To the Members of
Advance Lifestyles Limited.
Report on the Financial Statements:
We have audited the accompanying financial statements of Advance Lifestyles Limited(Formerly Known as The Ahmedabad Advance Mills Limited) ( the Company ) which comprisethe Balance Sheet as at March 31 2015 the Statement of Profit and Loss and Cash FlowStatement for the year ended March 31 2015 and a summary of significant accountingpolicies and other explanatory information for the year ended as on 31st March2015.
Management s Responsibility for the Standalone Financial Statements:
The Company s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ( the Act ) with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flow of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the company and for preventingthe detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgments and estimates that are responsible and prudent anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovision of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 the auditor sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company s preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the company has in place an adequate internal financial control systemover financial reporting and operating effectiveness of such control.. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by company s Directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements..
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the company as at 31stMarch 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 bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.
2. As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanations which to the bestof 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 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 aforesaid financial statements comply with the AccountingStandards referred under Section 133 of the Act. Read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct.
f) The company is having adequate internal financial control system and the same isoperating effectively.
g) With respect to the other matters to be included in the Auditor s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinionand 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 financialposition
II. The Company did not have any long-term contract including derivative contracts forwhich there were any material foreseeable losses hence the company need not make anyprovision.
III. There were no amount which were required to be transferred to the investoreducation and protection fund by the Company.
| ||For Dhiren Shah & Co. |
| ||Chartered Accountants |
| ||FRN: 114633W |
| ||Sd/- |
| ||Dhiren Shah |
|Place: Ahmedabad ||(Partner) |
|Date: 29-05-2015 ||Membership No. : 035824 |
Annexure to the independent Auditor s Report
The Annexure referred to in our independent Auditor s Report to the members of thecompany on the standalone financial statement for the year ended 31st March2015. We report that:
1. In respect of its Fixed Assets:
(a) The company is maintaining proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) All the assets have been physically verified by the management during the year asper regular programme of verification which in our opinion is reasonable having regardto the size of the company and nature of its assets. No material discrepancies werenoticed on such verification.
2. In respect of its inventories:
(a) The management has conducted physical verification of inventories at reasonableintervals.
(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The Company is maintaining proper records of its inventories. And no materialdiscrepancies were noticed on physical verification by the management
3. In respect of loans secured or unsecured granted by the Company to companiesfirms or other parties covered in the register maintained under Section 189 of theCompanies Act 2013:
The company has not granted any unsecured loan to any company firm or other partiescovered in the register maintained under Section 189 of the companies Act 2013 henceaccordingly paragraph 4 (III) of the order is not applicable to the company.
4. In our opinion and according to the information and explanations given to us thereare generally adequate internal control procedures commensurate with the size of theCompany And the nature of its business for the purchase of inventories and fixed assetsand payment of expenses and for sale of goods and services. During the course of ouraudit no major instance of continuing failure to correct any weaknesses in the internalcontrols has been noticed.
5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposit from public.
6. We are informed that the Central Government has not prescribed maintenance of costrecords under Section 148(1) of the Companies Act for any products of the company.
7. In respect of statutory dues:
(a) According to the records of the Company the company is regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance Income-taxSales-tax Wealth Tax Service Tax Custom Duty Excise Duty value added tax Cess andother statutory dues to the extent applicable have been generally regularly deposited withthe appropriate authorities.
(b) According to the information and explanations given to us there are no outstandingdisputed dues of income-tax sales-tax wealth-tax services-tax duty of custom duty ofExcise value added tax or cess.
(c) According to the information and explanations given to us there is no amountswhich are required to be transferred to the investor education and protection fund inaccordance with the relevant provision of the Companies Act 1956( 1 of 1956) and rulethere under.
8. In our opinion the company has no accumulated losses. During the financial yearcovered by our audit the company has not incurred cash losses. In the immediatelypreceding financial year there were cash losses.
9. The Company has not taken any loan from financial institutions and bank and thecompany has not
raised the fund by issue of debentures hence paragraph 3(IX) of the order is notapplicable to the company.
10. According to the information and explanations given to us the Company has notgiven any guarantees for loan taken by others from a bank or financial institution.
11. The Company has not taken any term loan during the year under audit. Accordinglyparagraph 4(xi) of the order is not applicable to the company.
12. Based upon the audit procedure performed and information and explanations given bythe management we report that no material fraud on or by the company has been noticed orreported during the course of our audit.
| || ||For Dhiren Shah & Co. |
| || ||Chartered Accountants |
| || ||FRN: 114633W |
| || ||Sd/- |
| || ||Dhiren Shah |
|Place: ||Ahmedabad ||(Partner) |
|Date : 29-05-2015 ||Membership No. : 035824 |