TO THE MEMBERS OF DONEAR INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of DONEAR INDUSTRIES LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.
Management's 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 preparationand presentatioNo f these financial statements that 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 safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplicatioNo f appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentatioNo fthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express aNo pinioNo n these financial statements based oNo uraudit.
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 AuditingspecifiedunderSection 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 theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those riskassessmentstheauditorconsidersinternalfinancialcontrol relevant to the Company'spreparatioNo f the financial statements that give a true and fair view iNo rder to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Board of Directors as well as evaluatingthe overall presentatioNo f the financial statements.
We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinioNo n the financial statements. opinion
INo ur opinion and to the best of our information and according to theexplanationsgiventoustheaforesaidfinancialstatements give the information required by theAct 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 affairs of the companyas at 31st March 2017 and its profit and its cash flows for the year ended on that date. reportoNo ther Legal and regulatory requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. INo ur opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexaminatioNo f those books. c. The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount. d. INo ur opinion the aforesaid financial statements materially comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e. On the basis of the written representations receivedfrom the directors as on 31 March 2017 takeNo n record by the Board of Directors none ofthe directors is disqualified as on 31 March 2017 from being appointed as a director interms of Section 164 (2) of the Act. f. With respect to adequacy of the internal financialcontrols over financial reporting controls refer to our separate report in "AnnexureB" and g. With respect to the other matters to be included in the Auditor's Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 iNo uropinion and to the best of our information and according to the explanations given to us:i. The Company has disclosed the impact of pending litigations on its financial positionin its financial statements Refer Note No. to the financial statements; ii. The Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses; and iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the company.iv. The Company had provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management - refer Note No. 40 tothe financial statements.
|For and on behalf of |
|M L BHUWANIA AND CO LLP |
|Chartered Accountants |
|Firm's Registration No. 101484W/W100197 |
|Ashishkumar Bairagra |
|Membership No.109931 |
|Place: Mumbai |
|Date: 30th May 2017 |
Annexure:-A referred to in paragraph titled as "report oNo ther Legal andregulatory requirements" of Auditor's report to the members donear industries Limitedfor the year ended 31st March 2017.
On the basis of the records produced to us for our verification / perusal such checksas we considered appropriate and in terms of information and explanation given to us oNour inquiries we state that:
(i) (a) The company is maintaining proper records showing full Particulars includingquantitative details and situatioNo f fixed assets. (b) The fixed assets of the Companyare physically verified by the Management according to a phased programme designed tocover all the items over a period of three years which iNo ur opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogramme a portioNo f the fixed assets has been physically verified by the Managementduring the year and discrepancies noticed between the book records and the physicalinventories were not material and have been properly dealt with in the accounts.
(c) According to information and explanations gives to us and on the basis of ourexaminatioNo f the records of the Company the title deeds of immovable properties areheld in the name of the Company.
(ii) During the year the inventories have been physically verified by the management.INo ur opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verificatioNo f inventories as compared to the book records were not material andhave been properly dealt with in the books of account.
(iii) The Company has not granted any loans secured or unsecured to companies firm orother parties covered in the register maintained under
Section 189 of the Companies Act 2013. Accordingly clause 3(iii) of the Order is notapplicable to the Company.
(iv) In Company has not granted any loans has not made investments and has notprovided any guarantees and security to directors or to any other parties during the year.Accordingly clause 3 (iv) of the Order is not applicable to the Company.
(v) The Company has not accepted any deposits from the public during the year coveredby the audit. Accordingly clause 3 (v) of the Order is not applicable to the Company.
(vi) The Central Government has prescribed maintenance of cost records for the companyunder sub section (1) of section 148 of the Companies Act 2013 and such accounts havebeen made and maintained by the company. However no detailed examinations of such recordsand accounts have been carried out by us.
(vii) (a) According to the records of the Company the Company is regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales Tax Service Tax Excise Duty Customs Duty Value Added Tax Cess and otherstatutory dues applicable to it with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable were outstandingas at the last day of the financial year for a period of more than six months from thedate they became payable.
(b) According to the records of the Company there are no dues of Income Tax ServiceTax and Customs Duty which have not been deposited on account of any dispute.
The disputed amounts that have not been deposited in respect of Sales Tax Value AddedTax and Excise Duty are as under:
|Name of the statue ||Nature of the dues ||AMOUNT () ||FINANCIAL YEAR TO WHICH THE AMOUNT RELATES ||FORUM WHERE DISPUTE IS PENDING |
|1. Maharashtra Value Added Tax Act 2002 ||Sales Tax/Value Added Tax ||382649 ||2005-2006 ||Joint Commissioner of Sales Tax (Appeals) |
|2. Central Excise Act ||Excise Duty on ||416848 ||2008-2009 ||Commissioner Central Excise |
|1944 ||Cenvat Dues || || ||Customs & Service Tax Surat (Appeal). |
(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues to banks andfinancial institutions during the year. The Company has not taken any loaNo r borrowingfrom government and has not issued debentures during the year.
(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and through term loans during the year.Accordingly clause 3 (ix) of the Order is not applicable to the Company.
(x) Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud by the
Company or no fraud on the Company by its officers or employees has been noticed orreported during the year.
(xi) INo ur opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Sec 197 read with Schedule V to the Companies Act2013.
(xii) INo ur opinion and according to the information and explanations given to us thenature of activities of the Company does not attract any special statute applicable toNidhi Company. Accordingly clause 3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given to us and based oNo urexaminatioNo f the records of the Company transactions with the related parties are incompliance with Sec 177 and 188 of Companies Act 2013 where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.
(xiv) INo ur opinion and according to the information and explanations given to us andbased oNo ur examinatioNo f the records of the Company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3 (xiv) of the Order is not applicable tothe Company.
(xv) INo ur opinion and according to the information and explanations given to us andbased oNo ur examinatioNo f the records of the Company the company has not entered intoany non-cash transactions with directors or persons connected with him. Accordinglyclause 3 (xv) of the Order is not applicable to the Company.
(xvi) The company is not required to be registered under Sec 45-IA of the Reserve Bankof India Act 1934. Accordingly clause 3 (xvi) of the Order is not applicable to theCompany.
For and on behalf of
M L BHUWANIA AND CO LLP
Firm's Registration No. 101484W/W100197
Membership No.109931 Place: Mumbai Date: 30th May 2017
Annexure- B referred to in paragraph titled as "report on the internal financialControls under clause (i) of sub- section 3 of section 143 of the Companies Act2013" ("the Act")
We have audited the internal financial controls over financial reporting of DonearIndustries Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Management's responsibility for internal financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detectioNo f and errors the accuracy and completeness ofthe accounting records and the timely preparatioNo f reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express aNo pinioNo n the Company's internal financialcontrols over financial reporting based oNo ur audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of
India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting controls over financialreporting included obtaining an understanding of internalandtheiroperatingeffectiveness.Ourauditofinternalfinancial financial controls overfinancialreporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinioNo n the Company's internal financial controls systemover financial reporting.
Meaning of internal financial Controls over financial reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the financial reporting and the preparatioNo ffinancial statements for external purposes in accordance with generally acceptedaccounting principles. A pertain to the maintenance of records thatcompany'sinternalfinancial in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparatioNo f financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingpreventioNo r timely detectioNo f unauthorised acquisition use or dispositioNo f thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of internal financial Controls over financial reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusioNo r improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluatioNo f the internal financialcontrols over financialreporting to future periods are subject to the risk that the internal financial controlinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate. opinion
INo ur opinion the Company has in all material respects an adequate internalfinancial controls system financial controls over financialreporting were operatingeffectively as at 31 March 2017 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.
For and on behalf of
M L BHuWAniA And Co LLp
Firm's Registration No. 101484W/W100197
Membership No.109931 Place: Mumbai Date: 30th May 2017