TO THE MEMBERS OF DHANVANTRI JEEVAN REKHA LIMITED
1. Report on the Financial Statements
We have audited the accompanying financial statements of Dhanvantri Jeevan RekhaLimited ("the Company") which comprises the Balance Sheet of Dhanvantri JeevanRekha Ltd. ("the Company") as at March 31 2014 the Statement of Profit andLoss and Cash Flow Statement for the year ended and a summary of significant accountingpolicies and other explanatory information.
2. Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards notified under the Companies Act 1956("the Act") read with the General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of Section 133 of theCompanies Act 2013 and in accordance with the accounting principles generally accepted inIndia. This responsibility includes the design implementation and maintenance of internalcontrol relevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material 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. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management 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.
In our opinion and to the best of our information and according to the sxplanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2014;
b) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
5. Report on Other Legal & Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of section 227 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order. As required by section 227(3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards notified under the Act read with GeneralCircular 15/2013 dated 13m September 2013 of the Ministry of Corporate Affairsin respect of Section 133 of the Companies Act 2013
e) On the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the director is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Act.
For K.K. Jain & Co.
Firm Regn No. 002465N Membership No. 086496
Place: Meerut Date: 28.05.2014
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in paragraph 5 of the auditor's report to the members of DHANVANTRIJEEVAN REKHA LIMITED for the year ended March 31 2014. We report that:
i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) All fixed assets have been physically verified by the management during the year.In our opinion the frequency of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.
(c) There was no substantial disposal of fixed assets during the year.
ii. The management has conducted physical verification of inventory at reasonableintervals. The procedures of physical verification of inventory followed by the managementare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness. The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.
iii. (a) According to the information and explanations given to us and on the basis ofexamination of the Books of Accounts the Company has not granted/taken any loans securedor unsecured to/from Companies firms or other parties covered in the register maintainedU/s 301 of The Companies Act.
(b) Since there are no such loans the comments regarding terms and conditions forrepayment of the principal amount and interest thereon overdue amount are not required.
iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for purchase of inventory and fixed assets and for sale of goodsand services. Accordingly the issue of continuing failure to correct major weakness inthe internal control in these areas does not arise.
v. (a) In our opinion and according to the information and explanation provided by themanagement the particulars of contracts or arrangements referred to in section 301 of theAct have been entered in the register required to be maintained under that section.
(b) Where each of such contract is in excess of Rs. 5 Lac in respect of any party thetransaction have been made at a price which is prima facie reasonable having regard to theprevailing market at the relevant time.
vi. The Company has accepted deposits from public and in our opinion company hascomplied with the provisions of sec 58A and 58AA of The Companies Act 1956 and theCompanies(Acceptance of deposits) Rules1975.
vii. To the best of our knowledge and as explained the Central Government has notprescribed maintenance of cost records under clause (d) of sub-section (1) of section 209of the Companies Act 1956 for the products of the Company.
viii. The Central Government of India has not prescribed the maintenance of costrecords under section 209(l)(d) of the Act for any service rendered by the Company.
ix. According to the information and explanation given to us in respect of statutorydues including Provident Fund dues Investor Education and Protection Fund Employees'State Insurance Income Tax Sales Tax Wealth Tax Service Tax Custom Duty Excise Dutycess to the extent applicable and any other statutory dues have generally been regularlydeposited with the appropriate authorities. According to the information and explanationgiven to us there were no outstanding disputed statutory dues as on 31.03.2014 for aperiod of more than six months from the date they became payable.
x. The Company has no accumulated losses at the end of the financial year and it hasnot incurred cash losses during the financial year covered by our audit and theimmediately preceding financial year.
xi. 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 Banks and Financial Institutions. We have been informed that the company did not haveany outstanding debentures during the year.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
xii. According to the information and explanations given to us and based on thedocuments and records produced to us the Company has not granted loans and advances onthe basis of security by way of pledge of shares debentures and other securities.
xiii. In our opinion the Company is not a chit fund or a nidhi mutual benefitfund/society. Therefore the provisions of clause 4 (xiii) of the Companies(Auditor's Report) Order 2003 are not applicable to the Company.
xiv In our opinion the Company is not dealing in or trading in shares securitiesdebentures and other investments Accordingly the provisions of clause 4(xiv) of theCompanies (Auditor's Report) Order 2003 are not applicable to the Company.
xv. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from Banks or Financial Institutions.
xvi. According to the information and explanation given to us the company has nottaken any term loan during the year under audit. Accordingly the provisions of clause4(xvi) of the Companies (Auditors Report) Order 2003 are not applicable to the company.
xvii. We have been informed by the management that the funds raised on short-term basishave not been used for long-term investment. No long-term funds have been used for financeof short-term assets.
xviii. The Company has not made any preferential allotment of shares to parties orCompanies covered in the register maintained under section 301 of the Companies Act 1956.
xix. The Company did not have any outstanding debentures during the year.
xx. The Company has not raised any money through a public issue during the year.
xxi. Based upon the audit procedures performed by us for expressing our opinion onthese financial statements and information and explanations given by the management wereport that no fraud on or by the Company has been noticed or reported during the yearnor we have been informed of such case by the management.
For K.K. Jain & Co.
Firm Regn No. 002465N Membership No. 086496