the members of khemani distributors & marketing limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of KHEMANIDISTRIBUTORS & MARKETING LIMITED ("the Company") which comprise theBalance Sheet as at 31st March 2016 the Statement of Profit and Loss and Cashflow statement for the year then ended and a summary of the significant accountingpolicies and other explanatory information.
Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition and financial performance 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with 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 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 risk assessments theauditor considers 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act 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 2016 and its loss for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
Our opinion is not modified in respect of this matter.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order2016 ("the Order")issued by Central Government of India in terms of sub-section (11) of section 143 of theAct we give in the Annexure a statement on the matters specified in paragraph 3 & 4of the Order
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 Company does not have any branches.
d. The Balance Sheet the Statement of Profit and Loss and Cash flow Statement dealtwith by this Report are in agreement with the books of account
e. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
f. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (2)of the Act.
g. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls The company hasadequate internal controls.
h. With respect to the other matters to be included in the Auditor's 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:
1. The Company have pending litigation which is pending before Appellant Authorities.
2. The Company does not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.
3. There has not been occasion in case of Company to transfer any sums to the InvestorEducation and Protection Fund.
FOR C.P.Jaria & Co
PLACE : Surat
DATE : 28/05/2016
Annexure referred to in paragraph 1 of our report of even date to the members ofKHEMANI DISTRIBUTORS & MARKETING LIMITED on the accounts of the company for the yearended 31.03.16
On the basis of such checks as we considered appropriate and accordingly to theinformation and explanations given to us during the course of our audit we report that:
1. The company has maintained proper records showing full particulars includingquantitative details and location of all its fixed assets. During the year the managementhas physically verified all the fixed assets and no material discrepancies have beennoticed on such verification. According to the information and explanation given to us andon the basis of our examination of the records of the company company does not own anyimmovable property hence information in regards of the title deeds of immovable propertiesare not applicable.
2. As informed to us the inventory has been physically verified by the managementduring the year In our opinion the frequency of such verification is reasonable. In ouropinion the procedure for physical verification of inventory followed by management arereasonable and adequate to the size of the company and nature of its business. The companyhas maintained proper records of inventory. The discrepancies noticed if any on physicalverification between physical stocks and book records were not material in relation to theoperations of the company and have been properly dealt with in the books of account.
3. The company has granted loans secured or unsecured from companies firms or otherparties covered in the register maintained under section 189 of the Act during the year.The terms and conditions in this regard are not prejudicial to the interest of thecompany. There is no overdue outstanding at the end of the year.
4. In our opinion and according to the information and explanations given to us thecompany has compiled with the provisions of Sec 185 & 186 of the Companies Act 2013with respect to loans & Investments made. Accordingly para 3(iv) of the order is notapplicable.
5. The Company has not accepted any deposits from the public covered under section 73to 76 of the Companies Act 2013.
6. As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act.
7. (a) According to the information and explanations given to us and on basis of ourexamination of the books of accounts the company has been generally regular in depositingundisputed statutory dues including Provident fund Employee's state insurance IncomeTax sales Tax Wealth Tax Service Tax Custom Duty Excise Duty cess and otherstatutory dues as applicable with the appropriate authorities in India;
(b) According to information and explanations given to us and based on the records ofthe company examined by us there are no dues of Wealth tax Service Tax Sales taxCustom Duty and excise duty which have not been deposited on account of any disputes. Thedisputed income tax liability is pending before Appellate Authorities;
8. Based on our audit procedure and on the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto financial institution or Bank.
9. According to the information and explanations given to us the company have raisedmoney by way of IPO and Money raised by IPO were applied for the purpose for which thesame was raised.
10. According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the period.
11. According to the information and explanations given to us and based on ourexamination of the records of the company The company had paid/provided managerialremuneration in accordance with the provisions of Companies Act 2013.
12. In our opinion and according to the information and explanations given to us Thecompany is not a Nidhi Company.
13. According to the information and explanations given to us all the transaction withrelated parties are in accordance with the provisions of Companies Act 2013. All detailshave been disclosed in financial Statements.
14. According to the information and explanations given to us and based on ourexamination of the records of the company The company has issued bonus shares and notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.
15. According to the information and explanations given to us and based on ourexamination of the records of the company The company has not entered into non-cashtransaction with directors or persons connected with him.
16. The Company is not required to be registered under section 45-IA of the RBI Act1934.
FOR C.P.Jaria & Co
PLACE : Surat
DATE : 28/05/2016