The Members of Anar Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Anar Industries Ltd.("the Company") which comprise the Balance Sheet as at March 31 2015 and theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 theprovisions of the Act and the rules made there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements.
The procedures selected depend on the auditors judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Companys preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Companys directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial 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 March31 2015 and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub section (11)of section 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 it 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 specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on March31 2015 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) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The company has not any pending litigations on its financial position in itsfinancial statements.
ii. The company does not require any provision as required under the applicable law oraccounting standards for material foreseeable losses if any.
iii. The Company does not require to transfer to any amount to the Investor Educationand
Protection Fund by the Company.
For J. K. Parmar & Co.
Firm No. 107599W
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 1 of the Independent Auditors report of even date to themembers of Anar Industries Limited on the financial statements for the year ended March31 2015 we report that:
1) a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets on the basis of availableinformation. b) Physical verification of major assets was conducted by the Managementduring the year which in our opinion is reasonable having regard to the size of theCompany and nature of its assets. No material discrepancies were noticed on suchverification as with the book of record.
2) a) The inventory excluding stocks in transit has been physically verified by themanagement during the year. In our opinion the frequency of verification is reasonable.
b) In our opinion the procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.
c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventories as compared to book records were not material.
3) The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013. Therefore the requirements of sub-clause (a) and (b) of clause (iii) are notapplicable to the Company.
4) In our opinion and according to the information and explanation given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. Further on the basis of our examination of the books and records ofthe Company and according to the information and explanation given to us we have neithercome across nor have been informed of any continuing failure to correct major weaknessin the aforesaid internal controls.
5) The Company has not accepted any deposits from the public within the meaning ofsection 73 to 76 of the Companies Act 2013 and rules framed there under.
6) The maintenance of cost records under section 148(1) of the Companies Act 2013 isnot applicable to the Company.
7) a. According to the information and explanations given to us and the records of thecompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of profession tax service tax TDS excise dutyprovident fund custom duty investor education protection fund employees stateinsurance income tax sales tax wealth tax purchase tax entry tax municipal tax andother material statutory dues applicable with the appropriate authorities.
b. According to the information and explanation given to us and the records of theCompany examined by us there is no disputed tax or statutory dues as on 31.03.2015. c.According to the information and explanation given to us there is no declaration ofdividend during the financial year 2014-15 by the Company; hence the question oftransferring amount to investor education and protection fund does not arise.
8) The Company have accumulated loss of Rs. 11792071/- as per the Balance Sheet asat the end of the financial year. The Company has incurred cash loss of Rs. 6297213/-during the financial year and has also incurred cash loss of Rs. 1926168/- during theimmediately preceding financial year.
9) According to the records of the Company examined by us and the information andexplanation given to us the Company has no dues to financial institution or banks ordebentures holders as at balance sheet date. According to the information and explanationgiven to us the Company has not given any guarantee for loans taken by others from banksor financial institutions.
10) According to the information and explanation given to us the Company has not givenguarantees for loans taken by others from banks or financial institutions.
11) The Company has not taken any term loan from banks or financial institutions.
12) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year.
For J. K. Parmar & Co.
Firm No. 107599W