyâ) on the standalone financial statements for the year ended 31 March 2017, we report that:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which all the fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. The Company is a service company primarily engaged in the business of rendering merchant banking services. Accordingly, it does not hold any physical inventories. Thus, paragraph 3(ii) of the Order is not applicable to the Company.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
v. According to the information and explanation given to us, the Company has not accepted any deposits from the public to which directives issued by the Reserve Bank of India and the provisions of Section 73 to Section 76 or any other relevant provisions of the Act and the rules framed thereunder apply.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any services rendered by the Company. Accordingly, paragraph 3(vi) of the Order is not applicable to 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, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, service tax, and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employeesâ state insurance, sales tax, customs duty, excise duty and cess. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, service tax, value added tax, and other material statutory dues were in arrears as at 31 March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of provident fund, income tax and service tax, which have not been deposited with the appropriate authorities on account of any dispute. However, according to the information and explanations given to us, the following dues have not been deposited by the Company on account of disputes:
Name of the statute |
Nature of dues |
Amount (in Rs.mn) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act , 1961 |
Income Tax |
0.13 |
AY 2009-10 |
Deputy Commissioner of Income Tax |
Income Tax Act , 1961 |
Income Tax |
176.76 |
AY 2012-13 |
Commissioner of Income Tax (Appeals) |
Income Tax Act , 1961 |
Income Tax |
45.61 |
AY 2014-15 |
Commissioner of Income Tax (Appeals) |
Service Tax |
Service tax and penalty |
414.60 |
2008-2009 to 2011-2012 |
CESTAT, Mumbai |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks, and Government or debenture holders.
ix. In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. The Company has not raised any money by way of initial public offer or further public offer during the year.
x. 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, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and on the basis of our examination of the records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details have been disclosed in the standalone financial statements, as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is registered with Securities and Exchange Board of India as a âCategory I Merchant Bankerâ under Section 12 of the Securities and Exchange Board of India Act, 1992. Hence, it is not required to register with Reserve Bank of India under section 45-IA in accordance with RBI master circular no. RBI/2015-16/15 DNBR (PD) CC.No.052/03.10.119/2015-16 on âMaster Circular- Exemptions from the provisions of RBI Act, 1934â dated 1 July 2015.
For B S R & Associates LLP
Chartered Accountants
Firm Registration No: 116231W/W-100024
Ashwin Suvarna
Mumbai Partner
17 May 2017 Membership No: 109503
Mar 31, 2014
Report on the financial statements
We have audited the accompanying financial statements of Edelweiss
Financial Services Limited (''the Company'') which comprise the balance
sheet as at 31 March 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the 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. 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2014; (ii) in the case of the statement of
profit and loss, of the profit for the year ended on that date; and
(iii) in the case of 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
sub-section (4A) of section 227 of the Act, we enclose in the Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the said
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 purposes of the
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, statement of profit and loss and 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
cash flow statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act;
(e) On the basis of the written representations received from the
directors of the Company as on 31 March 2014, and taken on record by
the Board of Directors, none of the directors is disqualified as on 31
March 2014 from being appointed as director in terms of clause (g) of
sub section (1) of section 274 to the Act.
(Referred to in 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 Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) The Company is a service company primarily engaged in the business
of rendering merchant banking services. Accordingly, it does not hold
any physical inventories. Thus, paragraph 4(ii) of the Order is not
applicable.
(iii) (a) During the year, the Company has granted unsecured demand
loan to one subsidiary company which is covered in the register
maintained under section 301 of the Act. The maximum amount outstanding
during the year was Rs. 9.81 million and the year-end balance of such
loans was Rs. Nil.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the companies listed in the
register maintained under section 301 of the Act are not, prima facie,
prejudicial to the interest of the Company.
(c) The loan granted to the aforementioned company is repayable on
demand. According to the information and explanations given to us, the
borrower has been regular in the payment of interest as stipulated.
(d) The loans granted to the companies listed in the register
maintained under section 301 are repayable on demand. Accordingly,
there is no overdue amount of more than Rs. 1 lakh in respect of loans
granted to any of the companies, firms or other parties listed in the
register maintained under section 301.
(e) The Company has not taken any loans from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and with regard to sale of services. 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 system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under section 209(l)(d) of the Act for any of the
activities conducted by the Company.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Income-tax, Service tax and
other material statutory dues have been generally regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
Employees'' State Insurance, Sales-tax, Wealth-tax, Custom Duty, Excise
Duty, Cess and Investor Education and Protection Fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income-tax,
Service tax and other material statutory dues were in arrears as at 31
March 2014 for a period of more than six months from the date they
became payable.
(c] According to the information and explanations given to us, there
are no dues of Provident Fund, Income-tax, Service tax and other
material statutory dues which have not been deposited with the
appropriate authorities on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceeding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to information and explanations
given to us, the Company is not a chit fund, nidhi or mutual benefit
fund/society.
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing in securities and timely entries have
been made therein. Further, such securities and investments have been
held by the Company in its own name except to the extent of exemption
granted under section 49 of the Act.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks are not prejudicial to
the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we are of the
opinion that the funds raised on short-term basis have not been used
for long-term investments.
(xviii) The Company has not made any preferential allotment of shares
to companies/firms/parties covered in the register maintained under
section 301 of the Act.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures during the year.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For B S R & Associates LLP
Chartered Accountants
Firm''s Registration No.: 116231W
N Sarrpath Ganesh
Mumbai Partner
17 May 2014 Membership No.: 042554
Mar 31, 2013
Report on the fnancial statements
We have audited the accompanying fnancial statements of Edelweiss
Financial Services Limited (''the Company'') which comprise the balance
sheet as at 31 March 2013, the statement of proft and loss and the cash
fow statement for the year then ended, and a summary of signifcant
accountng policies and other explanatory informaton.
Management''s responsibility for the fnancial statements
Management is responsible for the preparaton of these fnancial
statements that give a true and fair view of the fnancial positon,
fnancial performance and cash fows of the Company in accordance with
the Accountng Standards referred to in sub-secton (3C) of secton 211 of
the Companies Act, 1956 (''the Act''). This responsibility includes the
design, implementaton and maintenance of internal control relevant to
the preparaton and presentaton of the fnancial 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 fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditng issued by the Insttute 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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the fnancial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparaton and
fair presentaton of the fnancial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluatng the appropriateness of accountng policies used and
the reasonableness of the accountng estmates made by management, as
well as evaluatng the overall presentaton of the fnancial statements.
We believe that the audit evidence we have obtained is sufcient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, and to the best of our informaton and according to the
explanatons given to us, the fnancial statements give the informaton
required by the Act in the manner so required and give a true and fair
view in conformity with the accountng principles generally accepted in
India:
(i) in the case of the balance sheet, of the state of afairs of the
Company as at 31 March 2013;
(ii) in the case of the statement of proft and loss, of the proft for
the year ended on that date; and
(iii) in the case of cash fow statement, of the cash fows 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
sub-secton (4A) of secton 227 of the Act, we enclose in the Annexure, a
statement on the maters specifed in paragraphs 4 and 5 of the said
Order.
2 As required by secton 227(3) of the Act, we report that:
(a) We have obtained all the informaton and explanatons which to the
best of our knowledge and belief were necessary for the purposes of the
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 examinaton of those
books;
(c) The balance sheet, statement of proft and loss and cash fow
statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the balance sheet, statement of proft and loss and
cash fow statement comply with the accountng standards referred to in
sub-secton (3C) of secton 211 of the Act;
(e) On the basis of the writen representatons received from the
directors of the Company as on 31 March 2013, and taken on record by
the Board of Directors, none of the directors is disqualifed as on 31
March 2013 from being appointed as director in terms of clause (g) of
sub secton (1) of secton 274 to the Act.
(Referred to in our report of even date)
(i) (a) The Company has maintained proper records showing full
partculars, including quanttatve details and situaton of fxed assets.
(b) The Company has a regular programme of physical verifcaton of its
fxed assets by which all fxed assets are verifed in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verifcaton is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
notced on such verifcaton.
(c) Fixed assets disposed of during the year were not substantal, and
therefore, do not afect the going concern assumpton.
(ii) The Company is a service company primarily engaged in the business
of rendering merchant banking services. Accordingly, it does not hold
any physical inventories. Thus, paragraph 4(ii) of the Order is not
applicable.
(iii) (a) During the year, the Company has granted unsecured demand
loan to one subsidiary company which is covered in the register
maintained under secton 301 of the Act. The maximum amount outstanding
during the year was Rs. 22.11 million and the year-end balance of such
loans was Rs. Nil.
(b) In our opinion, the rate of interest and other terms and conditons
on which loans have been granted to the companies listed in the
register maintained under secton 301 of the Act are not, prima facie,
prejudicial to the interest of the Company.
(c) The loan granted to the aforementoned company is repayable on
demand. According to the informaton and explanatons given to us, the
borrower has been regular in the payment of interest as stpulated.
(d) The loans granted to the companies listed in the register
maintained under secton 301 are repayable on demand. Accordingly, there
is no overdue amount of more than Rs. 1 lakh in respect of loans
granted to any of the companies, frms or other partes listed in the
register maintained under secton 301.
(e) The Company has not taken any loans from companies, frms or other
partes covered in the register maintained under secton 301 of the
Companies Act, 1956.
(iv) In our opinion and according to the informaton and explanatons
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fxed assets and with regard to sale of services. In our
opinion and according to the informaton and explanatons given to us,
there is no contnuing failure to correct major weaknesses in internal
control system.
(v) (a) In our opinion and according to the informaton and explanatons
given to us, the partculars of contracts or arrangements referred to in
secton 301 of the Act have been entered in the register required to be
maintained under that secton.
(b) In our opinion, and according to the informaton and explanatons
given to us, the transactons made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant tme.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under secton 209(1)(d) of the Act for any of the actvites
conducted by the Company.
(ix) (a) According to the informaton and explanatons given to us and on
the basis of our examinaton of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Income-tax, Service tax and
other material statutory dues have been generally regularly deposited
during the year by the Company with the appropriate authorites. As
explained to us, the Company did not have any dues on account of
Employees'' State Insurance, Sales-tax, Wealth-tax, Custom Duty, Excise
Duty, Cess and Investor Educaton and Protecton fund.
(b) According to the informaton and explanatons given to us, no
undisputed amounts payable in respect of Provident Fund, Income-tax,
Service tax and other material statutory dues were in arrears as at 31
March 2013 for a period of more than six months from the date they
became payable.
(c) According to the informaton and explanatons given to us, there are
no dues of Provident Fund, Income-tax, Service tax and other material
statutory dues which have not been deposited with the appropriate
authorites on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the
fnancial year and has not incurred cash losses in the fnancial year and
in the immediately preceding fnancial year.
(xi) In our opinion and according to the informaton and explanatons
given to us, the Company has not defaulted in repayment of dues to its
bankers or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other securites.
(xiii) In our opinion and according to informaton and explanatons given
to us, the Company is not a chit fund, nidhi or mutual beneft
fund/society.
(xiv) The Company has maintained proper records of the transactons and
contracts in respect of dealing in securites and tmely entries have
been made therein. Further, such securites and investments have been
held by the Company in its own name except to the extent of exempton
granted under secton 49 of the Act.
(xv) In our opinion and according to the informaton and explanatons
given to us, the terms and conditons on which the Company has given
guarantees for loans taken by others from banks are not prejudicial to
the interest of the Company.
(xvi) In our opinion and according to the informaton and explanatons
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
(xvii) According to the informaton and explanatons given to us and on
overall examinaton of the balance sheet of the Company, we are of the
opinion that the funds raised on short term basis have not been used
for long term investments.
(xviii) The Company has not made any preferental allotment of shares to
companies/frms/partes covered in the register maintained under secton
301 of the Act.
(xix) According to the informaton and explanatons given to us, the
Company has not issued any secured debentures during the year.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) According to the informaton and explanatons given to us, no fraud
on or by the Company has been notced or reported during the year.
For B S R & Associates
Chartered Accountants
Firm''s Registraton
No.: 116231W
N Sampath Ganesh
Mumbai Partner
15 May 2013 Membership No.: 042554
Mar 31, 2012
We have audited the accompanying balance sheet of Edelweiss Financial
Services Limited ('the Company') as at 31 March 2012, the statement of
profit and loss and the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includeRs
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
1 As required by the Companies (Auditor's Report) Order, 2003 and
amendments thereto (together referred to as 'the Order') issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956 ('the Act'), we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order. '
2 Further to our comments in the Annexure referred to above, 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 purposes of the
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, the statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the balance sheet, the statement of profit and loss
and cash flow statement comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Act;
(e) On the basis of the written representations received from the
directors of the Company as at 31 March 2012, and taken on record by
the Board of Directors, we report that none of the directors are
disqualified as on 31 March 2012 from being appointed as director in
terms of clause (g) of sub section (1) of section 274 to the Act; and
(f) In our opinion, and to the best of our information and according to
the explanations given to us, the said 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2012;
(ii) in the case of the statement of profit and loss, of the profit of
the Company for the year ended 31 March 2012; and
(iii) in the case of cash flow statement, of the cash flows of the
Company for the year ended 31 March 2012.
Annexure to Auditors' Report - 31 March 2012
(Referred to in 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 Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification performed in the current year ended 31
March 2012.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) The Company is a service company primarily engaged in the business
of rendering merchant banking services. Accordingly, it does not hold
any physical inventories. Thus, paragraph 4(ii) of the Order is not
applicable.
(iii) (a) During the year, the Company has granted unsecured demand
loan to one subsidiary company which is covered in the register
maintained under section 301 of the Act. The maximum amount outstanding
during the year was Rs 16,265,060 and the balance as at 31 March 2012 of
such loan was Rs 9,613,563.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the companies listed in the
register maintained under section 301 of the Act are not, prima facie,
prejudicial to the interest of the Company.
(c) The loan granted to the aforementioned company is repayable on
demand. According to the information and explanations given to us, the
borrower has been regular in the payment of interest as stipulated.
(d) The loans granted to the companies listed in the register
maintained under section 301 are repayable on demand. Accordingly,
there is no overdue amount of more than Rs 1 lakh in respect of loans
granted to any of the companies, firms or other parties listed in the
register maintained under section 301 of the Act.
(e) The Company has not taken any loans from companies, firms or other
parties covered in the register maintained under section 301 of the
Act.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and with rfegard to sale of services. The
activities of the Company do not involve any purchase of inventory and
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 system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs 5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant point in time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under section 209(l)(d) of the Act for any of the
activities conducted by the Company.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Income-tax, Service tax and
other material statutory dues have been generally regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
Employees State Insurance, Sales-tax, Wealth-tax, Custom Duty,
Excise Duty, Cess and Investor Education and Protection fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees'
State Insurance, Income tax, Sales tax, Wealth tax, Service tax.
Customs duty. Excise duty and other material statutory dues were in
arrears as at 31 March 2012 for a period of more than six months from
the date they became payable.
(c) According to the information and explanations given to us, other
than those stated in Appendix I to this report there are no dues of
Provident Fund, Employees' State Insurance, Income tax, Sales tax,
Wealth tax, Service tax, Customs duty, Excise duty and other material
statutory dues which have not been deposited with the appropriate
authorities on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to information and explanations
given to us, the Company is not a chit fund, nidhi or mutual benefit
fund/ society. !
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing in securities and timely entries have
been made therein. Further, such securities and investments have been
held by the Company in its own name except to the extent of exemption
granted under section 49 of the Act.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has ' given
guarantees for loans taken by others from banks are not prejudicial to
the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they Were raised.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we are of the
opinion that the funds raised on short term basis during the year have
not been used for long term investments.
(xviii) The Company has not made any preferential allotment of shares
to companies/firms/parties covered in the register maintained under
section 301 of the Act.
(xix) According to the information and explanations given to us, the
Company has created security or charge in respect of debentures issued
during the year.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) 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 B S R & Associates
Chartered Accountants
Firm's Registration No.: 116231W
N Sampath Ganesh
Mumbai Partner
16 May 2012 Membership No.: 042554
Mar 31, 2011
We have audited the accompanying balance sheet of Edelweiss Capital
Limited (the Company) as at 31 March 2011, the profit and loss
account and the cash flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
1 As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto (together referred to as the Order) issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956 (the Act), we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2 Further to our comments in the Annexure referred to above, 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 purposes of the
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, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the balance sheet, profit and loss account and cash
flow statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act;
(e) On the basis of the written representations received from the
directors of the Company as at 31 March 2011, and taken on record by
the Board of Directors, we report that none of the directors are
disqualified as on 31 March 2011 from being appointed as director in
terms of clause (g) of sub section (1) of section 274 to the Act; and
(f) In our opinion, and to the best of our information and according to
the explanations given to us, the said financial statements, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2011;
(ii) in the case of the profit and loss account, of the profit of the
Company for the year ended 31 March 2011; and
(iii) in the case of cash flow statement, of the cash flows of the
Company for the year ended 31 March 2011.
Annexure to Auditors Report - 31 March 2011
(Referred to in 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 Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) The Company is a service company. Accordingly, it does not hold
any physical inventories. Thus, paragraph 4(ii) of the Order is not
applicable.
(iii) (a) During the year, the Company has granted unsecured demand
loan to one subsidiary company which is covered in the register
maintained under section 301 of the Act. The maximum amount outstanding
during the year was Rs. 415.59 lakhs and the year- end balance of such
loans was Rs. 137.35 lakhs.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the companies listed in the
register maintained under section 301 of the Act are not, prima facie,
prejudicial to the interest of the Company.
(c) The loan granted to the aforementioned company is repayable on
demand. According to the information and explanations given to us, the
borrower has been regular in the payment of interest as stipulated.
(d) The loans granted to the companies listed in the register
maintained under section 301 are repayable on demand. Accordingly,
there is no overdue amount of more than Rs. 1 lakh in respect of loans
granted to any of the companies, firms or other parties listed in the
register maintained under section 301.
(e) The Company has not taken any loans from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and with regard to sale of services. 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 system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under section 209(1)(d) of the Act for any of the
activities conducted by the Company.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Income-tax, Service tax and
other material statutory dues have been generally regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
Employees State Insurance, Sales- tax, Wealth-tax, Custom Duty, Excise
Duty, Cess and Investor Education and Protection fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income- tax,
Service tax and other material statutory dues were in arrears as at 31
March 2011 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us, other
than those stated in Appendix I to this report there are no dues of
Income-tax, Provident Fund, Wealth tax, Service tax and other material
statutory dues which have not been deposited with the appropriate
authorities on account of any dispute.
(d) There were no dues on account of cess under Section 441A of the
Companies Act, 1956 since the date from which the aforesaid section
comes into force has not yet been made effective by the Central
Government.
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to information and explanations
given to us, the Company is not a chit fund, nidhi or mutual benefit
fund/ society.
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing in securities and timely entries have
been made therein. Further, such securities and investments have been
held by the Company in its own name except to the extent of exemption
granted under section 49 of the Act.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks are not prejudicial to
the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we are of the
opinion that the funds raised on short term basis have not been used
for long term investments.
(xviii) The Company has not made any preferential allotment of shares
to companies/firms/parties covered in the register maintained under
section 301 of the Act.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures during the year.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For B S R & Associates
Chartered Accountants
Firms Registration No.: 116231W
Akeel Master
Partner
Membership No.: 046768
Mumbai
16 May 2011
Mar 31, 2010
We have audited the accompanying balance sheet of Edelweiss Capital
Limited (the Company) as at 31 March 2010, the profit and loss
account and the cash flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto (together referred to as the Order) issued by the
Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956 (the Act), we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. Further to our comments in the Annexure referred to above, 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 purposes of the
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, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the balance sheet, profit and loss account and cash
flow statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act;
(e) On the basis of the written representations received from the
directors of the Company as at 31 March 2010, and taken on record by
the Board of Directors, we report that none of the directors are
disqualified as on 31 March 2010 from being appointed as director in
terms of clause (g) of sub section (1) of section 274 to the Act; and
(f) In our opinion, and to the best of our information and according to
the explanations given to us, the said financial statements, give the
information required by the Act, 1956 in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2010;
(ii) in the case of the profit and loss account, of the profit of the
Company for the year ended 31 March 2010; and
(iii) in the case of cash flow statement, of the cash flows of the
Company for the year ended 31 March 2010.
Annexure to Auditors Report - 31 March 2010 (Referred to in 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 Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) The Company is a service company. Accordingly, it does not hold
any physical inventories. Thus, paragraph 4(ii) of the Order is not
applicable.
(iii) (a) The Company has granted unsecured loans to its subsidiary
companies which are covered in the register maintained under section
301 of the Companies Act, 1956. The maximum amount outstanding during
the year was Rs 457.36 lakhs and the year-end balance of such loans was
Rs 321.09 lakhs.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the companies listed in the
register maintained under section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
(c) In case of loans granted to the companies listed in the register
maintained under section 301, which are repayable on demand, the
borrowers have been regular in repaying the interest as stipulated.
(d) The loans granted to the companies listed in the register
maintained under section 301 are repayable on demand. Accordingly,
there is no overdue amount of more than Rs 1 lakh in respect of loans
granted to any of the companies, firms or other parties listed in the
register maintained under section 301.
(e) The Company has not taken any loans from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and with regard to sale of services. 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 system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs 5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under section 209(1)(d) of the Companies Act, 1956 for any
of the activities conducted by the Company.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Income-tax, Service tax and
other material statutory dues have been generally regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
Employees State Insurance, Sales- tax, Wealth-tax, Custom Duty, Excise
Duty, Cess and Investor Education and Protection fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income- tax,
Service tax and other material statutory dues were in arrears as at 31
March 2010 for a period of more than six months from the date they
became payable.
(c) According to the information and explanations given to us, other
than those stated in Appendix I to this report there are no dues of
Income-tax, Provident Fund, Wealth tax, Service tax and other material
statutory dues which have not been deposited with the appropriate
authorities on account of any dispute.
(d) There were no dues on account of cess under Section 441A of the
Companies Act, 1956 since the date from which the aforesaid section
comes into force has not yet been made effective by the Central
Government.
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers or debenture holders.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to information and explanations
given to us, the Company is not a chit fund, nidhi or mutual benefit
fund/ society.
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing in securities and timely entries have
been made therein. Further, such securities and investments have been
held by the Company in its own name except to the extent of exemption
granted under section 49 of the Companies Act 1956.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks are not prejudicial to
the interest of the Company.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we are of the
opinion that the funds raised on short term basis have not been used
for long term investments.
(xviii) The Company has not made any preferential allotment of shares
to companies/firms/parties covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has created security or charge in respect of debentures issued
during the year. The Company is not required to create any charge on
outstanding unsecured debentures.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For B S R & Associates
Chartered Accountants
Firms Registration No.: 116231W
Akeel Master
Partner
Membership No.: 046768
Mumbai 21 May 2010
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