TO THE MEMBERS OF DEVHARI EXPORTS (in Rs)DIA) LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of DEVHARI EXPORTS (in Rs)DIA)LIMITED which comprise the Balance Sheet as at 31st March 2017 and theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the matters stated in section 134(5) of the CompaniesAct 2013("the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including accounting standards referred to in section 133 of the Actread with Rule 7 of the Companies (Account) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; 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 financial statements basedon our audit.
We have taken into account the provisions of the Act and the Rules made thereunder including the accounting standards and matters which are required to be included inthe audit report.
We conducted our audit in accordance with the Standards on Auditing specifiedunder Section 143(10) of the Act and other applicable authoritative pronouncements issuedby the Institute of Chartered Accountants of India. Those standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalcontrol relevant to the Company's preparation and fair presentation of the financialstatements 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 place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls.
An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion.
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:
(i) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 312017;
(ii) In the case of the Statement of Profit and Loss of the profit for the year endedon that date;
(iii) Cash Flow Statement for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein "Annexure A" a statement on the matter specified in the paragraph 3 and 4 ofthe Order.
2. As required under provisions of section 143(3) of the Companies Act 2013 we reportthat:
a. We have obtained all the information and explanations which to the best of ourknowledge and belief where 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 appears from our examination of those books;
c. The Balance Sheet and Statement of Profit and Loss dealt with this report are inagreement with the books of account;
d. In our opinion the Balance Sheet and Statement of Profit and Loss comply with theaccounting standards referred to in section 133 of the Act read with Rule 7 of theCompanies (Account) Rules 2014;
e. On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 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 operating effectiveness of such controls referred to ourseparate report in" Annexure B".
g. With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditor) Rules 2014 in our opinion and to thebest of our knowledge and belief and according to the information and explanations givento us:
(a) The Company does not have any pending litigation as at March 31 2017 on itsfinancial position in its financial statements.
(b) The Company did not have any long-term and derivative contracts as at March 312017.
(c) There has been no delay in transferring amounts required to be transferred theInvestor Education and Protection Fund by the Company during the year ended March 312017.
(d) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 33 to the financial statements.
For Hemant C. Parikh & Co.
FRN: 103634W Hemant C. Parikh
Proprietor M.No. 031780
Date: August 29 2017
ANNEXURE "A" TO THE AUDITORS' REPORT
in terms of the information and explanations given to us and the books and recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe state as under:
(i) In respect of Its Fixed Assets:
a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b) These fixed assets were physically verified by the management during the year. Wehave been informed that no material discrepancies were noticed on such physicalverification.
c) According to the information and explanation given to us and in the basis of ourexamination of the records of the company the title deeds of immovable properties are heldin the name of the company.
(ii) The stock of inventory has been physically verified during the year by theManagement at reasonable intervals except stock lying with third parties. Confirmationsof such stocks with third parties have been obtained by the Company in most of the cases.The discrepancies noticed on physical verification of stocks as compared to book recordswere not material; however the same have been properly dealt with the books of account.
(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. Therefore the provisions of Clause 3 (iii)(a)(iii)(b) and (iii)(c) of the said order are not applicable to the company.
(iv) in our opinion and according to the information and explanations given to us theCompany has not made any loans guarantees and investments covered under the provisions ofsection 185 and 186 of the Companies Act 2013.
(v) The company has not accepted any deposits from the public within the meaning ofsections 73 to 76 or any relevant provisions of the 2013 act and the rules framed thereunder to the extent notified.
(vi) The Central government has not prescribed the maintenance of cost records by thecompany under section 148(1) of the companies Act 2013 for any of its products.
(vii) in respect of Statutory Dues:
a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees' State Insurance Income Tax
Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess and anyother statutory dues applicable to it. According to the information and explanations givento us no undisputed amounts payable in respect of income tax sales tax customs dutyexcise duty and cess were in arrears as at 31.03.17 for a period of more than six monthsfrom the date they became payable.
b) According to the information and explanations given to us there are no dues ofsales tax income tax custom duty wealth tax excise duty and cess which have not beendeposited on account of any dispute.
(viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowing to financial institutions banks or Government. The company has notissued any debentures as at the balance sheet date.
(ix) The Company has not raised any money by way of this Initial Public Offer duringthe year. There were no moneys raised by way of term loan or further public offer.
(x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of such cases by theManagement.
(xi) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.
(xii) In our opinion and according to the information and explanations 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 Companies Act 2013 where applicable and thedetails have been disclosed in the financial statements etc. as required by the applicableaccounting standards;
(xiv) According to the information and explanations given 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 under review.
(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 any noncashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For Hemant C. Parikh & Co.
Hemant C. Parikh
Date: August 29 2017