We have audited the accompanying standalone financial statements of
Vaghani Techno-Build Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management's 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 of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities, selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has an adequate internal financial
controls system over financial reporting in place and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Board of Directors,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at March 31, 2015 and its loss and its cash flows for the year ended on
that date.
Emphasis of matters
We draw attention to Note No. 10.1 of the financials statement which
states about advance given to suppliers include Rs. 65,00,000 which are
outstanding since long but no provision for doubtful advances has been
made in the accounts as the Management is hopeful of recovery. Our
opinion is not qualified in respect of this matter.
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 of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 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 best of 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 the Company so far as appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note No.11 to
the financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
Annexure referred to in paragraph titled as "Report on other legal and
regulatory requirement" of Auditor's report to the members of Vaghani
Techno-Build Limited for the year ended on 31st March, 2015.
On the basis of the records produced to us for our verification /
perusal, such checks as we considered appropriate, and in terms of
information and explanation given to us on our enquiries, we state
that:
(i) The Company does not have fixed assets. Accordingly clause 3(i) of
the Order is not applicable to the Company.
(ii) (a) During the year, the inventories have been physically verified
by the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventories, we
are of the opinion that the Company is maintaining proper records of
inventories. No discrepancies were noticed during the physical
verification of inventories.
(iii.) The Company has not granted any loans secured or unsecured to
companies, firm or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Accordingly clause 3(iii)
of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit no
continuing failure to correct major weakness in such internal controls
system has been observed.
(v) The Company has not accepted any deposits from the public during
the year. Accordingly, clause 4 (v) of the Order is not applicable to
the Company.
(vi) The Central Government has not prescribed maintenance of cost
records under Section 148 (1) of the Companies Act, 2013, for any of
the products of the Company. Accordingly, clause 4 (vi) of the Order is
not applicable to the Company.
(vii) (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Excise Duty, Customs Duty, Cess and other
statutory dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable.
(b) According to the records of the Company, there are no dues of Sales
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess, which
have not been deposited on account of any dispute.
The disputed amounts that have not been deposited in respect of Income
Tax are as under:
Name of the Nature of the Amount Financial Forum where
Statue Dues (Rs.) Year to dispute is
which the pending
amount
relates
Income Tax Income Tax 32,18,208 2009-10 & Income Tax
Act,1961 Dues 2010-11 Appellate
Tribunal
(c) According to the records of the Company, there are no amounts
required to be transferred to the Investor Education and Protection
Fund by the Company.
(viii) The Company has no accumulated losses at the end of the
financial year. The Company has incurred cash losses during the current
financial year. However the company has not incurred any cash losses in
the immediately preceding financial year.
(ix) According to the records of the Company examined by us and the
information and explanation given to us, the Company has not taken any
loan from banks, financial institutions and has not issued debentures
during the period. Accordingly, clause 3 (ix) of the Order is not
applicable to the Company.
(x) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 3 (x) of the order
is not applicable to the Company.
(xi) According to the information and explanation given to us and on
the overall examination of the Balance Sheet of the Company, we report
that no term loans were taken by the Company. Accordingly, clause
3(xi) of the Order is not applicable to the Company.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended March 31, 2015.
For and on behalf of
M. L. Bhuwania & Co.
Chartered Accountants
Firm Registration No. 101484W
Sd/-
J. P. Bairagra
Partner
Membership No: 12839
Place: Mumbai
Date: 25th May, 2015
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