| We have audited the accompanying financial statements of Rishabhdev
Technocable 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 year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for 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 read with general circular No.15/2013 dated
13th September, 2013 of Ministry of Company Affairs in respect section
133 of the Companies Act, 2013 ("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 Statement of Profit and Loss, 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
i. 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.
ii. 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 read with
general circular No.15/2013 dated 13th September, 2013 of Ministry of
Company Affairs in respect section 133 of the Companies Act, 2013 ("the
Act");
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.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date On the basis of
such checks as we considered appropriate and in terms of the
information and explanations given to us, we state that: -
I. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the Company has not disposed of any substantial part of
fixed assets during the year, therefore does not affect the going
concern assumption.
II. (a) As explained to us, inventories at site have been physically
verified during the year by the management at reasonable intervals. 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories;
no material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
III. (a) According to the information and explanations given to us, The
Company has not granted loan to a party covered in the register
maintained under section 301 of the Companies Act, 1956, hence para (b)
to (d) are not applicable to the company
(e) According to the information and explanations given to us, the
Company has received unsecured loans (Interest free) from One Party
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum principal amount involved during the year was
Rs. 29,796,135 and the balance outstanding at the end of the financial
year from such Parties was Rs. 29,796,196 Other than the above, the
Company has not taken any loans, secured or unsecured from Companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956.
(f) In our opinion, the rate of interest and other terms and conditions
of the loans taken by the Company, are prima-facie not prejudicial to
the interest of the Company;
(g) The Payments of principal amounts and interest in respect of such
loans during the year has been regular/as per stipulation.
IV. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control.
V. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) On the basis of the audit procedures performed by us, and according
to the information, explanations and representations made to us, we are
of the opinion that, the transactions in which directors were
interested as contemplated under Section 297 and Section 299 of the
Companies Act, 1956 and which were required to be entered in the
register maintained under Section 301 of the said Act, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of Rupees five lacs in
respect of any party during the year, have been made at prices which
are reasonable having regard to market prices prevailing at that time.
VI. The Company has not accepted any deposits during the year under
the provisions of section 58A and 58AA of the Companies Act, 1956, and
the rules framed there under are not applicable.
VII. Company has adequate internal control procedure involving internal
checking of its financial record. The internal audit system
commensurate with the size of the business.
VIII. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
IX. In Respect of statutory dues :
a) According to the information and explanation given to us the Company
is generally regular in depositing with appropriate authorities
undisputed statutory dues including income tax, sales tax, wealth tax,
service tax, excise duty, cess and other material statutory dues
applicable. There have been delays during certain months in depositing
Tax Deducted at Source, Service Tax. However Company have undisputed
statutory dues amounts Rs. 1,66,964/- which includes Rs. 15,000/- of
Professional Tax, Rs. 80,000/- of Rs. TDS, Rs. 38,044/- of CST and Rs.
33,920/- of Service Tax Reverse charge.
b) According to the information and explanation given to us, no
undisputed amount payable in respect of sales tax, income tax, customs
duty, wealth tax, service tax, excise duty and cess were in arrears, as
at 31st March, 2014 for a -period of more than six months from the date
they became payable. except the below:
Name of the statute Nature of the dues Disputed Amount
Income Tax Act, 1961 Income Tax and Interest Rs. 44,894/-
thereon
MVAT Act, 2002 Sales Tax thereon Rs. 24,49,651/-
MVAT Act, 2002 Sales Tax thereon Rs. 20,70,062/-
Name of the statute Period to which the
amount related
Income Tax Act, 1961 A.Y. 2009-2010
MVAT Act, 2002 A.Y. 2010-2011
MVAT Act, 2002 A.Y. 2011-2012
c) According to the information and explanation given to us, no
undisputed amount payable in respect of sales tax, income tax, customs
duty, wealth tax, service tax, excise duty and cess which has been
deposited on account of any dispute except the below:
Name of the statute Nature of the dues Disputed Amount
Income Tax Act, Income Tax and Rs. 123, 527, 760/-
1961 Interest thereon
Name of the statute Period to which the Forum where
amount related dispute is pending
Income Tax Act, A.Y. 2010-2011 CIT, MUMBAI
1961
X. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
XI. Based on our examination or the records and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to a financial institution, bank or debenture holders except
vehicle loan from bank and term loan from bank.
XII. Based on our examination or the records and the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
XIII. In our opinion and according to the information and explanation
given to us, the Company is not a chit fund or a nidhi/mutual benefit
fund/society. Accordingly the provisions of the clause 4(xiii) of the
said order are not applicable to the Company.
XIV. The Company has maintained proper records of the transactions and
contracts of the investment dealt in by the Company and timely entries
have been made therein. The investments made by the Company are held in
its own name. The investments only made in gold and silver article
which was carrying from last years.
XV. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
XVI. According to the information and explanation given and based on
the documents and records produced, the company has not taken any term
loan from bank for the period.
XVII. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion that no funds raised on a short-term basis which have been used
for long term investment.
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 Companies Act, 1956 during the year.
XIX. According to the information and explanations given to us, the
Company has no outstanding debentures during the period under audit.
XX. According to the information and explanations given to us, the
Company has not raised any money by way of public issue during the year
and accordingly the provision of the relevant clause of the order is
not applicable to the Company.
XXI. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For DMKH & Co.
Chartered Accountants
FRN. No. 116886W
-sd-
CA. Manish Kankani
Partner
M.No.158020
Place : Mumbai
Date : 30-05-2014
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