To the Members of Vyapar Industries Limited Report on the Financial Statement
We have audited the accompanying standalone financial statements of Vyapar Industries
Limited ( the Company ) which comprise the Balance Sheet as at March 31 2016 the
Profit and Loss Statement the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements 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 presentation of these standalone financial statement that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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) of 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 the disclosures in the financial statements.
The procedures selected depend on the auditor s judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company s preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Company has in place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company s Directors as well as evaluating the overall presentation of the financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide 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 aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its profits and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order2015 ("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 the paragraph 3and 4 of the Order to the extent applicable. 2. As required by Section 143 (3) of theAct 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 Balance Sheet the Profit and Loss Statement and the Cash Flow Statement dealtwith 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;
(e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report "Annexure B"
(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 its financial statements as referred to in Note 26 to the FinancialStatements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foresable losses if any and as required on long-term contractsincluding derivative contracts.
iii. The Company does not have any amounts to be transferred to the Investors Educationand Protection Fund in terms of the relevant provisions of the Companies Act 2013 andrules there under.
ANNEXURE A TO INDEPENDENT AUDITORS REPORT
The Annexure referred to in our Independent Auditors Report to the Members of theCompany on the financial statements for the year ended 31stMarch 2016 wereport that
i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;
(b) As explained to us all the fixed assets have been physically verified by theManagement in a periodical manner which in our opinion is reasonable having regard tothe size of the company and nature of its assets. No material discrepancies were noticedon such physical verification.
(c)According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
ii) (a) On the basis of explanation and submission given to us physical verificationof inventory has been conducted at reasonable intervals by the management.
(b) In our opinion and on the basis of examination done by us the procedures ofphysical verification of inventory followed by the management is reasonable and adequatein relation to the size of the company and the nature of its business.
(c) The Company is maintaining proper records of inventory and discrepancies noticed onphysical verification if any have been properly dealt with in the books of accounts.
iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of The Companies Act 2013 and accordingly the reporting requirements underparagraph 3 (iii) of the order is not applicable
. iv) In our opinion and according to the information and explanations given to us andon the basis of examination done by us the Company does not have any transactions towhich the provisions of Section 185 apply. The Company has complied with the provisions ofSection 186 of the Act with respect to the loans investments guarantees and security.
v) The company has not accepted any deposits from the public.
vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the goods dealt by the company.
vii) (a) According to the information and explanation given to us and on the basis ofour examination of the records of the company amount deducted/accrued in the books ofaccount in respect of applicable undisputed statutory dues including income tax salestax service tax duty of customs value added tax and other materials statutory dues havebeen regularly deposited during the year by the company with the appropriate authorities.As explained to us the company did not have any dues on account of provident fundemployee s state insurance and duty of excise.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax service tax duty ofcustoms value added tax and other material statutory dues were in arrears at 31stMarch2016 for a period of more than six months from the date they became payable.
(b) According to information and explanations given to us there are no material duesof duty of customs and cess which have not been deposited with the appropriate authoritieson account of any dispute. However according to information and explanation given to usthe following dues of Income Tax have not been deposited by the Company on account ofdisputes.
|Sr No. ||Name of the Statute ||Nature of the Dues ||Amount ||Period to which the amount relates ||Forum where dispute is pending |
|1 ||Income Tax Act 1961 ||Income Tax ||29645/- ||2008-09 ||Income Tax Officer |
|2 ||Income Tax Act 1961 ||Income Tax ||3841020/- ||2010-11 ||Income Tax Officer |
|3 ||Income Tax Act 1961 ||Income Tax ||241560/- ||2011-12 ||Appellate Tribunal |
|4 ||Income Tax Act 1961 ||Income Tax ||537420/- ||2012-13 ||Income Tax Officer |
viii) The Company does not have any loans or borrowings from any financialinstitutions banks government or debenture holders during the year. Accordinglyparagraph 3(viii) of the Order is not applicable.
ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.
x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of the audit.
xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanation given to us theCompany is not a nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv) 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-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45 IA of the Reserve Bank of India Act 1934.
ANNEXURE B TO INDEPENDENT AUDITORS REPORT
Annexure to the Independent Auditors Report of Even Date on the Standalone
Financial Statements of Vyapar Industries Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of VyaparIndustries Limited ("the company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for the Financial Statements
The Company s management is responsible for establishing and maintaining internalfinancial controls over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the InstituteChartered Accountants of India. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany s policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company s internal financialcontrols over financial reporting based on our 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 Chartered Accountants ofIndia. Those Standards and Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk .The procedures selecteddepend on the auditor s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on 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 reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company s internal financial control over financialreporting includes those policies and procedures that
Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and disposition of the assets of the company;
Provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and
Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company s assets that could have amaterial 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 collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.
ForSalim A. Kantawala
Registration No. 0104006510 (S1/5)
Salim A. Kantawala
Membership No. 038859