TO THE MEMBERS OF CITIZEN YARNS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Citizen Yarns Limited whichcomprise the Balance Sheet as at 31 March 2015 the Statement of Profit and Loss the CashFlow Statement for the year then ended and a summary of significant accounting policiesand other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financia l position financia lperformance 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 finan cial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
(1) Our responsibility is to express an opinion on these fin ancia l statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.
(2) 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.
(3) An audit involves performing procedures to obtain audit evidence about the amountsand 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 financi al control relevant to the Companyspreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Companys Directors as well as evaluating the overallpresentation of the fi nancial statements.
(4) We believe that the audit evidence we have obtained is sufficient and appropriateto 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 fin ancial 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;
1. In the case of the Balance Sheet of the state of affairs of the Company as at March31 2015;
2. In the case of the Statement of Profit and Loss of the Profit for the year ended onthat date; and
3. 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 (Auditors Report) Order 2015 ("the Order)issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure a statement on the matters Specified in Paragraph 3 and 4of the Order.
As required by section 143(3) of the Act we report that:
we have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit.
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 [and proper returns adequatefor the purposes of our audit have been received from the branches not visited by us ]
[The reports on the accounts of the branch offices of the Company audited underSection 143(8) of the Act by branch auditors have been sent to us and have been properlydealt by us in preparing this report.]
d) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statementdealt with by this Report are in agreement with the books of account. [And the returnsreceived from the branches not visited by us.]
e) 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.
f) The going concern matter described in sub-paragraph (b) under the Emphasis ofMatters paragraph above in our opinion may have an adverse effect on the functioning ofthe Company.
g) On the basis of written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164(2) of the Act.
h) In our Opinion and to the best of our information and according to theexplanation given to us we report as under with respect to the other matters included inthe Auditors Report in accordance with Rule 11 of the Companies (Audit &Auditors) Rule 2014 :
1. The company does not have any pending litigations which would impact its financialstatement.
2. The company did not have any long term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.
3. There has not been an occasion in case of the company during the year under reportto transfer any sums to the Investors Education and Protection Fund. The question of delayin transferring such sums does not arise.
For D.A. Rupawala & Associates
Proprietor M. No. 037674 FRN No. 108902w
Date : 29.05.2015
Place : Ahmedabad.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in our report to the members of CITIZEN YARNS LIMITED for theyear ended 31st March 2015.
On the basis of the information and explanation given to us during the course of ouraudit we report that:
1. (a) There is no Fixed Assets Hence Not Applicable.
2. (a) There is No Inventory at the end of the Year hence Not Applicable. (b) N.A. (c)N.A.
3. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act. Thus sub clauses (a) & (b) are not applicable to thecompany.
4. In our opinion and according to the information and explanations given to us thereis generally an adequate internal control procedure commensurate with the size of thecompany and the nature of its business for the purchase of inventories & fixed assetsand payment for expenses & for sale of goods. During the course of our audit no majorinstance of continuing failure to correct any weaknesses in the internal controls has beennoticed.
5. In our opinion and according to the information and explanations given to us companyhasnt accepted any deposits from the directives issued by the Reserve Bank of Indiaand as per the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act
6. As per information & explanation given by the management maintenance of costrecords has been prescribed by the Central Government under clause (d) of sub-section (1)of section 148 of the Act and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.
7. (a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise
Duty cess to the extent applicable and any other statutory dues have generally beenregularly deposited with the appropriate authorities. According to the information andexplanations given to us there were no outstanding statutory dues as on 31st ofMarch 2015 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
(c) In our opinion company has transferred the amount which is required to betransferred to investor education and protection fund in accordance with the relevantprovisions of the Companies Act 1956 (1 of 1956) and rules made thereunder within time.
8. The Company does not have any accumulated loss and has not incurred cash loss duringthe financial year covered by our audit and in the immediately preceding financial year.
9. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debenture holders.
10 According to the information and explanations given to us the Company has not given. any guarantees for loan taken by others from a bank or financial institution.
11. In our opinion Terms Loans were applied for the purpose for which loans wereobtained
12. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.
| ||for D.A. Rupawala & Associates |
| ||Chartered Accountants |
| ||Sd/- |
| ||(Dawoodi Rupawala) |
| ||Proprietor |
|Place : Ahmedabad ||M.No. 37674 |
|Date : 29th May 2015 ||FRN No. : 108902w |