The Members of
JYOTHI INFRAVENTURES LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of JYOTHIINFRAVENTURES LIMITED (theCompany) which comprise the balance sheet as at 31March 2015 the statement of profit and loss and the cash flow statement for the year thenended and a summary of significant accountingpolicies and other explanatory information.
Management's Responsibility for the Financial Statements
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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that arereasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements thatgive 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of theAct and the Rules made thereunder.We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require thatwe comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are Free frommaterial 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 standalone
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2015 and its Loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 (the Order)issued by the Central Government of India in terms ofsub- section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.
2. As required by Section 143 (3) of the Act we 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 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 examinationof those books;
c) the balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;
d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) on the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and
f) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company
For M M REDDY & Co.
Firm Registration NO.010371S
(M Madhusudhana Reddy)
Date : 21.05.2015
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for theYear ended 31 March 2015 we report that:
i. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner. In accordance with this programmecertain fixed assets were verified during the year and no material discrepancies werenoticed on such verification. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets.
ii. a. According to the information and explanations given to us the management hasconducted physical verification of inventories at reasonable intervals during the year. Inour opinion the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations given to us theprocedures followed by the management for physical verification of inventories arereasonable 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 is maintaining proper records of inventories. As per the information andexplanation given to us no material discrepancies were noticedon physical verification.
iii. The Company has not granted any loans to bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 (the Act).
iv. In our opinion and according to the information and explanations given to us theCompany has an adequate internal control system commensurate with its size and the natureof its business for the purchase of inventory and fixed assets and for the sale of goodsand services. During the course of our audit we have not observed anycontinuing failureto correct major weaknesses in such internal control system.
v. The Company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.
vii. a. According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance duty of excise income tax sales tax wealth tax service tax duty of customsvalue added tax cess and other material statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities.
b. According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax service tax dutyof customs value added tax cess and other material statutory dues were in arrears as at31 March 2015 for a period of more than six months from the date they became payable.
c. According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute.
d. According to the information and explanations given to us the company does not haveany liability to be transferred to the investor educationand protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules there under.
viii. The Company have accumulated losses of Rs. 23754491/- at the end of thefinancial year and has incurred cash losses of Rs. 11778764/- in the financial year.
ix. The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.
x. In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
xi. The Company did not have any term loans outstanding during the year.
xii. According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.
For M M REDDY & Co.
Firm Registration No.010371S
(M Madhusudhana Reddy)
Date : 21.05.2015