Independent Auditor's Report
To the Members of
DEVINSU TRADING LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of 'Devinsu Trading Limited' whichcomprise the Balance Sheet as at March 31 2014 and the Statement of Profit and Loss andCash Flow for the year then ended and a summary of significant accounting policies andother explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position and financial performance and cash flow inaccordance with the accounting principles generally accepted in India including AccountingStandards notified under the Companies Act 1956 read with the General Circular 15/2013dated 13th September 2013 of the Ministry of Corporate Affairs in respect of sections 133of the Companies Act 2013. This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial 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 conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofinternal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating 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.
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 atMarch 31 2014;
(b) In the case of the Statement of Profit and Loss of the Profit for the year endedon that date.
(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 issued by the CentralGovernment of India in terms of sub-section (4A) of section 227 of the Act we give in theAnnexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(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 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 the Statement of Profit and Loss & cash flow statementdealt with by this Report are in agreement with the books of account.
d. in our opinion the Balance Sheet the Statement of Profit and Loss & cash flowstatement comply with the Accounting Standards notified under the Companies Act 1956("the Act") read with the General Circular 15/2013 dated 13th September 2013 ofthe Ministry of Corporate Affairs in respect of sections 133 of the Companies Act 2013;
e. On the basis of the written representations received from the directors as on March31 2014 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of Section 274(1 )(g) ofthe Act.
For R.K.Chapawat& Co.
Membership No.: 37720
Devinsu Trading Limited.
ANNEXURE TO THE AUDITORS' REPORT 31st MARCH 2014 (Referred to theparagraph 3 of our report of even date)
1) In respect of fixed assets:-
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
b) The Management has physically verified fixed assets during the year in accordancewith program of verification of fixed assets at reasonable intervals. According toinformation and explanation given to us no material discrepancies were noticed onverification.
c) In our opinion and according to information and explanation given to usnosubstantial part of fixed assets has been disposed off by the Company during the year andtherefore it does not effect the going concern assumption.
2) In respect of Inventories:-
There are no inventories in the company.
3) In respect of Loans
a) According to Information and explanations furnished to us the company during theyear has not granted any loans to companies firms or other parties as per the registermaintained u/s 301 of the companies act 1956.
b) The company has not taken unsecured loans from its directors and shareholders therate of interest and other terms and conditions of above loan are not prima facieprejudicial to the interest of company.
4) In our opinion and according to information and explanation given to us there areadequate internal control procedures commensurate with the size of the company and natureof its business for the purchase of inventory fixed assets and for the sale of goods.During the course of our audit we have not observed any continuing failure to correctmajor weaknesses in internal control system.
5) In respect of transaction entered in the register maintained in pursuance of Section301 of the companies Act 1956
a) In our opinion and according to the information and explanation given to us theparticulars of all contracts or arrangements referred to in Section 301 of the CompaniesAct 1956 have been entered in the register maintained under the said section wherever itis applicable.
b) In our opinion and according to the information and explanations given to us thetransactions which have been entered into pursuant to contracts that have been entered inthe registered maintained under section 301 of the Companies Act 1956 have been made atprices and terms which are reasonable having regard to prevailing market prices at therelevant times and conditions in the context of such transactions.
6) The company has not accepted any deposits from public within the meaning of Sections58A and 58AA .
7) In our opinion the company has an internal audit system commensurate with the sizeand nature of its business.
8) We are informed that the Central Govt has not prescribed for the maintenance ofcost records under Section 209(1) (d) of the Companies Act 1956 for the period underreview of the Company.
9) a) According to the records of the Company and the information and explanations
given to us in our opinion the Company is generally regular in depositing withappropriate authorities undisputed statutory dues including Provident Fund Employees'State Insurance Income-Tax Sales- Tax Wealth-Tax Custom Duty Excise Duty Cess andany other statutory dues applicable to it. b) No undisputed amount payable in respect ofIncome tax Sales tax Wealth Tax Custom Duty Excise Duty Cess were in arrears as at 31stMarch 2014 for a period of more than six month from the date they become payable.
10) Company has neither accumulated losses nor has it incurred cash loss in thefinancial year under report and in the immediately preceding financial Year.
11) Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the company has not defaulted in the repayment ofdues to financial institutions banks as at the Balance Sheet date.
12) According to the information and explanations given to us the Company has notgranted any loans and advances on the basis of security by way of pledge of sharesdebentures and other securities.
13) In our opinion the Company is not a chit fund company or a nidhi /mutual benefitFund/society therefore the provisions of clause 4(xiii) of the Companies (Auditor'sReport) Order 2003 are not applicable to the Company.
14) In our opinion the company is not dealing in or trading in share securitiesdebentures and other investments. Accordingly the provision of clause 4 (xiv) of theCompanies (Auditors' Report) Order 2003 are not applicable to the company.
15) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not given any guarantee for loans taken byothers from bank or financial institutions.
16) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not raised term loans during the year.
17) To the best of our knowledge and belief and according to the information andexplanations given to us the funds raised on short-terms basis have not been used duringthe year for long-term investment.
18) In our opinion and according to information and explanations given to us theCompany has not made any preferential allotment of share during the year to the partiesand companies covered in the register maintained under Section 301 of the Companies Act1956.
19) The Company has not issued any debentures during the year.
20) The Company has not raised any money by public issue during the year.
21) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during thecourse of our audit.
For R.K.Chapawat & Co.
|Place ||: Mumbai |
|Date: ||2 7 MAY 2014 |