Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying Ind AS financial statements of DIVYASHAKTI GRANITES LIMITED (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, the statement of changes in equity and the Cash Flow Statement for the year then ended, and a summary of 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 Ind AS financial statements that give a true and fair view of the state of affairs, profit /loss(including other comprehensive income), and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS 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 and the Order under Section 143(11) of the Act.
We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS 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 Ind AS financial statements.
We are also responsible to conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exits related to events or conditions that may cast significant doubt on the entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS 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, 2018, and its Profit (including other comprehensive income), changes in equity and its Cash Flows for the year ended on that date.
Other Matters
The comparative financial information of the company for the year ended 31 March 2017 and the transition date opening balance sheet as at 1 April 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules,2006 audited by the predecessor auditor whose report for the year ended 31 March 2017 and 31 March 2016 dated 27 May 2017 and 11 May 2016 respectively expressed an unmodified opinion on those financial statements, as adjusted for the differences in the accounting principles adopted by the company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs 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 âAnnexureAâ 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, the Cash Flow Statement and the statement of changes in equity dealt with by this Report are in agreement with the books of account
d. In our opinion, the aforesaid Ind AS financial statements comply with the Ind AS 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, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 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 Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 and in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31st March, 2018 on its financial position in its financial statements as referred to in Note No. 3.01 to the Ind AS 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 has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018.However amounts as appearing in the audited financial statements for the year ended 31 March 2017 have been disclosed
âAnnexure Aâ to the Independent Auditorsâ Report
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the financial statements of the Company for the year ended March 31, 2018:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) As explained to us, the fixed assets have been physically verified by the management according to the phased program designed to cover all the fixed assets over the year.
ii. The inventory has been physically verified by the management during the year and the discrepancies noticed on such verification between the physical stock and the book records were not material. In our opinion, the frequency of such verification is reasonable.
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. 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 Companies Act, 2013 in respect of loans, investments, guarantees, and security.
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, 2018 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 any loan either from financial institutions or from the government and has not issued any debentures.
ix. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised money 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 managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
xii. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (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 177 and 188 of Companies Act, 2013 and the details have been disclosed in theInd AS 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 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
âAnnexure Bâ to the Independent Auditorâs 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 DIVYASHAKTI GRANITES LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of theInd AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management responsible for establishing and maintaining internal financial controls base 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 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs 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 companyâs 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 control 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.
Place: Hyderabad For SURYANARAYANA & SURESH
Date: 30-05-2018 Chartered Accountants
Firm Reg.No: 006631S
V.NAGENDRA RAO
Partner
M.No.227679
Mar 31, 2016
To the Members of DIVYASHAKTI GRANITES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of DIVYASHAKTI GRANITES LIMITED ("the Company") which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of 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 ("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 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.
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 and the Order under Section 143(11) of the Act.
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 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 (Auditorâs Report) Order, 2016 ("the Order"), 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 "Annexure A" 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 "Annexure B".
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 and in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31st March, 2016 on its financial position in its financial statements as referred to in note no.3.01 in 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 has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company.
"Annexure A" to the Independent Auditorsâ Report
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the financial statements of the Company for the year ended March 31, 2016:
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) As explained to us, the fixed assets have not been physically verified by the management according to the phased program designed to cover all the fixed assets over the year.
2) The inventory has been physically verified by the management during the year and the discrepancies noticed on such verification between the physical stock and the book records were not material. In our opinion, the frequency of such verification is reasonable.
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 Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5) 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.
6) We have broadly reviewed the cost records maintained by the Company pursuant to the rules prescribed by the Central Government of India under Section 148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
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 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.
8) 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 any loan either from financial institutions or from the government and has not issued any debentures.
9) 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.
10) 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.
11) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule
V to the Companies Act;
12) 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.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14) 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.
15) 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.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
"Annexure B" to the Independent Auditorâs Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of DIVYASHAKTI GRANITES LIMITED ("the Company") 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 responsible for establishing and maintaining internal financial controls base 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 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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 "Guidance Note") 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 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 Companyâs internal financial controls over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs 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 companyâs 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 control 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.
Place: Hyderabad For RAMBABU & Co.,
Date: 11.05.2016 Chartered Accountants
Firm Reg.No: 002976S
RAVI RAMBABU
Partner
M.No.018541
Mar 31, 2015
We have audited the accompanying financial statements of DIVYASHAKTHI
GRANITES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The Company's Board of Directors is responsible for the matters 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 the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for preventing
and detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of 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, to the extent
applicable.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act and other applicable
authoritative pronouncements of 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
misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view,
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the 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 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 31st, 2015, 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 (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 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 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on 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 to be included in the Auditor's
Report in accordance with Rule 11 of Companies (Audit and Auditors)
Rules, 2014 in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at
31st March,2015 on its financial position in its financial statements
as referred to in note 3.01 to the financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and required on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended 31st March, 2015.
The Annexure referred to in the Independent Auditors' Report of even
date on the Financial Statements to the Members of Divyashakthi
Granites Limited for the year ended 31 March 2015. We report that:
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particular
including quantitative details and situation of fixed assets.
b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner.
In our opinion the periodicity of physical verification is reasonable
having regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
ii. In respect of Inventories:
ii. a) As explained to us, the inventories except goods in transit and
stocks lying with third parties 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 were reasonable and adequate in relation to
the size of the company and nature of its business.
c) In our opinion and according to the information and explanations
given to us the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act 2013. Hence we have not reported on the
related matters of this clause and sub-clauses.
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 with regard to sale of
goods and services. We have not observed any major weakness in the
internal control system during the course of the audit.
v. According to the information and explanations given to us, the
Company has not accepted any deposits from the public.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the rules prescribed by the Central Government of India
under Section 148(1) of the Companies Act 2013 and are of the opinion
that prima facie the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
vii. According to the information and explanations given to us in
respect of statutory dues:
a) The Company has been regular in depositing undisputed statutory dues
with appropriate authorities including provident fund, employees' state
insurance, income tax, sales tax, wealth tax, service tax, customs
duty, excise duty , value added tax, cess and any other material
statutory dues applicable to it.
b) There were no undisputed amounts payable in respect of income tax,
sales tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax or cess and other material statutory dues in arrears as
at 31st March 2015 for a period more than of 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, sales tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax or cess which have not been
deposited on account of any dispute.
d) The Company has been regular in transferring amounts to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act 2013 and the Rules made thereunder.
viii. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses during the financial year
covered by audit and in the immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions and banks. The Company has not issued any
debentures.
x. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
xi. In our opinion and according to the information and explanations
given to us, during the financial year the Company has not raised any
fresh term loans.
xii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
Place: Hyderabad FOR RAMBABU & Co.,
Date: 28-05-2015 Chartered Accountants
FRN: 002976S
Ravi Rambabu
Partner
M.No.018541
Mar 31, 2014
We have audited the accompanying financial statements of DIVYASHAKTI
GRANITES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s 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
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. 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.
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 judgement, 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 the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regularity Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") 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 notified under
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 written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
1. In respect of its fixed asset;
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) During the year, the company has not disposed of substantial part
of the Assets. According to the information and explanations given to
us, we are of the opinion that no transactions are effected involving
disposal of assets so as to affect going concern status of the company.
2. In respect of Inventories;
(a) As explained to us, inventories 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. In respect of loans, secured or unsecured , granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act, 1956;
(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.
(b) 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 of this clause 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 and 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. In respect of the contracts or arrangements referred to in section
301 of the companies Act 1956;
a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b. In our opinion and according to the information and explanations
given to us, the 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 Rs. 5,00,000 with
parties covered above during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. According to the information and explanation given to us, the
Company has not accepted any deposits from the public. Therefore the
provisions of clause (vi) of paragraph 4 of the order are not
applicable to the company.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub section (1) of section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. In respect of statutory dues;
a. According to the records of the company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable.
b. According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated losses and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, and debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
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. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the year under
audit.
20. The Company has not raised any money by public issue during the
year.
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 RAMBABU & Co.
Chartered Accountants
Firm Reg. No.002976S
Ravi Rambabu
Partner
M No. 018541
Place: Hyderabad
Date: 30th May, 2014
Mar 31, 2013
Report on Financial Statements
We have audited the accompanying financial statements of DIVYASHAKTI
GRANITES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31,2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s 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
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.
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 judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 March 31, 2013;
b. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regularity Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") 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 subsection (3C) of section 211 of the Companies Act, 1956 except
Accounting Standard (AS) 15 relating to "Employee Benefits" issued by
the Institute of Chartered Accountants of India.
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
1. In respect of its fixes asset;
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) During the year, the company has not disposed of substantial part
of the Assets. According to the information and explanations given to
us, we are of the opinion that no transactions are effected involving
disposal of assets so as to affect going concern status of the company.
2. In respect of Inventories;
(a) As explained to us, inventories 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 ourexamination 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. In respect of loans, secured or unsecured , granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act, 1956;
(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.
(b) 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 of this clause 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. In respect of the contracts or arrangements referred to in section
301 of the companies Act 1956;
a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) In our opinion and according to the information and explanations
given to us, the 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 Rs. 5,00,000 with
parties covered above during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. According to the information and explanation given to us , the
Company has not accepted any deposits from the public. Therefore the
provisions of clause (vi) of paragraph 4 of the order are not
applicable to the company.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub section (1) of section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. In respect of statutory dues;
a) According to the records of the company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable.
b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated losses and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. In our opinion, the Company is not dealing in ortrading in shares,
securities, and debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
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. Based on the audit procedures performed and the information and
explanations given to us hy the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
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 RAMBABU & Co.
Chartered Accountants
Firm Reg No:002976S
Place: Hyderabad Ravi Rambabu
Date: 27th May,-2013 Partner
Mar 31, 2012
We have audited the attached Balance Sheet Of DIVYASHAKTI GRANITES
LIMITED, HYDERABAD, as at 31st March, 2012 and the Statement of Profit
and Loss for the year ended on that date annexed thereto and Cash Flow
statement for the year ended on that date. 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.
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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. 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, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. Further to our comments in the annexure referred to in paragraph 1
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 purpose 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 except accounting standard (AS) 15 relating to
employee benefits issued by the Institute of Chartered Accountants of
India.
v) In our opinion and based on written representation received from
Directors, and taken on record by the Board of Directors, 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) to Section 274
of the Companies Act, 1956.
vi) In our opinion subject to point iv above and to the best of our
information and according to the explanations given to us, the said
accounts read with significant accounting policies and other 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 so far as it relates to Balance Sheet, of the state of affairs of
the Company as at 31st March, 2012
b) I n so far as it relates to Statement of Profit and Loss, of the
Profit of the Company for the year ended on that date.
And
c) In so far as it relates t& Cash Flow Statement, of the Cash Flows of
the Company for the year ended on that date.
Referred to as in paragraph 1 of our report of even date.
1. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars
including details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such physical verification.
(c) The Company has not disposed off substantial part of the Assets
during the year. According to the information and explanations given to
us, we are of the opinion that no transactions are affected involving
disposal of assets so as to effect going concern status of the Company.
2. In respect of its Inventories:
(a) As explained to us, inventories have been physically verified
during the year by the management at regular intervals. In our opinion,
the frequency of verification is reasonable.
(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) The Company has maintained proper records of inventories. In our
opinion and according to the information and explanations given to us,
the discrepancies noticed on verification between the physical stocks
and the book records were not material.
3. In respect of loans secured or unsecured, granted or taken by the
Company to/from Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 :
(a) The Company has not taken/ granted loans from/to Companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(b) As the Company has not taken/ granted loans from/to Companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956, the question of statement on the rate
of interest and other terms and conditions on which the Company has
taken/granted loans from/to Companies, firms or other parties listed in
the register maintained under section 301 of the Companies Act, 1956
does not arise.
(c) As the Company has not taken/ granted loans from/to Companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956, the question of statement on the
regular payment/receipt of the principa and interest amounts as
stipulated does not arise.
(d) As the Company has not taken/ granted loans from/to Companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956, the question of statement on the steps
taken for recovery/ payment of the Principal and interest on overdue
amount of more than one lakh does not arise.
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, for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, based on our audit
procedures applied, we have not observed any continuing failure to
correct major weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed 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, the 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 Rs. 5,00,000 with
parties covered above during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any Deposits from public to
which the directives issued by the Reserve Bank of India and the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 framed there under
apply.
7. The Company has an independent internal audit system commensurate
with the size and nature of its business.
8. We are informed and according to the information and explanations
given to us, that the Central government has not prescribed maintenance
of cost records under section 209(1 )(d) of the Companies Act, 1956 for
the activities of the Company.
9. In respect of its statutory dues:
(a) According to the records of the Company and as per the information
and explanations given to us, the Company is generally regular in
depositing with appropriate authorities undisputed Statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employee's State Insurance, Income Tax, Sales Tax, Wealth Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues
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 outstanding, as at 31st
March, 2012 for a period of more than six Months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues which have not been deposited on account of dispute, the
company is regular in depositing Sale Tax, Income Tax, Customs Duty,
Wealth Tax, Excise Duty and Cess.
10. In our opinion, the Company neither has accumulated losses at the
end of the year exceeding fifty percent of its net worth, nor incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
11. As per the records of the Company and according to the information
and explanations given to us, we are of the opinion that the Company
has not defaulted in repayment of dues to financial institutions, banks
or debenture holders.
12. According to the information and explanations given to us, the
Company has not given 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. Accordingly the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to
the Company.
14. In our opinion, the Company is not dealing in ortrading in shares,
securities, and debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the Company.
15. In our opinion, according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
the others from banks or financial institutions.
16. In our opinion, during the year the Company has not raised any
fresh Term loans.
17. In our opinion, according to the information and explanations
given to us and on an overall examination of statements and records of
the Company, the funds raised on short-term basis have, prima facie,
not been used during the year for long-term investment and vice versa.
18. In our opinion, according to the information and explanations
given to us, the Company has not issued debentures during the period
covered by our report. Hence, the Company is not required to
create/register/modify any security/ (Charge).
19. In our opinion, the Company has not raised any money by way of
public issue for any specific purpose during the year.
20. In our opinion, the Company has not made any preferential
allotment of shares / securities during the year to parties and
Companies covered in the register maintained under section 301 of the
Companies Act, 1956.
21. According to the information and explanations given to us and
based on audit procedures performed, no fraud on or by the Company has
been noticed during the year.
For RAMBABU & Co.,
Chartered Accountants
Firm Reg. No:002976S
Place : Hyderabad, RAVI RAMBABU
Date : 30th May, 2012. Partner
M. No.18541
Mar 31, 2011
We have audited the attached Balance Sheet of DIVYASHAKTI GRANITES
LIMITED, HYDERABAD, as at 31st March, 2011 and the Profit and Loss
Account for the year ended on that date annexed thereto and Cash Flow
statement for the year ended on that date. 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.
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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. 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, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
Further to our comments in the annexure referred to in paragraph 1
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 purpose 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, Profit & Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
iv) 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.
v) In our opinion and based on written representation received from
directors, and taken on record by the Board of Directors, none of the
Directors is disqualified as on 31st March, 2011 from being appointed
as a Director in terms of Clause (g) of sub-section (1) to Section 274
of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and other 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 so far as it relates to Balance Sheet, of the state of affairs of
the Company as at 31st March, 2011.
b) In so far as it relates to Profit and Loss Account, of the Profit of
the Company for the year ended on that date.
And
c) In so far as it relates to Cash Flow Statement, of the Cash Flows of
the Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to as in paragraph 1 of our report of even date.
1. In respect of its Fixed assets:
(a) The company has maintained proper records showing full particulars
including details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such physical verification.
(c) The company has not disposed off substantial part of the Assets
during the year. According to the information and explanations given to
us, we are of the opinion that no transactions are affected involving
disposal of assets so as to effect going concern status of the company.
2. In respect of its Inventories:
(a) As explained to us, inventories have been physically verified
during the year by the management at regular intervals. In our
opinion, the frequency of verification is reasonable.
(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) The company has maintained proper records of inventories. In our
opinion and according to the information and explanations given to us,
the discrepancies noticed on verification between the physical stocks
and the book records were not material.
3. In respect of loans secured or unsecured, granted or taken by the
company to/from Companies, firms or other parties covered in the
register maintained under section 301 of the Companies act, 1956 :
(a) The company has not taken/granted loans from/to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(b) As the Company has not taken/granted loans from/to companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956, the question of statement on the rate of
interest and other terms and conditions on which Company has
taken/granted loans from/to companies, firms or other parties listed in
the register maintained under section 301 of the Companies Act, 1956
does not arise.
(c) As the company has not taken/granted loans from/to companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956, the question of statement on the regular
payment/receipt of the principal and interest amounts as stipulated
does not arise.
(d) As the company has not taken/granted loans from/to companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956, the question of statement on the steps taken
for recovery/payment of the Principal and interest on overdue amount of
more than one lakh does not arise.
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, for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, based on our audit procedures
applied, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed 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, the 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 Rs. 5,00,000 with
parties covered above during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any Deposits from public to
which the directives issued by the Reserve Bank of India and the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 framed thereunder apply.
7. The company has an independent internal audit system commensurate
with the size and nature of its business.
8. We are informed and according to the information and explanations
given to us, that the Central government has not prescribed maintenance
of cost records under section 209(1 )(d) of the Companies Act, 1956 for
the activities of the Company.
9. In respect of its statutory dues:
(a) According to the records of the company and as per the information
and explanations given to us, the company is generally regular in
depositing with appropriate authorities undisputed Statutory dues
including Provident fund, Investor education & protection fund,
Employee's state insurance, Income tax, Sales tax, Wealth tax, Custom
duty, Excise duty, Cess and other material statutory dues 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 outstanding, as at 31st
March, 2011 for a period of more than six Months from the date they
became payable.
(c) According to the information and explanation given to us, except
the following dues which have not been deposited on account of dispute,
the company is regular in depositing Sales Tax, Income Tax, Customs
Duty, Wealth Tax, Excise Duty and Cess.
Nature of the Assessment Total Due Amount Amount Not
Statute Year (Rs. Deposited Deposited
in lakhs) (Rs. in (Rs. in
Lakhs) Lakhs)
Income Tax 2003-04 19.27 16.00 3.27
Act. 1961
Income Tax 2004-05 1.76 0.00 1.76
Income Tax 2005-06 25.63 16.00 9.63
Act. 1961
Income Tax
Act. 1961 2006-07 2726 16.00 11.26
Income Tax
Act. 1961 2007-08 3824 0.00 38.24
Income Tax 2008-09 419.89 205.00 214.89
Act. 1961
TOTAL 532.05 253.00 279.05
10. In our opinion, the company neither have accumulated losses at the
end of the year exceeding fifty percent of its net worth, nor incurred
cash losses during the financial year covered by our audit and in the
immediately preceeding financial year.
11. As per the records of the Company and according to the information
and explanations given to us, we are of the opinion that the company
has not defaulted in repayment of dues to financial institutions, banks
or debenture holders.
12. According to the information and explanations given to us, the
company has not given 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. Accordingly the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, and debentures and other investments. Accordingly,
the provisions of clause 4(xiv) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the company.
15. In our opinion, accroding to the information and explanations
given to us, the Company has not given guarantees for loans taken by
the others from banks or financial institutions.
16. In our opinion, during the year the company has not raised any
fresh term loans.
17. In our opinion, according to the information and explanations
given to us and on an overall examination of statements and records of
the company, the funds raised on short-term basis have, prima facie,
not been used during the year for long-term investment and vice versa.
18. In our opinion, according to the information and explanations
given to us, the company has not issued debentures during the period
covered by our report. Hence the Company is not required to
create/register/modify any security (Charge).
19. In our opinion, the company has not raised money by way of public
issue for any specific purpose during the year.
20. In our opinion, the Company has not made any preferential
allotment of shares/ securities during the year to parties and
companies covered in the register maintained under section 301 of the
companies act, 1956.
21. According to the information and explanations given to us and
based on audit procedures performed, no fraud on or by the Company has
been noticed during the year.
For RAMBABU & Co.,
Chartered Accountants
Firm No. : 002976 S
RAVI RAMBABU
Partner
M.No.: 18541
Place : Hyderabad
Date : 30th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of DIVYASHAKTI GRANITES
LIMITED, HYDERABAD, as at 31st March, 2010 and the Profit and Loss
Account for the year ended on that date annexed thereto and Cash Flow
statement for the year ended on that date. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 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.
Further to our comments in the annexure referred to in paragraph 1
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 purpose 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, Profit & Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account.
iv) 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.
v) In our opinion and based on written representation received from
directors, and taken on record by the Board of Directors, none of the
Directors is disqualified as on 31st March, 2010 from being appointed
as a Director in terms of Clause (g) of sub-section (1) to Section 274
of the Companies Act, 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us, the sakJ accounts read with significant
accounting policies^and other 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 so far as it relates to Balance Sheet, of the state of affairs of
the Company as at 31st March, 2010.
b) In so far as it relates to Profit and Loss Account, of the Profit of
the Company for the year ended on that date.
And
c) In so far as it relates to Cash Flow Statement, of the Cash Flows of
the Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT Referred to as in paragraph 1 of our
report of even date.
1. In respect of its Fixed assets:
(a) The company has maintained proper records showing full particulars
including details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such physical verification.
(c) The company has not disposed off substantial part of the Assets
during the year. According to the information and explanations given to
us, we are of the opinion that no transactions are affected involving
disposal of assets so as to effect going concern status of the company.
2. In respect of its Inventories:
(a) As explained to us, inventories have been physically verified
during the year by the management at regular intervals. In our
opinion, the frequency of verification is reasonable.
(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) The company has maintained proper records of inventories. In our
opinion and according to the information and explanations given to us,
the discrepancies noticed on verification between the physical stocks
and the book records were not material.
3. In respect of loans secured or unsecured, granted or taken by the
company to/from Companies, firms or other parties covered in the
register maintained under section 301 of the Companies act, 1956 :
(a) The company has not taken/granted loans from/to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(b) As the Company has not taken/granted loans from/to companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956, the question of statement on the rate of
interest and.other terms and conditions on which Company has
taken/granted loans from/to companies, firms or other parties listed in
the register maintained under section 301 of the Companies Act, 1956
does not arise.
(c) As the company has not taken/granted loans from/to companies, firms
or other parties listed in the register maintained under section 301 of
the Companies 4Pt, 1956, the question of statement on the regular
payment/receipt of the principal and interest amounts as stipulated
does not arise.
(d) As the company has not taken/granted loans from/to companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956, the question of statement on the steps taken
for recovery/payment of the Principal and interest on overdue amount of
more than one lakh does not arise.
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, for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, based on our audit procedures
applied, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the
Companies act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed 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, the 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 Rs. 5,00,000 with
parties covered above during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any Deposits from public to
which the directives issued by the Reserve Bank of India and the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 framed thereunder apply.
7. The company has an independent internal audit system commensurate
with the size and nature of its business.
8. We are informed and according to the information and explanations
given to us, that the Central government has not prescribed maintenance
of cost records under section 209(1 )(d) of the Companies Act, 1956 for
the activities of the Company.
9. In respect of its statutory dues:
(a) According to the records of the company and as per the information
and explanations given to us, the company is generally regular in
depositing with appropriate authorities undisputed Statutory dues
including Provident fund, Investor education & protection fund,
Employees state insurance, Income tax, Sales tax, Wealth tax, Custom
duty, Excise duty, Cess and other material statutory dues 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 outstanding, as at 31st
March, 2010 for a period of more than six Months from the date they
became payable.
(c) According to the information and explanation given to us, except
the following dues which have not been deposited on account of dispute,
the company is regular in depositing Sales Tax, Income Tax, Customs
Duty, Wealth Tax, Excise Duty and Cess.
Nature of the Assessment Amount
Statute Year (Rs. in Lakhs)
Income Tax Act. 1961 2003-04 19.27
Income Tax Act. 1961 2004-05 1.76
Income Tax Act. 1961 2005-06 25.63
Income Tax Act. 1961 2006-07 27.26
Income Tax Act. 1961 2007-08 38.24
Income Tax Act. 1961 2008-09 419.89
TOTAL 532.05
10. In our opinion, the company neither have accumulated losses at the
end of the year exceeding fifty percent of its net worth, nor incurred
cash losses during the financial year covered by our audit and in the
immediately preceeding financial year.
11. As per the records of the Company and according to the information
and explanations given to us, we are of the opinion that the company
has not defaulted in repayment of dues to financial institutions, banks
or debenture holders.
12. According to the information and explanations given to us, the
company has not given 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. Accordingly 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 is not dealing in or trading in
shares, securities, and debentures and other investments. Accordingly,
the provisions of clause 4(xiv) of the Companies (Auditors Report)
Order, 2003 are not applicable to the company.
15. In our opinion, accroding to the information and explanations
given to us, the Company has not given guarantees for loans taken by
the others from banks or financial institutions.
16. In our opinion, during the year the company has not raised any
fresh term loans.
17. In our opinion, according to the information and explanations
given to us and on an overall examination of statements and records of
the company, the funds raised on short-term basis have, prima facie,
not been used during the year for long-term investment and vice versa.
18. In our opinion, according to the information and explanations
given to us, the company has not issued debentures during the period
covered by our report.
19. In our opinion, the company has not raised money by way of public
issue for any specific purpose during the year.
20. In our opinion, the Company has not made any preferential
allotment of shares/ securities during the year to parties and
companies covered in the register maintained under section 301 of the
companies act, 1956.
21. According to the information and explanations given to us and
based on audit procedures performed, no fraud on or by the Company has
been noticed during the year.
For RAMBABU & Co.,
Chartered Accountants
Firm No. : 002976 S
Place : Hyderabad RAVI RAMBABU
Date . 26,h May, 2010 Partner
M.No.: 18541