The Members of
D & H INDIA LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of D & h INDIALIMITED ('the Company1) which comprise (be balance sheet as at 31 March 2015(be statement of profit and loss and the cash flow statement for the year then ended anda summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible far the matte Rs stated in Section134(5} of the Companios Act 2013 (Ihe Act") with respectto the preparation andpresentation of these standalone financial statements mat give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safoguarding the assetsof the Company andfor preventing and detecting fraudsand other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud ororror. Auditor's Responsibility
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matte Rs which are required to be included in the audit reportunder the provisions of the Actand the Rules made thereunder We conductod our audit inaccordance with the Standards on Auditing spocifiod under Section 143(10) of tho Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor conside Rs internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has In place an adequate Internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting ostimates mado by the Company's Directors as woll as ovaluating the overall presentation of tho 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 standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affai Rs of the Companyas at 31 March 2015 and Its profit and Its cash flows for the year 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 forms of sub-soction (11} of section 143 of the Act wogive in tho Annoxure a statomont an tha matte Rs specified in the paragraph 3 and 4 of theOrder to the extent applicable.
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 (he 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 appea Rs from our oxarni nation of those books;
c) the balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agrooment with tho books of account;
d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specifiod under Section 133 of tho Act read with Rule 7 of theCompanies (Accounts) Rules 2Q14:
e) on the basis of the written representations received from Hie directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2Q15 from being appointed as a director in terms of Section164 (2)of the Act; and
f) with respect to the other matte Rs to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Audito Rs ) Rules 2014 in ouropinion and to the best of our information and according lo ihe explanations given lo us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.
ii. The Company did not have any long-term contracts including derivative contractsforwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Proieclion Fund by the Company.
| ||For ABN & Co. |
| ||Chartered Accountants |
| ||FRN : C04447C |
| ||(B.rm. Bhandari) |
|Place: Indore ||Partner |
|Dale; 30.05.2015 ||M. No.: 071232 |
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1 under the heading of "report an other legal andregulatory requirements" of our report of even data)
(i) a. The proper records showing full Particulars including quantitative dotails andsituation of tho fixod assets are being maintained by the company b. All the fixed assetshave been physically verified by Ihe management during the year which in our opinion isreasonable having regard to the size of the company and the nature of its assets. As perinformation and explanations given to us no material discrepancies were noticed.
(ii) a. The inventory of the company has been physically verified by the managementduring the year. In our opinion the frequency of verlffca lion Is reasonable.
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 reasonable& adequate in relation (o Ihe size of the company & nature of its business.
c. On the basis of our examination of records of inventory in our opinion Ihe companyhas maintained proper records of inventory and as explained to us the discrepanciesnoticed on physical verification of inventory as compared to book records were notmaterial and have been properly dealt with in the books of account.
(iii) The Company has granted loan to one corporate entity in Ihe register maintainedunder section 1S9 of Ihe Companies Act 2013.
a. The terms of arrangements do not stipulate any repayment schedule and the loans arerepayable on deman Accordingly paragraph 3(iii)(b) of the Order is not applicable to theCompany in respect of repayment of the principal amount.
b. There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to Hie corporate entity listed in the register maintained under section 169 of HieAct.
(iv) In our opinion and according to information & explanations given to us thereis adequate internal control system commensurate with the size of the company & natureof its business with regard to the purchase of inventory and fixed assets and for the saleof goods and services. Further on the basis of our examination of the books and records ofthe company carried out in accordance wilh the generally accepted auditing practices inIndia we have neither come across nor have been informed of any instances of majorweaknesses inthe internal control system.
(v) In aur opinion and according to the information & explanations given to us thecompany has not accepted deposit within the meaning of provisions of section 73 to 76 orany other relevant provisions of Companies Act and Rulesframed there under.
(vi) We have broadly reviewed the cost records maintained by Ihe Company pu Rs uant tothe Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder Section 146(1 )(d) of the Companies Act. 2013 and are of the opinion that primafacie theprescribed accounts and cost records have been maintained. We have however notmade a detailed examination of the cost records with a view to determine whether they areaccurate or complete.
(vii) a. According to the information and explanations given to us and on the basis ofour examination of the
records of the Company amounts deducted/ accrued in the books of account in respect ofundisputed statutory dues including provident fund income tax sales lax. wealth taxservice tax duty of customs value added tax cess and other material statutory dues havebeen regularly deposited during the year by the Company with the appropriate authorities.As explained to us the Company did not have any dues on account of employees' stateinsurance and duty of excise.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax sen/ice tax dutyof customs value added tax cess and other material statutory dues were in arrea Rs as at31 March 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 are no material dues ofwealth tax duty of customs and cess which have not been deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of Sales tax & Entry tax have not been deposited bythe Company on account of disputes:
|Nature of Statute ||Nature of the dues ||Period to which the amount relates ||Amount in Rupee ||Forum where the dispute is pending |
|CST ||Regular assessment ||2006-09 ||124977 ||Appeal Board Bhopal |
| || ||2009-10 ||364322 ||Appeal Board Indore |
| || ||2010-11 ||497.994 ||Appeal Board Indore |
| || ||2011-12 ||1267119 ||Add. Commissioner |
|Entry Tax ||Regular assessment ||2006-09 ||30272 ||Appeal Board Bhopal |
| || ||2011-12 ||34.952 ||Add. Commissioner |
c. According to the information and explanations given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the CompaniesAct 1956 (1 of1958) and rulesthere underhasbeen transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year and in the immediatelypreceding financial year.
(ix) The Company has not defaulted in repayment of dues to financial Institutionsbanks or debenture holde Rs during the year.
(x) In our opinion and according to the information and the explanations given to us.the Company has not given any guarantee for loans taken by othe Rs from banks or financialinstitutions.
(xi) According to the records of the company examined by us and the information &explanations given to us term loan taken have been applied for the purposes for whichthey were raised.
(xii) According to the information & explanation given to us no fraud on or by thecompany has been noticed or reported during the cou Rs e of our audit.
| ||For AEN S Co. |
| ||Chartered Accountants |
| ||FRN :004447C |
| ||IB.M. Bhandarl) |
|Place; Indore ||Partner |
|Date: 30.05.2015 ||M. No.: 071232 |