Mar 31, 2015
We have audited the accompanying financial statements of DHABRIYA POLYWOOD LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matter stated in Section 134(5) of the Companies Act, 2013 ("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 and cash flows of the Company in accordance with the Accounting Standards notified 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 judgements 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.
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 there under.
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 misstatements.
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 of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
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 March 31, 2015, and its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order, 2015 issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act, 2013, we annex hereto a statement on the matters specified in said Order to the extent applicable.
Further to our comments in the Annexure referred to above, 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, 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 31st March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being
appointed as a director in terms of Section 164(2) 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 explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note 34 to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
There were no amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date to the Shareholders of M/s. DHABRIYA POLYWOOD LIMITED on the accounts for the year ended on 31st March, 2015 :
(i) In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. The Fixed Assets have been physically verified by the management during the year in accordance with a regular program of verification which, in our opinion, provides of physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no discrepancies were noticed on such verification.
c. In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.
(ii) In respect of the Inventory :
a. As explained to us, the inventories were physically verified during the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of Company and the nature of its business.
c. In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a) and (b) 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 to us, there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and sale of goods and services. During the course of our audit, we have not observed any major weakness or continuing failure to correct any major weakness in the internal control system of the company in respect of these areas.
(v) The Company has not accepted any deposits from the public.
(vi) To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost records under clause 148(1) of the Companies Act, 2013, for the products/services of the Company.
(vii) According to the information and explanation given to us in respect of statutory dues :
a. The Company has been regular in depositing the undisputed statutory dues including Provident Fund, ESI, Income Tax, Sales Tax, Custom Duty, Service Tax, Excise Duty, Cess, Value Added Tax and any other material statutory dues applicable to it with the appropriate authorities.
b. There were no undisputed amount payable in respect of Provident Fund, ESI, Sales Tax, Income Tax, Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess, Value Added Tax and other material statutory dues in arrears as at 31st March, 2015 were for a period of more than six months from the date they became payable.
c. There were no dues pending to be deposited on account of any dispute in respect of Income Tax, Wealth Tax, Sales
Tax, Custom Duty, Service Tax, Excise Duty, Cess, Value Added Tax except :
Name of the Statue Nature of Dues Amount in Rs.
Income Tax Act, 1961 Demand for 33,374/= Interest on TDS
Income Tax Act, 1961 Demand for 2,96,304/= Interest on TDS
Rajasthan VAT Act, Demand for 35,03,676/= 2003 Penalty
Rajasthan VAT Act, Demand for 1,17,80,600/= 2003 Penalty
Name of the StATUE Period to which Forum where dispute is amount related (FY) pending
Income Tax Act, 196 12012-13 CIT Apeal - III, Jaipur
Income Tax Act, 1961 2011-12 Income Tax Appellate Tribunal, Jaipur Bench
Rajasthan VAT Act, 2010- 11 Rajasthan Tax Board, Ajmer 2003
Rajasthan VAT Act, 2011- 12 Rajasthan Tax Board, Ajmer 2003
d. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
(viii) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution or bank.
(x) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.
(xi) Based on the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.
(xii) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the year.
For NARENDRA SHARMA & CO. Chartered Accountants (Firm Regn. No.004983C) Sd/- (YOGESH GAUTAM) Place : Jaipur Partner Date : 29.05.2015 Membership No. 072676