Mar 31, 2015
We have audited the accompanying financial statements of "RICHWAY
INTERNATIONAL TRADE LIMITED", which comprise the Balance Sheet as at 31
March 2015, the Statement of Profit and Loss, 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
The Company's Board of Directors is 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 the maintenance of adequate accounting records in
accordance with the provision of the Act for safeguarding of the assets
of the Company and for preventing and detecting the 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 control, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 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 of the financial statements that give 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 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 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 financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31stMarch2015, its profit/loss and its 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, 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,
to the extent applicable.
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, and Cash Flow
Statement 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 Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, 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 Section 164(2) of the Act.
f) The going concern, in our opinion, may not have an adverse effect on
the functioning of the Company.
g) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company does not have any pending litigations which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which required to be transferred by the
Company to the Investor Education and Protection Fund.
Annexure to the Auditors' Report
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' of our Report of even dated to the members of Richway
International Trade Limited (Formerly known as Richway Infrastructure
Limited) on the accounts of the company for the year ended 31st March,
2015]
On the basis of such checks as we considered appropriate and according
to the Information and Explanations given to us during the course of
our audit, we report that:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management during the year in accordance with the phased programmed
of verification adopted by the management which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(ii) In respect of its inventory:
a) As explained to us, the inventories of finished goods, semi-finished
goods, stores, spare parts and raw materials were physically verified
at regular intervals by the Management. In case of inventories lying
with third parties, certificates of stocks holding have been received.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the 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 of stocks as compared to book records.
(iii) In respect of loans, secured or unsecured, granted to the parties
covered in register maintained under section 189 of the Companies Act
2013:
According to the information and explanations given to us, the Company
has not granted any loans to companies, firms or other parties covered
in the Register maintained under Section 189 of the Companies Act,
2013; and therefore paragraph 3(iii) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control.
(v) In our opinion and according to the information and explanation
given to us, the company has not received any public deposits during
the year.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub-section
(1) of Section 148 of the Act, in respect of the activities carried on
by the Company.
(vii) In respect of statutory dues:
(a) According to the records of the company and information and
explanations given to us, the Company has generally been regular in
depositing undisputed statutory dues, including Provident Fund,
employees state insurance (ESI), Investor Education and Protection
Fund, Income-tax, Tax deducted at sources, Tax collected at source,
Professional Tax, Sales Tax, Value Added Tax (VAT), Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it, with the appropriate authorities.
(b) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income-tax, Wealth
Tax, Custom Duty, Excise Duty, sales tax, VAT, Cess and other material
statutory dues in arrears as at 31 March, 2015 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
were no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund
(viii) The company does not have the accumulated losses at the end of
financial year. The company has not
incurred any Cash losses during the financial year covered by our Audit
and the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(x) In our opinion, and according to the information and the
explanation given to us, the company has not given any guarantee for
loans taken by others from banks or financial institutions during the
year;
(xi) The company has not obtained any term loan during the year, so
this para of order is not applicable.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the
Company and no material fraud on the Company has been noticed or
reported during the year.
For Sanjay N. Shah & Co.
Chartered Accountants
(Firm Registration No. : 124897W)
Sd/-
(Sanjay Nathalal Shah)
Proprietor
(Membership No.:116251)
Place: Mumbai
Date: 30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of RICHWAY
INTERNATIONAL TRADE LIMITED (Formerly known as Richway Infrastructure
Limited) ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss for the year ended, and
a summary of significant accounting policies and other explanatory
information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance 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.
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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 315t March, 2014;
b) in the case of the Profit and Loss statement, of the profit for the
year ended on that date; and
c) in the case of cash flow statement of the net cash flows for the
year ended on that date.
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 give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
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 and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 2 of our Report of even dated on the accounts
of RICHWAY INTERNATIONAL TRADE LIMITED (Formerly known as Richway
Infrastructure Limited) for the year ended on 31st March, 2014.
1(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
The fixed asset has been physically verified by the management as
during the period at reasonable interval. No material discrepancies
were noticed on such verification.
None of the fixed assets of the company were disposed off during the
year.
2 (a) The inventory have been physically verified by the management
during the year. In our opinion the frequency of verification is
reasonable.
(b) The procedure of 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.
The company is maintaining proper records of inventory. The
discrepancies noticed on verification between book physical stock and
book records were properly dealt with .
3 The Company has not granted nor taken any loan, secured or unsecured
to or from Companies. Firms and other parties listed in the Register
maintained under section 301 of the Companies Act, 1956.
4 In our opinion and accordance to the information and explanation
given to us, there are adequate internal control procedures,
commensurate with the size of the company and nature of its business
with regard to purchases of inventory, fixed assets and with regard to
the sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weakness in internal controls.
5 On the basis of our examination of the books of accounts, we are of
the opinion that the company has not entered into any transactions
exceeding Rs.5,00,000/- in respect of any party during the financial
year that need to be entered in the register pursuant to Section 301 of
the Act.
6 The company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Section 58 A and 58 AA of the Companies, Act, 1956 and
the rules framed thereunder are not applicable.
7 In our opinion the Company has an Internal Audit System commensurate
with the size of the Company and nature of its business.
8 According to the information and explanation given to us, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of Section 209 of the Companies, Act,
1956 in respect of the services carried out by the Company.
9 (a) According to the information and explanation given to us, and on
the basis of our examination of the books of account, the Company has
been regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, income tax, sales tax, custom
duty, investor education and protection fund, wealth tax and any other
material statutory dues applicable to it.
(b)There was no undisputed dues payable in respect of Income Tax,
Wealth Tax, Custom duty and cess were outstanding as at 31st March,
2014 for a period of more than six months from the date they become
payable.
(c)According to the information and explanation given to us, there are
no dues in respect of sales tax, income tax, custom duty, wealth tax,
excise duty, and cess that have not been deposited with the appropriate
authorities on account of any dispute.
10 The Company does not have accumulated losses at the end of the
financial year covered by the audit and in the immediately preceding
financial year.
11 In our opinion and according to the information and explanation
given to us, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12 The Company has not granted any Loans and Advances on the basis of
security by way of pledge of shares, debentures and other similar
securities as explained to us.
13 The company is not a chit fund or a nidhi/ mutual benefit fund/
society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditors Report) Order 2003 are not applicable to the company.
14 In our opinion, the Company has maintained proper records of the
transactions and contracts of the investments dealt in by the Company
and timely entries have been made therein. The investments made by the
Company are held in its own name except to the extent of the exemption
u/s 49 of the Act.
15 The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16 The company has not obtained any term loans. Accordingly, clause
4(xvi) of the order is not applicable.
17 On the basis of an overall examination of the Balance Sheet and Cash
Flows of the Company and the information and explanation given to us,
we report that the Company has not utilized any funds raised on short
term basis for long term investments and vice versa.
18 The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
19 The Company has not issued any debentures. Accordingly, clause (xix)
of the order is not applicable.
20 The Company has issued 1,03,95,000 bonus shares on 04.11.2013 to the
shareholders of the Company holding 11,55,000 equity shares and has
issued fresh 55,50,000 equity shares of Rs.10/- each on 08.03.2014 and
49,00,000 equity shares of Rs.10/- on 31.03.2014 which shall rank pari
passu with existing shareholders of the Company.
21 According to the information and explanation given to us during the
course of our audit, no fraud on or by the company has been noticed or
reported during the year.
In terms of our report of even date
For Sanjay N. Shah & Co.
Chartered Accountants
FRN 124897W
(Sanjay Nathalal Shah)
Proprietor
M. No. 116251
Place: Mumbai
Date: 18/04/2014