TO THE MEMBERS OF BITS LIMITED
We have audited the accompanying financial statements of BITS LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2015 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone 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. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable 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 theprovisions of the Act and the Rules made thereunder.
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 andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but nor for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell 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 on the standalone 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/loss and its cash flows for the year ended on that date.
Subject To :
(i) Investment in shares quoted on regional stock exchange/ Unquoted Shares does nothave readily market value.
(ii) Loans & advances are subject to confirmation.
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 subsection (11) of section143 of the Act we give the Annexure a statement on the matters specified in paragraphs 3and 4 of the order
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 purposes 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 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in termsof Section 164 (2) of the Act.
(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 does not have any pending litigation which have impact on its financialposition in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For Soni Gulati & Co. |
| ||FRN No. :8770 |
| ||Chartered Accountants |
| ||Sd/- |
|Place: New Delhi ||Sanjeev Kumar |
|Date: 29.05.2015 ||[Partner] |
| ||M.No.-091901 |
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in paragraph 1 under the heading of "Report on otherLegal and Regulatory Requirements" of Our Report of even date to the members of BITSLIMITED. on the accounts of the company for the year ended 31st March 2015.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. The Company does not have any fixed assets. Therefore provisions of the clause arenot applicable to the company.
2. a. As informed to us the inventory has been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable.
b. The procedure of physical verification of inventories followed by the management isreasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c . As informed to us the company has maintained proper records of inventory. Nomaterial discrepancies were noticed on such verification.
3. The Company has not granted any loans to companies firms or other parties coveredin the register maintained under section 189 of the Companies Act 2013
4. In our opinion and according to the information and explanations 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 fixed assets and also for the saleof goods & services. During the course of our audit we have not observed any majorweaknesses in internal controls.
5. The company has not accepted any deposits during the year from the public within themeaning of the provisions of Section 73 to 76 or any other relevant provision of theCompanies Act 2013 and rules made there under. Hence the clause (v) of the order is notapplicable.
6. We have been informed that the Central government has not prescribed maintenance ofcost records under section 148 (l) of the Companies Act 2013.
7. a. According to the records of the company undisputed statutory dues includingProvident Fund Employees State Insurance Income Tax Sales Tax Wealth TaxService Tax Duty of Customs Duty of Excise Value Added Tax Cess and any otherstatutory dues to the extent applicable have been regularly deposited with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2015 for a period of more than six months from the date of becoming payable.
b. According to the information and explanation given to us there are no dues of SalesTax Duty of Customs Duty of Excise Value Added Tax Cess which have not beendeposited on account of any dispute.
c . There is no amount which is required to be transferred to investor education andprotection fund in accordance with the relevant provisions of the Companies Act 1956 (1of 1956) and rules made there under.
8. The accumulated losses of the Company are not more than 50% of its net worth. TheCompany has incurred cash loss during the financial year 2014-15 and in the immediatelypreceding financial year.
9. Based on our audit procedures and on the basis of informations andexplanations given by the management the Company has not taken any loans from anyfinancial institution bank or debenture holders so there is no question of default inrepayment; 10. As explained by the management company has not given guarantee for loanstaken by other from banks or financial institutions.
11. According to the information and explanations given to us the Company has nottaken any term loan. Accordingly the provisions of clause are not applicable to theCompany.
12. As explained to us no fraud on or by the Company has been noticed or reportedduring the year. Accordingly provisions of clause are not applicable to the Company.
| ||For Soni Gulati & Co. |
| ||FRN No. :8770 |
| ||Chartered Accountants |
| ||Sd/- |
| ||Sanjeev Kumar |
|Place: New Delhi ||[Partner] |
|Date: 29.05.2015 ||M.No.-091901 |