Independent Auditor's Report
M/S ACHAL INVESTMENTS LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of M/S ACHAL INVESTMENTS LIMITED("the Company). Which comprise the balance sheet as at 31st March 2014 the statementof profit and loss and the cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial statements that givetrue and fair view of the financial position financial performance and cash flows of thecompany in accordance with accounting standard referred to in sub section(3G) of section211 of companies Act 1956 ("the Act"). This responsibility includes the designimplementation and maintenances of internal control relevant to the preparation andpresentation of financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the standards on auditing issued by theInstitute of chartered accountant of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statement whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys Preparation and fairpresentation of the financial statement in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by themanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) In the case of balance sheet the state of affairs of the company as at March31 2014
(b) the case of statement of profit and loss of the profit for the year ended on thatdate and
(c) In the case of the cash flow statement of the cash flows of the company for theyear ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the companies (auditors report) order 2003 ("theOrder") issued by the Central government of India in terms of sub-section (4a) ofsection227 of the Act we give in the annexure a statement on the matters specified inparagraphs 4 and 5 of the order.
2. As required by the section 227(3) of the act we report that:
(a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of the audit.
(b) In our opinion proper books of accounts as required by law have been kept by thecompany so far as appears from our examination of those books.
(c) The balance sheet the statement of profit and loss and the cash flow statementdealt 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 the cash flowstatement comply with the accounting standards referred to in sub-section (3C)of section211 of companies act 1956
(e) On the basis of written representation received from the directors as on 31st march2014 and taken on record by the board of directors none of the directors is disqualifiedas on 31st march 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of Companies Act 1956.
(f) Since the Central Government has not issued any notification as to the rate atwhich the cess is to be paid under section 441A of the Companies Act 1956 nor has itissued any Rules under the said section prescribing the manner in which such cess is tobe paid no cess is due and payable by the Company.
For KUMAR ANOOP & CO
M. NO. 508958
Date: 28th May 2014
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT OF EVEN DATE IN THEACCOUNTS FOR THE YEAR ENDED ON 31.3.2014 OF M/S ACHAL INVESTMENT LIMITED New Delhi
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has physically verified during the year all its Fixed Assets. inaccordance with a programme of verification which in our opinion provides for physicalverification of the fixed assets at reasonable intervals. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us theCompany has not made any disposals of any fixed assets during the year.
(ii) (a) The Inventory has been physically verified by the management during thecurrent year. In our opinion the frequency of such verification is reasonable.
(b) The procedure for the physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the company and thenature of its business.
(c) The company has maintained proper records of inventory. No discrepancies werenoticed on the physical verification between the physical stock and books records were notmaterial.
(i) (a) The Company has neither taken nor granted any loans secured or unsecured to /from Companies Firms or other parties covered in the Register maintained under Section301 of the Companies Act 1956.
(b) Since the company has neither taken nor granted any loans from Companies Firms orother parties covered in the Register maintained under Section 301 of the Companies Act1956 therefore the issue of rate of interest and the other terms and conditions of loantaken or granted are not applicable.
(c) Since the company has neither taken nor granted any loans from Companies Firms orother parties covered in the Register maintained under Section 301 of the Companies Act1956 therefore the issue of payment of Principal amount and interest are not applicable.
(d) Since the company has neither taken nor granted any loans from Companies Firms orother parties covered in the Register maintained under Section 301 of the Companies Act1956 therefore the issue of overdue amount is not applicable.
(ii) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of the business for the purchase of inventory and fixed assets and for thesale of goods.
(iii) (a) Based on the audit procedure applied by us and according to the informationand explanations provided by the management we are of the opinion that the transactionsthat need to be entered into the register maintained under Section 301 has been soentered.
(b) In our opinion and according to the information and explanations give to us thetransactions made in pursuance of contracts or arrangements entered in the registermaintained under section 301 and exceeding the value of Five lakh rupees in respect of anyparty during the year have been made at prices which are reasonable having regard toprevailing market prices at the relevant time wherever applicable.
(iv) The company has not accepted any deposit during the year from the public with inthe meaning of provisions of Section u/s 58 A and 58 AA of the Companies Act 1956 and therules made there under. Hence this clause is not applicable to the company.
(v) In our opinion the company has an internal audit system commensurate with its sizeand the nature of its business.
(vi) As informed to us the Central Government has not prescribed the maintenance ofcost records under section 209(1)(d) of the companies Act 1956.
(vii) (a) According to the information and explanations given to us the company isregular in depositing undisputed statutory dues including Provident Fund InvestorEducation and Protection Fund Employees State Insurance Income- tax Sales taxWealth Tax Custom Duty Excise Duty cess and any other statutory dues as applicable withappropriate authorities during the year. As at 31.3.2014 there are no undisputed duespayable for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us there are no dues inrespect of Sales Tax / income tax/ custom duty / wealth tax / cess that have not beendeposited with the appropriate authorities on account of any dispute.
(viii) The Company have accumulated losses less then the 50% of the net worth of thecompany at the end of the year and has not incurred any cash losses during the currentyear and immediately preceding financial year.
(ix) According to the information and explanation given to us there are no dues payableto any financial institution or bank or any debenture holder.
(x) The company has not granted any loans and advances on the basis of security by wayof pledge of shares debentures and other securities.
(xi) The provisions of any special statute applicable to chit fund / nidhi / mutualbenefit fund / societies are not applicable to the company.
(xii) The company is dealing in shares and other investments and proper records havebeen maintained of the transactions and contracts and timely entries have been made therein. The shares and other securities have been held by the company in its own nameexcept to the extent of exemption granted under section 49 of the act.
(xiii) According to the information and explanation given to us the company has notgiven any guarantee for the loans taken by others from banks and financial institutions.
(xiv) The company has not taken any term loan during the year.
(xv) In our opinion and according to the information and explanations given to us andas shown by the records examined by us no funds raised on short term basis have been usedfor long term investment and vice versa.
(xvi) The company has not made any preferential allotment of shares to parties andcompanies covered in the register maintained u/s 301 of the Companies Act 1956 during theyear.
(xvii) The company has not issued any debenture therefore the clause is notapplicable.
(xviii)The company has not raised any money by public issues during the year.
(xix) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theyear.
For KUMAR ANOOP & CO
M. NO. 508958
Place: New Delhi
Date: 28th May 2014