To the Members
Diligent Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Diligent Industries Limited("the Company") which comprises the Balance Sheet as at March 31 2015 theStatement of Profit and Loss and Cash Flow statement for the year ended and summary ofsignificant accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
The company's 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 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 the maintenance of adequate records in accordance with theprovision of the Act for safeguarding of the assets of the Company and for preventing anddetecting the frauds and other irregularities; selection and application appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due 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 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 under sec143(10) of the Act. Those Standards require that we comply with ethical requirements andplan 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 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 financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the company has in place an adequate internal financial control overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation 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 31March 2015 its Loss and its cash flows for the year ended on the date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies(Auditor's Report) Order 2015 (the Order) issued by theCentral Government of India in terms of sub-section(11) of section 143 of the Act we givein the annexure a statement on the matters 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 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 theStatement of Profit and Loss and the Cash Flow Statement dealt with by this report are inagreement with the books of account;
d. In our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the
Accounting standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on 31 March2015 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.
f. With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the companies
(Audit and Auditors ) Rules 2014 in our opinion and to the best of our informationand according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company does not have any long term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which are required to be transferred to the InvestorEducation and protection fund by the company
| ||For Ramasamy Koteswara Rao & Co. |
| ||Chartered Accountants |
| ||Firm Reg No 010396S |
| ||Sd/- |
| ||CA Murali Krishna Reddy Telluri |
|Place: Hyderabad ||Partner |
|Date: 13-05-2015 ||M.No.223022 |
The Annexure referred to in our Independent Auditor's Report to the members of thecompany on the financial statements for the year ended March 31 2015 we report that:
i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies have been noticed on such verification. In our opinion theperiodicity of physical verification is reasonable having regard to the size of thecompany and nature of its assets.
ii) (a) As explained to us inventories have been physically verified by the Managementat regular intervals during the year.
(b) In our opinion and according to the information and explanations given to us theprocedure of physical verification of inventory followed by the management is reasonableand adequate in relation to the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As explained to us therewere no material discrepancies noticed on physical verification of inventories as comparedto book records.
iii) In our opinion and according to the information and explanations given to us thecompany has not granted any loans secured or unsecured to companies firms or otherparties covered in the register maintained under Section 189 of the Companies Act 2013.Therefore requirements of clauses (a) (b) of paragraph 3(iii) of the order are notapplicable.
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 with regard to purchase of inventory and fixed assets and for thesale of goods. During the course of the audit we have not observed any major weaknesses inthe internal control system.
v) According to the explanations given to us the company has not accepted any depositsfrom Public.
vi) We have broadly reviewed the books of account relating to material labour andother items of cost maintained by the Company prescribed by the Central Government for themaintenance of cost records under section 148 (1) of the Act and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained However wehave not made a detailed examination of the records.
vii) (a) According to the records of the company and explanations given to us and onthe basis of our examination of the records of the company undisputed statutory duesincluding provident fund Income - tax Value Added Tax and other material statutory duesapplicable to it have been regularly deposited with the appropriate authorities.
Further as explained to us no undisputed statutory dues were in arrears as at 31March 2015 for a period of more than 6 months from the date they become payable.
(b) According to the information and explanation given to us there are no dues ofincome-tax sales-tax and cess which have not been deposited on account of any dispute.
(c) According to the information and explanation given to us there were no amounttransferred to investor education and protection fund.
viii) The company has accumulated losses as at the end of the financial year and itaccumulated losses are less than fifty percent of its net worth and the company has notincurred any cash losses during the current financial year covered by our audit and in theimmediately preceding financial year.
ix) Based on our audit procedures and on the information and explanation given to uswe are of the opinion the company has not defaulted in repayment of dues to bank duringthe year.
x) According to the information and explanations given to us the company has not givenguarantees for loans taken by others from banks or financial institutions.
xi) According to the information and explanations given to us no term loans wereraised during the year.
xii) Based on the audit procedures performed and information and explanations given tous by the management we report that no fraud on or by the company has been noticed orreported during the course of our audit.
| ||For Ramasamy Koteswara Rao & Co. |
| ||Chartered Accountants |
| ||Firm Reg No 010396S |
|Date: 13-05-2015 ||Sd/- |
|Place: Hyderabad ||CA Murali Krishna Reddy Telluri |
| ||Partner |
| ||M.No.223022 |