The Members of
Dhanalaxmi Roto Spinners Limited
Report on the Financial Statements
We have audited the accompanying Financial Statements of Dhanalaxmi Roto SpinnersLimited which comprise the Balance Sheet as at 31st March 2015 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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.
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) 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.
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures 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 effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell 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 profit and 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 (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 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 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 under Section 133 of the Act read with 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.
(f) With respect to the other matters to be included in the Auditors 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. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts inrespect of which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure referred to in paragraph 1 under the heading of "Report on Other Legaland Regulatory Requirements" of our report dated 30/05/2015 to the members ofDhanalaxmi Roto Spinners Limited on the financial statements for the year ended 31stMarch 2015
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The company has a regular program of verifying fixed assets every year which inour opinion is reasonable having regard to the size of the company and nature of itsassets. All Fixed assets have been physically verified by the management during the year.As informed discrepancies noticed on such verification were not material and have beenproperly dealt with in the books of account.
(a) The Company has conducted physical verification of inventories at reasonableintervals.
(b) The procedures followed for physical verification of inventories by the managementwere reasonable and adequate in relation to the size of the company and nature of itsbusiness.
(c) The company is maintaining proper records of inventory and the differences noticedon physical verification which were not material have been properly dealt with in thebooks of account.
(iii) The company has not granted loans to parties covered under Sec 189 registerhence Clause (a) & (b) of point 3 is not applicable.
(iv) In our opinion and according to the information and explanations given to usthere is an internal control system with regard to the purchase of inventory fixed assetsand sale of goods and services commensurate with the size of the Company and the nature ofits business. On the basis of our examination and according to the information andexplanations given to us there is no continuing failure to correct major weaknesses inthe aforesaid internal control system.
(v) The Company has not accepted any deposits from the public hence the directivesissued by the Reserve Bank of India and the provision of Section 73 to 76 or any otherrelevant provisions of the Companies Act and the rules framed thereunder are notapplicable.
(vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under section 148 (1) of the CompaniesAct 2013 in respect of services carried out by the Company.
(a) According to the information and explanations given to us and the records of theCompany examined by us the Company has generally been regular in depositing undisputedstatutory dues including provident fund employees state insurance income-taxsales tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues applicable to it with the appropriate authorities.According to the information and explanation given to us and the records of the Companyexamined by us no undisputed amounts payable in respect of provident fundemployees state insurance Income-tax sales tax service tax duty of customs dutyof excise value added tax cess and any other statutory dues were in arrears as at 31stMarch 2015 for a period of more than six months from the date they became payable.
(b) There are no dues relating to income tax / sales tax / wealth tax / service tax /duty of customs / duty of excise / value added tax / cess which have not been depositedon account of disputes with the related authorities .
(c) There are no amounts which require to be transferred to Investor Education andProtection Fund in accordance with the provisions of the Act and the rules madethereunder.
(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the current financial year or in the immediatelypreceding financial year.
(ix) Based on our audit procedure and as per the information and explanations given bythe management we are of the opinion that the company has not defaulted in repayment ofdues to financial institutions banks or debenture holders.
(x) According to the information and explanations given to us the company has notgiven any guarantee during the year for loans taken by others from banks or financialinstitutions.
(xi) In our opinion and according to the information and explanations given to us thecompany has applied the term loans for the purpose for which it was obtained.
(xii) Based upon the audit procedures performed and information and explanations givenby the management we report that no fraud on or by the Company has been noticed orreported during the year ended 31st March 2015.
| ||For G.D. UPADHYAY & CO. |
| ||Chartered Accountants |
| ||Firm Regd No.05834S |
| ||Sd/- |
| ||G.D. UPADHYAY |
|Place: Hyderabad ||Partner |
|Date : 30.05.2015 ||Membership No.27187 |