Mar 31, 2015
We have audited the accompanying financial statements of Ambition Mica Limited ("the Company") which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss and Cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
2. Management's Responsibility for the Financial Statements
The Management and Company's Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and Presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the companies (Accounts) Rules 2014. This responsibility also includes 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provision of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provision of the Act and the Rules made there under.
4. 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 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 financial 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 company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Director, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2015;
(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 the cash flow statement, of the cash flows for the Year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015 ("the order") issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the order.
8. As required by section 143(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion, proper books of accounts 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 are dealt with by this Report are in agreement with the books of account,
d. in our opinion, the aforesaid financial statements comply with the Accounting Standards Specified under section 133 of the Act, read with rule 7 of the Company's (Accounts) Rule, 2014.
e. On the basis of written representations received from the Directors as on 31 March 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2015, from being appointed as a director in terms of sub-section (2) of section 164 of the Act.
f. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanation given to us:
i) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses and
ii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in point No. 7 under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)
(1) In Respect of Fixed Assets
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) According to information and explanation given to us, the Fixed assets are verified by the management, during the year in a phased periodical manner which, in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such verification.
(2) In Respect of Inventory
(a) As explained to us, Inventory has been physically verified by the management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanation given to us, the procedures for physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. There are no inadequacies in such procedures.
(c) On the basis of our examination of the records of the Company, we are of the opinion that the company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification carried out at the end of the year.
(3) Loans and advances to parties covered under section 189
The company has not granted any Secured or Unsecured loan to any companies, Firms or other parties covered under register maintained under section 189 of the Companies Act, 2013.
(4) Internal Control in reference to Purchase of Inventory and Fixed Assets and whether there is continue failure of Internal control In our opinion and according to the information and explanations given to us there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. During the course of audit We have not observed continuing failure to correct major weaknesses in internal control system.
(5) Rules followed while accepting Deposits
No deposits within the meaning of Sections 73 to 76 or any other relevant provision of the Act and rules framed there under have been accepted by the Company.
(6) Maintenance of cost records
To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under sub-section (l) of section 148 of the Companies Act for the products of the company.
(7) According to the information and explanations given to us in respect of statutory dues
(a) Company is regular in depositing undisputed statutory dues including Professional Tax, Provident fund, income-tax, TDS, sales-tax, service tax, duty of excise, values added tax or cess and any other statutory dues with the appropriate authorities though there has been a slight delay in a Excise, Service Tax, TDS, Professional tax and Provident fund.
(b) According to information and explanation given to us, there are no material dues of Income tax,
TDS, Duty of excise, VAT and any other statutory dues which have not been deposited with the appropriate authorities on account of any disputes. However, according to the information and explanations given to us, the following dues of Income tax is disputed which may result in Decrease of Net loss as follows:
Related To Authority Where Financial Year Case is Pending
INCOME TAX ACT, The Dy. 2011-2012 1961 Commissioner of Income Tax
Related To Disputed Amount Remarks
INCOME TAX ACT, 709,868.00 This dispute may 1961 result in Decrease in Net loss.
(c) According to the information and explanation given to us, there were no amounts which were required to be transferred to the Investor Education & Protection Fund by the company in accordance with the relevant provision on the Companies Act, 2013.
(8) Company which has been registered for a period less than five years and accumulated losses are more than 50% of Net worth, Reporting of cash Losses
(9) Default in Repayment of Loans taken from Bank or Financial Institutions
The company has not defaulted in repayment of dues to financial institution or a bank.
(10) Terms for Loans and Advances from Banks or Financial Institutions prejudicial to the interest of the company
On the basis of records examined by us and information provided by the management, we are of the opinion that the company has not given guarantees for loans taken by other from banks or financial institutions.
(11) Application versus purpose for which Loan Granted
According to the information and explanations given to us, in our opinion, the terms loans were applied for the purpose for which they were obtained.
(12) Reporting of Fraud During the Year Nature and Amount
During the year, no fraud on or by the Company has been noticed or reported during the course of our audit.
For, Hitesh Gohel & Co. Chartered Accountants
Hitesh Rameshbhai Gohel (Proprietor) Membership No. 129427 Firm Registration No. 129089W
Place : Ahmedabad Date : August 27, 2015