COMPANY AUDITOR’S REPORT AS PER COMPANY ACT 2013

 

AUDITOR’S REPORT

To,

The Members

 

Kanpur

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of, which comprise the Balance Sheet as at March 31, 2015, 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

The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the  General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with 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 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:

  • In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;
  • In the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and
  • In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

  1. As required by the Companies (Auditor’s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
  1. As required by Section 227(3) of the Act, we report that:
  1. 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;
  1. 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.
  1. 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.
  1. In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under the Act read with the  General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
  1. On the basis of the written representations received from the directors as on March 31, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 274(1) (g) of the Act.

 

Chartered Accountants

 

 

Partner

 

Place: Kanpur

   Date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNEXURE TO AUDITOR’S REPORT

 

The Annexure referred to in our report to the members of for the year Ended on March 31, 2015. We report that:

S.

No.

Particulars Auditors Remark
 (i) (a) whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets; Yes
(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account; Yes
(ii) (a) whether physical verification of inventory has been conducted at reasonable intervals by the management; Yes
(b)    are the procedures of physical verification of inventory followed by the management reasonable and adequate in relation to the size of the company and the nature of its business. If not, the inadequacies in such procedures should be reported; Yes
(c)     whether the company is maintaining proper records of inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of account; Yes company is maintaining proper records of inventory and there is no any material discrepancy noticed
(iii) (iii) whether the company has granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. If so, No
(a)       whether receipt of the principal amount and interest arc also regular; and
(b)           if overdue amount is more than rupees one lakh, whether reasonable steps have been taken by the company for recovery of the principal and interest;
(iv) is there an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system. Yes
(v) in case the company has accepted deposits, whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under, where applicable, have been complied with? I I not, the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, whether the same has been complied with or not? Not Applicable
(vi) where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, whether such accounts and records have been made and maintained; Not Applicable
(vii)  (a) is the company regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor. Yes
(b)    in case dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute). Appeal for Sales Tax for Rs…… is pending .
(c)     whether the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time. Not Applicable
(viii) whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year; No
(ix) whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes, the period and amount of default to be reported; No
(x) whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company; No
(xi) whether term loans were applied for the purpose for which the loans were obtained; No
(xii) whether any fraud on or by the company has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated. No Fraud During the year
 

 

 

 

Place- Kanpur

 

Date-

 

For                           .

Chartered Accountants

 

 

Partner

Membership number:

 


 

 

SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH, 2015.

 

(I)   SIGNIFICANT ACCOUNTING POLICIES:

 

  • Basis of preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles and comply with accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of Companies Act, 2013 to the extent applicable.

  • Fixed Assets

 

Fixed Assets are stated at cost, less accumulated depreciation. Depreciation on Fixed Assets is applied on Written down value basis over the useful life of the asset at the rates applicable as per Schedule II of the Companies Act, 2013. Company has recalculated the Depreciation since inception in the term of company Act 2013 and rate prescribed there under resulting into short depreciation of Rs. ……………./-  which has been accounted for in the General Reserve Account.

  • Current Assets

Current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.

  • Inventory

 

Raw material has been valued at cost and as per FIFO basis. Work in progress has been valued at cost incurred in bringing the inventory to its stage of production. Finished goods have been valued at cost or net realizable value whichever is less.

  • Revenue Recognition

 

Sales are recognized on the basis of delivery of goods and passage of title. Interest income is      recognized on accrual basis and on time proportion basis.

  • Taxation

 

  • Provision for current tax is made on the taxable income in accordance with the rates applicable as per the Income Tax Act, 1961.
  • Deferred Tax liability appearing on the financial statements reflects the tax effect of timing difference arising due to difference in the rates of depreciation provided on the fixed assets as per the Schedule XIV of the Companies Act, 1956 and the Income Tax Act, 1961.

 

 

 

 

 

 

 

 

 

(II) NOTES ON ACCOUNTS:

 

  • Previous year figures are regrouped or rearranged wherever necessary to correspond with the current year figures.
  • Debit and credit balances are subject to confirmation of parties.

 

  • Related Party Disclosures.

 

As per Accounting standard  AS-18 on Related Party disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting standard are given below:

  • List of Related Parties

 

  • Key management personnel :
  • Companies controlled by Directors.
  • Summary of transactions

 

Sr. no. Particulars Current year 2015 Previous Year 2014
1.
2.
3.
4.
5.
6.
7.

 

  • Imports ( valued on cost, insurance and freight basis)

  

Particulars Year ended 31.3.2015 (Rs.) Year ended  31.3.2014

(Rs.)

Raw Material  

 

 

As per our report of even date attached.

For                                                                     For and on behalf of Board of Directors

Chartered Accountants                                           For

 

                                                                       

Partner                                                                    Managing Director            Director

Place: Date:

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