To the Members of PARAMOUNT COSMETICS (INDIA) LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Paramount Cosmetics (India)Limited ("the Company") which comprise the Balance Sheet as at March 312015 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section134(5) of The Companies Act 2013("the Act ) with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 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 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 the 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 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 the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on auditing specified under Section 143(10) the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial controls relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Companys Directors as wellas 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 on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven 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 stateof affairs of the Company as at 31st March 2015 b) In the case of Statement of Profit andLoss of the Profit for the year ended on that date; and c) In the case of the Cash FlowStatement of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure a statement on thematters specified in paragraphs 3 and 4 of the Order.
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 it appears from our examination of those books.
c. The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e. On the basis of written representations received from the Directors as on March 312015 and taken on record by the Board of
Directors none of the directors is disqualified as on March 31 2015 from beingappointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) 2014 in our opinion and tothe best of our information and according to the explanations given to us;
(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements
(ii) In our opinion and as per the information and explanations provides to us theCompany has not entered into any long-term contracts including derivative contractsrequiring provision under applicable laws or accounting standards for materialforeseeable losses and
(iii) The company is not required to transfer amount to investor education andprotection fund therefore there is no delay in transferring the amounts required to betransferred to the Investor Education and Protection Fund by the Company.
For S.S. Jain & Associates
Firm Registration No. 103970W
S. K. Jain
Membership Number: 038664
Dated: 30th May 2015
Annexure to the Independent Auditors Report
(Referred to in Paragraph 1 under section (Report on Other Legal and RegulatoryRequirements of our report of even date)
1.1. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. However the addition made during theyear are not updated.
1.2. Some of the fixed assets were physically verified during the year by themanagement in accordance with a program of verification of fixed assets at reasonableintervals. According to the information and explanation given to us no materialdiscrepancy were noticed on such verification.
2.1. According to the information and explanation given to us physical verificationof inventory has been conducted by the management at reasonable interval.
2.2. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
2.3. In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of its inventories and no material discrepancieswere noticed on such physical verification.
3. As informed to us the company has not granted any loan secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013.
4. 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 inventories fixed assets and for thesale of goods and services. During the course of audit we have not observed anycontinuing failure to correct major weaknesses if any in internal control system.
5. According to the information and explanations given to us the Company has notaccepted any deposits from public within the meaning of section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under during theyear under review.
6. The Central Government has not prescribed maintenance of Cost Records undersub-section (1) of Section 148 of the Companies Act 2013 in respect of products dealtwith by the Company.
7.1 In our opinion and according to the information and explanation given to us thecompany is generally regular in depositing undisputed statutory dues including providentfund employees state insurance income tax sales tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues with theappropriate authorities and we have been informed that there are no arrears of outstandingstatutory dues as at the last day of the financial year under audit for a period of morethan six months from the date they became payable.
7.2 According to the information and explanations given to us and records examined byus the particulars of dues of Vat as on 31st march 2015 which have not beendeposited on account of dispute is as follows:
|Name of the statute ||Nature of dues ||Amount involve Rs (In Lakh) ||Period to which the amount Relates ||Forum where the dispute is pending |
|Gujarat sales tax- sales tax department ||Vat Dues ||576.40 ||AY 2005-2006 ||The Commissioner commercial Taxes SuratGujarat |
According to information and explanations given to us and the records of the companyexamined by us no dues of vat duty of custom duty of excise wealth tax service taxwhich have not been deposited on account of any dispute.
7.3 In our opinion and according to the information and explanations given to us thecompany is not required to transfer amounts required to be transferred to investoreducation and protection fund in accordance with the relevant provisions of the CompaniesAct 1956 (1 of 1956) and Rules made there under.
8. The Company has no accumulated losses at the end of the financial year under audit.The company has not incurred cash losses during the financial year covered by audit and inthe immediately preceding financial year.
9. According to the information and explanations given to us the Company has notdefaulted in repayment of dues to a financial institution or bank.
10. 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.
11. According to the information and explanations given to us term loans were obtainedduring the year under audit and applied for the purpose for which it has taken the loan.
12. Based upon the audit procedures performed and according to the information andexplanations given to us no fraud on or by the company has been noticed or reportedduring the year of our audit.
For S.S. Jain & Associates
Firm Registration No. 103970W
S. K. Jain
Membership Number: 038664
Dated: 30th May 2015