| We have audited the accompanying financial statements of Divya Jyoti
Industries Limited ("the company"), which comprise the Balance Sheet as
at 31st March,2015, the Statement of Profit and Loss , the Cash Flow
Statement for the year then ended, and a summary of the 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 financial statements that give a true and fair
view of the financial statements to give a true and fair view of the
financial position, financial performance and cash flow 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.
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 and the Rules made
there under including the accounting standards and matters which are
required to be included in the audit report.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncement issued by the Institute of Chartered
Accountants of India. Those standards and pronouncements require that
we comply with the 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
procedure selected depends on the auditor's judgment, including the
assessment of the risk 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 purpose of expressing an
opinion on whether the Company has in place adequate internal financial
control system over financial reporting and the operating effectiveness
of such controls. An audit 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
over 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.
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 31st March,2015, and its profit and its cash flows for the year
ended on that date.
REPORTS ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order, 2015, issued by
the Central Government of India in terms of Section 143(11) of the Act
(hereinafter referred to as the "Order"), and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraph 3 and 4 of the Order.
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 it 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 financial statements comply with the
Accounting Standard 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. 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 knowledge and belief
and according to the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending
litigations as at 31st March, 2015 on its financial position in its
financial statements- Refer Note 30 to the Balance Sheet. ii. The
Company did not have any long term contracts including derivative
contracts, for which there were any material foreseeable losses as at
31st March, 2015;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company during the year
ended 31st March, 2015.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
1. (Referred to in Paragraph 1 of our report of even date)
In respect of the records maintained by the company :-
a. The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As explained to us, all the fixed assets have been physically
verified by the Board of Directors in a phased periodical manner, which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such physical verification.
2. In respect of its inventories:
a. The inventories have been physically verified during the year 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. The Company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. 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 Act. Therefore, the provisions of clause 3
(iii), iii (a) & iii (b) of the said order are not applicable to the
company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, with
regard to the purchase of inventory, fixed assets and for the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct any major weaknesses in internal control
system.
5. In our opinion and according to information and explanations given
to us, the Company has not accepted any deposits from the public during
the year.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 148 (1) of the Act
and are of opinion that prima facie the prescribed cost records have
been made and maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
7. In respect of statutory dues:
a. The company is regular in depositing with appropriate authorities
undisputed statutory dues including income tax, sales tax, service tax,
excise duty, cess and other material statutory dues applicable to it.
There were no undisputed amount payable in respect of Provident Fund,
Income tax, Wealth tax, Sales tax, Service tax, Cess & other material
statutory dues as at 31st March, 2015 for a period more than six months
from the date they became payable.
b. According to the records of the Company the disputed dues in
respect of sales tax and income tax, which have not been deposited as
on 31st March,2015 are as under:
S.
No Nature of Dues ( Rs, in Lacs) Related
Period Forum where disputes
are pending
1 Commercial Tax 6.51 2004-05 Reference application
filed to Appellate
Tribunal, Bhopal.
2 Commercial Tax 2.39 2005-06 Reference application
filed to Appellate
Tribunal, Bhopal.
3 Entry Tax 0.26 2005-06 Reference application
filed in Jabalpur High
Court.
4 Entry Tax 0.79 2006-07 Writ Petition filed at
Indore High Court
5 Entry Tax 150.41 2007-08 Writ Petition filed at
Indore High Court
6 Entry Tax 223.66 2008-09 Writ Petition filed at
Indore High Court
7 Central Sales Tax 57.85 2003-04 Writ Petition filed at
Jabalpur High Court
8 Central Sales Tax 181.46 2004-05 Writ Petition filed at
Jabalpur High Court
9 VAT 58.28 2006-07 Reference application
filed to Appellate
Authority, Commercial
Tax,Indore.
10 Income Tax 19.61 2010-11 Appeal filed at
Commissioner of Income
Tax, Indore (* net of
pre-deposit paid)
c. According to the records of the company, no amount was required to
be transferred to the Investor Education & Protection Fund by the
company.
8. In our opinion, the Company has no accumulated losses as at 31st
March 2015 and has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
9. In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to any
financial institutions / banks.
10. According to information and explanations given to us, the Company
has not given any guarantees for loans taken by others from banks and
financial institutions during the year.
11. The term loans were applied for the purpose for which the loans
were obtained by the company.
12. According to the information and explanations given to us, we
report that no fraud on or by the company has been noticed or reported
during the course of our audit.
For, Dafria & Co. Chartered Accountants,
Firm Registration No. 001448C
Place: Indore
Date: 30th May 2015 Rakesh Dafria
Partner
Membership No. 081390 | 