Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of Dhanleela Investments and Trading Company Limited (âthe Companyâ), which comprise the Balance Sheet as at 31/03/2018, the Statement of Profit and Loss, 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 Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position and financial performance 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 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 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.
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 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 misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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 31/03/2018, and its Profit and its cash flows for the year ended on that date.
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 the section 143 of the Act, we give in the âAnnexure Aâ, 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, and the cash flow statements 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 the written representations received from the directors as on 31/03/2018 taken on record by the Board of Directors, none of the directors is disqualified as 31/03/2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(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 did not have any pending litigations on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(1) The company does not have any fixed assets. Consequently, the provisions of clauses 3 (i) (a), (b) & (c) are not applicable to the company.
(2) (a)Physical verification of inventory has been conducted at reasonable intervals by the management.
(b)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 that should be reported.
(c)Company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification.
(3) 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. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
(4) 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.
(5) The Company has not accepted any deposits from the public.
(6) The Company is not required to maintain cost records pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (l) of section 148 of the Companies Act.
(7) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company is not required to deposit undisputed statutory dues including Provident Fund, Employees State Insurance, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues except Income-Tax with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
(b) According to records of the Company examined by us there are no dues of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of any dispute. The particulars of dues of Income Tax as at 31st March, 2018, which have not been deposited on account of any dispute, are as follows.
Nature of the Statute |
Nature of Dues |
Amount (Rs.) |
Period to which Amount relates |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Income Tax Dues |
1,70,405 |
A. Y. 1997-1998 |
The Commissioner of Income Tax (Appeals) |
(8) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
(9) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(10) 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.
(11) 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.
(12) 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.
(13) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(14) According to the information and explanations give 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.
(15) 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 non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(16) 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.
Annexure B to the Independent Auditorâs Report of even date on the Financial Statements of Dhanleela Investments & Trading Company Limited.
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 Dhanleela Investments & Trading Company Limited
We have audited the internal financial controls over financial reporting of Dhanleela Investments & Trading Company Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the 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 Company''s 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, both 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 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 company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s 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 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 company''s assets that could have a material effect on the 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, 2018, 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.
Explanatory paragraph
We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act, the financial statements of the Company, which comprise the Balance Sheet as at March 31, 2018, and the related 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, and our report dated May 30,2018 expressed an unqualified opinion thereon.
For M/S K C Shrimanker & Associates
Chartered Accountants
FRN: 139616W
Sd/-
Shrimanker Chandrakant
Proprietor
Membership No. 113913
Date: 30th May 2018
Place:- Mumbai
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT To,
The Members Of Dhanleela Investments and Trading Company Limited Report on the Financial Statements
We have audited the accompanying financial statements of Dhanleela Investments and Trading Company Limited (âthe Companyâ), which comprise the Balance Sheet as at 31/03/2016, the Statement of Profit and Loss, for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position and financial performance 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 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 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.
Auditorâs 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 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 misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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 31/03/2016, and its Profit and its cash flows for the year ended on that date.
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 the section 143 of the Act, we give in the âAnnexure Aâ, 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, and 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 the written representations received from the directors as on 31/03/2016 taken on record by the Board of Directors, none of the directors is disqualified as 31/03/2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(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 did not have any pending litigations on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. 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 paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(1) The company does not have any fixed assets. Consequently, the provisions of clauses 1
(a) & (b) are not applicable to the company.
(2) (a) Physical verification of inventory has been conducted at reasonable intervals by the management.
(b) 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 is no inadequacies in such procedures that should be reported.
(c) Company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification.
(3) Based on the audit procedures performed and the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured to/ from the companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013;
(a) The loans granted are re-payable on demand. As informed, the company has not demanded repayment of any such loan during the year, thus there has been no default on the part of the parties to whom the money has been lent. The payment of interest has been regular.
(b) There is no overdue amount of any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act
(4) Based on the audit procedures performed and the information and explanations given to us, there are 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 and services. During the course of audit We have not observed continuing failure to correct major weaknesses in internal control system.
(5) The Company has not accepted any deposits from the public.
(6) The Company is not required to maintain cost records pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (l) of section 148 of the Companies Act.
(7) (a)The company is regular in depositing with appropriate authorities undisputed statutory dues including Income tax, Service tax, and other material statutory dues applicable to it.
(b) According to records of the Company examined by us there are no dues of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of any dispute. The particulars of dues of Income Tax as at 31st March, 2015, which have not been deposited on account of any dispute, are as follows.
Nature of the Statute |
Nature of Dues |
Amount (Rs.) |
Period to which Amount relates |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Income Tax Dues |
1,70,405 |
A. Y. 1997-1998 |
The Commissioner of Income Tax (Appeals) |
(c) The Company does not required to transfer fund to the Investor Education and Protection Fund.
(8) The company does not have any accumulated losses at the end of the financial year and has not incurred cash losses during current financial year and in the immediately preceding financial year.
(9) The company has not availed any loan from financial institution or bank.
(10) As Company has not availed any loan from financial institution or bank , hence this clause is not applicable.
(11) The Company has not availed any term loans..
(12) Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.
Annexure B to the Independent Auditorâs Report of even date on the Financial Statements of Dhanleela Investments & Trading Company Limited.
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 Dhanleela Investments & Trading Company Limited
We have audited the internal financial controls over financial reporting of Dhanleela Investments & Trading Company Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the 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 CompaniesAct, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Company''s 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, both 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 judgment, including the assessment of the risks of material misstatement of the 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 company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s 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 financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the 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, 2016, 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.
Explanatory paragraph
We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act, the financial statements of the Company, which comprise the Balance Sheet as at March 31, 2016, and the related 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, and our report dated May 29,2016 expressed an unqualified opinion thereon.
For Manisha& Co.
Chartered Accountants
Sd/-
Manisha Patel Proprietor
Mem. No. 148127
Place: Mumbai
Dated: 29.05.2016
Mar 31, 2015
We have audited the accompanying financial statements of Dhanleela Investments
and Trading Company Limited ("the Company"), which comprise the Balance Sheet
as at 31/03/2015, the Statement of Profit and Loss, 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 matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position and financial performance 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 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 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.
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 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 misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's 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 31/03/2015, 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 ("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 paragraph 3and 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 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 the written representations received from the
directors as on 31/03/2015 taken on record by the Board of Directors,
none of the directors is disqualified as 31/03/2015 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 did not have any pending litigations on its financial
position in its financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. 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 paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(1) The company does not have any fixed assets. Consequently, the
provisions of clauses 1
(a) & (b) are not applicable to the company.
(2) (a) Physical verification of inventory has been conducted at
reasonable intervals by the management.
(b) 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 is no inadequacies in
such procedures that should be reported.
(c) Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
(3) Based on the audit procedures performed and the information and
explanations given to us, the Company has neither granted nor taken any
loans, secured or unsecured to/ from the companies, firms or other
parties covered in the register maintained under Section 189 of the
Companies Act, 2013;
(a) The loans granted are re-payable on demand. As informed, the
company has not demanded repayment of any such loan during the year,
thus there has been no default on the part of the parties to whom the
money has been lent. The payment of interest has been regular.
(b) There is no overdue amount of any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act
(4) Based on the audit procedures performed and the information and
explanations given to us, there are 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 and services. During the course of audit We have not
observed continuing failure to correct major weaknesses in internal
control system.
(5) The Company has not accepted any deposits from the public.
(6) The Company is not required to maintain cost records pursuant to
the Rules made by the Central Government for the maintenance of cost
records under sub-section (l) of section 148 of the Companies Act.
(7) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Income tax, Service
tax, and other material statutory dues applicable to it.
(b) According to records of the Company examined by us there are no
dues of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty and Cess which have not been deposited on account of
any dispute. The particulars of dues of Income Tax as at 31st March,
2015, which have not been deposited on account of any dispute, are as
follows.
Nature of the Nature of Amount Period to Forum where
Statute Dues (Rs) which dispute is pending
Amount
relates
The Income Income
Tax 1,70,405 A. Y. The Commissioner
Tax Act,
1961 Dues 1997-1998 of
Income Tax
(Appeals)
(c) The Company does not required to transfer fund to the Investor
Education and Protection Fund.
(8) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during current
financial year and in the immediately preceding financial year.
(9) The company has not availed any loan from financial institution or
bank.
(10) As Company has not availed any loan from financial institution or
bank , hence this clause is not applicable.
(11) The Company has not availed any term loans..
(12) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Manisha & Co.
Chartered Accountants
Sd/-
Manisha Patel
Proprietor
Mem. No. 148127
Place : Mumbai
Dated : 29.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of Dhanleela
Investments & Trading Company Limited, which comprise the Balance Sheet
as at 31st March, 2014, 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 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") read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013 and in accordance with the accounting principles generally
accepted in India. 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.
Auditors'' 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the 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 Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company 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 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 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 Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 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 Act.
Annexure to Independent Auditor''s Report (Referred to in paragraph 1
under "Report on Other Legal and Regulatory Requirements" section of
our report of even date)
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. The Company does not have any Fixed Assets, Hence maintaining of
records or physical verification is not applicable to the extent.
Consequently, the provisions of clauses 1 (b) and 1(c) of the order are
not applicable to the Company.
2. (a) As explained to us, shares are held as stock in trade which are
treated as inventories which have been 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 are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses 3 (b),
3(c) and 3 (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories and fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weakness in the
internal controls has been noticed.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, there were
no contracts or arrangements referred to in section 301 of the Act,
1956. Hence Clause 5(b) of the said order is not applicable.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provisions of Sections 58A, 58AA or any other relevant provisions
of the Act and the rules framed there under of the Companies Act, 1956
are not applicable.
7. The Company did not have an Internal audit system during the year
under report.
8. As per information & explanation given by the management, the
company is not required to maintain cost records as prescribed by the
Central Government under clause (d) of sub-section (1) of section 209
of the Act, 1956.
9. (a) (i) 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 income tax and other
material statutory dues applicable to it with appropriate authorities.
(ii)According to information and explanations given to us, the Company
was not liable for contribution towards Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Sales Tax,
Value Added Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty
during the year.
(iii)According to the information and explanation given to us and the
books and records examined by us, there are no undisputed amounts
payable in respect of Wealth Tax, Sales Tax, Custom Duty and Excise
Duty, outstanding as at 31st March, 2014 for period exceeding six
months from the date they became payable.
b) According to records of the Company examined by us there are no dues
of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute. The particulars of dues of Income Tax as at 31st March, 2014,
which have not been deposited on account of any dispute, are as
follows:
Nature of the Nature of Amount Period to Forum where
Statute Dues (Rs.) which dispute is
Amount relates pending
The Income Income Tax 1,70,405 A. Y. The
Tax Act, 1961 Dues 1997-1998 Commissioner of
Income Tax
(Appeals)
10. The company does not have accumulated losses at the end of the
financial year; further company has not incurred cash losses in this
financial year.
11. The Company has neither taken any loans from a financial
institution or a bank nor issued any debentures.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion and according to information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi /mutual benefit fund
/ societies.
14. According to information and explanations given to us, the Company
is trading in Shares. Proper records & timely entries have been
maintained in this regard & further investments specified are held in
their own name.
15. According to the information and explanations given to us, 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.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. The Company has not made any preferential allotment of shares to
companies or firms or parties covered in the register maintained under
section 301 of the Companies Act, 1956
19. The company did not have outstanding debentures during the year.
20. The during the year the Company has not issued shares on
preferential basis.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Paras A. Shah & Co.
Chartered Accountants
Firm Reg. No. 135549
Sd/-
Paras A. Shah
Proprietor
Mem. No. 152371
Place: Mumbai
Dated: 29.05.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Dhanleela
Investments & Trading Company Limited, which comprise the Balance Sheet
as at 31st March, 2013, 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 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.
Auditors'' 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the 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 the 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company 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 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 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 Balance Sheet, Statement of Profit and Loss,
and the 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 as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Annexure to Independent Auditor''s Report
(Referred to in paragraph 1 under "Report on Other Legal and Regulatory
Requirements" section of our report of even date)
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. Company does not have any Fixed Assets, Hence maintaining of
records or physical verification is not applicable to the extent.
2. (a) As explained to us, shares are held as stock in trade which are
treated as inventories which have been 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 are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, there were
no contracts or arrangements referred to in section 301 of the Act,
1956. Hence Clause 5(b) of the said order is not applicable.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provisions of Sections 58A, 58AA or any other relevant provisions
of the Act and the rules framed there under of the Companies Act, 1956
are not applicable.
7. The Company did not have an Internal audit system during the year
under report.
8. As per information & explanation given by the management, the
company is not required to maintain cost records as prescribed by the
Central Government under clause (d) of sub-section (1) of section 209
of the Act, 1956.
9. (a) (i) 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 income tax and other
material statutory dues applicable to it with appropriate authorities.
Further, since the Central Government has till date not prescribed the
amount of cess payable under Section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the Company in depositing the same.
(ii)According to information and explanations given to us, the Company
was not liable for contribution towards Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Sales Tax,
Value Added Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty
during the year.
(iii)According to the information and explanation given to us and the
books and records examined by us, there are no undisputed amounts
payable in respect of Wealth Tax, Sales Tax, Custom Duty and Excise
Duty, outstanding as at 31st March, 2013 for period exceeding six
months from the date they became payable.
b) According to records of the Company examined by us there are no dues
of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute. The particulars of dues of Income Tax as at 31st March, 2013,
which have not been deposited on account of any dispute, are as
follows:
Nature of the Nature of Amount
Statute Dues (Rs.)
The Income Tax Income Tax 23,58,629
Act, 1961 Dues
The Income Income Tax 1,70,405
Tax Act, 1961 Dues
Nature of the Statute Period to which Forum where
Amount relates dispute is pending
The Income Tax Act, 1961 A. Y. The Commissioner
1996-1997 of Income Tax (Appeals)
The Income Tax Act, 1961 A. Y. The Commissioner
1997-1998 of Income Tax (Appeals)
10. The company does not have accumulated losses at the end of the
financial year, further company has not incurred cash losses in this
financial year.
11. The Company has neither taken any loans from a financial
institution or a bank nor issued any debentures.
12.The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion and according to information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi /mutual benefit fund
/ societies.
14. According to information and explanations given to us, the Company
is trading in Shares. Proper records & timely entries have been
maintained in this regard & further investments specified are held in
their own name.
15. According to the information and explanations given to us, 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.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. The Company has not made any preferential allotment of shares to
companies or firms or parties covered in the register maintained under
section 301 of the Companies Act, 1956
19. The company did not have outstanding debentures during the year.
20. The During the year the Company has issued 16,93,000 Equity shares
on preferential basis at the rate of Rs.90/- per shares ( Including
premium of Rs.80/- per share ) .
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For MNRD & ASSOCIATES
Chartered Accountants
Firm Reg.No : 126991W
Narayan Toshniwal
Place: Mumbai. Partner
Date: 27.05.2013 Membership No.048334
Mar 31, 2012
1. We have audited the attached Balance Sheet of RATNI INVESTMENTS
COMPANY LIMITED, as at 31st March, 2012 the Statement of Profit and
Loss and 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.
2. We have 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 as to 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.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 of India 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 a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) 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.
(iii) 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.
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
(v) On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March, 2012 from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
5. Attention is also invited to :
i) Note "20" regarding income tax demands aggregating to Rs.
25,29,034/- for which no provision has been made in the accounts.
ii) Note "22" regarding non provision of possible diminution in value
of Company's investments aggregating to Rs. 32,72,913/- in unquoted
equity shares. We are unable to form an opinion on the value of these
investments in view of uncertainties involved.
iii) Note "23" regarding non-availability of certain physical share
certificate for our verification.
6. Subject to the matters referred to in Paragraph 5 above, in our
opinion and to the best of our information and according to the
explanations given to us the said financial Statements read with Notes
thereon 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(b) In the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended 31st March, 2012.
ANNEXURE TO THE AUDITORS' REPORT
RE : RATNI INVESTMENTS COMPANY LIMITED
PREFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situations of fixed
assets.
b) Physical verification has been conducted by the management of fixed
assets at reasonable intervals during the year and no discrepancies
were noticed on such verification.
c) During the year, the Company has discarded all the Fixed Assets.
According to the information and explanations given to us, we are of
the opinion that discarding of all the Fixed Assets has not affected
the going concern status of the Company.
2. (a) According to the information furnished, physical verification
of inventory which consists of shares of unquoted Company has been
conducted by the management at reasonable intervals during the year.
(b) In our opinion the procedures of physical verification of shares
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) The Company is maintaining proper records of shares. No discrepancy
was noticed on physical verification of shares.
3. (a) The Company had granted loan to one party disclosed U/s.
301(3) of the Companies Act, 1956. However, such loan transactions
have not been entered in the register under Section 301 of the
Companies Act, 1956, as provisions of neither Section 297 nor 299 are
applicable to such transactions and therefore the number and the amount
of such transactions are not reported.
(b) The Company had taken an unsecured interest free loan from one
Company covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 74,72,590/- and the year end balance of loan taken from such
Company was Rs. NIL.
(c) In our opinion, the terms and conditions on which loan had been
taken from the Company listed in the register maintained U/s. 301 of
the Companies Act, 1956 were not prima facie prejudicial to the
interest of the Company. The loan taken was interest free in the
nature.
(d) There was no stipulation as to repayment of the principal amount in
respect of this interest free loan taken by the Company.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of shares and fixed assets and for the sale of shares and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations given to us, the particulars of
contracts or arrangement referred to in Section 301 of the Act have
been entered in the register required to be maintained under that
Section.
b) The transactions made in pursuance of a contract or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 are temporary and interest free in the nature.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provisions of Sections 58A, 58AA or any other relevant provisions
of the Act and the rules framed thereunder of the Companies Act, 1956
are not applicable.
7. The Company did not have an Internal Audit System during the year
under Report.
8. Since the Company is an investment Company requirement of
maintenance of cost records as prescribed by Central Government under
Section 209(l)(d) of the Companies Act, 1956 is not applicable.
9. a) (i) 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 income tax other
material statutory dues applicable to it with appropriate authorities
Further, since the Central Government has till date not prescribed the
amount of cess payable under Section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the Company in depositing the same.
(ii) According to information and explanations given to us, the Company
was not liable for contribution towards Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Sales Tax,
Value Added Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty
during the year.
(iii) According to the information and explanation given to us and the
books and records examined by us, there are no undisputed amounts
payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty
and Excise Duty, outstanding as at 31st March, 2012 for period
exceeding six months from the date they became payable.
b) According to records of the Company examined by us there are no dues
of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute. The particulars of dues of Income Tax as at 31st March, 2012,
which have not been deposited on account of any dispute
are as follows
Nature of the Nature of Amount Period to Forum where
Statute Dues (Rs.) which amount dispute is
relates pending
The Income Tax Income Tax 23,58,629 A. Y. The Commissioner
Act, 1961 Dues 1996-1997 of Income Tax
(Appeals) Order
is awaited
The Income Tax Income Tax 1,70,405 A. Y. The Commissioner
Act, 1961 Dues 1997-1998 of Income Tax
(Appeals) Order
is awaited
10.Accumulated losses of the Company of Rs. 2,14,43,845/- at the end of
the financial year exceeded 50% net worth as on that date. The Company
has incurred cash losses of Rs. 9,70,415/- during the financial year,
however it had not incurred any cash losses in immediately preceding
financial year.
11. The Company has neither taken any loans from a financial
institution or a bank nor issued any debentures.
12.The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13.In our opinion and according to information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi /mutual benefit fund
/ societies.
14. In respect of Investments held by the Company, in our opinion and
according to the information and explanation given to us, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. All the shares have been held by
the Company in its own name.
15. According to the information and explanations given to us, 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.
17.Based on our examination of the financial statements and other
relevant records of the Company and the information and explanations
given to us, on an overall basis, funds raised on short term basis have
not, prima facie been used during the year for long term investment.
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 Act during the year.
19.The Company has not issued any debentures.
20.The Company has not raised any money by public issues during the
year.
21. 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 JAGTIANI & NAIK
Chartered Accountants
(ICAI Reg. No. 103854W)
Sd/-
J. G. NAIK
PARTNER
Membership No. 30614
PLACE : MUMBAI
DATED : 1st JUNE, 2012
Mar 31, 2009
1. We have audited the attached Balance Sheet of RATNI INVESTMENTS
COMPANY LIMITED, as at 31st March, 2009 and also the Profit and Loss
Account for the year ended on that date annexed thereto. (Collectively
referred to as "Financial Statements"). 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.
2. We have 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 as to 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.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the 'Order') issued by the Central Government of India in
terms of sub-section (4A) of section 227 of "The Companies Act, 1956'
of India (the 'Act') 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 a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) 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.
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956.
(v) On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March, 2009 from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
5. Attention is invited to Note No. 5 of Schedule "J" regarding non
provision of possible diminution in value of Company's investments of
aggregating to Rs.71,85,171/- in unquoted equity shares. We are unable
to form an opinion on the value of these investments in view of
uncertainties involved.
6. Subject to the matters referred to in Paragraph 5 above, in our
opinion and to the best of our information and according to the
explanations given to us the said accounts 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2009;
(b) In the case of the Profit and Loss Account, of the Loss for the
year ended on that date and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended 31st March, 2009.
ANNEXURE TO THE AUDITORS' REPORT
RE : RATNI INVESTMENTS COMPANY LIMITED
(REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situations of fixed
assets.
b) Physical verification has been conducted by the management of fixed
assets at reasonable intervals during the year and no discrepancies
were noticed on such verification.
c) During the year there has not been disposal of any fixed assets.
2. (a) According to the information furnished, physical verification
of inventory which consists of shares of unquoted Company has been
conducted by the management at reasonable intervals during the year.
(b)In our opinion the procedures of physical verification of shares
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The Company is maintaining proper records of shares. No discrepancy
was noticed on physical verification of shares.
3. (a) The Company has granted loan to one party disclosed U/s. 301(3)
of the Companies Act, 1956. However, such loan transactions are not
entered in the register under Section 301 of the Companies Act, 1956,as
provisions of neither Section 297 nor 299 are applicable to such
transactions and therefore the number and the amount of such
transactions are not reported.
(b) The Company has taken unsecured interest free loan from one Company
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount involved during the year as well as the
yearend balance of loan taken from such Company was Rs. 73,83,697/-.
(c) In our opinion, the terms and conditions on which loan have been
taken from the Company listed in the register maintained U/s. 301 of
the Companies Act, 1956 are not prima facie prejudicial to the interest
of the Company. The loan taken is interest free in the nature.
(d) There is no stipulation as to repayment of the principal amount in
respect of this interest free loan taken by the Company.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of shares and fixed assets and for the sale of shares and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations given to us, the particulars of
contracts or arrangement referred to in Section 301 of the Act have
been entered in the register required to be maintained under that
Section.
(b) The transactions made in pursuance of such contracts or
arrangements in respect of any party in our opinion and according to
the information and explanations given to us, are made at prices which
are prima facie reasonable considering the circumstances at the
relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provisions of Sections 58A, 58AA or any other relevant provisions
of the Act and the rules framed there under of the Companies Act, 1956
are not applicable.
7. The Company did not have an Internal Audit System during the year
under Report.
8. Since the Company is an investment Company requirement of
maintenance of cost records as prescribed by Central Government under
Section 209(1)(d) of the Companies Act, 1956 is not applicable.
9. a) (i) 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 income tax and other
material statutory dues applicable to it with appropriate authorities.
Further, since the Central Government has till date not prescribed the
amount of cess payable under Section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the Company in depositing the same.
(ii) According to information and explanations given to us, the Company
was not liable for contribution towards Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Sales Tax,
Value Added Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty
during the year.
(iii) According to records of the Company except Fringe Benefit Tax
Liabilities of Rs.4,992/- and Rs.6,072/- respectively for Assessment
Years 2007-2008 and 2008-2009 and T.D.S. Liability of Rs.787/-, there
are no other undisputed arrears of Statutory dues, which were
outstanding as on 31st March, 2009 for a period of more than six months
from the date they become payable.
b) According to records of the Company examined by us there are no dues
of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess which have not been deposited on account of any
dispute. The particulars of dues of Income Tax as at 31st March, 2009,
which have not been deposited on account of any dispute are as follows.
Nature of Nature of Amount Period to Forum
where
the Statute Dues (Rs.) which dispute
is
amount pending
relates
The Income Income Tax Dues 23,58,629 A.Y. The
Tax Act, 1961 1996-1997 Commissi
-onerof
Income
Tax
(Appeals)
The Income Income Tax Dues 1,70,405 A.Y. The
Tax Act,1961 1997-1998 Commissi
-oner of
Incomee
Tax
(Appeals)
10.Accumulated losses of the Company of Rs.2,34,16,288/- at the end of
the financial year exceeded 50% net worth as on that date. The Company
has incurred cash losses of Rs.33,053/- in current financial year and
cash losses of Rs.1,31,036/- in immediately preceding financial year.
11.The Company has neither taken any loans from a financial institution
or a bank nor issued any debentures.
12.The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13.In our opinion and according to information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi /mutual benefit fund
/ societies.
14.As informed and explained to us, the Company has not dealt/traded in
securities or debentures during the year. In our opinion and according
to the information and explanation given to us proper records have been
maintained of the transactions and contracts relating to trading /
dealing in shares and other investments and timely entries have been
made therein. We have been unable to physically verify the investments
held by the Company as most of these investments have been seized by
the Central Bureau of Investigation along with other records in June,
1992.
15.According to the information and explanations given to us, 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.
17. The Company considers all the funds raised by it amounting to Rs.
73,83,697/- at the end of the financial year to be of long term nature.
These funds have been utilized for financing its losses, accumulated
balances of which stood at Rs.2,34,16,288/- as well as investments and
loans to others.
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 Act during the year.
19.The Company has not issued any debentures.
20.The Company has not raised any money by public issues during the
year.
21.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 JAGTIANI & NAIK
Chartered Accountants
J. G. NAIK
PARTNER
Membership No.30614
PLACE :MUMBAI
DATED : 25.08.2009
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