| 1. We have audited the accompanying financial statements of M/s
SOLITARE INVESTMENTS COMPANY LIMITED (the "Company"), which
comprise the Balance Sheet as at 31s* March, 2014, 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, which we have signed under reference to this report.
Management's Responsibility for the Financial Statements
2. The Company's 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 ofthe Companies Act, 1956' of India
(the "Act")] read with the General Circular 15/2013 dated
September 13,2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013]. 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.
Auditors' 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 and other applicable authoritative
pronouncements 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 auditors' 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 auditors consider 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, but not for the purpose of expressing an opinion on
the effectiveness of the entity's internal control. 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.
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 accompanying 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 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit/
loss1 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
7. As required by 'the Companies (Auditor's Report) Order,
2003', as amended by 'the Companies (Auditor's Report)
(Amendment) Order, 2004', issued by the Central Government of India
in terms of sub-section (4A) of section 227 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 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 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) Hie 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 dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act/notified under the Companies Act, 1956 read with the General
Circular 15/2013 dated September 13,2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013,;
(e) On the basis of written representations received from the
directors as on 31st March, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on 31" March,
2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Annexure to Independent Auditors' Report
Referred to in paragraph 7 of the Independent Auditors' Report of
even date to the members of M/s SOLITARE INVESTMENTS COMPANY LIMITED
on the financial statements as of and for the year ended March
31,20x4.
(i) In respect of the fixed assets:
(a) The company has only intangible assets i.e. computer software.
Therefore, the provisions of Clause 4(ii) (a) & (b) of the said Order
are not applicable to the Company.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year
(ii) The Company does not hold any inventory during the year ended
31** March, 2014. Therefore, the provisions of Clause 4(ii) of the
said Order are not applicable to the Company.
(iii) According to the information and explanation given to us, the
company has not granted/taken any loans, secured or unsecured to
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, the
provisions of Clause 4(iii) fb), (c), (d), (f) & (g) of the said order
not applicable to the Company.
(iv) 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. Further,
on the basis of our examination of the books and records of the
Company, and according to the information and explanations given to
us, we have neither come across, nor have been informed of, any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
(v) According to the information and explanations given to us, there
have been no contracts or arrangements that need to be entered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, clause 4 (v) of the said order is not applicable.
(vi) The company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
(vii) The affairs of the company are conducted by the directors
themselves. The company does not have a formal system of internal
audit but there are adequate checks and controls at all levels
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of the cost
records under section 209 (1) (d) of the Companies act, 1956 for any
of the products of the company. Hence clause 4(viii) of the said order
is not applicable.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues, including
provident fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty and other material
statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of
income-tax, sales-tax, wealth-tax, service-tax, customs duty, and
excise duty which have not been deposited on account of any dispute.
(x) The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the
financial year ended on that date or in the immediately preceding
financial year.
(xi) According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Therefore, the provisions of Clause 4(xii) of the Order
are not applicable to the Company.
(xiii) As the provisions of any special statute applicable to chit
fund/ nidhi/ mutual benefit fund/ societies are not applicable to the
Company, the provisions of Clause 4(xiii) of the Order are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of Clause 4(xiv) of the Order are not applicable to the
Company.
(xv) In our opinion, and 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 during the year.
Accordingly, the provisions of Clause 4(xv) of the Order are not
applicable to the Company
(xvi) The Company has not raised any term loans. Accordingly, the
provisions of Clause 4(xvi) of the Order are not applicable to the
Company.
(xvii) The Company has not raised any loans on short term basis.
Accordingly, the provisions of Clause 4(xvii) of the Order are not
applicable to the Company
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Act during the year. Accordingly, the provisions of
Clause 4(xviii) of the Order are not applicable to the Company.
(xix) The Company has not issued any debentures during the year and
does not have any debentures outstanding as at the beginning of the
year and at the year end. Accordingly, the provisions of Clause 4(xix)
of the Order are not applicable to the Company.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of Clause 4(xx) of the Order are not
applicable to the Company.
(xxi) 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
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 Sanjay B Sharma & Co.
Chartered Accountants
Sanjay B Sharma
Proprietor
Membership No. 042298
Place: Mumbai
Date: 12th May, 2014.
| 