To the Members of DHRUV WELLNESS LIMITED
Report on the Financial Statements
1) We have audited the accompanying standalone financial statements of Dhruv wellnessLlmited(the Company") which comprise the Balance Sheet as at March 31.2018. and the Statement of Profif and Loss and cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2) 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 preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols lhat were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
3) Our responsibility is to express an opinion on these financial statements based onour audit We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in Ihe audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of ihe Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about wj*ftj*dhe financial statements are freefrom material misstatement.
4) An audit involves performing procedures to obtain audit evidence about the amountsand 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 accounting policies used and the reasonableness of the accountingestimates made by the Company's management and Board of Directors as well as evaluatingthe overall presentation of the financial statements.
5) We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
6) 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 31stMarch 2018 its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements.
7) As required by the Companies (Auditor's Report) Order 2016 ("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 Aa statement on the matters Specified in paragraphs 3and 4 of the Order.
8) As required by section 143(3) of the Act we further 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 it appears from our examination of those books;
c. the Balance Sheet and Statement of Profit and Loss and cash flow statement dealtwith by this Report are in agreement with the books of account;
d. in our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e. on the basis of written representations receiye the directors as on March 31 2018and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2018 from being appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the other matter to be included in the Auditor's report inaccordance with the rule 11 of the Companies (Audit and Auditors) Rule - 2014 in ouropinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact if any of pending litigation on its financialposition in its financial statement.
ii) The Company has made provision as required under any law or accounting standardsfor material foreseeable losses if any on long term contract including derivativecontracts.
iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
|FRN: / Chartered Accountants |
Membership Number: 100830
Place: Mumbai Date: 30/05/2018
For Sanjay M. Kangutkar & Associates
THE ANNEXURE "A" REFERRED TO THE INDEPENDENT AUDITORS' REPORT TO THE MEMBERSON FINANCIAL STATEMENT OF DHRUV WELLNESS LIMITED FOR THE YEAR ENDED 31st March2018
WE REPORT AS UNDER:
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
b) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased program of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.
c) The Company does not own any immovable property under the head fixed assets.
2. a) As explained to us the inventories of finished goods semi-finished goodsstores spare parts and raw materials were physically verified at regular intervals/ (atthe end of the year) by the Management. The company is a construction business primarilyrendering sale of ready / constructed properties which are regularly verified by themanagement.
b) in our opinion and according to the information and explanation 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 the nature of itsbusiness.
c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification of stocks as compared to book records.
3. According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms or other parties covered in theregister maintained under section 189 of the Companies Act 2013. Accordingly provisionsof clauses 3(iii) (a) (b) & (c) of the Orflerare not applicable to the Company andhence not commented upon.
4. In our opinion and according to the information and explanation given to us(the Company has complied with the provision of section 185 and 186 of the companies Actwith respect to the loans and investment made.
5. The company has not accepted any deposit from the public covered under section 73 to76 or any other relevant provision of the Companies Act 2013 and the rules framed thereunder.
6. The provisions of The Companies (Cost Records and Audit) Rules 2014 as amended bythe Companies (cost records and audit) Amendment Rules 2016 read with provisions of Sec.148(1) of The Companies Act 2013 for the maintenance of cost records are not applicableto the company. Hence the Company is not required to maintain Cost Records and hence notrequired to get the cost audit done as per the provisions of The Companies (Cost Recordsand Audit) Rules 2014
7. (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance investors' educationand protection fund income tax value added tax GST customs duty and other materialstatutory dues applicable to it. According to the information and explanations given tous no undisputed statutory dues were in arrears as at 31st March. 2018. for a period ofmore than six months from the date they became payable.
(b) According to the information and explanations given to us there are no dues ofundisputed sales tax income tax wealth tax customs duty value added tax GST and cesswhich have not been deposited on account of any dispute.
(c) There is no dispute dues of Income Tax which have not been deposited as on 31stMarch 2018.
8. Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to banks and Financial Institution. The Company had no Debentures issued oroutstanding during the year.
9. The company has raised money by way of initial public offer during the year. In ouropinion and according to the information and explanations the amount raised through IPOby the Company has been applied for which it was raised.
10. According to the information and explanation given to us no material fraud by thecompany or on the company by its officer or employees has been noticed or reported duringthe course of our audit.
11. According to the information and explanation 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 if any applicable mandate by theprovision of section 197 read with schedule V of the Act.
12. 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.
13. According to the information and explanation given to us and based on ourexamination of the records of the Company transaction with the related parties are incompliance with the section 177 and 188 of the act where applicable and detail of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting Standard.
14. According to the information and explanation given to us and based on ourexamination of records of the company the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanation given to us and based on ourexamination of records of the company the company has not entered into non-cashtransaction with directors or person connected with them. Accordingly paragraph 3(xv) ofthe order is not applicable.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For Sanjay M. Kangutkar & Associates Chartered Accountants /
Membership Number: 100830
Place: Mumbai Date: 30/05/2018
Annexure B to the Auditors' 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 internal financial control over financial reporting of DHRUVWELLNESS LIMITED (the company') as of 31st March 2018 in conjunction with our auditof the standalone financial statement 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 Finandal Reportingissued by the Institute of Chartered Accountants of India (ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors and accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 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 were 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 internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing the design and operating effectiveness of internal controlbased on. The procedures selected depend on the auditors' judgment including theassessment of the risks of material misstatement of the standalone financial statementswhether due to fraud or error. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Company'sinternal financial controls system over financial reporting.
Meaning of Internal Financial Control 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 purpose in accordance with generallyaccepted accounting principles.
A company's internal financial control over financial reporting includes those policiesand procedures that:
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorization of the management and directors of the company; and
(3) 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 misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in creditions or that thedegree of compliance with the policies or procedures may deteriorate
In our opinion the company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2018 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 Sanjay M. Kangutkar & Associates
Proprietor Membership Number: 100830