To the Members of ISHWARSHAKTI HOLDINGS & TRADERS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Ishwarshakti Holdings &Traders Limited which comprise the Balance Sheet as at March 31 2014 and theStatement of Profit and Loss & Cash Flow for the year then ended and a summary ofsignificant accounting policies and other 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 financial performance and cash flows of theCompany in accordance with the accounting principles generally accepted in India includingAccounting Standards notified under the Companies Act 1956 read with General Circular15/2013 dated 13 September 2013 issued by the Ministry of Corporate Affairs in respectof Section 133 of the Companies Act 2013. This responsibility includes the designimplementation and maintenance of internal control 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.
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. 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour 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; and
(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 of the year ended on thatdate.
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 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 Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act 1956 read with General Circular 15/2013 dated 13 September 2013issued by the Ministry of Corporate Affairs in respect of section 133 of the CompaniesAct 2013;
e. On the basis of written representations received from the directors as on March 312014 and 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 clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.
f. Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act 1956 nor has it issued anyRules under the said section prescribing the manner in which such cess is to be paid nocess is due and payable by the Company.
| ||FOR AND ON BEHALF OF |
| ||PHIRODIA BAFNA & ASSOCIATES |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Registration No. 107911W |
|PLACE: MUMBAI ||(DEVEN J. BAFNA) |
|DATED: 14 MAY 2014 ||PARTNER |
| ||Membership No. 043314 |
ANNEXURE AS REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE FOR THE YEAR ENDED31ST MARCH 2014
i) a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the management during the year andno material discrepancies were noticed on such verification.
ii) a) The inventory has been physically verified during the year by the management.
Our opinion the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c) The company is maintaining proper records of inventory & no materialdiscrepancies were noticed on verification between the physical stocks and the bookrecords.
iii) a) The Company has taken Loan from three parties covered in the registermaintained under section 301 of the companies act 1956. The maximum total amount involvedduring the year was Rs. 6698500/- & year end balance of loans taken from suchparties was Rs. 6193370/-.
b) The Company has not given loan to any party covered in the register maintained undersection 301 of the Companies Act 1956.
c) In our opinion the rate of interest and other terms and conditions on which loanshave been taken from/granted to parties company listed in the registers maintained undersection 301 are not prima facie prejudicial to the interest of the company.
d) As the terms of repayment are not specified we are unable to express our opinionunder this clause.
iv) In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business for purchase & sale of inventory and fixed assets. During thecourse of our audit we have not observed any continuing failure to correct majorweaknesses in internal control system.
v) Based on the audit procedures applied by us and the information and explanationsprovided by the management we are of the opinion that the transactions that need to beentered in the register maintained under section 301 of the Companies Act 1956 have beenso entered.
vi) Based on our scrutiny of the Company's records and according to the information andexplanations provided by the management in our opinion the company has not accepted anypublic deposits so far upto 31st March 2014.
vii) The company has no formal internal audit department as such. However its controlprocedures ensure reasonable internal checking of its financial and other records.
viii) We have been informed by the management that the company is not engaged inproduction processing manufacturing or mining activities. Hence the provision ofsection 209(l)(d) do not apply to the company. Therefore no comment on maintenance ofcost records under section 209(1) (d) is required.
ix) a) According to the records of the company the company is regular in depositingwith appropriate authorities undisputed statutory dues including Income-Tax TDS &other statutory dues applicable to it.
b) According to the information and explanations given to us no undisputedamounts payable in respect of Income Tax TDS Profession Tax etc. were outstanding as at31-3-2014 for a period of more than six months from the date they become payable.
c) According to the records of the company there are no dues of Income-tax TDS andProfession Tax etc. which have not been deposited on account of any dispute.
x) The company did not incur any cash loss during the current financial year as well asimmediately preceding financial year. The Company does not have any accumulated lossestill date of the balance sheet.
xi) According to records of the company the company has not borrowed from financialinstitutions or banks or issued debentures till 31st March 2014. Hence in ouropinion the question of reporting on defaults in repayment of dues to financialinstitutions or banks or debenture does not arise.
xii) According to the records of the company the company has not granted any loans andadvances on the basis of security by way of pledge of shares debentures or othersecurities.
xiii) In our opinion the company is not a chit fund or a nidhi / mutual benefits fund/ society. Therefore the provisions of clause 4(xiii) of the Companies (Auditor's Report)Order 2003 are not applicable to the company.
xiv) On the basis of our examination of the company records we are of the opinion thatthe company is maintaining adequate records regarding transactions and contracts regardingits trading activities in shares securities debenture and other investment and timelyentries have been made in these records.
xv) According to information and explanations given to us the company has not givenany guarantee for loans taken by others from banks or financial institution.
xvi) According to the records of the company the company has not obtained any termloans. Hence comments under the clause are not called for.
xvii) According to the information and explanations given to us and on an overallexamination of the balance sheet of the company we report that the no funds raised onshort-term basis have been used for long term investments.
xviii) According to the records of the company and the information and explanationsprovided by the management the company has not made any preferential allotment of shareto parties and companies covered in the register maintained under section 301 of the Act.
xix) According to the records of the company has not issued any debenture.
xx) The company has not raised any money by public issue during the period covered byour audit report.
xxi) Based upon audit procedures performed and information and explanations given bythe management we report that no fraud on or by the company has been noticed or reportedduring the course of our audit.
| ||FOR AND ON BEHALF OF |
| ||PHIRODIA BAFNA & ASSOCIATES |
|PLACE: MUMBAI ||CHARTERED ACCOUNTANTS |
|DATED: 14 MAY 2014 ||Firm Registration No. 107911W |