| 1. We have audited the accompanying financial statements of Jagan Lamps
Ltd which comprise the Balance Sheet as at 31st March, 2015, Statement
of Profit and Loss, the 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 ("the Act") with
respect to preparation of these financial statements that give a true
and fair view of the financial position and 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
maintenance of adequate accounting records in accordance with
provisions of 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 internal financial controls that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation 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.
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 there under.
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 control relevant to the
Company's preparation of the 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 management, 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 together with the notes thereon, 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 March 31, 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, (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 explanation to us, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said order.
10. As required by section 143(3) of the Act, we report that:
(I) We have sought and obtained all the information and explanation
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
(ii) In our opinion proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(iii) The Balance Sheet, Statement of Profit and Loss, and the Cash
Flow statement dealt with by this Report are in agreement with the
books of account.
(iv) In our opinion, the Balance Sheet and Statement of Profit & Loss
comply with the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2013, except.
(a) Accounting Policy No-6,Note-1, regarding non accountal of gains/
losses due to exchange fluctuations, amount unascertained ,not in
conformity with Accounting Standard 11(AS-11) issued by the Institute
of Chartered Accountants of India.
(b) Accounting Policy No-7, Note-1 ,regarding accountal of bonus, leave
encashment and gratuity on cash basis , amount of liability not
ascertained , not in conformity with Accounting Standard 15 (AS-15)
issued by the Institute of Chartered Accountants of India.
(c) Accounting Policy No-2, Note-1, regarding accounting of sales (net)
is not in conformity with accepted Accounting Principles
(v) On the basis of written representations received from the directors
as on March 31, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164(2) of the Act.
(vi) That the information with regard to other Matters as required to
be included in the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, is given here under:
1) As per information provided, the Company does not have any pending
litigations which would impact its financial position.
2) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
Losses.
3) There were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company.
1) (a) The Company is maintaining proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the Management
according to a phased programmed designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. As
informed to us no material discrepancies as compared to book records
were noticed on assets verified during the year.
2) (a) As explained to us, the inventory was physically verified during
the year by the Management. 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 inventory
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 according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory . The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
3) 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 Act. Therefore, the provisions of Clause
3(iii), (iii) (a) and (iii) (b) of the said order are not applicable to
the Company.
4) In our opinion and according to the information and explanations
given to us, having regard to the explanation that, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business for the purchase of inventory,
fixed assets and for the sale of goods and services. 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.
5) The Company has not accepted any deposits from the public within the
meaning of Sections 73, 74, 75, and 76 of the Act and the rules framed
there under to the extent notified.
6) The provisions of maintenance of cost records specified by the
Central Government under sub-section (1) of section 148 of the
Companies Act, 2013 and vide Companies (Cost Records and Audit)
Amendment Rules , 2014 for the products dealt/manufactured by the
Company are not applicable to the Company . Therefore the clause (vi)
of para 3 of the Companies (Auditors Report) Order, 2015 are not
applicable to the Company.
7) a) According to the records of the Company examined by us and
information and explanations given to us, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Cess and other
applicable statutory dues with the appropriate authorities during the
year.
b) There are no arrears of outstanding undisputed statutory dues as at
the last day of the financial year concerned for a period of more than
six months from the date they become payable.
8) The Company does not have 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 and in the immediately preceding financial
year.
9) According to the information and explanations given to us, and as
per our verification of the records of the Company, the Company has not
defaulted in repayment of dues to financial institution or Bank or
debenture holders.
10) 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 3(x) of the Order are not
applicable to the Company.
11) According to the information and explanations given to us, the Term
Loans have been applied for the purpose for which the Loans were
obtained.
12) 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
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Bhasin Raghavan & Co
Chartered Accountants
FRN 000197N
(V. Singh)
Place: New Delhi Partner
Date : 30.05.2015 Membership # 93458 |