TO THE MEMBERS OF KEMISTAR CORPORATION LIMITED
I have audited the accompanying financial statements of KEMISTAR CORPORATIONLIMITEDwhich comprise the Balance Sheet as at March 312015and the Statement of Profitand loss for the year then endedand a summary of significant accounting policies andother explanatory information.
Managements' responsibility for the standalone 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 of thesestandalone financial statements that give a true and fair view of the financialpositionfinancial performance and cash flows of the Company in accordance with theAccounting principle generally accepted in indiaincluding Rules(2014).Thisresponsibility also includes maintenance of adequate accounting records in accordance withprovision of the act for safeguarding of assets of the company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimate that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controlsthat wereoperating effectively for ensuring the accuracy and completeness of the accountingrecordsrelevant to the preparation and presentation of the financial statements that givea true and fair view and free from material misstatementweather due to fraud or error.
My responsibility is to express an opinion on these standalone financial statementsbased on my audit.I have taken into account the provisions of the Actthe accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.I have conducted my audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.Thosestandards require that I comply with the ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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'sjudgmentincluding the assessment of the risks of material misstatement of the financialstatementswhether due to fraud or error.In making those risk assessmentsthe 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 accounting policiesused and the reasonableness of the accounting estimates made by managementas well asevaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion.
In my opinion and to the best of my information and according to the explanations givento methe financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:
a) in the case of the Balance Sheetof the state of affairs of the Company as at March312015; and
b) in the case of the Statement of Profit and Loss Accountof the Profit for the yearended on that date.
Emphasis of Matter
As required by SA 706(Emphasis of Matter Paragraphs and Other Matter Paragraphs in theIndependent Auditor's Report)I annex herewith Annexure "1".
Report On other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order2015 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the ActI give in theAnnexure "2".
2. As required by section 143(3) of the ActI report that:
a) I have obtained all the information and explanations which to the best of myknowledge and belief were necessary for the purpose of my audit;
b) In my opinion proper books of account as required by law have been kept by-theCompany so far as appears from my examination of those books;
c) The Balance Sheet and Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;
d) In my opinionthe Balance Sheet and Statement of Profit and Loss comply with theAccounting Standards referred to in subsection (9) of section 143 of the CompaniesAct2013;
e) On the basis of written representations received from the directors as on March312014and taken on record by the Board of Directorsnone of the directors isdisqualified as on March 312015from being appointed as a director in terms of section143 of the Companies Act2013;
f) On the basis of information and explanation provided to me internal financialcontrol system of the company is effective and operating in well manner.
g) As required by the rule 11 of the companies (Audit and Auditors) Rules2014and inour opinion and to the best of our information and according to the explanation given tome
i). The company is not having any pending litigation and hence there is io furthercomments required.
ii). The company has not incurred any material foreseeable losses on long termcontracts including derivative contracts hence no provision for such losses required.
iii). There were no amounts which were required to be transferred to the investoreducation and protection fund by the company hence no further comment is required in thismatter.
ANNEXURE "1" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph ''Emphasis of Matter " of My Report of even date on theAccounts for the year ended on 31st March2015 of KEMISTAR CORPORATION LIMITED )
1. Accounting for Depreciation
I draw your attention to Part - Note 1 (c) (ii) & (iii) forming part of thefinancial statements which describe written off of certain non usable Fixed Assets and nonusable Capital Work In Progress.
2. Valuation of Inventories ( AS 2 )
I draw your attention to Part - Note 1 (d) (i) forming part of the financial statementswhich describe amount of inventory is shown as.Certified by the management of the Company.
3. Accounting for Taxes on Income ( AS 22 )
I draw your attention to Part -1 Note 1 (g) (a) forming part of the financialstatements which describe the Company does not make provision for Current Income TaxLiabilities.
4. Pre-Operative Expenses
I draw your attention to Part -1 Note 1 (h) forming part of the financial statementswhich describe the write off of entire amount of Preliminary and pre-operative expenses.
5. Contingent Liabilities
I draw your attention to Part - I Note 1 (i) forming part of the financial statementswhich describe .the Contingent Liabilities have been considered as Certified by theManagement of the Company.
6. Related Party Disclosure ( AS 18 )
I draw your attention to Part -1 Note 2 (a) forming part of the financial statementswhich describe the Related Party disclosure has been made as Certified by the managementof the Company.
7. Relationship of Holding And Subsidiary Company
I draw your attention to Part - III Note (a) forming part of the financial statementswhich describe the Relationship of Holding and Subsidiary Company.
8. Balance Confirmations from Parties
I draw your attention to Part - III Note (b) forming part of the financial statementswhich describe the balance confirmations from parties to be received.
ANNEXURE 2.TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph Report On Other Legal and Regulatory Requirements (Sub Para1) of My Report of even date on the Accounts for the year ended on 31st March2015 ofKEMISTAR CORPORATION LIMITED.)
1. In respect of its fixed assets: -
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at reasonableintervals.No material discrepancies were noticed on such physical verification.
(c) The Company has not disposed off substantial part of its fixed assets during theyear.Howeverthe Company has written off substantial part of its fixed assets (includingentire amount of Capital Work in Progress).I have been informed by the management of theCompany thatit does not intend to discontinue its operations.AccordinglyI am.of theopinion thatthe going concern state of the Company is not affected.
2. In respect of its inventories: -
(a) Inventories have been physically verified by the management at reasonably regularintervals during j the year. j
(b) In my opinion and according to the information and explanation given to metheprocedures of physical verification of inventories followed by the management arereasonable and adequate in 1 relation to the size of the Company and the nature of itsbusiness.
(c) The Company has maintained proper records of inventories.As explained to metherewere no material discrepancies noticed on physical verification of inventory as comparedto the book records.
3. (a) The Company has not granted any secured or unsecured loans to CompaniesFirms orother parties covered in the register maintained under Section 189 of the CompaniesAct2013.Thereforeno further comments are required to be made.
(b) The Company has not taken any secured or unsecured loans from CompaniesFirms orother parties covered in the register maintained under Section 189 of the CompaniesAct2013.Thereforeno further comments are required to be made.
4. In my opinion and according to the information and explanation given to methereexists an adequate internal control system commensurate with the size of the Company andthe nature of Its business for the purchase of inventoryand for the sale of goods andservices.During the course of my auditI have not observed any continuing failure tocorrect major weakness in internal control system of the Company.
5. (A).According to the information and explanations given to meI am of the opinionthatthe particulars of contracts or arrangements that need to be entered into theregister maintained under Section 189 of the Companies Act2013 have been so entered.
(B).According to the information and expianation given to methere were no transactionsexceeding the value of five lakh rupees in respect of any pafty in the current financialyear.Therefore Clause 5 (b) of the Companies (Auditor's Report) Order2003 is notapplicable.
6. The Company has not accepted any deposits from public.Consequently the directivesissued by the Reserve bank of India read with the provisions of Section 747576 &77or Any other relevant provisions of the Companies Act2013 and the rules framed thereunder are not applicable.Thereforeno further comments are made.
7. In my opinionthe Company has an Internal Audit System commensurate with the size ofthe Company and nature of its business
8. I have been informed that the Central Government has not prescribed maintenance ofCost records under Section 148 of the Companies Act2013.Therefore; no comments arerequired to be made.
9. In respect of statutory dues: -
(a) According to the records of the Companyundisputed statutory dues includingProvident FundEmployees' State Insurance ContributionIncome taxExcise Duty and CustomsDutySales tax and other dues as may be relevant have been generally regularly depositedwith the appropriate authorities.
(b) As informed to methere are no disputed statutory dueswhich have not beendeposited on account of matters pending before appropriate authorities.
10. The accumulated losses of the company have exceeded 50 percent of its Net Worth.Ithas not incurred cash losses in the financial Year concerned however the company has madecash losses in the immediately preceding financial year.
11. The Company had no dues to financial institutionbank or debenture holders duringthe year under Audit.Thereforeno comments are required about repayment of dues thereon.
12. As information given to me the Company has not granted loans and advances on thebasis of security by way of pledge of sharesdebentures and other securities.Thereforenofurther comments are required to be made.
13. In my opinionthe Company is not a Chit fundNidhi / Mutual benefit fund /society.ThereforeClause 4 (xiii) of the Companies (Auditor's Report) Order2003 is notapplicable.
14. According to the information and explanations given to methe Company is notdealing or trading in sharessecuritiesdebentures and other investments.ThereforeClause4 (xiv) of the Companies (Auditor's Report) Order2003 is not applicable.
15. According to the information and explanation given to methe Company has not givenany guarantee for loans taken by others from banks or financial institutions during theyear.ThereforeClause 4 (xv) of the Companies (Auditor's Report) Order2003 is notapplicable.
16. As per the information and explanation given to methe Company has not taken anyterm loan.ThereforeClause 4 (xvi) of the Companies (Auditor's Report) Order2003 is notapplicable.
17. According to the information and explanations given to me and on the basis of anoverall examination of the balance sheet of the Companyin my opinionthere are no fundsraised on a short - term basis which have been used for long-term investment.
18. During the yearthe Company has not made any preferential allotment of shares toparties and companies covered in the register maintained under Section 189 of theCompanies Act2013 ThereforeClause 4 (xviii) of the Companies (Auditor's Report)Order2003 is not applicable.
19. The Company has not issued any debentures.AccordinglyClause 4 (xix) of theCompanies (Auditor': Report) Order2003 is not applicable.
20. The Company has not raised any money by public issues during theyear.AccordinglyClause 4 (xx) of the Companies (Auditor's Report) Order2003 is notapplicable.
21. In my opinion and according to the information and explanations given to menofraud on or by the Company has been noticed or reported during the yearthat causes thefinancial statements to be materially misstated.AccordinglyClause 4 (xxi) of theCompanies (Auditor's Report) Order2003 is not applicable.
| ||ForGaurav Natwarlal Zinzuwadia |
| ||CHARTERED ACCOUNTANTS |
| ||Sd/- |
|PLACE: AHMEDABAD ||(CA GAURAV N.ZINZUWADIA) |
|DATE: 30th May2015 ||PROPRIETOR |
| ||M.NO.150295 |