| We have audited the accompanying financial statements of KARTIK
INVESTMENTS TRUST LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss and
Cash Flow Statement for the period then ended, and a summary of
significant accounting policies and other explanatory information.
Management's responsibility on the Financial Statements
Management is responsible for 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2014.
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the 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, 2003
("theOrder") issued by the Central "Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure 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 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, 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 Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956.
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of KARTIK INVESTMENTS TRUST LIMITED on the accounts of
the company for the period ended 31st March, 2014.
(i) The Company does not have any fixed assets and hence reporting on
the same does not arise.
(ii) The Company is an Investment Company and does not hold any
inventory and hence reporting on physical verification of inventory and
maintenance of inventory records does not arise.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured to / from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
(i) In our opinion and according to the information and explanations
given to us, the internal control system is commensurate with the size
of the company and the nature of its business.
(ii) According to the information and explanations given to us, there
are no contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 during the period that need to be entered in the
register maintained under that Section.
(iii) The Company has not accepted any deposits from the Public.
(iv) The Company has no formal internal audit department as such.
However its control procedures ensure reasonable internal checking of
its financial and other records.
(v) Maintenance of cost records have not been prescribed by the Central
Government in respect of the business carried on by the Company.
(vi) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues like Income tax and service tax.
The Company did not have any dues in respect of Provident Fund,
Employees State Insurance, investor education protection fund, sales
tax, wealth tax, service tax, custom duty, excise duty and cess.
b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
(vii) The Company has no accumulated losses as at 31st March 2014. It
has not incurred any cash loss during the year and during the
immediately preceding financial year.
(viii) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to any
financial institution or bank. The company has not issued any
Debentures.
(ix) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(x) The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
(xi) In our opinion and according to the information and explanations
given to us the company has rtiaintained proper records of the
transactions and contracts relating to dealings in shares, securities,
debentures and other investments and these are held by the company in
its own name.
(xii) According to the information and explanations given to us the
Company has not given guarantees for loans taken by others from bank or
financial institutions.
(xiii) In our opinion and according to the information and explanations
given to us, the Company has not availed any term loans during the
year.
(xiv) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the company has not used funds raised on short term basis for long
term investments.
(xv) The Company has not made any preferential allotment of shares to
parties and companies covered in 'the Register maintained under section
covered in the Register maintained under section 301 of the Companies
Act, 1956.
(xvi) The Company has not issued any Debentures and hence the question
of reporting on creation of security or charge in respect of Debentures
issued does not arise.
(xvii) The Company has not raised any resources by way of public issues
and hence the question of reporting on the disclosure relating to end
use of such resources does not arise.
(xviii)During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For SHANKER GIRI & PRABHAKAR
Chartered Accountants
Firm Registration No.003761S
P. PRABHAKAR RAO
Partner
CHENNAI : 23-5-2014 Membership Number: 18408 |