Mar 31, 2023
INDEPENDENT AUDITORS'' REPORT
TO THE MEMBERS OF DOLAT ALGOTECH LIMITED (Formerly Known as Dolat Investments Limited) REPORT ON AUDIT OF STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of Dolat Algotech Limited (''the company''), which comprise the balance sheet as at 31 March 2023, and the Statement of Profit and Loss (including Other Comprehensive Income), the cash flow statement and the Statement of changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023 and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit Matter -
Accounting and Valuation of Bank Deposits
The Company''s investment under Bank Deposits grouped under Other Financial Assets and Cash and Cash Equivalent as on 31/03/2023 amount to ''6,557.80/- millions which comprises 81.83 % of total assets of the Company. Considering the high value of this item of asset it has been considered as a key audit matter.
How our audit addressed the key audit matter
⢠We obtained an understanding of the internal controls designed by the management for accounting and valuation and tested the operating effectiveness of these controls.
⢠We undertook substantive audit procedures like inspection, recalculation and reperformance.
⢠We performed procedures to identify encumbrances on these investments and verified sufficiency and appropriateness of disclosures regarding the same.
⢠We performed procedures to verify adherence to IND-AS.
Key audit Matter - Valuation of Financial Instruments
The derivative financial assets amount to ''296.82 millions and derivative financial liabilities amount to ''75.29 millions. We focused on this because of the number of contracts, their measurement and the complexity related to fair value estimation.
How our audit addressed the key audit matter
⢠We obtained an understanding of management''s process and evaluated design and tested operating effectiveness of controls around existence and measurement of derivative financial instruments.
⢠Reconciling derivative financial instruments data with data received from independent third parties.
⢠Considering the appropriateness of disclosures in relation to financial risk management and derivative financial instruments.
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in the equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015.
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 applications of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s 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. Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠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 exists related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
⢠Obtain sufficient appropriate audit evidence regarding the standalone financial information of business activities within the company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the standalone financial statements of such entities.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) 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 the paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by the company so far as it appears from our examination of those books;
c. The balance sheet, statement of profit and loss including other comprehensive income, statement of changes in equity and the cash flow statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under section 133 of the Act.
e. On the basis of the written representations received from the directors as on 31 March 2023, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023, 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. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.;
g. With respect to the matter to be included in the Auditorâs Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act read with schedule V of the Act.
h. with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to
the best of our information and according to
the explanations given to us:
i. the Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long term contract including derivative contract; as such the question of commenting on any material foreseeable losses thereon does not arise;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (i) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under IV(i) and IV(ii) above, contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.
vi. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from 1 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
UDIN: 23164370BGSBEZ4675 For V. J. Shah & Co.
Chartered Accountants Firm Registration No.: 109823W
Place: Mumbai Partner
Date: 25th May, 2023 Membership No.: 164370
Mar 31, 2021
INDEPENDENT AUDITORS'' REPORT
We have audited the accompanying standalone financial statements of Dolat Investments Limited (''the company''), which comprise the balance sheet as at 31 March 2021, and the Statement of Profit and Loss (including Other Comprehensive Income), the cash flow statement and the Statement of changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2021 and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit Matter -
Accounting and Valuation of Bank Deposits
The Companyâs investment under Bank Deposits grouped under Other Financial Assets and Cash and Cash Equivalent as on 31/03/2021 amount to ''42,350 lakhs which comprises 84.48 % of total assets of the Company. Considering the high value of this item of asset it has been considered as a key audit matter.
How our audit addressed the key audit matter
⢠We obtained an understanding of the internal controls designed by the management for accounting and valuation and tested the operating effectiveness these controls.
⢠We undertook substantive audit procedures like inspection, recalculation and reperformance.
⢠We performed procedures to identify encumbrances on these investments and verified sufficiency and appropriateness of disclosures regarding the same.
⢠We performed procedures to verify adherence to IND-AS.
Key audit Matter - Valuation of Financial Instruments
The derivative financial assets amount to ''983.23 lakhs and derivative financial liabilities amount to
''1,376.30 lakhs. We focused on this because of the number of contracts, their measurement and the complexity related to fair value estimation.
How our audit addressed the key audit matter
⢠We obtained an understanding of management''s process and evaluated design and tested operating effectiveness of controls around existence and measurement of derivative financial instruments.
⢠Reconciling derivative financial instruments data with data received from independent third parties.
⢠Considering the appropriateness of disclosures in relation to financial risk management and derivative financial instruments.
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in the equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015. 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 applications of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s 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. Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate
internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠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 exists related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
⢠Obtain sufficient appropriate audit evidence regarding the standalone financial information of business activities within the company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the standalone financial statements of such entities.
We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
OTHER MATTERS
Due to COVID-19 pandemic and lockdown & other restrictions imposed by the Government and local authorities, the audit process carried out subsequent to commencement of lockdown was based on the remote access and evidence shared digitally. Our opinion is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) 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 the paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. in our opinion proper books of account as required by law have been kept by the company so far as it appears from our examination of those books;
c. the balance sheet, statement of profit and loss including other comprehensive income, statement of changes in equity and the cash flow statement dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under section 133 of the Act.
e. on the basis of the written representations received from the directors as on 31 March 2021, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2021, 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; and
g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company does not have any pending litigations which would impact its financial position. -Refer Note No.29 of Notes to Accounts for other litigations.
ii. the Company did not have any long term contract including derivative contract; as such the question of commenting on any material foreseeable losses thereon does not arise;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
UDIN: 21164370AAAADC8951 For V. J. Shah & Co.
Chartered Accountants Firm Registration No.: 109823W
Place: Mumbai Partner
Date: 18th May, 2021 Membership No.: 164370
Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
TO THE MEMBERS OF DOLAT INVESTMENTS LTD.
REPORT ON THE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of Dolat Investments Limited (''the company''), which comprise the balance sheet as at 31 March 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the cash flow statement and the Statement of changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE IND AS 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 and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in the equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards(Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015.
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 applications of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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 standalone 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 Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone 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 misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018 and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. in our opinion proper books of account as required by law have been kept by the company so far as it appears from our examination of those books;
c. the balance sheet, statement of profit and loss including other comprehensive income, statement of changes in equity and the cash flow statement dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under section 133 of the Act.
e. on the basis of the written representations received from the directors as on 31 March 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 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; and
g. with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company does not have any pending litigations which would impact its financial position except as disclosed in point no 31 of the standalone financial statements;
ii. the Company did not have any long term contract including derivative contract; as such the question of commenting on any material foreseeable losses thereon does not arise;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Auditors'' Report to the members of the Company on the standalone Financial Statements for the year ended 31st March, 2018, we report that:
i. a. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The fixed assets have been physically verified by the management as per a phased programme of verification. In our opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of its assets. The discrepancies reported on such verification are not material and have been property dealt with in the books of accounts.
c. According to the information and explanations received by us, as the company owns no immovable properties, the requirement on reporting whether title deeds of immovable properties held in the name of the company is not applicable.
ii. a. The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.
b. As explained to us, there is no material discrepancy noticed on physical verification of inventory as compared to book record.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, limited liabilities partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013 and therefore para 3(iii) of the Order is not applicable.
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 Act, with respect to the loans and investments made.
v. According to the information and explanation given to us and on the basis of our examination of the records of the company, the company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services rendered by the Company.
vii. a. According to the information and explanation given to us and on the basis of our examination of the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, custom duty, value added tax, excise duty, cess and other statutory dues applicable to it.
b. According to information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, custom duty, value added tax, excise duty, cess and other statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
c. According to the information and explanations given to us, there are no material dues including provident fund, employees state insurance, sales tax, custom duty, value added tax, excise duty, cess and other statutory dues which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax have not been deposited by the Company on account of disputes:
Name of the statute |
Nature of the dues |
Amount of Tax ('') |
Period to which amount relates |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Income Tax |
60,47,439/- |
A.Y. 2010-2011 |
CIT (A) |
The Income Tax Act, 1961 |
Income Tax |
8,37,770/- |
A.Y. 2011-2012 |
ITO |
The Income Tax Act, 1961 |
Income Tax |
37,395/- |
A.Y. 2016-2017 |
ITO |
viii. The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
x. According to the information and explanations given to us, no material fraud by company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. According to the information and explanation provided to us and based on our examination of the records of the company, the company has applied for obtaining certificate of registration under section 45-IA of the Reserve Bank of India Act 1934 and the same is under process.
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB-SECTION 143 OF THE COMPANIES ACT, 2013 ("the Actâ)
We have audited the internal financial controls over financial reporting of Dolat Investments Limited (''the companyâ), as of 31 March 2018, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). 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.
AUDITORS'' 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 system over financial reporting and their operating effectiveness. Our Audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company ; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the Ind AS financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 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.
For V. J. Shah & Co.
Chartered Accountants
Firm Registration Number: 109823W
Chintan V. Shah
Place: Mumbai Partner
Date: 17th May, 2018 Membership No.: 164370
Mar 31, 2016
TO THE MEMBERS OF DOLAT INVESTMENTS LTD.
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Dolat Investments 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.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes 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 applications of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
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 31st March, 2016 and its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) 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 the paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. in our opinion proper books of account as required by law have been kept by the company so far as it appears from our examination of those books;
c. the balance sheet, 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 the written representations received from the directors as on 31 March 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016, from being appointed as a director in terms of section 164(2) of the Act ;
f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ ; and
g. with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :
i. the Company does not have any pending litigations which would impact its financial position;
ii. the Company did not have any long term contract including derivative contract ; as such the question of commenting on any material foreseeable losses thereon does not arise;
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 AUDITORS'' REPORT
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the Financial Statements for the year ended 31st March, 2016, we report that :
i. a. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The fixed assets have been physically verified by the management as per a phased programme of verification. In our opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of its assets. The discrepancies reported on such verification are not material and have been property dealt with in the books of accounts.
c. According to the information and explanations received by us, as the company owns no immovable properties, the requirement on reporting whether title deeds of immovable properties held in the name of the company is not applicable.
ii. a. The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.
b. As explained to us, there is no material discrepancy noticed on physical verification of inventory as compared to book record.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, limited liabilities partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013 and therefore para 3(iii) of the Order is not applicable.
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 Act, with respect to the loans and investments made.
v. According to the information and explanation given to us and on the basis of our examination of the records of the company, the company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services rendered by the Company.
vii. a. According to the information and explanation given to us and on the basis of our examination of the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, custom duty, value added tax, excise duty, cess and other statutory dues applicable to it.
b. According to information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, custom duty, value added tax, excise duty, cess and other statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.
c. According to the information and explanations given to us, there are no material dues including provident fund, employees state insurance, sales tax, custom duty, value added tax, excise duty, cess and other statutory dues which have not been deposited with the appropriate authorities on account of any dispute . However, according to information and explanations given to us, the following dues of income tax have not been deposited by the Company on account of disputes:
Name of the statute |
Nature of the dues |
Amount of Tax (Rs.) |
Period to which amount relates |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Income Tax |
32,72,650/- |
A.Y. 2009-2010 |
ACIT, Mumbai |
The Income Tax Act, 1961 |
Income Tax |
60,47,440/- |
A.Y. 2010-2011 |
CIT, Mumbai |
The Income Tax Act, 1961 |
Income Tax |
2,92,50,050/- |
A.Y. 2013-2014 |
CPC |
viii. The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
x. According to the information and explanations given to us, no material fraud by company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. According to the information and explanation given to us and based on our examination of the records of the company, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE - B TO THE AUDITORS'' REPORT
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB-SECTION 143 OF THE COMPANIES ACT, 2013 ("the Actâ)
We have audited the internal financial controls over financial reporting of Dolat Investments Limited (''the companyâ), as of 31 March 2016, in conjunction with our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). 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 system over financial reporting and their operating effectiveness. Our Audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Sundarlal, Desai & Kanodia
Chartered Accountants
Firm registration number: 110560W
Mukul B. Desai
Place: Mumbai Partner
Date: 27th May, 2016 Membership No.: 33978
Mar 31, 2015
We have audited the accompanying financial statements of DOLAT
INVESTMENTS LTD. ("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 the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company*s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, 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 of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor*s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder. We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor*s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company*s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company*s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2015,
b) In case of Statement of Profit & Loss, of the profit for the year
ended on that date and
c) In case of Cash Flow Statement, of the cash flows for the year ended
on the date.
Report on Other Legal and Regulatory Requirements
As required by 'the Companies (Auditor*s Report) Order, 2015*, issued by
the Central Government of India in terms of sub section (11) of section
143 of the Act (hereinafter referred to as the "Order") 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
paragraph 3 and 4 of the Order.
As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow 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 the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) In our opinion and to the best of our information and according to
the explanation given to us, we report as under with respect to other
matters to be included in the Auditor*s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014;
i. The Company does not have any pending litigations which would
impact its financial position
ii. The Company did not have any long term contract including
derivative contract ; as such the question of commenting on any
material foreseeable losses thereon does not arise
iii. There has been no delay in transferring amount, required to be
transferred to the investor education and protection fund by the
Company during the year.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
Re: Dolat Investments Ltd. (the company)
I. Fixed Assets
a. The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. All fixed assets have been physically verified by the management
during the year and there is a regular programme of verification 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 verification
II. Inventories
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to size of the
company and the nature of its business.
c) The company is maintaining proper records of the inventory. As
explained to us, there is no material discrepancy noticed on physical
verification of inventory as compared to book records.
III. As per the information and explanation given to us, the company
has not granted any loans, secured or unsecured, to companies, firms or
other parties covered in the register maintained u/s 189 of the
Companies Act, 2013. Accordingly, the provisions of clause (iii) (a) &
(b) of the Companies (Auditors* Report) Order 2015 are not applicable
to the Company.
IV. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regards to purchase of goods and with regards to sale of
goods. During the course of our audit we have not observed any
continuing failure to correct major weakness in internal controls.
V. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from public.
VI. In our opinion and as per the information and explanation given to
us the Central Government has not prescribed for the maintenance of any
cost records under sub section (1) of section 148 of the Companies Act,
2013 for any product of the company.
VII. Statutory & other Dues
a) According to the records of the company, undisputed statutory dues
including provident fund, employees state insurance, income tax, sales
tax, wealth tax, custom duty, service tax, excise duty, value added
tax, cess and other material statutory dues applicable to it have
generally been regularly deposited with the appropriate authorities.
b) According to the information and explanations given to us,
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, Service Tax and excise duty were not outstanding as
at balance sheet date for a period of more than six months from the
date they became payable except Rs. 2,29,630/- related to income tax
demand of Asst. Yr. 2010-2011 which has been paid after balance sheet
date.
c) On the basis of our examinations of the documents and records,
company does not have any disputed statutory dues in respect of wealth
tax, sales tax, custom duty, Service Tax, excise duty and value added
tax which have not been deposited with the appropriate authorities.
However in case of income tax, cases are pending on account of
rectification filed before the Income Tax Department,Mumbai
Name of the Nature of Amount of Period to which Forum
statute the dues Tax (Rs.) amount relates where dis-
pute is
pending
The Income Tax Income Tax 32,72,650/- A.Y. 2009-2010 ACIT,
Act, 1961 Mumbai
The Income Tax Income Tax 6,33,250/- A.Y. 2012-2013 DCIT,
Act, 1961 Mumbai
d) There has been no delay in transferring amount, required to be
transferred to the investor education and protection fund by the
Company during the year
VIII. In our opinion, the company has not accumulated losses at the end
of the financial year. The Company has not incurred cash loss during
the year covered by our audit but has incurred cash losses in the
immediately preceding financial year.
IX. Based on our audit procedure and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions, banks and
debenture holders.
X. In our opinion, the company has not given guarantee for loans taken
by others from banks or financial institutions.
XI. According to the information and explanations given to us, the
company has not taken any term loan during the year.
XII. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For Sundarlal, Desai & Kanodia
Chartered Accountants
Firm registration number: 110560W
Mukul B. Desai
Partner
Membership No.: 33978
Place: Mumbai
Date: 29th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Dolat
Investments Limited (the company), which comprise the balance sheet as
at 31 March 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 principles generally accepted in India, including
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 presenta- tion 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 con- ducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error In making those risk assessments, the auditor
considers internal control relevant to the com- pany''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 ef- fectiveness 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 evi- dence 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 31 March 2014.
b. In the case of the statement of profit and loss, of the loss for the
year ended on that date, and
c. In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
Without qualifying our report we draw attention to
The Company has unsettled exposure for various commodities trade
through NSEL/broker. As no phys- ical stock is received from/through
NSEL by the company, the cost/amount paid by company is written off as
business loss while determining stock in trade as on 31.03.2014. Amount
received by the com- pany towards disputed transaction on platform of
NSEL is offered as income and shown under income from operation. The
detailed note on subject is given at note no 26 of Notes to Financial
Statements for the year ended 31st March, 2014.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the balance sheet, statement of profit and loss, and
cash flow statement com- ply with the accounting standards referred to
in sub-section (3C) of section 211 of the Com- panies Act, 1956.
e. On the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Independent Auditors'' Report to the Members of Dolat Investments
Limited Annexure referred to in paragraph 1 under the heading "Report
on other legal and regulatory require- ments" of our report of even
date Re: Dolat Investments Limited (the company)
i. a. The company has maintained proper records showing full partic
-ulars, including quantitative details and situation of fixed assets.
b. All fixed assets have been physically verified by the management
during the year and there is a regular programme of verification 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 verification.
c. There was no disposal of a substantial part of fixed assets during
the year
ii. a. The inventory (being shares, securities & commodities) has been
physically verified (wherever possible) during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion & according to information & explanation given to us,
the procedures of physical verification of inventories wherever
possible 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 is maintaining proper records of inventory.
Discrepancies noted on physical veri- fication of inventories were not
material, except for transactions on National Spot Exchange Ltd (NSEL)
platform.
iii. a. According to the information and explanations given to us, the
company has not taken or granted any loans, secured or unsecured from/
to companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b. We do not have any comment under clause 4(iii)(b), (c), (d), (f) &
(g) of the Companies (Audi- tor''s report ) Order, 2003 as the company
has not borrowed or advanced any loan from/ to par- ties listed in
register u/s. 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there is an ad- equate internal control system
commensurate with the size of the company and the nature of its
business, for the purchase of inventory (being shares, securities &
commodities) and fixed assets and with regards to the trading of
shares, securities & commodities. During the course of our audit, we
have not observed any major weakness or continuing failure to correct
any major weakness in the internal control system of the company in
respect of these areas.
v. a. According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts
or arrangements referred to in section 301 of the Com- panies Act,
1956 that need to be entered into the register maintained under
section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. five lakhs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. Based on our scrutiny of the company''s records and according to
information and explanation provided by the management, in our opinion
the company has not accepted any public deposit.
vii. In our opinion, the company is having an internal audit system
commensurate with the size and nature of its business.
viii. In our opinion, Rules made by the Central Government for the
maintenance of any cost records u/s 209 (1) (d) of the Companies Act,
1956 are not applicable to the Company.
ix. a. The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues wherever applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance,
income-tax, wealth-tax, service tax, sales-tax, customs duty, excise
duty, cess and other material statutory dues wherever applicable were
outstanding, at the year end, for a period of more than six months from
the date they became payable.
c. According to the information and explanations given to us, there are
no dues of sales tax, cus- toms duty, wealth tax, excise duty, service
tax and cess wherever applicable which are in dis- pute. However in
case of Income Tax, case is pending on account of rectification filed
before the Asst. Commissioner of Income Tax, Mumbai.
Name of the Nature of the Amount of Tax (Rs.) Period to which
statute dues amount relates
The Income Tax Income tax 32,72,650/- A.Y. 2009-2010
Act, 1961 ''
Name of the statue Forum where dispute is pending
the Income tax ACIT, Mumbai
Act 1961
x. The company has no accumulated losses at the end of the financial
year and it has incurred cash losses in the current financial year but
not in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii. According to the information and explanations given to us and
based on the documents and records produced before us, the company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the company.
xiv. In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. The shares, debentures and other securities have been held by
the Company, in its own name.
xv. According to the information and explanations given to us, the
Company has not given any guar- antee for loan taken by others from
banks or financial institutions.
xvi. According to the information and explanations given to us, the
Company has not raised any term loans during the financial year under
audit.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii. According to the information and explanations given to us, the
company has not made any pref- erential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act 1956.
xix. According to the information and explanations given to us, the
Company has not issued any se- cured debentures during the period
covered by our report. Accordingly, the provisions of para 4(xix) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to
the Company.
xx. During the period covered by our audit report, the Company has not
raised any money by public issues.
xxi. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the manage- ment, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit except related to commodities transactions on
National Spot Exchange Ltd (NSEL) platform.
For Sundarlal, Desai & Kanodia
Chartered Accountants
Firm registration number: 110560W
Mukul B. Desai
Partner
Membership No.: 33978
Place: Mumbai
Date: 29th May, 2014
Mar 31, 2013
Report on the financial statements
We have audited the accompanying financial statements of Dolat
Investments Limited (the company), which comprise the balance sheet as
at 31 March 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 principles generally accepted in India, including
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 judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. In the case of the balance sheet, of the state of affairs of the
company as at 31 March 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 regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the balance sheet, statement of profit and loss,
and cash flow statement comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Auditors'' report to the members of Dolat Investments Limited
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
Re: Dolat Investments Limited (the company)
i. a. The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. All fixed assets have been physically verified by the management
during the year and there is a regular programme of verification 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 verification.
c. There was no disposal of a substantial part of fixed assets during
the year.
ii. a. The inventory (being shares, securities & commodities) has
been physically verified (wherever possible) during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. 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 is maintaining proper records of inventory.
Discrepancies noted on physical verification of inventories were not
material.
iii. a. According to the information and explanations given to us,
the company has not taken or granted any loans, secured or unsecured
from/to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
b. We do not have any comment under clause 4(iii)(b), (c), (d), (f) &
(g) of the Companies (Auditor''s report ) Order, 2003 as the company has
not borrowed or advanced any loan from/ to parties listed in register
u/s. 301 of the Companies Act, 1956.
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, for the
purchase of inventory (being shares, securities & commodities) and
fixed assets and with regards to the trading of shares, securities &
commodities. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
v . a. According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. five lakhs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. Based on our scrutiny of the company''s records and according to
information and explanation provided by the management, in our opinion
the company has not accepted any public deposit.
vii. In our opinion, the company is having an internal audit system
commensurate with the size and nature of its business.
viii. In our opinion, Rules made by the Central Government for the
maintenance of any cost records u/s 209 (1) (d) of the Companies Act,
1956 are not applicable to the Company.
ix. a. The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees'' state
insurance, income-tax, sales-tax, wealth-tax, service tax, customs
duty, excise duty, cess and other material statutory dues wherever
applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other material statutory dues wherever applicable were outstanding, at
the year end, for a period of more than six months from the date they
became payable.
c. According to the information and explanations given to us, there
are no dues of sales tax, customs duty, wealth tax, excise duty,
service tax and cess wherever applicable which are in dispute. However
in case of Income Tax, case is pending on account of rectification
filed before the Asst. Commissioner of Income Tax, Mumbai.
Name of the Nature of Amount of Period to which Forum where
dispute is
statute the dues Tax (Rs.) amount relates pending
The Income
Tax Income Tax 32,72,650/- A.Y. 2009-2010 ACIT, Mumbai
Act, 1961
x. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii. According to the information and explanations given to us and
based on the documents and records produced before us, the company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the company.
xiv. In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. The shares, debentures and other securities have been held by
the Company, in its own name.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from banks
or financial institutions.
xvi. According to the information and explanations given to us, the
Company has not raised any term loans during the financial year under
audit.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act 1956.
xix. According to the information and explanations given to us, the
Company has not issued any secured debentures during the period covered
by our report. Accordingly, the provisions of para 4(xix) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xx. During the period covered by our audit report, the Company has not
raised any money by public issues.
xxi. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Sundarlal, Desai & Kanodia
Chartered Accountants
Firm registration number: 110560W
Mukul B. Desai
Partner
Membership No.: 33978
Place: Mumbai
Date: 24th May 2013
Mar 31, 2012
We have audited the accompanying financial statements of Dolat
Investments Limited (the company), which comprise the balance sheet as
at 31 March 2012, 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 principles generally accepted in India, including
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 (Ãthe ActÃ). 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 judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. In the case of the balance sheet, of the state of affairs of the
company as at 31 March 2012.
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 regulatory requirements
1. As required by the Companies (Auditor's Report) Order, 2003 (Ãthe
OrderÃ) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
c. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the balance sheet, statement of profit and loss,
and cash flow statement comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on 31 March 2012, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2012, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Auditors' report to the members of Dolat Investments Limited
Annexure referred to in paragraph 1 under the heading ÃReport on
other legal and regulatory requirementsà of our report of even date
Re: Dolat Investments Limited (the company)
i. a. The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. All fixed assets have been physically verified by the management
during the year and there is a regular programme of verification 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 verification
c. There was no disposal of a substantial part of fixed assets during
the year.
ii. a. The inventory (being shares, securities & commodities) has been
physically verified (wherever possible) during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. 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 is maintaining proper records of inventory.
Discrepancies noted on physical verification of inventories were not
material.
iii. a. According to the information and explanations given to us, the
company has not taken or granted any loans, secured or unsecured
from/to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
b. We do not have any comment under clause 4(iii)(b), (c), (d), (f) &
(g) of the Companies (Auditor's report) Order, 2003 as the company
has not borrowed or advanced any loan from/ to parties listed in
register u/s. 301 of the Companies Act, 1956.
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, for the
purchase of inventory (being shares, securities & commodities) and
fixed assets and with regards to the trading of shares, securities &
commodities. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
v. a. According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. five lakhs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. Based on our scrutiny of the company's records and according to
information and explanation provided by the management, in our opinion
the company has not accepted any public deposit.
vii. In our opinion, the company is having an internal audit system
commensurate with the size and nature of its business.
viii. In our opinion, Rules made by the Central Government for the
maintenance of any cost records u/s 209 (1) (d) of the Companies Act,
1956 are not applicable to the Company.
ix. a. The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees' state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues wherever applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance,
income-tax, wealth-tax, service tax, sales-tax, customs duty, excise
duty, cess and other material statutory dues wherever applicable were
outstanding, at the year end, for a period of more than six months from
the date they became payable.
c. According to the information and explanations given to us, there
are no dues of income tax, sales tax, customs duty, wealth tax, excise
duty, service tax and cess wherever applicable which are in dispute.
x. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii. According to the information and explanations given to us and
based on the documents and records produced before us, the company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the company.
xiv. In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. The shares, debentures and other securities have been held by
the Company, in its own name.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from banks
or financial institutions.
xvi. According to the information and explanations given to us, the
Company has not raised any term loans during the financial year under
audit.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act 1956.
xix. According to the information and explanations given to us, the
Company has not issued any secured debentures during the period covered
by our report. Accordingly, the provisions of para 4(xix) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
xx. During the period covered by our audit report, the Company has not
raised any money by public issues.
xxi. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Sundarlal, Desai & Kanodia
Chartered Accountants
Firm registration number: 110560W
Mukul B. Desai
Partner
Membership No.: 33978
Place: Mumbai
Date: 30th July 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of DOLAT INVESTMENTS
LIMITED as at 31st March, 2011 and the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date. These financial
statements are responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 accounts as required by law have
been kept by the Company so far as appears from our examination of such
books.
(c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) in our opinion, the Balance Sheet, Profit and 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.
(e) on the basis of the written representations received from the
directors as on 31st March 2011 and taken on record by the Board of
Directors, we report that 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) of section 274 of the Companies Act, 1956.
5. 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.
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011
(ii) In the case of Profit and Loss Account, of the profit for the year
ended on that date, and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors' Report
Annexure referred to in paragraph 3 of our report of even date to the
members of Dolat Investments Limited on the financial statement for the
year ended 31 March, 2011
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification.
(c) There was no substantial disposal of fixed assets during the
period.
(ii) (a) The inventory being share, securities and commodities has been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
(b) 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 is maintaining proper records of the inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) As informed, the Company has not taken or granted any loans,
secured or unsecured, to/from Companies, firms or other parties listed
in the register maintained under Section 301 of the Companies Act,
1956.
(b) We do not have any comment under para 4(iii)(b), (c), (d), (f) &
(g) as company has not borrowed or advanced any loan from/to parties
listed in Register u/s.301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered into a Register in pursuance of Section 301 of
the Companies Act, 1956 and those brought to our notice, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the period have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) Based on our scrutiny of the company's records and according to
the information and explanations provided by the management, in our
opinion, the company has not accepted any loans or deposits which are
Ãdeposits' within the meaning of Rule 2(b) of the Companies (Acceptance
of Deposit's) Rules, 1975 during the year.
(vii) In our opinion, the company is having an internal audit system
commensurate with the size and nature of its business.
(viii) In our opinion Rules made by the Central Government for the
maintenance of any cost records u/s 209 (1) (d) of the Companies Act,
1956 are not applicable to the Company.
(ix) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education Protection Fund, ESIC, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other
material statutory dues, wherever 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, custom duty, excise duty, service tax and cess were in arrears, as
at 31st March, 2011 for a period of more than six months.
(c) According to the information and explanations given to us, there
are no dues of income tax, sales tax, customs duty, wealth tax, excise
duty, service tax and cess which are in dispute.
(x) In our opinion, there are no accumulated losses of the company. The
company has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advance on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company has not dealt/traded in debentures during the
year and in respect of shares, securities and other investments, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. The shares, securities,
debentures and other investments as the case may be have been held by
the Company in its own name.
(xv) 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.
(xvi) According to the information and explanations given to us, the
Company has not raised any term loans during the financial year under
audit.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii)According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures during the period covered
by our report.
(xx) During the period covered by our audit report, the Company has not
raised any money by public issues.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit
For SUNDARLAL, DESAI & KANODIA
CHARTERED ACCOUNTANTS
Firm Registration No. 110560W
(MUKUL DESAI)
PARTNER
(Membership No. 33978)
Place : Mumbai
Date : 1st August, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of DOLAT INVESTMENTS
LIMITED as at 31st March, 2010 and the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date. These financial
statements are responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 accounts as required by law have
been kept by the Company so far as appears from our examination of such
books.
(c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) in our opinion, the Balance Sheet, Profit and 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.
(e) on the basis of the written representations received from the
directors as on 31 st March 2010 and taken on record by the Board of
Directors, we report that 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) of section 274 of the Companies Act, 1956.
5. 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.
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010
(ii) In the case of Profit and Loss Account, of the profit forthe year
ended on that date, and
(iii) In the case of the Cash Flow Statement, of the cash flows forthe
year ended on that date.
Annexure to the Auditors Report
Annexure referred to in paragraph 3 of our report of even date to the
members of Dolat Investments Limited on the financial statement for the
year ended 31 March, 2010
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification.
(c) There was no substantial disposal of fixed assets during the
period.
(ii) (a) The inventory being share, securities and commodities has been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
(b) 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 is maintaining proper records of the inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) As informed, the Company has not taken or granted any loans,
secured or unsecured, to/from Companies, firms or other parties listed
in the register maintained under Section 301 of the Companies Act,
1956.
(b) We do not have any comment under para 4(iii)(b), (c), (d), (f) &
(g) as company has not borrowed or advanced any loan from/to parties
listed in Register u/s.301 of the Companies Act. 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal
control procedures commensurate with the size of the company and the
nature of its business with regard to purchases of inventory, fixed
assets and with regard to the sale of goods. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered into a Register in pursuance of Section 301 of
the Companies Act, 1956 and those brought to our notice, have been so
entered:
(b) In our opinion and according to the information and explanations
given to us, the transactions in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the period have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) Based on our scrutiny of the companys records and according to
the information and explanations provided
by the management, in our opinion, the company has not accepted any
loans or deposits which are deposits within the meaning of Rule 2(b)
of the Companies (Acceptance of Deposits) Rules, 1975 during the year.
(vii) In our opinion, the company is having an internal audit system
commensurate with the size and nature of its business.
(viii) In our opinion Rules made by the Central Government for the
maintenance of any cost records u/s 209 (1) (d) of the Companies Act,
1956 are not applicable to the Company.
(ix) (a) The company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education Protection Fund, ESIC, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, Service Tax, 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, custom duty, excise duty, service tax and cess were in arrears, as
at 31 st March, 2010 for a period of more than six months.
(c) According to the information and explanations given to us, there
are no dues of income tax, sales tax, customs duty, wealth tax, excise
duty, service tax and cess which are in dispute.
(x) In our opinion, there are no accumulated losses of the company.
The company has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advance on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company has not dealt/traded in debentures during the
year and in respect of shares, securities and other investments, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. The shares, securities,
debentures and other investments as the case may be have been held by
the Company in its own name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
bankorfinancial institutions.
(xvi) According to the information and explanations given to us, the
Company has not raised any term loans during the financial year under
audit.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the CompaniesAct, 1956.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures during the period covered
by our report.
(xx) During the period covered by our audit report, the Company has not
raised any money by public issues.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair vjew of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit
For SUNDARLAL, DESAI & KANODIA
CHARTERED ACCOUNTANTS
Firm Registration No. 110560W
(MUKUL DESAI)
PARTNER
(Membership No. 33978)
Place: Mumbai
Date: 3rd August, 2010