The Members of ASHRAM ONLINE .COM LIMITED
Report on the Financial Statements
I have audited the accompanying financial statements of ASHRAM ONLINE .COM LIMITEDwhich comprise the Balance Sheet as at 31 March 2016 the Statement of Profit and Lossthe Cash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe 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 flows 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.
My responsibility is to express an opinion on these financial statements based on myaudit.
I 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.
I have conducted my audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that I 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In my opinion and to the best of my information and according to the explanations givento me the aforesaid 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 the Balance Sheet of the state of affairs of the Company as at March31 2016;
b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order2016("the Order")asamended issued by the Central Government of India in term of sub-section (11) of section143 of the Companies Act2013 I give in the "Annexure A" a statement on thematters specified in the paragraphs 3 and 4 of the Order to the extent applicable.
As required by section 143(3) of the Act I report that:
a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.
b) In my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books
c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of accounts.
d) In my 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 written representations received from the directors as on 31 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls is attached asseparate report in "Annexure B".
g) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules2014 in my opinion and to mybest of my information and according to the explanations given to me :
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For K SUBRAMANYAM & CO
(Firm's Registration No. 004146S)
" Annexure A" to the Independent Auditors Report
Referred to in paragraph 1 under the heading "Report on Other Legal &Regulatory Requirement" of my report of even date to the financial statement of thecompany for the year ended 31/03/2016:
1. In respect of its fixed assets:
(a) There are no Fixed Assets during the year in the Company under review
( b) There are no immovable properties in the company.
2. In respect of its inventories:
There are no inventories in the Company during the year.
3. In my opinion the Company has granted any loan secured or unsecured to companiesfirms Limited Liability partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.Accordingly the provisions of clause 3 (iii)(a) to ( c) of the order are not applicable to the company and hence not commented upon.There are however regular business transactions and prima facie are not prejudicial to theinterest of the company.
4. In my opinion and according to the information and explanation given to me thecompany has complied with the provisions of sec 185 and 186 of the Companies Act2013 Inrespect of loans investments' guarantees and security.
5. The company has not accepted any deposits from the public and hence the directivesissue by Reserve Bank of India and the provisions of section 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposits) Rules2015 withregard to the deposits accepted from the public are not applicable.
6 . I have been informed by the management that the Central Government has notprescribed maintenance of cost records under (1) of section 148 of the Companies Act 2013in respect of activities carried on by the Company.
7. In Respect of Statutory Dues:
a. According to information and explanations given to me and on the basis of myexamination of the books of account and records the company has been regular indepositing undisputed statutory dues including provident fund investor education andprotection fund employees' state insurance income-tax sales-tax wealth tax customduty excise duty cess and other statutory dues with the appropriate authorities.According to the information and explanation given to me no undisputed amounts payable inrespect of income tax wealth tax sales tax customs duty and excise duty wereoutstanding at the yearend for a period of more than six months from the date they becamepayable other than following
|Financial Period which the amount relates to ||Act ||Nature of Dues ||Forum Where Dispute is Pending ||Amount Rs. In Lakhs |
|1994-95 & 95 - 96 ||Income Tax Act ||Income Tax ||Madras High Court ||189.18 |
|1994-95 & 95-96 ||Income Tax Act ||TDS ||Madras High Court ||24.22 |
a. According to the information and explanations given to me there are no reportabledues or disputes under the relevant clause other than as stated above.
8. In my opinion and according to the information and explanations given by managementI am of the opinion that the company has not defaulted in repayment of the dues tofinancial institutions or bank or debenture holders.
9. Based on the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term loans. Accordingly theprovisions of clause 3(ix) of the Oder are not applicable to the company and hence notcommented upon.
10. Based on the audit procedures performed and the information and explanations' givenby the management I report that no fraud by the company or on the company by its officersor employees have been noticed or reported during the year.
11. Based on the audit procedures performed and the information and explanations givenby the management the managerial remuneration has been paid or provided in accordancewith the requisite approvals as mandated by the provisions of section 197 read withSchedule V of the Companies Act 2013.
12. In my opinion the company is not a Nidhi company. Therefore the provisions of theclause 4 (xii) of the order are not applicable to the company.
13. In my opinion all transactions with the related parties are in compliance with thesection 177 and 188 of the Companies Act 2013 and the details have been disclosed in thefinancial statements as required by the applicable accounting standards.
14. Based on the audit procedures performed and the information and explanations givenby the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3(xiv) of the Oder are not applicable to thecompany and hence not commented upon.
15. Based on the audit procedures performed and the information and explanations givenby the management the company has not entered into any non-cash transactions with thedirectors or persons connected with them. Accordingly the provisions of clause 3(xv) ofthe Oder are not applicable to the company and hence not commented upon.
16. In my opinion the company is not required to be registered under section 45IA ofthe Reserve Bank of India Act1934 and accordingly the provisions of the clause 3(xvi) ofthe Oder are not applicable to the compnay and hence not commented upon.
For K SUBRAMANYAM & CO
(Firm's Registration No. 004146S)
"Annexure B" to the Independent Auditors Report of the even date on thefinancial statements of Ashram online .com Limited.
Report on the Internal Financial Controls under clause (i) of sub-section 3 of thesection 143 of the Companies Act2013 ("the Act")
I have audited the internal financial controls over the financial reporting of AshramOnline.com Limited ("the Company") as of March 31st 2016 in conjunction with myaudit of financial statements of the company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on established criteria of the company based onessential components of internal controls stated by Guidance note issued ICAI in thisregard. This responsibility also includes design implementation and maintenance ofadequate Internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act2013.
My responsibility is to express an opinion on the company's internal financial controlsover the financial reporting based on my audit. I conducted my audit in accordance withGuidance note on audit of internal financial controls over financial reporting (theGuidance note) and the standards on auditing issued by ICAI and deemed to be prescribedunder section 143(10) of the Companies Act2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal financial controlsand both issued by ICAI. Those standards and the guidance note require that I comply withethical requirements an plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in al material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining and understanding of internal financial controls over financial reportingassessing the risk that a material weakness exits and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of risks of materialmisstatements of the financial statements whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over financial reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting included those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddisposition of assets of the company: (2) provide reasonable assurance that transactionsare recorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipt and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company: and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effects on the financial statements.
Inherent Limitations of Internal financial controls over financial reporting
Because of the inherent limitation of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected .Also projections of any evaluation of the internal financial controls over financialreporting to the future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of change in conditions orthat the degree of compliance with the policies or procedure may deteriorate.
In my opinion the company has in all material respects has an adequate internalfinancial control systems over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based onestablished policies of the company based on essential components of internal controls asstated in Guidance note issued by ICAI in this regard.
For K SUBRAMANYAM & CO
(Firm's Registration No. 004146S)