To the Members of Alexander Stamps and Coin Limited (Formerly known as RudrakshCap-Tech Limited)
Report on Financial Statements
We have audited the accompanying financial Statement of Alexander Stamps and CoinLimited (the company') (Formerly known as Rudraksh Cap-Tech Ltd.) whichcomprises the Balance Sheet as at 31st March 2017 the statement of Profit & Loss andCash Flow Statement for the year ended and a summary of significant accounting policiesand other explanatory information.
Management's 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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 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 financialstatements.
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:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017 subject to below qualification;
b) in the case of the Profit and Loss Account of the profit for the year ended on thatdate ; and
c) in the case of the Cash Flow Statement the cash flows for the year ended on thatdate.
Report on other legal and Regulatory Requirement
1. As required by the Companies (Auditor's Report) Order 2003 ("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 I" a statement on the matters specifiedin 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 appears from our examination of those books;
c) The Balance Sheet and Statement of Profit and Loss dealt with by this Report arein 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) 2014;
e) On the basis of written representations received from the directors as on March 312017 and on record by the Board of Directors none of the directors is disqualified as onMarch 31 2017 from being appointed as a director in terms of section 164 (2) of the Act;
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 in "Annexure II" to this report; and
g) With respect to the matters to be included in the Auditor's Report in accordancewith Rule 11 of the companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanation given to us:
i. The Company has disclosed the impact of pending litigation on its financial positionin its financial Statements ;
ii. The Company did not have any long term contract including derivative contract forwhich there are any material foreseeable losses.
iii. The were no amounts which are required to be transferred to the Investor Educationand protection Fund by the Company.
For Sheetal Samriya & Associates
Chartered Accountants Firm Registration No.: 011478C
Membership No.: 147923
Vadodara 13th May 2017
Annexure I to the Independent Auditor's Report
Referred to in Paragraph 1 under the heading "Report on other regulatoryrequirements" of our report of even date
(i) In Respect of its Fixed Assets:
(a) As informed to us the Company is in the process of compiling records to showingfull particulars including quantitative details and situation of fixed assets.
(b) As explained to us fixed assets according to the practice of the Company FixedAssets are physically verified by the management at reasonable intervals in a phasedverification-programme which in our opinion is reasonable looking to the size of theCompany and the nature of its business. As informed to us no material discrepancies havebeen noticed on verification;
(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties are held in the name of thecompany.
(ii) In Respect of its Inventory:
(a) As informed to us the Inventory of Finished and semi-finished goods and rawmaterials at works were physical verified by the management at reasonable intervals duringthe year. In our opinion having regard to the nature and location of stock the frequencyof verification is reasonable.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management werereasonable and adequate in relation to the size of the company and nature of its business.
(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of inventory and no material discrepancy werenoticed on physical verification.
(iii) In Respect Loans & Advances given & taken to Related Party:
According to the information and explanations given to us the Company has not grantedany loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Act.Accordingly the provisions of clause 3(iii) (a) to (c) of the order are not applicable tothe company and not commented upon.
(iv) In Respect of Loans & Advances given and taken:
In our opinion and according to the information and explanations given to us Provisionof section 186 of the Act in respect of investment made have been complied with by thecompany. There are no other loans guarantee or securities granted in respected of whichprovision of Section 185 and 186 of the Act are applicable and hence not commented upon.
(v) In Respect of Deposits:
According to the Information and Explanation given to us the Company has not acceptedany deposit from public.
(vi) In Respect of Cost Records:
To the best of our knowledge and as explained the Central Government has not specifiedthe maintenance of cost records under clause 148 (1) of the Act for the services of theCompany.
(vii) In respect of statutory dues:
(a) According to the information explanation and records verified by us the Companyhas generally been regular in depositing Income Tax Sales Tax Wealth Tax Service TaxCustom duty Excise Duty Cess other material statutory dues applicable to it with theappropriate authorities. We are informed that the company intends to obtains exemptionfrom Provident Fund Employees state insurance Act.
(b)There were no undisputed amounts payable in respect of Income Tax Sales Tax WealthTax Service Tax Excise Duty Custom Duty Cess and other material statutory dues inarrears as at 31st March2017 for a period of more than six months for the datethey become payable.
(c) Details of dues of Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty and Cess which have not been deposited as on 31 March2017 on account ofdisputes are given below:
|Name of the Statue ||Nature of Dues ||Forum where Dispute is pending ||Period to which amount relates ||Amount Involved |
| || || || ||(Amount in Rs..) |
|Income Tax Act 1961 ||Income Tax ||Tribunal ||A.Y.1999-2000 ||1664300 |
| ||Income Tax ||Tribunal ||A.Y.2000-2001 ||14141065 |
| ||Income Tax ||Assistant Commissioner ||A.Y.1995-1996 ||3786 |
| ||Income Tax ||Assistant Commissioner ||A.Y.2003-2004 ||12820 |
| ||Income Tax ||Assistant Commissioner ||A.Y.2004-2005 ||5781 |
|Income Tax Act 1961 ||Income Tax ||Assistant Commissioner ||A.Y.2015-16 ||0.00 |
(viii) In Respect of Repayment of Borrowings:
The Company has neither issued debentures nor availed any loan from Banks financialinstitutions or government. Therefore the provision of clause 3(viii) of the order arenot applicable the company.
(ix) In Respect of Public Issue:
Based on our audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanation given bythe management the company has not raised any money by way of initial public offer orfurther public offer or debt instruments and terms loans hence reporting under clause 3(xi) of the Order are not applicable to the company and hence not commented upon.
(x) In Respect to Frauds:
Based on our audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanation given bythe management We report that no fraud on or by the management has been noticed orreported during the year.
(xi) In Respect to Managerial Remuneration:
Based on our audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanation given bythe management We report that the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provision of section 197 read withschedule V to the Act.
(xii) In Respect to Nidhi Company:
In our opinion the Company is not a Nidhi company. Therefore the provision of clause3 (xiii) of the order are not applicable to the company and hence not commented upon.
(xiii) In Respect to Transaction with Related Party:
Based upon the audit procedures performed for the purpose of reporting the ture andFair view of the financial statements and according to the information and explanationsgiven by the management transaction with the related parties are in compliance withsection 177 and 188 of the companies Act2013 where applicable and the details have beendisclosed in the notes to the financial statements are required by the applicableaccounting standards.
(xiv) In Respect to Preferential Issue:
According to the information and explanations given to us and on overall examination ofthe balance sheet the company has not made by any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewand hence not commented upon.
(xv) In Respect to Non Cash Transaction with Directors &Relatives:
Based on our audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanation given bythe management the Company has not entered into any non-cash transaction with directorsor persons connected with him.
(xvi) In Respect to Investment Company:
According to information and explanation given us the provision of section of section45-IA of the Reserve Bank of India Act 1934 are not applicable to the company.
|For Sheetal Samriya & Associate |
|Chartered Accountants |
|Firm Registration No.:011478C |
|Abhitesh Dubey |
|Membership No.: 147923 |
|Vadodara 13th May 2017 |
Annexure II to the Independent Auditor's Report
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 internalfinancial controls over financial reporting of Kavit Industries Limited ("theCompany") as of 31st March 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered
Accountants of India (ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies 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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material 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 31 March 2016 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.
|For Sheetal Samriya & Associates |
|Chartered Accountants |
|Firm Registration No.: 011478C |
|Abhitesh Dubey |
|Membership No.: 147923 |
|Vadodara 13th May 2017 |