| 1. We have audited the accompanying standalone financial statements of
BOMBAY SWADESHI STORES LIMITED which comprises of Balance Sheet as at
31st March, 2015 and the Statement of Profit and Loss and the 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. The Company's Board of Directors is responsible for the matters 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 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 Rule 7 of the Companies (Accounts)
Rules, 2014, This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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 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 financial control relevant
to the Company's preparation of the financial statements that give 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 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 Company's Directors, as well as evaluating the
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
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 state of affairs
of the Company as at March 31, 2015 and its profit and its cash flows
for the year ended on that date.
Emphasis of matter
9. We draw attention to Notes 13.2 regarding Trade receivables
aggregating to Rs.5,376,992/- considered good and recoverable by the
Company.
Our opinion is not qualified/modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of Section (11) of section
143 of the Act (hereinafter referred to as the "Order") and on 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 the
paragraph 3 and 4 of the Order, to the extent applicable.
11. As required by section 143(3) of the Act, we report that:
a) We have sought 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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c) The Balance Sheet, Statement of Profit and Loss Account and 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 Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 (as amended).
e) On the basis of written representations received from the directors,
as on 31st March, 2015, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2015 from being appointed as a director in terms section 164(2) of the
Act.
f) With respect to the other matters included in the Auditor's Report
and to the best of our information and according to the explanations
given to us :
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT
AUDITORS' REPORT
i a The records of Fixed assets maintained by the company have not been
properly up dated.
b The Fixed Assets have not been physically verified by the management
during the year.
ii a The merchandises (Finished Goods) have been physically verified
during the year by the management. On account of the nature of the trade
being retail business dealing in hundreds of small items, in our opinion
the frequency of the verification is reasonable.
b In our opinion and according to the information and explanations
given to us, the procedures of physical verification of merchandise
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 has not maintained proper book records of its
merchandises, and as such it is not possible for us to ascertain
whether there was any material discrepancies noticed on physical
verification as compared to book records.
iii a 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 Companies Act, 2013. Accordingly, provisions of
sub-clause (b) are not applicable.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
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. During the course of audit no major weakness has been
noticed in these internal controls.
v In our opinion and according to the information and explanation given
to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 73 and 76 of the
Act or any other relevant provisions of the Companies Act and rules
framed there under where applicable have been complied with.
vi The provisions of clause 4 (vi) of the Companies (Auditors Report)
Order 2015 are not applicable to the Company.
vii a According to the records of the Company, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues in respect of Provident Fund, Employee's State Insurance, Income
tax, Sales-tax, Wealth tax, Custom Duty, Excise Duty, value added tax,
cess and any other statutory dues with appropriate authorities.
According to the information and explanations given to us , no
undisputed amounts payable in respect Provident Fund, , Employee's
State Insurance, Income tax, Sales-tax, Wealth tax, Custom Duty, Excise
Duty, value added tax, cess and any other statutory dues were in
arrears as at 31st March, 2015 for a period of more than six months
from the date they became payable.
b According to the information and explanations given to us, there were
no dues in respect of Income tax, wealth tax, sales tax, service tax,
duty of custom and value added tax which have not been deposited on
account of any dispute.
c According to the information and explanation given to us, the amount
required to be transferred to investor education and protection fund in
accordance with the relevant provision of the Companies Act, 1956( I of
1956) and rules made there under has been transferred to such fund
within time.
viii The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current or in the
immediately preceding financial year.
ix According to information and explanation given to us, the Company
has not defaulted in repayment of dues to the financial institution or
banks. The Company has not issued any debentures.
x According to information and explanation given to us, the Company has
not given any guarantee for loans taken by others from bank or
financial institutions.
xi According to information and explanation given to us, the term loans
availed have been applied for the purpose for which they were raised.
xii According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the year.
For M. D. PANDYA & ASSOCIATES
Chartered Accountants
Reg. No. 107325W
A. D. PANDYA
Partner
Membership No.:033930
Mumbai,
Dated : 30th May, 2015
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