Mar 31, 2016
To the Members of DILIGENT INDUSTRIES LTD
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. DILIGENT INDUSTRIES LTD (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year ended and 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 (âthe Actâ) with respect to 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
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 March 31, 2016, and its Profit and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of 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 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 it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d. in our opinion, the aforesaid 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 March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g. 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 does not have any pending litigations which would impact its financial position.
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-A to the Auditors'' Report (referred to in paragraph 1 of our Report of even date to the Members of âDILIGENT INDUSTRIES LTDâ for the year ended March 31, 2016)
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;
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b)The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
ii. The Company has conducted physical verification of the inventory at regular intervals and no material discrepancies were noticed during such verification.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company and hence not commented upon.
iv. 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 Company and hence not commented upon.
v. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi. As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
vii. (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 has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues 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, 2016 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute.
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken loan from financial institutions.
ix. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
xi. Based upon the audit procedures performed and the information and explanations given by the management, the provisions of section 197 read with Schedule V to the Companies Act are complied.
xii. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
xiii. In our opinion, all transactions with the related parties are in compliance with section 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
xv. Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
xvi. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 .Thus paragraph 3(iv) of the order is not applicable to the company.
âAnnexure Bâ to the Independent Auditor''s Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of DILIGENT INDUSTRIES LTD (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.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 company''s 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.
Auditors'' 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, issued by ICAI and deemed to be prescribed 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 auditor''s 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 Company''s 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.
For Ramasamy Koteswara Rao & Co
Chartered Accountants
FRN.010396S
Place: Hyderabad
Date: 30-05-2016
SD/-
Murali Krishna Reddy Telluri
Partner
M.No:223022
Mar 31, 2015
We have audited the accompanying financial statements of Diligent
Industries Limited ("the Company"), which comprises the Balance Sheet
as at March 31, 2015, the Statement of Profit and Loss and Cash Flow
statement for the year ended and summary of significant accounting
policies and other explanatory information.
Management 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, financial performance and cash
flows of the Company in accordance with 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 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 appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of 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 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 sec 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 a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial control
over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by 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 31st March, 2015, its Loss and its cash flows for the year ended on
the 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 the paragraph 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
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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement 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 31st March 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2015 from being
appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters 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 does not have any pending litigations which would impact
its financial position.
ii. The Company does not have any long term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which are required to be transferred to the
Investor Education and protection fund by the company
The Annexure referred to in our Independent Auditor's Report to the
members of the company on the financial statements for the year ended
March 31, 2015, we report that:
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies have been noticed on such verification. In our opinion,
the periodicity of physical verification is reasonable having regard to
the size of the company and nature of its assets.
ii) (a) As explained to us, inventories have been physically verified
by the Management at regular intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, 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.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventories as compared to book records.
iii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013. Therefore,
requirements of clauses (a), (b), of paragraph 3(iii) of the order are
not applicable.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods. During the course of the audit we have not observed any major
weaknesses in the internal control system.
v) According to the explanations given to us, the company has not
accepted any deposits from Public.
vi) We have broadly reviewed the books of account relating to material,
labour and other items of cost maintained by the Company prescribed by
the Central Government for the maintenance of cost records under
section 148 (1) of the Act and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained However,
we have not made a detailed examination of the records.
vii) (a) According to the records of the company and explanations given
to us and on the basis of our examination of the records of the
company, undisputed statutory dues including provident fund, Income -
tax, Value Added Tax, and other material statutory dues applicable to
it have been regularly deposited with the appropriate authorities.
Further, as explained to us, no undisputed statutory dues were in
arrears as at 31st March 2015 for a period of more than 6 months from
the date they become payable.
(b) According to the information and explanation given to us, there are
no dues of income-tax, sales-tax and cess which have not been deposited
on account of any dispute.
(c) According to the information and explanation given to us there were
no amount transferred to investor education and protection fund.
viii) The company has accumulated losses as at the end of the financial
year and it accumulated losses are less than fifty percent of its net
worth and the company has not incurred any cash losses during the
current financial year covered by our audit and in the immediately
preceding financial year.
ix) Based on our audit procedures and on the information and
explanation given to us, we are of the opinion the company has not
defaulted in repayment of dues to bank during the year.
x) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
xi) According to the information and explanations given to us, no term
loans were raised during the year.
xii) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For Ramasamy Koteswara Rao & Co.
Chartered Accountants
Firm Reg No 010396S
Date: 13-05-2015
Place: Hyderabad Sd/-
CA Murali Krishna Reddy Telluri
Partner
M.No.223022
Mar 31, 2014
We have audited the accompanying financial statements of Diligent
Industries Limited ("the Company"), which comprises the Balance Sheet
as at March 31, 2014, the Statement of Profit and Loss and the Cash
flow statement for the year ended, and a summary of the significant
accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act")which shall continue to apply in
respect of section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dated September15/2013 issued by the Ministry of
Corporate Affairs. This responsibility includes the design,
implementation and maintenance of internal controls relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
(a) In the case of Balance Sheet, of the state affairs of the Company
as at March 31, 2014
(b) In the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
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 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, Statement of Profit and Loss and cash flow
statement dealt with by this report are in agreement with the books of
account
d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting standards referred to in
sub-section (3c) of section 211 of the Companies Act, 1956 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, taken on record by the Board of Directors, none of the
directors is disqualified as at March 31, 2014 from being appointed as
a director in terms of Section 274(1)(g) of the Act.
f. Since the central Government has not issued any notification as to
the rate at which cess is to be paid under section 441A of 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 1 of our
Report of even date to the Members of Diligent Industries Limited for
the year ended March 31, 2014)
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,
(I) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets of the company have been physically verified by
the Management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the frequency of
verification is reasonable.
(c) In our opinion, and according to the information and explanation
given to us, the company has not disposed of any fixed Assets during
the year.
(ii) (a) As explained to us, inventories have been physically verified
by the Management at regular intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, 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.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventories as compared to book records.
(iii) (a) According to the information and explanations given to us,
the company didn''t grantany loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Therefore, requirements of clauses
(iii-b),(iii- c), (iii-d),of paragraph 4 of the order are not
applicable.
(e) According to the information and explanations given to us, the
company has taken loans from two parties covered in the register
maintained under section 301 of the Companies Act 1956. The Maximum
amount involved during the year is Rs. 3,56,66,826/-.
(f) In our opinion, the rate of interest and other terms and conditions
on which the loan has been taken from parties covered in the register
maintained under Section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company
(g) In our opinion and according to the information and explanations
given to us there is no stipulation as to the repayment of the
principle amount. Hence, we have not commented on whether the company
is regular in repayment of principle amount in respect of the said
loan.
(iv) On the basis of checks carried out during the course of the audit
and as per the explanations given to us, we are of the opinion that
there are adequate internal control systems commensurate with the size
of the company and the nature of its business, with regard to payment
of expenses. During the course of audit no major weaknesses in the
internal controls are noticed.
(v) According to the information and explanations given to us, we are
of the opinion that the transactions which are required to be entered
in the register maintained under section 301 of the Companies Act.
1956 have been so entered.
(vi) In our opinion and according to the explanations given to us, the
company has not accepted any deposits within the meaning of Sections
58A and 58AA of the Companies Act and Companies (Acceptance of
Deposits) Rules, 1975. Therefore, the provisions of the clause 4(vi) of
the Order are not applicable to the Company.
(vii) In our opinion and as per information and explanations given to
us, the company has an internal audit system commensurate with its size
and nature of its business.
(viii) We have reviewed the books of account maintained by the Company
pursuant to the rules prescribed by the Central Government of India for
the maintenance of cost records under Section 209(1)(d) of the Act, and
are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records.
(ix) (a) According to the records of the company, the company is
regular in depositing undisputed statutory dues including income-tax,
cess and other statutory dues with the appropriate authorities.
(b) According to the information and explanation given to us, there are
no dues of income-tax, wealth- tax, sales-tax and cess which have not
been deposited on account of any dispute.
(x) The company has accumulated losses as at the end of the financial
year and which are less than fifty percent of its net worth and it has
not incurred any cash losses during the current financial year covered
by our audit and in the immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund or nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the company.
(xiv) According to the information given to us, the company is not
dealing in or trading in shares, securities, debentures and other
instruments, accordingly the provisions of clause 4 (xiv) of the order
is not applicable.
(xv) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
(xvi) According to the information and explanations given to us, no
term loans were raised during the year.
(xvii) According to the information and explanation given to us, and on
an overall examination of the balance sheet, we report that no funds
raised on short term basis have been used for long term investment by
the company.
(xviii) 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.
(xix) The company has not issued any debentures during the year.
Accordingly, no securities have been created.
(xx) The company has not raised any money by public issue during the
year.
(xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For Ramasamy Koteswara Rao & Co,
Chartered Accountants
Firm Regn No: 010396S
Sd/-
Place: Hyderabad (C V Koteswara Rao)
Date : 30-05-2014. Membership No.028353
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. Yatish
Securities Limited as at 31st March, 2011, the Profit and Loss account
and the cash flow statement of the company 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 conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by managements, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
my opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, 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 in Para 3
above, We report that:
(a) We have obtained all the information and explanation, which to the
best or our knowledge and belief were necessary for the purpose of our
audit in our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of such
books.
(b) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with the book of account.
(c) In our opinion, the balance sheet, profit &, loss account 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.
(d) On the basis of the written representation received from the
directors as on 31st March 2011 and taken on record by board of
directors, we report that none of the directors is disqualified as on 31
st March, 2011 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the companies act, 1956. As
regards government - nominee directors, they are exempted from the
provision of section 274 (1) (g) in view of general circular issued by
the department of company affairs.
5. In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with significant
accounting policies and the other note 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 :
i. in case of the balance sheet of the state of affairs of the company
as at 31st March, 2011;
ii. in case of profit & loss account of the loss for the year ended on
that date, and
iii. in case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in Paragraph 3 of our Report of even date)
I. In respect of its Fixed Assets
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. All the fixed assets have been physically verified by the management
at the reasonable interval. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
c. In our opinion and according to information and explanations given
to us, the Company has not disposed off substantial part of fixed assets
during the year.
II. The Company is a Broking services company, therefore physical
verification and maintenance of adequate record of inventory is not
applicable to the company.
III. In our opinion the company has neither granted nor taken any
loans secured or unsecured, from companies, firms and other parties
covered in the register maintained under section 301 of the Act. As 14
of the Company has not granted/taken any loans secured or unsecured, to
1 from parties listed in the registers maintained under section 301 of
the Companies act, 1956 clause iii (b) iii(c) and ii-(d) of paragraph 4
of the order are not applicable
IV. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company.
V. In our opinion and according to the information and explanations
given to us, we are of the opinion, that the transaction that need to
be entered in the register maintained under section 301 of the
companies act, 1956 have been so entered and they have been made at
price which are reasonable having regard to the prevailing market price
at the relevant time.
VI. a) In our opinion and according to the information and
explanations given to us, we are
of the opinion, that the transaction that need to be entered in the
register maintained under section 301 of the companies act, 1956 have
been so entered and they have been made at price which are reasonable
having regard to the prevailing market price at the relevant time
b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies act, 1956 and exceeding the values of rupees five lakhs in
respect of any party during the year
VII. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from public and
therefore, the provision of Section 58A and 58AA of the Companies Act,
1956 and rules there under are not applicable to the company.
VIII. In our opinion, there is internal audit system commensurate with
the size of business.
IX. The Central Government has not prescribed maintenance of cost
records by the Company under section 209(1) (d) of the Act.
X. The company has been regular in depositing undisputed statutory
dues, including provident fund, investor education and protection fund,
employees' state insurance, income-tax, sales- tax, wealth-tax, custom
duty, excise duty, cess and other statutory dues with the appropriate
authorities. According to the information and explanation given to me,
no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty and excise duty were outstanding, at the
year-end for a period of more than six months from the date they became
payable.
XI. The Company have accumulated losses at the end of the year of Rs.
14,064,491,.98/-
XII. 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.
XIII. According to the information and explanations given to me, the
company has not given loans and advances on the basis of security by
way of Promotes, post dated instruments, pledge of shares, debentures
and other securities.
XIV. In our opinion, 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' reports) order 2003 are not applicable to the
Company
XV. In my opinion the company has maintained proper records of
transaction and contracts, In respect of trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, Debentures and other investment have been held by
the company in its own name
XVI. According to the information and explanations given to our, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
XVII. In our opinion, the company has not taken any term loans during
the year. Accordingly the provisions of clause 4(xiv) of the Companies
(Auditor s Report) Order, 2003 are not applicable to the company.
XVIII. There were no term loans obtained by the company during the
year.
XIX. According to the cash flow statement and other records examined
by us and the information and explanations given to us, on overall
basis, funds raised on short term basis have, prima facie, not been
used during the year for long term investment and vice versa, other
than temporary deployment pending application.
XX. According to the information and explanations given to us the
company has not made any preferential allotment during the year nor
does the company have any outstanding debentures during the year.
XXI. According to the information and explanations given to us, the
company has not issued any debentures and no securities and charges are
required to be created.
XXII. According to the information and explanations given to us, the
company has not raised any money by public issue during the year.
XXIII. To the best of our knowledge and belief and according to the
information explanation given to us, no fraud on or by the company was
noticed or reported during the year.
For KAPOOR & KAPOOR Chartered Accountants
Sd/-
SANJAY KAPOOR
Partner
Place : Delhi
Membership No.086847
Date : 25..8.2011
Mar 31, 2009
1. We have audited the attached Balance Sheet of YATISH SECURITIES
LIMITED asat 31st March, 2009 and the Profit and Loss Account & 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 conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to abtain reasonable assurance about wheather the
financial statements are free of material misstatements. An audit
includes examing. on a test basis, evidence supporting the amounts and
disclosures in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
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 (Auditors Report) Order, 2003, as
amended by the companies (Auditors Report) (Amendment) Order, 2004
(together the Order"), issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956 (the Act") and on
the basis of such checks as we considered appropriate, and according to
the information and expiations given to us, we give in the Annexure a
statement on the matters, specified in paragraphs 4 and 5 of the said
Order to the extent applicable to the company.
4. Further to our comments in the Annexure refered to paragraph 3
above, we report as follows:
a) We have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion the Company has kept proper books of accounts as
required by law have been kept by the Company so far as appears from
our examination of those books.
c) The Balance Sheet and profit and Loss Account & Cash Flow Statement
referred to in this report are in agreement with the books of accounts.
d) In our opinion, the Profit and Loss Account and the Balance Sheet &
Cash Flow Statement comply with the Accounting Standards reffered to in
sub-section <3C) of section 211 of the Companies Act, 1956, to the
extent they are applicable to the Company.
e) On the basis of the written representations received from the
directors, as on 31st March 2009 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 à clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and Profit and
Loss Account read together with the 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 principle
generally accepted in India.
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31 -03-2009 and
ii) In the case of Profit and Loss Account of the Profit for the year
ended on that date and
iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
1. The Company has maintained proper records to show full particulars,
including quantitative details and situation, of its fixed assets, We
nave been Wormed that the fixed assets of the company are physically
verified by the Management according to a phased program designed to
cover all the items over a period of three years, which in our opinion,
is resonable having regard to the size of the Company and the nature of
its assets. Pursuant to the program, physical verification was carried
out during the year and no material descrepancies were noticed.
However, we are informed that distribution system being underground is
not physically verified.
2. a) The stock of finished goods, work in progress, stores, spare
parts and raw material lying in the factory have been physically
verified by the management during/at the year-end. in our opinion and
according to information and explanations given to us the frequency of
physical verification is reasonable.
b) According to the information & the explanations given to us, in our
opinion, the procedures for 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) According to the information & the explanations given to us, in our
opinion, the Company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material in relation to the opertions of the
company.
3. In our opinion, the company has neither granted nor taken any
loans, secured or unsecured, from companies, firms or other parties
listed in the register maintained under section 301 of (he companies
act, 1956. As the company has not granted / taken any loans secured or
unsecured, to / from parties listed in the registers maintained under
section 301 of the companies act, 1956 clauses iii (b) iii andiii(d) of
paragraph 4 of the order are not applicable.
4. 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 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. a) In our opinion and according to the information and explanitJons
given to us, the transactions that need to be entered into the register
maintained under section 301 of the companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the companies act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year.
6. The companies has not accepted deposits from the public and hence
directives issued by the Reserve Sank of India and the provisions of
Sections 58A and 58AA of the companies act, 1956 and rules framed
thereunder are not applicable for the year under audit.
7. In our opinion, the company has internal audit system commensurate
with the size and nature of its business.
8. To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records under section 209 (1) (d) of the companies
Act, 1956.
9 a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, sales-tax, wealth tax, customs duty, excise duty and cess
as applicable to it
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March 2009 for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, there are
no dues of income tax, wealth tax, sales tax, customes duty, excise
duty and cess which have not been deposited on account of any dispute.
10. In our opinion the accumulated losses of the company rs.
1,29,42,272 percent of its networth.
11. hi our opinion and according to the information and explanations
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 securities.
13. In our opinion, 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
transactions and contracts in respect of trading in shares, securities,
debentures and other investments and timely entries have been made
therein. AN shares, debentures and other investments have been held by
the company in its own name.
15. In our opinion, the company has not given any guarantee for loans
taken by others from bank or financial institutions the terms and
conditions whereof are prejudicial to the interest of the company.
16. In our opinion, the company has not taken any term loans during
the year. Accordingly the provisions of clause 4(xvi) of the companies
(Auditors Report) order 2003 are not applicable to the comopany.
17. According to the information and explanations given to us and on
overall examination of the Balancesheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment No long-term funds have been used to finance short-time
assets except permanent working capital.
18. According to the information and explanations given to us, 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. According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
20. According to the informations and explanations given to us, during
the period covered by our audit report, the company has not raised any
money by public issue.
21. Based upon the audit procedures performed and inforniation and
explanations given by the management we report that no fraud on or by
the company has been noticed or reported during the course of our audit
for KAPOOR & KAPOOR
CHARTERED ACCOUNTANT
Bangalore - 24-08-2009 Sanjay Kapoor
Partner
Membership No.: 086847
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