To the Members of VTM Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of VTM Limited('the Company') which comprise the balance sheet as at March 31 2015 the statement ofProfit and Loss and the Cash Flow statement for the year then ended and a summary ofsignificant accounting policies 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
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 thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 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 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements together with the notes thereongive the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India
a) In case of the Balance Sheet of the state of affairs of the Company as at March 312015
b) In case of the Statement of Profit and Loss of the Profit of the Company for theyear ended on that date and
c) in case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we state that:
(i) (a) The Company has maintained proper records showing full particulars
including quantitative 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 were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.
(ii)(a) The stocks of finished goods stores and spare parts and raw material have
been physically verified by the management at reasonable periods.
(b) In our opinion the procedures of physical verification of the aforesaid stockfollowed by the Management are reasonable and adequate in relation to the size of theCompany and nature of its business.
(c) No discrepancies have been noticed on such verification of stock of finished goodsand raw materials. The discrepancies noticed on such verification of stores and spareparts were not material compared to Book stock and the same have been properly dealtwithin the books of account.
(iii) The Company has not granted loans to bodies corporate firms or other parties aslisted in the register maintained under section 189 of the Companies Act 2013 ('theAct').
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of raw materials stores plant andmachinery equipment and other assets and for sale of goods. We have not observed anymajor weakness in the internal control system during the course of the audit.
(v) The Company has not accepted any deposits during the year ended March 31 2015.
(vi) The Company is not required to maintain cost records for the financial year2014-2015 in terms of section 148(1) of the Act and the rules made thereon. However thecompany is maintaining cost records.
(vii) (a) According to the information and explanations given to us and on the
basis of our examination of the records of the Company amounts deducted/ accrued inthe books of account in respect of undisputed statutory dues including Provident FundEmployee State Insurance Income Tax Sales Tax Wealth Tax Service Tax Duty of CustomsDuty of Excise Value Added Tax cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities inarrears as at March 312015 for a period of more than six months from the date they becamepayable.
(b) The company has disputed tax demands as at March 31 2015 as per Note 2 toFinancial Statements.
(c) According to the information and explanations given to us the amounts which wererequired to be transferred to the Investor Education and Protection Fund in accordancewith the relevant provisions of the CompaniesAct 1956(1 of 195 6) and rules there underhas been transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year and in the immediatelypreceding financial year.
(ix) The Company did not have any outstanding dues to financial institutions banksduring the year.
(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(xi) According to the information and explanations given to us The Company had appliedTerm loans for the purpose for which such loans were obtained.
(xii) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.
(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 Balance Sheet the statement of Profit and Loss and the Cash Flow statementdealt with by this Report are in agreement with the books of account;
(d) 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;
(c) In our Opinion the Directors have prepared the aforesaid standalone financialstatements on a going concern basis.
(f) On the basis of the written representations received from the Directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164 (2) of theAct; and
(g) 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:
i. the Company has disclosed the impact of pending litigations on its financialposition in as per Note 2 to the financial statements;
ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
|Madurai ||For Peri Thiagraj & Co. |
|April 30 2015. ||Chartered Accountants |
| ||Firm Registration No.002636S |
| ||T. Kalairaj |
| ||Partner |
| ||Membership No.023840 |