| 1 We have audited the accompanying financial statements of CAPITAL
FINVEST LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31,2014, the Statement of Profit and Loss and Cash Flow Statement
for the year ended on that date, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2 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 flow 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") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. 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
3 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.
4 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 the management, as well as evaluating the overall
presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
6 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:
(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 Statement of Profit and Loss, of the profit of
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.
Report on Other Legal and Regulatory Requirements
7 As required by the Companies (Auditor's Report) Order, 2003("the
Order") 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.
8 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 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, 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Act read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013;
e On the basis of written representation 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.
Annexure to the Independent Auditors Report (Referred to in Paragraph
7 under 'Report on Other Legal and Regulatory Requirements' section of
our report of even date
1 The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
As explained to us, the fixed assets have been physically verified by
the management during the year in a phased periodical manner, which in
our opinion is reasonable, having regard to the size of the company and
nature of its business. No material discrepancies were noticed on such
physical verification.
In our opinion, the company has not disposed off substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
2 As explained to us, the inventories have been physically verified by
the management at reasonable intervals during the year. In our opinion,
the frequency of such verification is reasonable having regard to the
size of the company and the nature of its business.
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.
The Company has maintained proper records of inventory. As explained to
us, there were no material discrepancies noticed on physical
verification of stocks, as compared to book records.
3 The Company has not granted any loans, secured or unsecured, from/to
companies, firms or other parties covered in the register to be
maintained under section 301 of the Companies Act, 1956.
The Company has not taken any loans, secured or unsecured from
companies, firms or other parites covered in the register maintained
under section 301 of the Companies Act, 1956.
4 In our opinion, and according to the information and explanations
given to us, there are adequate internal control system 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. In our opinion and according to the information and
explanations given to us, there is no continuing failure to correct
major weakness in internal control system.
5 As explained to us, neither any contract or arrangement refered to in
section 301 of the Companies Act 1956 has been entered into by the
company nor there had been any transaction pursuant to such contracts
or arrangements.
6 Since the company has not accepted any deposit from the public,
provisions of Section 58 A and 58 AA or any other relevant provisions
of the Act and the rules framed there under are not applicable to it.
7 On the basis of the report made by the internal auditors to the
management, in our opinion the Internal Audit System is commensurate
with the size of the Company and the nature of its business.
8 Since the Company is not required to maintain any cost records
pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of certain manufacturing activities, the
requirement of item (viii) of Paragraph 4 of the Order is not
applicable to the company.
9. (a) According to the information and explanations given to us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income-Tax, Sales-Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
statutory dues as applicable to the Company have generally been
regularly deposited with the appropriate authorities. According to
the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at 31st
March, 2014 for a period of more than six months from the date of
becoming payable.
(b) According to the information and explanations given to us and the
records of the Company, there are no disputed or undisputed statutory
dues of Income Tax/ Sales Tax / Wealth Tax / Service Tax / Custom Duty
/ Excise Duty / Cess, that have not been deposited by the Company.
10 The Company neither have any accumulated losses at the end of the
year, nor incurred cash losses during the current and the immediately
preceding financial year.
11 According to the information and explanations given to us, the
company has not defaulted in repayment of dues to a financial
institution or bank.
12 The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 The Company is not a Chit Fund, Nidhi or Mutual benefit Society.
Hence the requirement of item (xiii) of paragraph 4 of the Order is not
applicable to the company.
14 The Company has kept proper records of its transactions and
contracts in securities and other investments and timely entries have
been made therein. The securities and other investments are held by the
Company in its own name except given as margin and to the extent of the
exemption, if any, granted under section 49 of the Act.
15 According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16 The Company has not taken any term loan hence the requirement of
item (xvi) of paragraph 4 of the Order is not applicable to the
company.
17 The Company has neither raised any fund on short term basis nor any
fund on long term basis.
18 According to the information and explanations given to us, no
preferential allotment of shares has been made by the company to
parties and companies covered in the register required to be maintained
under section 301 of the Companies Act, 1956.
19 The Company has not issued any debentures. Hence the requirements of
clause (xix) of paragraph 4 of the Order is not applicable to the
Company.
20 The Company has not raised any money from public issue during the
financial year.
21 To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
FOR P.M. ARORA & CO.
CHARTERED ACCOUNTANTS
(Firm Registration No. 1775N )
P.M. ARORA
PROPRIETOR
M.No.013597
PLACE : NEW DELHI
DATED : 21st MAY 2014
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