1. We have audited the accompanying standalone financial statements of
R.J.Shah & Company Limited ('the Company"), which comprise the Balance
Sheet as at March 31,2015, and 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 Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 ("tire 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
Rule7 of the Companies (Accounts) rules 2014, This responsibility also
includes maintenance of adequate accounting records in accordance with
the Act for safeguarding 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 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
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. 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
thereunder.
5. 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.
6. An audit involves performing procedures to obtain audit evidence
about toe 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 of toe 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 control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by toe Company's Directors, as well as evaluating toe
overall presentation of the financial statements.
7. 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
8. 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 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.
Report on Other Legal and Regulatory Requirements
9. As required by 'the Companies (Auditor's Report) Order 2015',
issued by the Central Government of India in terms of sub section (11)
of section 143 of the Act (hereinafter referred to as "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.
10. 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
purposes of our audit.
b) In our opinion, proper books of accounts 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, toe afore said standalone financial statements
comply with toe 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 toe
directors as on 31st March, 2015 taken on record by toe 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 toe
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:
1) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements, refer to Note no.14.2 &
Note no.26 to the financial statements.
2) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
3) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 9 of the Independent's Auditor Report of even
date to the members of R.J.Shah & Company Limited on the standalone
financial statements as of and for the year ended March 31,2015
I a) The Company has maintained proper records showing lull particulars
including quantitative details of fixed assets except that of Furniture
and Fixture and scientific Apparatus..
b) A major portion of the fixed assets have been physically verified by
the management during the year, in our opinion the tfrequency of
verification of the fixed assets By the management is reasonable having
regards to size of the company and the nature of its assets. As reported
by the management no material discrepancies were noticed on such
verifications
II a) As explained to us, the inventory has been physically verified
during the year by trie management, in our opinion, the frequency of
verification is reasonable
b) In our opinion and according to the information and explanation
given to us procedure of physical verification of inventories followed
by the management, reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to as the company is maintaining proper records of inventory, The
discrepancies noticed on verification between physical stocks and the
book records were not material and have been property dealt with in the
books of accounts.
III As per the information and explanation given to us, the Company has
not granted any loans, seemed or unsecured, to any Companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act 2013.
IV In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business with regards to
the purchase of inventory and fixed assets and for the work done and
services. During The course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system of the Company.
V The Company has not accepted any deposits from public within the
meaning of section 73 and 74 of the Act and the rules framed thereunder
to the extent notified.
VI As per the information and explanation given by the management, lire
Central Government has not prescribed for the maintenance of Cost
records under section 148(1) of the Companies Act. 2013, therefore the
provision under this clause are not applicable to the Company,
VII a) As per the information and explanation given to us and records of
the company examined by us, in out opinion the Company is regular in
depositing the undisputed statutory dues including Provident Fund,
Employees Slate Insurance. Income Tax, Sales Tax, Wealth Tax, Service
Tax. Custom Duty and other Statutory dues applicable to it, with the
appropriate authorities.
b) According to the information and explanations given to us there are
no dues of income Tax, Wealth Tax, Sales lax. Service Tax, Custom Duty
and Cess which has not been deposited on account of any dispute
c) The amount required to be transferred to investor Education and
Protection Fund has been transferred within stipulated time, in
accordance with the relevant provisions of the Companies Act 1986 and
Rules made thereunder'
VIII The Company does not have any accumulated losses as ai the end of
the financial year and the company has not incurred cash losses during
the current and the immediately preceding financial year.
IX In our opinion and according to information and explanation given to
us. the company has not defaulted in the repayment of dues to financial
institutions, banks and debentures holders at the balance sheet date
X According to the Information and explanation given to us, the company
has not given any guarantee tor loan taken by others from Banks and
Financial Institutions.
XI The Company has not raised any term loan during the year
XII During the course of our examination of the books and records of
the Company, earned out in accordance with the generally accepted
auditing practices in India, and according to the infoimation and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the management.
For N.S.Bhatt and Associates For Maganlai & Company
Chartered Accountants Chartered Accountants
Firm Registration No:130891W Firm Registration No:10573lW
N.S.Bhatt Mukesh C Bhatt
(Partner) (Proprietor)
Membership No.: 010149 Membership No 014092
Place: Mumbai
Date::29th May, 2015
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