M/s Desh Rakshak Aushdhalaya Limited.
REPORT ON THE FINACIAL STATEMENTS
We have audited the accompanying Consolidated Balance Sheet of M/s DESH RAKSHAKAUSHDHALAYA LIMITED HARIDWAR as at 31st March 2018 and the relative Consolidatedmanufacturing Trading Profit & Loss Account & Cash & Fund Flow Statement forthe year ended on that date and a summary of significant accounting policies and otherexplanatory information.
MANAGEMENT RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the preparation of these financialstatements in terms of the requirements of the Companies Act 2013 that give a true andfair view of the financial position performance and cash flows in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies Rules 2016. Therespective Board of Directors of the company are responsible for maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding the assetsof the company and for preventing and detecting frauds and other irregularities theselection and application of appropriate accounting policies making judgment andestimates that are reasonable and prudent and the design implementation and maintenanceof adequate internal financial control 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 which have been used for the purposeof preparation of consolidated financial statements by the Directors of the company asaforesaid.
Our responsibility is to express an opinion on these financial statements based on ouraudit. While conducting the audit we have taken into account the provisions of the Actthe accounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the act and the rules made there under.
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 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 31March 2018 and its profit and its cash flows for the year ended on that date.
REPORT ON OTHER LEGAL THE REGULATORY REQUREMENTS
1. As required by the companies (Auditor's report) order 2016 issued by the CentralGovt. of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure a statement on the matters specified in the paragraph 3 and 4 of the Order tothe extent applicable.
2. As required by Section 143 (3) of the Act we report that;
(a) We have obtained all the information and explanations which to the best of ourknowledge 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) In our opinion all the information and explanations with regard to branch whichto the best of our knowledge and belief were necessary for the purpose of our audit havebeen obtained by us. There is no other Branch Auditor appointed by the company.
(d) The balance sheet the statement of profit and loss and the cash flow statementdealt with this report are in agreement with the books of account;
(e) 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 2016
(f) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act.
(g) In our opinion there are no observations or comments on financial transactions ormatters which have any adverse effect on the functioning of the company.
(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2016 in our opinionand to the best of our information and according to the explanations given to us:
i. The company has made provision as required under the applicable law or accountingstandards.
ii. Provident Fund and ESI deposited by the company every month.
| ||FOR AND ON BEHALF OF |
| ||M/S SUDHANSHU JAIN & ASSOCIATES |
| ||CHARTERED ACCOUNTANTS. |
| ||Firm Regn. No. 020964N |
| ||Sd/- |
|PLACE: HARIDWAR ||[SUDHANSHU JAIN] |
|DATED: 21.5.2018 ||PROPRIETOR |
| ||MEMBERSHIP NO.099530 |
| ||PAN NO. ACWPJ7749M |
M/S DESH RAKSHAK AUSHDHALAYA LIMITED HARIDWAR (ANNEXURE TO AUDITOR'S REPORT)
As per paragraph 3 of CARO - 2016 the annexure referred to in our Auditor's Report tothe members of the Company on the financial statements for the year ended 31st March 2018we report that;
FIXED ASSETS - CLAUSE 3 (I)
The company has maintained proper records showing full particulars includingquantitative details and situations of its fixed assets.
As explained to us the fixed assets have been physically verified by the managementduring the year in a phased periodical manner which in our opinion is reasonable havingregard to the size of the company and nature of its assets. No material discrepancies werenoticed on such physical verification and the same have been properly dealt with in thebooks of accounts.
The company has disposed off unserviceable fixed assets during the year and the goingconcern status of the company is not affected.
Land Account No. 88 Khasra No. 58/3M total area 0.2780 Hec. situated at BhagwantKuti Kankhal Haridwar 249408 the title deed of immovable property are held in the nameof the company through its Managing Director Sh. Paras Kumar Jain but after the death ofSh. Paras Kumar Jain the name has been changed as Managing Director Sh. Tosh Kumar Jainw.e.f. 16.03.2015 by Court Order of dated 14.03.2015.
IN RESPECT OF INVENTORIES - CLAUSE 3 (II)
As explained to us inventories have been physically verified by the management atregular intervals during the year.
In our opinion and according to the information's 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.
The Company has maintained proper records of the inventories. As explained to us therewere no material discrepancies noticed on physical verification of inventory as comparedto the books of account.
LOAN GIVEN BY THE COMPANY - CLAUSE 3 (III)
The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership (LLP) or other parties covered in the register maintainedunder Section 189 of the Companies Act 2013.
In our opinion and according to the information and explanations given to us no loansand advances have been granted by the company on the basis of security by way of pledge ofshares debentures and other securities.
LOAN TO DIRECTORS AND INVESTMENT BY COMPANY - CLAUSE 3 (IV)
In respect of loans the company has not given any loan to its directors. Some advancehas been given to its staff and the recovery of advances is regular.
The company has invested some amount in the security deposited to the variousdepartments in shape of FDRs against taking tender from them. The company has not takenany guarantee and the provision of sec. 185 & 186 of the Companies Act 2013 have beencomplied with.
DEPOSITS - CLAUSE 3 (V)
The company has taken Unsecured Loan from one party without interest and from other twoparties with interest which is covered in the register of deposits as per the CompaniesAct 2013.
The company has not accepted any deposits during the year.
COST RECORDS - CLAUSE 3 (VI)
Maintenance of cost records under section 148 (1) of the Companies Act 2013 does notapply on the company.
STATUTORY DUES - CLAUSE 3 (VII)
According to the information's and explanations given to us no undisputed amountpayable in respect of income tax wealth tax sales tax and excise duty were outstandingas at 31st March 2018 for a period of more than six months from the date they becamepayable.
The company is regular in depositing undisputed statutory dues with the appropriateauthorities including:
Provident Fund Employees State Insurance Income Tax Sales Tax Service Tax Duty ofExcise Custom duty Value Added Tax VAT Cess etc.
According to the records of the company there are no dues of sales tax income taxexcise duty service tax value added tax which have been deposited on account of anydispute during the year.
REPAYMENT OF LOAN - CLAUSE 3 (VIII)
The company has taken secured loans (Term loan and Cash Credit Limit) from PunjabNational Bank. After the verification of documents we found that the company is regular inrepayment of loan including interest and there is no any default noticed during the year.The term loan is against the hypothecation of the such assets of the company against whichthe loan is disbursed and cash credit limit is against the hypothecation of all type ofstock and finished goods & against the receivable of the company.
UTILISATION OF IPO - CLAUSE 3 (IX)
The company has raised money by way of initial public offer since long time back andterm loan raised in previous financial years were applied for the purposes for which thoseare raised. In our opinion it has been fully utilized in the benefit of the company.
The company has accumulated losses and there is no any cash loss during the financialyear covered by our audit.
REPORTING OF FRAUD - CLAUSE 3 (X)
In our opinion and according to the informations and explanations given to us by themanagement of the company no any fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the financial year.
APPROVAL OF MANAGERIAL REMUNERATION - CLAUSE 3 (XI)
The managerial remuneration has been paid in accordance with the requisite approvalsmandated by the provisions of section 197 with Schedule V to the Companies Act 2013.
NIDHI COMPANY - CLAUSE 3 (XII)
The company is not a Nidhi Company which has complied with the net owned fund todeposits in the ratio of 1:20 to meet out the liability and maintained 10% unencumberedterm deposit as specified in the nidhi rules 2014 to meet out the liability
RELATED PARTY TRANSACTION - CLAUSE 3 (XIII)
All transactions with the related parties are in compliance with section 177 and 188 ofthe Companies Act 2013 have been disclosed in the financial statements etc. as requiredby the applicable accounting standard.
PRIVATE PLACEMENT OR PREFERENTIAL ISSUE - CLAUSE 3 (XIV)
The company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review.
NON CASH TRANSACTION - CLAUSE 3 (XV)
The company has not entered into any non-cash transaction with Directors or personsconnected with him hence the provisions of section 192 of the Companies Act 2013 shallnot apply.
According to the information and explanations given to us and on an overall examinationof the Balance Sheet of the company we report that no funds raised on short term basishave been used for long term investment. No long term funds have been used to financeshort term assets.
REGISTER UNDER RBI ACT 1934 - CLAUSE (XVI)
The company is not required to be registered under section 45IA of the Reserve Bank ofIndia Act 1934 hence no registration has been obtained.
| ||FOR AND ON BEHALF OF |
| ||M/S SUDHANSHU JAIN & ASSOCIATES |
| ||CHARTERED ACCOUNTANTS. |
|PLACE: HARDWAR || |
|DATED: 21.5.2018 ||sd/- |
| ||(SUHANSHU JAIN) |
| ||PROPRIETOR |
| ||MEMBERSHIP NO.099530 |