Mar 31, 2023
Quint Digital Media Limited (formerly known as Gaurav Mercantiles Limited)
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Quint Digital Media Limited (formerly known as Gaurav Mercantiles Limited) (âthe Company''), which comprise the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.
2. 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 Companies Act, 2013 (âthe Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (âInd AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
3. We conducted our audit in accordance with the Standards on Auditing 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 (âICAI'') together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. 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 financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5. We have determined the matter described below to be the key audit matter to be communicated in our report.
Key audit matter |
How our audit procedures addressed the key audit matter |
A. Capitalisation and amortisation of content development cost (Refer note 2.2(b) for the accounting policy and note 46 for the disclosures made in the accompanying standalone financial statements) The Company provides digital media services to its customers by developing diverse digital content such as videos, articles and documentaries, which is monetised by the Company over various digital platforms. The Company has assessed that such digital media content meets the recognition criteria as per Ind AS 38, Intangible Assets. The cost incurred in content development includes scripting, editing, visual effects and quality check and the process to record such costs requires various estimates to be made by the management which involves significant judgement to be exercised and is dependent on various internal and external factors such as establishing basis for shooting and editing costs, determining direct and indirect costs and further allocating the direct expenses to short term or long-term projects, based on actual number of employee hours incurred on the projects. |
Our audit procedures relating to capitalization and amortization of content development cost included, but were not limited to the following: a) Evaluated the appropriateness of accounting policy for capitalization and amortization of such cost in terms of accounting principles enunciated under Ind AS 38. b) Obtained an understanding from the management, evaluated the design and implementation of Company''s key internal controls in respect of capitalization and amortization of such cost and tested the operating effectiveness of such controls throughout the year. c) Reviewed the capitalization workings such as direct costs allocated to long-term projects and performed re-computation of amortisation workings as per the accounting policy. d) Tested historical viewing patterns used in determining amortisation policy and evaluated the appropriateness of the same. e) Performed substantive analytical procedures which included quarter on quarter trend analysis considering both qualitative and quantitative factors to identify any unusual trends or any unusual items. |
Key audit matter |
How our audit procedures addressed the key audit matter |
The aforesaid, cost capitalised as content development is amortised based on historical and estimated viewing patterns which involves inherent estimation uncertainty. Considering the materiality of the amounts involved, and high degree of subjectivity relating to management judgement and estimates that required significant auditor attention, we have identified this as a key audit matter in the current year audit. |
f) Performed sensitivity analysis of certain key assumptions such as hourly rates and language conversion costs pertaining to time cost of employees capitalized to determine the impact of estimation uncertainty. g) Performed substantive testing of cost capitalised by reviewing the underlying supporting documents such as shooting, editing and travel invoices to confirm the accuracy of amount capitalised; and h) Evaluated the appropriateness of disclosures made in the standalone financial statements in accordance with the applicable accounting standards. |
Information other than the Financial Statements and Auditorâs
Report thereon
6. The Company''s Board ofDirectors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Report on Corporate Governance and Directors'' Report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will 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 identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
7. The accompanying standalone financial statements have been approved by the Company''s Board of Directors. The Company''s Board of Directors are responsible for the matters stated in section 134(5) of the Act 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, changes in equity and cash flows of the Company in accordance with the Ind AS specified
under section 133 of the Act and other accounting principles generally accepted in India. 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.
8. In preparing the financial statements, the Board of Directors are 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 the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the StandaloneFinancial Statements
10. Our objectives are to obtain reasonable assurance about whether the 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 Standards on Auditing 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 financial statements.
11. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the 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 control;
⢠Obtain an understanding of internal control 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 with reference to financial statements 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 Board of Directors'' 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 Company''s ability 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 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
12. 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.
13. 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.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 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.
Report on Other Legal and Regulatory Requirements
15. As required by section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.
16. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Order'') issued by the Central Government of India in terms of section 143(11) of the Act we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
17. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the accompanying standalone financial statements;
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 standalone financial statements dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
e) On the basis of the written representations received from the directors and 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 with reference to financial statements of the Company as on 31 March 2023 and the operating effectiveness of such controls, refer to our separate Report in Annexure II wherein we have expressed an unmodified opinion; 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 (as amended), 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 as at 31 March 2023;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2023;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31 March 2023;
iv. a. The management has represented that, to the
best of its knowledge and belief as disclosed in note 48 (h) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (âthe intermediaries''), 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 (âthe Ultimate Beneficiaries'') or provide any
guarantee, security or the like on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief as disclosed in note 48 (i) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âthe Funding Parties''), 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 Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under subclauses (a) and (b) above contain any material misstatement.
v. The Company has not declared or paid any dividend during the year ended 31 March 2023.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which use accounting software for maintaining their books of account, to use such an accounting software which has a feature of audit trail, with effect from the financial year beginning on 1 April 2023 and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 (as amended) is not applicable for the current financial year.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm''s Registration No.: 001076N/N500013
Jyoti Vaish
Partner
Membership No.: 096521
UDIN: 23096521BGYVYQ7299
Place: Noida
Date: 30 May 2023
Mar 31, 2015
We have audited the accompanying financial statements or GAURAV
MERCANTILES LIMITED the Company"), which comprise the Balance Sheet as
at March 31. 2015. the Statement of Profit and Loss, the Cash Flow
Statement, and a summary of me significant accounting policies' and
other explanatory information for the year then ended.
Management's responsibility for the financial statements:
The Company's Board of Directors is responsible for the matters stated
in Section '34(5) of the Companies Act, 2013 (the Act') with respect of
the preparation of thane financial statements that give to true and
fair view of the financial position, financial performance and cash
flows of the Company in according with the accounting principles
generally accented in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. Tills 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 deled any frauds and other irregularities selection
and application of appropriate accounting policies' making judgments and
estimates that are ma son able and prudent and design, implementation
and maintenance of adequate internal financial control s, that were
Operating effective for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
these financial statements that gives a true and fair view and free
from material misstatement. whether due to fraud of error.
Auditor's responsibility:
Our responsibility is to express an opinion on these financial
statements based or our audit.
We have taken into account me provisions of the Act, the accounting and
auditing standards and matters which are required to be included if the
audit report under the provisions of the Act and The Pulse made
hereunder.
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 critical 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 enclosures in the financial statements. The
procedures selected opened on the auditor's judgment, Including the
assessment of the risks off material misstatement of the financial
statements, whether cue to fraud of 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 of order to design audit procedures that are
appropriate in the circumstance, but not for the purpose of expressing
an opinion on which the' the Company has in place an adequate Internal
financial control s system over financial reporting and the operating
effectiveness of such control s. An audit also includes evaluating the
appropriateness of the accounting policies' used and the reasonableness
of the accounting estimates life by the Company's Board of 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 nor is formation and according :o the
explanations given to us, the aforesaid financial statements give the
informal ion required by the Act in the manner so required and give a
true and fair view in. conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015. and its profit and its cash flows for the year ended
on that date.
Report on other Legal and Regulatory requirements:
1. As required by the Companies (Auditor's Report) Order. 2015 (the
Order) issued by the Central Government of India in terms of section
143(11) of the Act we give in the Annexure a statement on the matters
specified In paragraphs 3 and 4 of the Order,
2. As required by section 1-13(3) of the Act, we report that:
a) We have sought and drained 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 Comply, so far an appeal/s from our carination of those
books :
c) The Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of accounts.
d) In our opinion. the aforesaid financial statements comply with the
Accounting Standards specify under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations receive from the directors
as on March, 31st 2015, and taken on record by the Board of Directors
and non of the Directors is disqualified as on March, 31st 2015, from
being appointment as a director in terms of section 164(2) of the Act.
f) With respect to the other matters to be Included or the Auditor
Report or accordance with Rule 11 of the Companies (Audit, and
Auditors) Rules, 2014, in our opinion and to the best of our
information and acting to the explanations given to us.
i) The Company has described the impact of pending litigations on its
financial position in its financial statements as of March 31, 2015;
ii) The Company did not have any long-term contracts including
derivatives contrasts for when there warn any material foreseeable
losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the investor Education and Protection Fund by the
Company,
ANNEXURE TO THE AUDITORS' REPORT.
Referred to in paragraph A of the Auditors Report to the members of Ms
Gaurav Mercantile United on the Accounts for the year ended 31st March
2015.
(i) (a) The company has maintained proper records showing full
particulars. including qualitative profits and situation of fixed
assets;
(b) As explained to its, the Company has a programmed of physically
verifying all of its fixed assets once it a period of the years, and m
accordance there with major portion of fixed assets were physically
verified by the management during the year. In our opinion. the
decency verification is reasonable having regard to the size of the
company end The nature of its assets. The discrepancies noticed on such
verification were not material and have been properly dealt with In the
books of accounts,
(c) During the year no substantial part of fixed assets have been
disposed of by the company.
(ii) (a) As explained to us, the company coes not have any inventory in
the current financial year.
(b) As there is no Stock of inventory of the company during the year,
this procedures of physical verification and maintenance or records of
inventories Is not applicable to the company.
[iii) The Company has not granted any loan, securer or unsecured, to
companies, firms Dr other parties cowered" in the register maintained
under section 169 of the Act. Therefore, clauses (iii) (a) are (iii)
(b) of paragraph 3 of the said order are not applicable to the Company.
(iv) On the basis of information ' arid explanations given to us, we are
of the opinion the Company has an adequate internal control procedure
commensurate with the size of the company and the nature of its
business tor the purchase of inventory, fixed assets and for the sale
of goons and services. During the course of our audit, we have not
observe any continuing failure to control major weaknesses in internal
control s.
(v) In our opinion and according to the information ' and expiations
given to us, the Company has not accented any deposits during the year
and does not pairs any unclaimed deposits. Therefore, the provisions of
the clause 3 M of the Order are not applicable to the Company.
(vi) The provisions of clause 3 (vi) of the Order fire not applicable
to the Company as the Company is not covered by the Companies [C03t
(Records and Audit) Rules, 2014.
(vii) (a) According to the information ' and explanation given to us and
on the base of records produced before us, the Company is generally
regular in depositing will- appropriate author has undisputed statutory
dues including Investor education protection fund, employees state
insurance, income tax, TDS, wealth tax, custom duty, cess and other
material statutory dues applicable to it except sales tax demand of
Rs.73,559/- as per order dated 11.11.2014 for the FY 2011-12.
According to the information ' and explorations given to us, there are no
undisputed arrears of statutory dues which was outstanding as at March
31, 2015 for a period of more than six months from the date they became
payable.
(b) The According to the information ' am explanations given to us, they
are no duos of sales tax, income tax, custom duly, wealth tax, excise
duty, cess which nave not been deposited on account of any dispute.
(c) The amount required to be transferred to investor education and
protection fund is accordance with the relevant provisions of the
Companies Act. 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses and have not
incurred cash losses in the current Financial Year and no cash losses
were incurred in the immediately preceding Financial Year.
(ix) In our opinion, and according to the information ' and explanations
given to us, the company has not Defaulted repayment of dues to a
financial institution or bank or debenture of holders.
(x) On the basis of our examination and 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.
(xi) According to the information ' and explanations given to us. the
Company did not avail any term loan during the year.
(xii) To the best of our knowledge and belief and according to the
information ' and explanation given to us, no fraud, on or by the
company, has been noticed or reported during the year that causes the
financial statements materially misstated,
For &P. AGRAWAL & CO.
CHARTERED ACCOUNTANTS
(F. R. No. 302G32E)
(CA.PRADEEPSAMAL)
PARTNER
Membership No. 001353
245, Knber Complex
New Link Road,
Andheri (West}.
Mumbai - 400 053
Date : The 28th Day of May, 2015.
Mar 31, 2014
We have audited the accompanying financial statements of Gaurav
Mercantile Ltd., which comprise the Balance Sheet as at March 31, 2014,
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's 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 entity's preparation 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 entity's internal control. In
circumstances when the auditor also has a responsibility to express an
opinion on the effectiveness of internal control in conjunction with
the audit of the financial statements, the auditor shall omit the
phrase that the auditor's consideration of internal control is not for
the purpose of expressing an opinion on the effectiveness of internal
control.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India.
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the profit/ 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.
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
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013
and;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Gaurav Mercantile Ltd. on the accounts of the company
for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, the company did not had any stock of
inventory in the current financial year. (b) As there are no stock of
inventory during the current financial year, the procedures of physical
verification and maintenance of records of inventories is not
applicable to the company.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956, in which directors are interested as
contemplated under sub section (6) of section 299 of the said Act.
(b) The parties have repaid the principal amounts as stipulated and
have also been regular in the payment of interest to the company.
(c) There is no overdue amount in excess of Rs. 1 lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(d) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956, in
which directors are interested as contemplated under sub section (6) of
section 299 of the said Act. The yearend balance of such loan is NIL
and the maximum amount outstanding during the year was Rs.18,00,000 /-.
(e) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(f) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As informed to us, the maintenance of cost records has not been
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a niche /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor's Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments. Proper
records & timely entries have been maintained in this regard & further
investments specified are held in their own name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Majithia & Associates
Chartered Accountants
FRN: 105871W
B. R. Majithia
Partner
Mem. No. : 048194
Date: 28/05/2014
Place: Mumbai
Mar 31, 2013
We have audited the accompanying financial elements of Gaurav
Mercantile Limited ("the Company, which comprise the Balance Sheet as
at March 31. 2013, and the Statement of Profit and Loss and Cash Flew
Statement far the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the 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 flews of the Company In accordance with
the Accosting Standards referred to In sub-section (3C) of section 211
of the Companies Act. 1955 (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 a if view and are free from material misstatement, whether
due Id fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on those- financial
statements based on our audit. We conducted our audit in accordance
w:.th the Standards on Auditing issued by the Institute of Charted
Accountants of India. Those Standards require Bait We comply with,
ethical requirements and plan and perform the audit la 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 elements. The procedures
selected depend on the auditor judgment including the assessment of the
risks of material misstatement or 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 arc appropriate In the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe the me audit evident we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Qualified Opinion
In cur opinion and to the best of on- information and according to the
explanations given to us. the financial statements give the Information
,enquired by the Act in the manner so required and give a ¦ true and
fair view in conformity with the accenting principles generally
accepted m India accept for AS 13 "Empower Benefits' issued by ICAI
where A3 15 require provision for benefits in respect of gratuity to be
made as per actuarial valuation whereas the company has made tries
provision on eternity- basis. Hence we are unable to quantify the
impact on the profit £ loss account of the year under reporting.
a) In the case of the Balance Sheet. of toe slate of affairs of
Company as at March 31.2013;
b) In the case of the Profit and Loss Account, of The profit/ loss for
the year ended on that date; and
c) In (he case of the Cash Flew Statement, of the cash flows for the
year-ended on that date.
Report on Other Legal and Regulatory Requirements
1 ft 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 within 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of it
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 (he 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 8» books of
account
d) In our opinion. the Balance Sheet. Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (301 of section 211 of the Companies Act 1956 except
for qualification mentioned in paragraph "Qualified Opinion- and;
e) On the basis of written representations revived From the directors
as on March 31,2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1] of
with 2,4 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as lo
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, therefore we
are unable to comment on this particular issue.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Gaurav Mercantile Limited. On The accounts of the
company far the year ended 31st March, 2013.
On tries basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of
per audit, import that:
1. (a) The company has maintained prober records showing full
particulars Including quantitative details a n d situation of its
fixed assets.
{b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies'
were noticed on such verification.
(c) In our opinion and acceding. to the information and explanations
given to us, no fined asset has been diseased during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b} In our opinion and according to the information and explanations
given to us. the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
The size of the company and the nature of its business.
(c) In our opinion and on The basis of our examination of the records,
tie Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records,
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has granted unsecured loan. to a Company listed in the register
maintained under Section 301 of the Companies Act, 1956, in which
directors are interested as contemplated under sub-section (6) of
Section 23ft of the said Act. The year end balance of such loans
granted is NIL and maximum amount outstanding during the year was Rs.
33,00,000/-
(b) In our opinion, the rate of interest and other terms and conditions
of siren loans are not prima facie, prejudicial to the interest of the
company.
[c) The parties have repaid the principal amounts as stipulated and
have also been regular in the payment of interest to the company.
(d) There is no overdue amount in excuse of Rs. 1 lakh in respect of
loans granted to companies, firms or ether parties listed in the
register maintained under section 301 of the Companies Act, 195B.
(a) According to the information and explanations given to us and on
the basis our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses {f) & [g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control
procedure commensurate: with the size of the company and tried nature of
its business, for the purchase of inventories & fixed assets and
payment for expenses & for sale of goods. During the course of our
audit, no major instance of continuing failure b correct any weaknesses
in the internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301
of the Act have been entered in the register required to be maintained
under that section.
b) As per information &. explanation given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions doornail arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act. 1958.
7. As per information & explanations given by the manage merit, life
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has not been prescribed by tries Central
Government under clause [d) of sub-section {1) of section 209 of the
Act,
9. (a) According to the records of the company. undisputed statutory
dues including Provident Fund. Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty Excise Duty, cess to the extent applicable and may
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory duns as on 31st of
March. 2013 for a period of more than six months from the date they
became payable,
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax.
sales tax, customs duty and excise duty Which have not been deposited
on account of any disputes,
10. The Company does not have any accumulated loss; and has not
incurred can loss during the financial year covered by our audit and in
the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financially
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances en the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi 'mutual benefit fund/
society. Therefore. the provision of this clause of the Companies
(Auditor's Report) Order 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments. Proper
records & namely entries have been maintained in this regard & further
investments specified are held in the down name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for ban taken by others from a
bank or financial institution.
16. Based on our audit procedures and or. the information given by the
management we report that the company has not raised any terms of loans
during the year.
17. Eased on the Information and explanations given to us and an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used far long-term investment by the Company,
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year,
19. The Company has no outstanding schedules during the period
under audit.
20. The Company has not raised any money by purring issue curing the
year.
21. Based on the audit procedures performed aid the information and
explanations given to us, we report that no fraud on or by tries
Company has been noticed or reported during the year, nor have we been
informed of such case by Bio management.
For MAJITHIA & ASSOCIATES
Chartered Accountants
P.R. Jariwala
(Partner)
M. No.126296
Firm Reg. No.; 1Q5&71W
Place : Mumbai
Date : 13.6.2013
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. GAURAV MERCANTILES
LIMITED as at 31st , March, 2012 and the Profit and Loss Account of the
Company for the year ended on that date annexed there too. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We have conducted our audit in accordance with auditing standards
generally accepted in India.
Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on 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 the management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 (hereinafter referred to as the
"Act"), we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the said Order, to the extent applicable.
3. Further to our comments in the Annexure referred to in paragraph 2
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 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 the
books;
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion, Balance Sheet and Profit and Loss Account dealt with
by this report comply with the Accounting Standards referred to in Sub
section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representations received, we report that
none of Directors are '
disqualified as on 31st March 2012 from being appointed as a Director
in terms of section 274 (1)(g) of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us the said accounts, read together with
significant accounting policies and 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 2012. (ii) In the case of Profit and Loss
Account, of Profit of the Company for the year ended on that date.
(iii)in the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
Annexure referred to in paragraph 2 of our report of even date on the
Financial Statements of M/s. GAURAVMERCANTILES LIMITED, for the year
ended 31st March 2012.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of
audit, we state that:
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) As explained to us, physical verification of Fixed Assets was done
by the management on yearly basis and no material discrepancies were
noticed on such verification. In our opinion, frequency of verification
of Fixed Assets is reasonable.
c) Fixed assets disposed of during the year were not material enough to
affect the going concern identity of the company.
2. a) The inventories have been physically verified at reasonable
intervals during the year by the management.
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) On the basis of our examination of the records of inventory, we are
of the opinion that 'the Company' is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and book records were not material and have been
properly dealt with in the books of accounts.
3. As informed, the Company has granted loans secured or unsecured to
Company listed or covered in the register maintained under Section 301
of the Act.
a) According to the information and the explanation given to us, the
Company has granted unsecured loan & advance to two parties covered in
the register maintained under section 301 of the Companies Act, 1956,
in which directors are interested as contemplated under sub-section (6)
of section 299 of the said Act. The yearend balance of such loans
granted is NIL and the maximum amount outstanding during the year was
Rs. 175,00,000
b) In our opinion and according to the information & explanations given
to us, the company has not taken unsecured loans from any parties
listed in the register maintained under section 301 of the Companies
Act,1956.
c) As per the information & explanation given to us the terms &
condition of such loans given are not prejudicial to the interest of
the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventories, fixed assets and for the sale
of goods. We have neither come across nor have been informed of any
continuing failure to correct major weakness in the aforesaid internal
control system.
5. a) According to the information and explanation given to us and as
per the records of the company, transactions that need to be entered
into the register in pursuance of Section 301 of the Companies Act,
1956 have been so entered.
b) In our opinion and according to the information & explanations given
to us, there are no transaction of purchase of goods and materials and
sale of goods, materials & services, made in pursuance of contracts or
arrangements entered in the register maintained under section 301 and
aggregating during the year to Rs. 5,00,000/- or more in respect of
each party.
6. The company has not accepted any deposit from the public within the
meaning of Section 58A & 58AAof the Act and rules framed there under.
7. In our opinion and according to information and explanations given
to us, the company has adequate internal audit system (not carried out
by a Chartered Accountant) commensurate with the size and nature of its
business.
8. The Central Government has not prescribed maintenance of Cost
Records under section 209(1 )(d)of the companies Act, 1956 for any of
the products of the company.
9. a) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of such statutory dues
which have remained outstanding as at I the last day of the financial
year for a period of more than six months from the date they became
payable.
b) According to the records of the company, there is no disputed amount
payable in respect of I sales tax, customs, wealth tax, excise duty,
cess and other statutory dues applicable to it.
10. The company has no accumulated losses at the end of the financial
year and it has not incurred I cash losses in the financial year under
report and the immediately preceding financial year.
11. On the basis of our audit procedures and based on the information
and explanations given by management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. Based on our audit procedures and as per information and
explanation given by management, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit, fund /
society. Therefore, the provisions of clause 4 (xiii) of the paragraph
4 on the order are not applicable.
14. The Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the paragraph 4 of the order are not applicable.
15. In our opinion and according to the information and explanation
given by the management, the company has not given any guarantee for
loans taken by others from banks or financial institutions.
16. The Company has not obtained any term loan from the banks and
financial institutions during the year, hence the question of its
application does not arise.
17. According to the information and explanation given to us and on
overall examination of the financial statements and after placing
reliance on the reasonable assumptions made by the Company for
classification of Short-term and Long term usage of the funds we are of
the opinion that the funds raised on short-term basis have prima facie
not been utilized for long-term investment and vice- versa.
18. According to the information and explanation given to us, the
company has not made preferential allotment of shares to the parties
and companies covered in the resister maintained under section 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us, the
Company has not issued any Secured Debentures during the year.
20. According to the information and explanation given to us, the
company has not raised any money by way of public issue during the
period.
21. Based upon the audit procedures performed and information and
explanation given the management, we report that no fraud on or by the
Company has been noticed or reported to / by us during the course of
our audit.
For MAJITHIA & ASSOCIATES
Chartered Accountants
RR. Jariwala
(Partner)
M. No. 126298
Firm Reg. No.: 105871W
Place: Mumbai
Date: 9.8.2012
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. GAURAV MERCANTILES
LIMITED as at 31st March, 2011 and the Profit and Loss Account of the
Company for the year ended on that date ¦ annexed there to. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on ¦ our audit.
1 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 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 the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis for our options.
2 As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central! Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956| (hereinafter referred to as the
"Act"), we annex hereto a statement on the matters specified me
paragraphs 4 and 5 of the said Order, to the extent applicable.
3. Further to our comments in the Annexure referred to in paragraph 2
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 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 the
books;
c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion, Balance Sheet and Profit and Loss Account dealt with
by this report I comply with the Accounting Standards referred to in
Sub section (3C) of Section 2111 of the Companies Act, 1956 except
Accounting Standard 15(Revised)on Retirement! Benefits in case of
Gratuity, for not making provision for gratuity. In absence of
information the same is not quantifiable now.
e) On the basis of written representations received, we rep are
disqualified as on 31st March 2011 from being appoint section 274 (1)
(g) of the Companies Act, 1956.
f) In our opinion and to the best of our information and acc< given to
us the said accounts, read together with signification notes thereon,
give the information required by the Commoner so required and give a
true and fair view in conf principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affair 31st March
2011.
(ii) In the case of Profit and Loss Account, of Profit of the Comp that
date.
(iii) In the case of Cash Flow Statement, of the Cash Flow for theÂ
Annexure referred to in paragraph 2 of our report of even date on the
Financial Statements of M/s. G AURAV MERCANTILES LIMITED, for the year
ended 31st March 2011.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of
audit, we state that:
1.a)The company has maintained proper records showing full particulars
including quantitative! details and situation of its fixed assets.
b) As explained to us, physical verification of Fixed Assets was done
by the management arm yearly basis and no material discrepancies were
noticed on such verification. In our opinion. frequency of verification
of Fixed Assets is reasonable.
c) According to the information and explanations given to us, the
company has disposed off party of the fixed assets during the year.
2.a) As per the information and explanations given to us, there are no
inventories held with the company and hence question of physical
verification does not arise.
b) In our opinion and according to information and explanations given
to us, the company does not hold any inventory and hence the procedures
of physical verification of inventories by the management do not arise.
c) On the basis of our examination of the records, the company is not
holding any inventory. hence question of any material discrepancies
does not arise.
3. As informed, the Company has granted loans secured or unsecured to
Company listed or covered in the register maintained under Section 301
of the Act.
a) According to the information and the explanation given to us, the
Company has granted unsecured loan & advance to two parties covered in
the register maintained under section 301 of the Companies Act, 1956,
in which directors are interested as contemplated under sub- section
(6) of section 299 of the said Act. The yearend balance of such loans
granted is NIL and the maximum amount outstanding during the year was
Rs. 150,00,000
b) In our opinion and according to the information & explanations given
to us, the company has not taken unsecured loans from any parties
listed in the register maintained under section 301 of the Companies
Act, 1956.
c) As per the information & explanation given to us the terms &
condition of such loans given and taken are not prejudicial to the
interest of the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventories, fixed assets and for the sale
of goods.
5.a) According to the information and explanation given to us and as
per the records of the company, transactions that need to be entered
into the register in pursuance of Section 301 of the Companies Act,
1956 have been so entered.
b) In our opinion and according to the information & explanations given
to us, there are no transaction of purchase of goods and materials and
sale of goods, materials & services, made in pursuance of contracts or
arrangements entered in the register maintained under section 301 and
aggregating during the year to Rs. 5,00,000/- or more in respect of
each party.
6. No deposits within the meaning of Section 58A & 58AA of the Act and
rules framed there under have been accepted by the Company.
7. In our opinion and according to information and explanations given
to us, the company has adequate internal audit system (not carried out
by a Chartered Accountant) commensurate with the size and nature of its
business.
8. The Central Government has not prescribed maintenance of Cost
Records under section 209(1) (d) of the companies Act, 1956 for any of
the products of the company.
9.a) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of such statutory dues
which have remained outstanding as at the last day of the financial
year for a period of more than six months from the date they became
payable.
b) According to the records of the company, there is no disputed amount
payable in respect of sales tax, customs, wealth tax, excise duty, cess
and other statutory dues applicable to it.
10. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the financial year under
report and the immediately preceding financial year.
11. On the basis of our audit procedures and based on the information
and explanations given by management, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institution, bank or debenture holders.
12. Based on our audit procedures and as per information and
explanation given by management, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4 (xiii) of the paragraph
4 on the order are not applicable.
14. The Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the paragraph 4 of the order are not applicable.
15. In our opinion and according to the information and explanation
given by the management, the company has not given any guarantee for
loans taken by others from banks or financial institutions.
16. The Company has not obtained any term loan from the banks and
financial institutions during the year, hence the question of its
application does not arise.
17. According to the information and explanation given to us and on
overall examination of the financial statements and after placing
reliance on the reasonable assumptions made by the Company for
classification of Short-term and Long term usage of the funds, we are
of the opinion that the funds raised on short-term basis have prima
facie not been utilized for long- term investment and vice- versa. I
18. According to the information and explanation given to us, the
company has not made preferential allotment of shares to the parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us, the
Company has not issued any Secured Debentures during the year.
20. According to the information and explanation given to us, the
company has not raised any money by way of public issue during the
period.
21. Based upon the audit procedures performed and information and
explanation given the i management, we report that no fraud on or by
the Company has been noticed or reported to / by us during the course
of our audit.
For MAJITHIA & ASSOCIATES
Chartered Accountants
B. R. Majithia
(Partner)
M. No. 048194
Firm Reg. No. 105871W
Place: Mumbai
Date : 25/08/2011