Independent Auditors Report
The Members of
Arnav Corporation Limited.
We have audited the accompanying financial statements of M/s. Arnav CorporationLimited which comprise the Balance Sheet as at 31st March 2014 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 Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards notified underthe Companies Act 1956 (the Act) read with the General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of Section 133 of theCompanies Act 2013 and in accordance with the accounting principles generally accepted inIndia. This responsibility includes the design implementation and maintenance of internalcontrol relevant to the preparation and presentation of the financial statements that givea 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 conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants 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 the auditor'sjudgement 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.
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:
i) In the case of the Balance Sheet of the state of affairs of the company as at 31stMarch 2014;
ii) In the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date; and
iii) 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 (Auditor's Report) Order 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of section 227 ofthe Companies Act 1956 we give in the Annexure 'A' the statement on the mattersspecified 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 ourknowledge 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 Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with Accounting Standards notified under the Act read with theGeneral Circular 15/2013 dated 13th September 2013 of the Ministry ofCorporate Affairs in respect of Section 133 of the Companies Act 2013.
(e) On the basis of written representations received from the directors as on 31stMarch 2014 and taken on record by the Board of Directors none of the directorsare disqualified as on March 31 2014 from being appointed as a director in terms ofclause (g) of subsection (1) of Section 274 of the Companies Act 1956.
For S. H. Garg & Associates
(S. H. GARG)
Mem. No. 085517
Firm No. 103088W
Place : Navi Mumbai
Date: 30th May 2014
ANNEXURE TO THE AUDITORS REPORT OF EVEN DATE
(Referred to in paragraph 1 thereof)
i) In respect of fixed assets:
a)The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b)The fixed assets have been physically verified by the management during the year. Weare informed that no material discrepancies were noticed by the management on suchverification.
c)The company has not disposed off any of the fixed assets during the year.
ii) In respect of Inventories:
a)The physical verification of inventory has been conducted at regular intervals by themanagement.
b) The procedure of physical verification of inventory followed by the management isreasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c)The company has been maintaining proper records of the inventory and no materialdiscrepancies were noticed.
iii) In respect of loans secured or unsecured granted or taken by the company to orfrom companies firms or other parties covered in the register maintained under section301 of the Act according to the information and explanation given to us.
a)The company has not granted loans to companies firms or other parties covered in theregister mentioned in Section 301 of the Act.
b)The company has taken loans from companies firms or other parties covered in theregister mentioned in Section 301 of the Act.
c)The terms and conditions of the loans taken and the rate of interest is not primafacie prejudicial to the interest of the company.
d)According to the information provided to us the payment of the loans are on callbasis.
iv) In our opinion and according to the information and explanation given to us thereare adequate internal control procedures 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.
v) In respect of transactions that need to be entered in the register maintained inpursuance of Section 301 of the Act in our opinion and according to the explanations givento us:
a)The company has not entered into transactions with parties mentioned in the registermaintained in pursuance of Section 301. The company has maintained the necessary recordsfor the same.
vi) In our opinion and according to the information and explanation given to us theCompany has not accepted any deposits covered under section 58A and 58AA of the Act duringthe year. Hence the question of compliance with the provisions of Section 58A and 58AA ofthe Act does not arise.
vii) The Company has an internal audit system commensurate with its size and nature ofthe business.
viii) The Central Government has not prescribed maintenance of cost records for theCompany under section 209(1)(d) of the Act.
ix) According to the information and explanation given to us in respect of statutoryand other dues:
a) The Company is generally regular in depositing undisputed statutory dues includingProvident Fund ESIC Income-tax Sales-tax Wealth Tax Custom Duty Excise Duty ServiceTax Cess and other statutory dues with appropriate authorities when applicable subject toPoint No. 7 and 11 of Note No. 15 to the Balance Sheet.
b) There are disputed statutory dues pending to be paid as mentioned in Point No. 11 ofthe Note No. 15 to the Balance Sheet.
x) According to the information and explanation given to us in respect of Loss:
a) Since the company has been registered for a period of more than five years and itdoes not have any accumulated losses as at the end of the financial year.
b) The company has incurred the cash losses during the financial year intoconsideration.
c) The company has not incurred the cash losses during the financial year immediatelypreceding the financial year into consideration.
xi) The Company has not taken any loan from any bank or financial institution. Hencethe question of default on repayment of dues to any bank or financial institution doesn'tarise. The company has not issued any debentures.
xii) According to the information and explanations given to us the Company has notgranted loans and advances on basis of security by way of pledge of shares debenture andother securities.
xiii) As per information and explanations given to us the nature of the Company'sactivities during the year under review is such that the provisions of any special statuteapplicable to chit fund are not applicable to the Company.
xiv) As per information and explanations given to us the Company has not dealt inshares securities and debentures during the year into consideration..
xv) As per information and explanations given to us the company has not given anyguarantee for loans taken by others from bank or financial institutions.
xvi) As per information and explanations given to us the company has not obtained anyterm loans during the year.
xvii) According to the information and explanations given to us no funds have beenraised on short-term basis which were used for long term investment and vice versa.
xviii) As per information and explanations given to us the Company has madepreferential allotment of shares during the year to parties and companies not coveredunder section 301 of the Act.
xix) No debentures have been issued by the Company during the year.
xx) During the year the Company has not raised any money by way of public issue.
xxi) According to the information and explanations given to us no fraud on or by theCompany have been noticed or reported during the financial year under review.
For S. H. Garg & Associates
S. H. GARG
Mem. No. 085517
Firm No. 103088W
Place : Navi Mumbai
Date: 30th May 2014