| We have audited the accompanying financial statements of Provestment
Services 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.
2. Management's Responsibility for the Standalone 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 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.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these 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 Standards on Auditing
specified under section 143(10). 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 in place an adequate internal
financial controls system over financial reporting 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 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 financial
statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. Emphasis of Matters *(only if applicable)
(a) Without qualifying our opinion, we draw attention to note no. 3.38
to the financial statements which describes the amount recoverable
under joint venture amounting Rs. 5,04,36,946/- whereas we are unable
to comment on recovery of the said amount as the company has not make
any provision against the said amount.
(b) Without qualifying our opinion, we draw attention to note no. 3.32
to the financial statements regarding with the related parties. There
were material transactions with the various related parties with whom
the company entered into contract.
6. 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 the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that: a (a) We
have sought and obtained all the information and explanations which to
the best of 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 the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
(f) The company has adequate internal financial controls system in
place and such control are operating effectively.
(g) 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 does not have any pending litigations which would impact
its financial position.
II. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
III. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report (Year 2014-2015)
(h) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As informed to us, the fixed assets have been physically verified
by the management during the year. As informed to us, the discrepancies
noticed during such physical verification, which are pending
reconciliation/adjustment, are not material in nature. In our opinion,
the verification programme should be such that all assets are verified
at least once in every three years and physical verification should be
properly documented.
ii) (a) The inventory of Foreign Currencies, Shares and Securities has
been physically verified at reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of Foreign
Currencies, Shares and Securities followed by the management are
adequate in relation to the size of the company and the nature of its
business.
(c) The Company has maintained proper records of inventory of foreign
currency and no discrepancies were noticed on physical verification as
compared with the book records but as regards Shares and Securities no
proper records have been maintained.
iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. Accordingly, paragraph
3(iii)(a) and 3(iii)(b) of the order is not applicable to the company.
iv) In our opinion and according to the information and explanation
given to us, the company has an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory (currency, shares &
securities), and with regard to the sale of inventory (currency, shares
& securities).
v) According to the information and explanation given to us, the
company has not accepted any deposits from the public during the year
covered by our audit report.
vi) The maintenance of cost records under sub section (1) of section
148 of the Companies Act, 2013, is not applicable to the Company.
vii) (a) According to the books and records as produced and examined by
us in accordance with Generally Accepted Auditing Practices in India
and also based on management representations, undisputed statutory dues
in respect of provident fund, employee state insurance, income tax,
wealth tax, service tax, sales tax, value added tax, excise duty, cess
and other material statutory dues have generally been regularly
deposited by the company with the appropriate authorities in India.
(b) According to the records of the company, there are no dues of
sales-tax, income-tax, service tax, customs tax, wealth-tax, excise
duty, cess which have not been deposited on account of any dispute.
(c) According to the information and explanation given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
companies act,1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
viii) The Company has no accumulated losses at the end of the financial
year The company has not incurred any cash losses during the financial
year covered by the audit and in the immediately preceding financial
year.
ix) Based on our Audit Procedures and on the information and
explanation given to us by the management, in our opinion, the company
has not defaulted in repayment of dues to a financial institution, bank
or debenture holders.
x) According to the information and explanation given to us, the
company has provided corporate guarantee for Euro 2,41,993.11
(Equivalent INR 1,62,80,000 as on 31.03.2015) favouring UBS AG
Switzerland on behalf of Pro Labels Private Limited. In our opinion,
the terms and conditions whereof are not prejudicial to the interest of
the company.
xi) On the basis of the review of utilization of funds pertaining to
term loans on an overall basis and related information made available
to us, the term loan taken by the company have been applied for the
purposes for which they are obtained.
xii) To the best of our knowledge and belief, and according to the
information and explanation given to us, and records of the Company
examined by us, no fraud on or by the Company has been noticed or
reported during the course of our audit.
Place: New Delhi
Date: 30.05.2015
(CA. Arun Ahuja) Partner
For Ahuja Arun & Co.
Chartered Accountants
M No.089709, FRN-012985N |