To the Members of
Rahul Merchandising Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Rahul Merchandising Limited (the Company ) which comprisethe Balance Sheet as at March 31 2017the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Managements' Responsibility for the Financial Statements
The company s Board of directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ( the Act ) with respect to the preparation ofthesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting Standards specified under section133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014.Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there-under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditors consider 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 ofthe accounting policies used and the reasonableness of the accountingestimates made by the company s Directors as well as evaluating the overall presentationof 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 financial statements.
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 March31 2017 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 (Auditors Report) Order 2016 ( the Order ) issued bythe Central Government of India in terms of Section 143 (11) of the Act we give in theAnnexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 examination of 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) 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) In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlswere working effectively as at March 31 2017 based on internal control over financialreporting criteria established by the company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India.
g) With respect to the other matters to be included in the Auditor s 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 has disclosed the impact of pending litigations in Note 15- ContingentLiabilities of its financial statements.
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) No amounts are required to be transferred to the Investor Education and ProtectionFund by the Company.
iv) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016.
Based on audit procedures and relying on the management representation we report thatdisclosures are in accordation with books of account maintained by the company and asproduced to us by the management - Refer Note
For Jagdish Sapra & Co.LLP
Firm Registration No.001378N/N500037
CA Vipal Kumar Kalra
Membership No. 084583
Place : New Delhi
Date : 30.05.20127
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under Report on other Legal & Regulatory requirementsof our Report of even date)
i. a) The Company does not have any fixed assets. Hence the provisionsof clauses3(i)(a) (i)(b) and (i)(c) of the Order are not applicable.
ii. The Company does not hold any inventories. Hence the provisions of clause 3(ii) ofthe Order are not applicable.
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 as per information and explanations given to us.Consequently the provisions of clauses3(iii)(a) (iii)(b) and (iii)(c) of the Order arenot applicable.
iv. In our opinion and according to the information and explanations given to us thereare no loans investments guarantees and securities to which provisions of section 185and 186 of the Companies Act 2013 are applicable.
v. As per information and explanations given to us the Company has not accepted anydeposits from the public and hence the provisions of clause3 (v) of the Order are notapplicable.
vi. In our opinion and according to the information and explanations given to usmaintenance of cost records has not been prescribed by the Central Government underSection 148 (1) of The Companies Act 2013.
vii. a) According to the information and explanations given to us and the records ofthe company examined by us the Company has been generally regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance IncomeTax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax cess andother statutory dues with the appropriate authorities during the yearto the extentapplicable. We are informed that there are no undisputed statutory dues as at the yearend outstanding for a period of more than six months from the date they become payable.
b) There are no dues in respect of income tax sales tax service tax duty of customduty of excise and value added tax that have not been deposited with the appropriateauthorities on account of any dispute other than those mentioned below:-
|Nature of dues ||Amount (Rs. Lakhs) ||Period to which amount relates ||Forum where the dispute is pending |
|Income Tax ||0.01 ||2005-06 & 2007-08 ||Income Tax Appellate Tribunal |
|Income Tax ||0.04 ||2010-11 ||Asstt. Commissioner of Income Tax |
viii. According to the records of the Company examined by us and on the basis ofinformation and explanations given to us the Company does not owe any duesto banksfinancial institutions and Government. The Company has not obtained any borrowingsby way of debentures.
ix. According to the records of the Company examined by us and on the basis ofinformation and explanations given to us the Company has not raised any term loans.TheCompany has not raised any monies by way of initial public offer or further public offer(including debt instruments).
x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and material fraud on the Company by its officers oremployees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us sinceno managerialremuneration has been paid or provided during the yearthe provisions ofclause 3(xi) of the Order are not applicable.
xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the Orderare not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 of theCompanies Act 2013 where applicable and details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.
xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year review.
xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with them.
xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
For Jagdish Sapra & Co.LLP
Firm Registration No. 001378N/N500037
CA Vipal Kumar Kalra
Membership No. 084583
Place: New Delhi