THE MEMBERS OF CITYMAN LIMITED. BANGALORE
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of City man Limited (the Company)comprising of the balance sheet as at 31st March 2015 the Profit and Loss Statement andthe Cash Flow Statement for the year ended on that date and a summary of significantaccounting policies and other explanatory information ( the financial statements).
MANAGEMEN'S RESPONSIBILTY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the preparation of these financialstatements in terms of the requirements of the Companies Act 2013 (the Act) that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting principles generally accepted in Indiaincluding the Accounting Standards specified under section 133 of the Act read with Rule 7of the Company's (Accounts) Rules 2014. The Board of Directors of the Company isresponsible for maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the company and for preventing anddetecting frauds and other irregularities the selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls 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 which have been used for the purpose of preparation of the financial statements bythe Directors of the Company as aforesaid.
Our responsibility is to express an opinion on these financial statements based on ouraudit. While conducting the audit we have taken into account the Provisions of the Actthe accounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under. We conductedour audit in accordance with the Standards on Auditing issued by the Institute ofChartered Accountants of India and specified under section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe entry's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our 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 2015.
ii) in the case of the profit and loss statement of the loss of the company for theyear 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 2015 (the Order) issued bythe Central Government of India in terms of subsection (11) of section 143 of the Act wegive in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theorder to the extent applicable to the Company.
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 appears from our examination of those books.
c) The Balance Sheet Profit and Loss statement and cash flow statement dealt with bythis Report are in agreement with the books of account.
d) In our opinion the balance sheet profit and loss statement and cash flow statementcomply with the Accounting Standards referred to in section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31stMarch 2015 and 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 terms of clause(g) of sub- section (1) of section 164(2) of the Companies Act2013.
| ||For CHANDY & ZACHERIA |
| ||Chartered Accountants |
| ||FRN: 000664S |
| ||THANKACHAN ZACHERIAS LLB FCA CISA DISA. |
|Camp: Bangalore ||Partner |
|Date: 22.05. 2015 ||M. No. 023421 |
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 1 of our report of even date on the financial statements ofCITYMAN LIMITED for the year ended March 31 2015.
In terms of Companies ( Auditor's Report) Order 2015(the order) issued by theGovernment of India in terms of Sub Section (11) of Section 143 of Companies Act2013 wefurther report on the matters specified in the said order to the extent applicable tothe Company We report that :
1. We are informed that detailed records showing quantitative particulars and situationof fixed assets are being updated. We are also informed that physical verification wasconducted of plant and machinery furniture and fittings and other major assets by themanagement during the year and no material discrepancies were noticed on suchverification.
2. The company is maintaining proper records of inventory.
3. We are informed that physical verification of inventory was conducted at reasonableintervals by the management during the year.
4. According to the information and explanations given to us and in our opinion theprocedure for physical verification of stock followed by the management are reasonable andadequate in relation to the size of the company and nature of its business.
5. The discrepancies noticed on verification between the physical stock and recordswere not material having regard to the size of the company and operations of business ofthe company.
6. In our opinion and on the basis of our examination of the stock records and havingregard to the information and explanations given to us the valuation of stock is fair andproper and is in accordance with the normally accepted accounting principles and is on thesame basis as in the previous year.
a) We are informed that the company has not granted any loans secured or unsecured tocompanies firms or other parties listed in the register maintained under section 189 ofthe Companies Act 2013 except those mentioned in (b) below and trade advances in thecourse of regular trade as per commercial expediency and the terms and conditions of whichare in our opinion not prima facie prejudicial to the interest of the company
b) The company has given Rs. 12 lakhs as interest free refundable deposit to apartnership firm in which the Managing Director is a partner for using the brand nameowned by them for a period of 99 years in addition to royalty payment of 1 % of theturnover of the company under the brand name to the above firm for using it's brand name.
c) The company has taken an interest free long term borrowing of Rs.1390.00 lakhs fromthe Managing Director which is to be either repaid or converted into equity as perrelevant and applicable SEBI and other guidelines.
d) The above payment mentioned in ( b) and loan mentioned in ( c) have been approved bythe shareholders of the company.
7. In respect of loans and advances in the nature of loans given by the company thecompany / parties are generally repaying the principal amounts and interest as per termsof granting the same.
8. There is no overdue repayable advance amount of Rupees One Lakh or more due from anyparty listed in the register maintained under section 189 of the Companies Act 2013.
9. In our opinion and according to the information and explanations given to us thereare adequate internal control procedure commensurate with the size of the company and thenature of it's business with regard to purchase of inventory fixed assets and with regardto sale of goods. During the course of our audit we have not observed any continuingfailure to correct major weakness in internal controls.
10. We are informed that the company has not accepted any deposits from public duringthe year.
11. In our opinion the company has an adequate internal audit system commensurate withthe size of the company and nature of its business.
12. We have been informed that the Central Government has not prescribed maintenance ofcost records under section 148 (1) (d) of the Companies Act 2013 for the year underreference.
13. (a) According to the records of the company the company is regular in depositingwith appropriate authorities undisputed statutory dues except interest on Income Taxamounting to Rs.14.46 lakhs for assessment years 1997 98 and 1998 - 99.
(b) According to the information and explanations given to us there are no undisputedamounts payable in respect of income tax wealth tax sales tax customs duty and exciseduty which have remained outstanding as at 31st March 2015 for a period of more than sixmonths from the date they become payable except interest on Income Tax amounting toRs.14.46 lakhs for assessment years 1997 98 and 1998 - 99.
(c ) There is no disputed dues of sales tax income tax customs duty wealth taxexcise duty and cess which have not been deposited by the company.
14. The company has an accumulated loss of Rs.242653595/- as at the end of thefinancial year and has incurred a cash loss of Rs.3274761/- during the financial yearand has incurred a cash loss of Rs.2972137/ - during the immediately preceding financialyear. The accumulated loss of the company is more than 50% of it's net worth.
15. The company has not taken any term loan from financial institutions or banks norhas issued any debentures during the year under reference. There are no dues from thecompany to any bank or financial institution as at March 31 2015.
16. The company has not granted any loans and advances on the basis of security by wayof pledge of shares debentures and other securities and hence we have no comments tooffer in respect of the same as per the Companies (Auditor's Report) Order 2015.
17. In our opinion and according to the information and explanations given to us thecompany has not given any guarantees for loans taken by others from banks or financialinstitutions and hence we have no comments to offer in respect of the same as per theCompanies (Auditor's Report) Order 2015.
18. The company has not obtained any term loans. Accordingly the question of reportingon its application does not arise.
19. According to the information and explanations given to us and on an overallexamination of the balance sheet of the company as at March 31 2015 we report that nofunds raised on short-term basis have been used for long-term investment and also that nolong-term funds have been used to finance short-term assets except working capital.
20. The company has neither issued any debentures during the year nor are there anyoutstanding debentures as on March 31 2015 and hence do we have no comments to offer inrespect of the same as per the Companies (Auditor's Report) Order 2015.
21. The Company has not raised any money through public issue during the year andaccordingly the Companies (Auditor's Report) Order 2015 as amended is not applicable forthe Current year.
22. According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.
| ||For CHANDY & ZACHERIA |
| ||Chartered Accountants |
| ||FRN.NO. 000664S |
| ||Thankachan Zacherias LLB FCA CISA DISA |
|Camp: Bangalore ||Partner |
|Date:22.05.2015 ||M. No. 023421 |