TO THE MEMBERS OF CHAMAN LAL SETIA EXPORTS LIMITED
1. REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of CHAMAN LAL SETIA EXPORTSLTD. (the Company) which comprise the Balance Sheet as at March 31 2015 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and a summaryaccounting policies and other explanatory information.
2. 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 principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor the ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
3. AUDITORS RESPONSIBILITY
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) the Act. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditors judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant 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. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompanys Directors as well as evaluating the overall presentation of the financialstatements We believe that the audit evidence we have obtained is sufficient andappropriate to provide 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.
(a) In the case of the Balance sheet of the state of affairs of the Company as atMarch 312015
(b) In the case of the Statement of profit and loss of the profit for the year endedon that date. and
(c) In the case of Cash Flow Statement of the cash flows for the year ended on thatdate.
5. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order 2015 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure a statement on thematters specified in paragraphs 3 and 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 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith 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 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. with respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) 2014 in our opinion and tothe best of our information and according to the explanations given to us;
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements
ii. In our opinion and as per the information and explanations provides to us theCompany has not entered into any long-term contracts including derivative contractsrequiring provision under applicable laws or accounting standards for materialforeseeable losses and
iii. There has been no delay in transferring the amounts required to be transferredto the Investor Education and Protection Fund by the Company.
| ||For Rajesh Kapoor & Co. |
| ||CHARTERED ACCOUNTANTS |
| ||(Rajesh Kapoor) |
| ||Prop. |
| ||M.No.: 92692 |
|Place: Amritsar || |
|Date: 28.08.2015 || |
Annexure to the Auditors Report
To the Members of Chaman Lal Setia Exports Ltd. on the Accounts for the Year Ended 31stMarch 2015
(i) (a) The company has maintained proper records showing full particulars includingquantitative details situation of its fixed assets.
(b) All the fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion isreasonable having regard to the size of the company and the nature of its assets and noserious discrepancies have been noticed in respect of those assets which have beenphysically verified.
(ii) (a) Inventory has been physically verified by the management at reasonableintervals during the year.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. No material discrepancieswere noticed on physical verification.
(iii) According to the information and explanations given to us the company during theyear has not granted/ taken any loans secured or unsecured to/from companies firms orother parties as per the register maintained under Section 189 of the Companies Act.
(iv) According to the information and explanations given to us there are adequateinternal control system commensurate with the size of the company and nature of itsbusiness for purchase of inventory and fixed assets and for the sale of goods andservices. There is no continuing failure to correct major weaknesses in internal controlsystem.
v) In our opinion and according to the information and explanations given to us theCompany is not required to maintain the cost records under sub-section (1) of Section 148of the Companies Act 2013.
(vi) According to the information and explanations given to us the Company has notaccepted any deposits from the public during the year.
(vii) (a) According to the information and explanations given to us and according tothe books and records as produced and examined by us in accordance with the generallyaccepted auditing practices in India the company is regular in depositing undisputedstatutory dues including provident fund investor education and protection fund employeesstate insurance income tax sales tax excise duty customs duty cess and otherstatutory dues as applicable with the appropriate authorities and we have been informedthat there are no arrears of outstanding statutory dues as at the last day of thefinancial year under audit for a period of more than six months from the date they becamepayable.
(b) As explained to us as at 31st March 2015 there have been no undeposited disputeddues in respect of sales tax income tax custom duty wealth tax service tax and cess.
(c) In our opinion and according to the information and explanations given to usamounts required to be transferred to investor education and protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and Rules madethereunder have been transferred to such fund within time
(viii) The company does not have any accumulated losses at the end of the financialyear. The Company has not incurred cash losses during the financial year covered by ouraudit and in immediately preceeding financial year.
(ix) In our opinion and according to the information and explanations given to us thecompany during the year has not defaulted in repayment of dues to financial institution orbank.
(x) According to the information and explanations given to us in our opinion thecompany has not given any guarantee for loans taken by others from bank or financialinstitutions the terms and conditions whereof are prejudicial to the interest of thecompany.
(xi) According to the information and explanations given to us no term loans wereobtained during the year under audit.
(xii) According to the information and explanations given to us during the year nofraud on or by the company has been noticed or reported.
| ||For Rajesh Kapoor & Co. |
| ||CHARTERED ACCOUNTANTS |
| ||(Rajesh Kapoor) |
|Place: Amritsar ||Prop. |
|Date: 28.08.2015 ||M.No.: 92692 |