To the Members of Deccan Bearings Limited Report on the Financial Statements
We have audited the accompanying financial statements of Deccan Bearings Limited(the Company") which comprise the balance sheet as at 31st March 2015 thestatement of profit and loss and the cash flow statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matter stated in section 134(5)of the Companies Act 2013 (the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified u/s. 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and 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 or error.
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 there under.
We conducted our audit in accordance with the Standards on Auditing specified u/s.143(10) of the Act. Those Standards require that we comply with the 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 to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers the internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating the effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well 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 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 loss 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 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 paragraphs 3 and4 of the Order 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 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 u/s. 133 of the Act read with the 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 terms of section164 (2) of the Act; and
(f) With respect to the other matters to be included in the Auditor's 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) There are no pending litigations hence no impact on financial position in itsfinancial statements;
(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses;
(iii) According to the information and explanations given to us no amounts arerequired to be transfer to the Investor Education and Protection Fund.
FOR D.V.VORA & CO.
Dated: 5th June 2015
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Annexure referred to in our Independent Auditor's Report to the Members of Company onthe financial statements for the year ended March 312015 we report that:
1] (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) As per the information and explanations given to us the management at reasonableintervals carries out the physical verification of the fixed assets. The discrepanciesnoticed on such verification which were not material have been appropriately dealt within the accounts.
2] (a) As per the information and explanations given to us the inventories have beenphysically verified during the year by the management. In our opinion having regard tothe nature and location of stocks the frequency of the physical verification isreasonable.
(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) In our opinion the Company is maintaining proper records of inventory and thediscrepancies noticed on physical verification of the same were not material in relationto the operations of the Company and the same have been properly dealt with in the Booksof Accounts.
3] The Company has not granted any loans secured or unsecured to companies firms orother parties covered under register maintained under section 189 of the Act.
4] In our opinion and according to the information and explanation given to us thereare adequate internal procedures commensurate with the size of the Company and the natureof its business with regard to purchase of inventory and fixed assets and for the sale ofgoods & services. During the course of our audit no major weakness has been noticed inthe internal controls.
5] In our opinion and according to the information and explanation given to us theCompany has complied with the Section 73 and 74 of the Act and the rules framed thereunder to the extent notified.
6] In our opinion and according to the explanation given to us the Rules made by theCentral Government for the maintenance of cost records under subsection (1) of section 148of the Companies Act 2013 does not apply in respect of Company's Business.
7] (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has been generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund income-tax sales-tax customs duty wealth tax service tax and excise duty andcess and other material statutory dues.
(b) There were no undisputed amount payable in respect of provident fund income-taxsales-tax customs duty wealth tax service tax and excise duty and cess materialstatutory dues in arrears as on 31st march 2015 for a period more than sixmonths from the date they became payable.
(c) According to the information and explanations given to us there are no dues inrespect of sales tax income tax customs duty wealth tax excise duty and cess whichhave not been deposited with the appropriate authorities on account of any dispute.
(d) According to the information and explanations given to us no amounts are requiredto be transfer to the Investor Education and Protection Fund.
8] The Company's accumulated losses at the end of financial year have not exceeded thenet worth of the Company and the Company has incurred cash losses in the current financialyear and has not incurred cash loss in the immediately previous financial year.
9] Based on the information and explanations given to us the Company has not defaultedin repayment of any dues to financial institutions and banks.
10] According to the information and explanation given to us the Company has not givenany guarantees for loans taken by others from Bank or Financial Institutions.
11] In our opinion and according to the information and explanation given to us theterm loans have been applied for the purpose for which they were raised.
12] As per the information and explanations given to us no fraud on or by the Companyhas been noticed or reported during the year.
FOR D.V.VORA & CO.
Dated: 5*h June 2015