We have audited the accompanying financial statements of MILESTONE
GLOBAL 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 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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 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.
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, but not for the
purpose of expressing an opinion on the effectiveness of the company'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.
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 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 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
1. 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.
2. 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, 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
notified under the Companies Act,1956 read with the General Circular
15/2013 dated 13th September 2013 of 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 March 31, 2014, 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.
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
i) In respect of its Fixed Assets :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. 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 made substantial disposal of fixed
assets during the year.
(ii) In respect of its Inventories :
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(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 according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and discrepancies noticed on verification between physical
stocks and the book records were not material.
(iii) In respect of loans, secured or unsecured, granted or taken by
the Company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us:-
(a) The Company had granted interest free unsecured loans to a Company.
The maximum amount involved during the year was Rs53.75. Lacs and the
year end balance of such loan granted was Rs. 50.75 Lacs.
(b) The above loans is interest free and other terms and conditions on
which loan has been granted to such party are not prima facie
prejudicial to the interest of the Company.
(c) No terms and conditions for repayment of the loan are stipulated .
(d) There is no overdue amount of such loans.
(e) The Company has not taken any Loan from Companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. As the Company has not taken any Loans, Secured or
Unsecured, from parties listed in the register maintained under section
301 of the Companies Act, 1956, the provisions of clause 4(iii)(f) and
(g) of the Companies (Auditor's Report) Order, 2003 are not applicable
to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the 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 system of the Company.
(v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956 :
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 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 and exceeding the value of Rs. Five Lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market price at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
provisions of sections 58A and 58AA and other relevant provisions of
the Companies Act, 1956. Accordingly, the provisions of Clause 4(vi) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records by the Company under section 209(1)(d) of the Companies
Act, 1956 for any of its products.
(ix) According to the information and explanations given to us, in
respect of statutory and other dues:
(a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees' state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and any other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, wealth
tax, services tax, custom duty, excise duty were in arrear as at 31st
March, 2014 for a period more than six months from the date they became
payable:
(c) According to the information and explanations given to us, there is
no dues of income tax, sales tax, wealth tax, service tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute.
(x) The Company does not have accumulated losses at the end of the
financial year.The company has not incurred cash losses during the
financial year covered by our audit but has incurred cash losses in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
bank.
(xii) As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
(xiii) In our opinion, the Company is not a Chit Fund or a Nidhi Mutual
Benefit Fund / Society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities and debentures and other investments. Accordingly,
the provisions of clause 4(xiv) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
bank or financial institution.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the no fund raised on short term basis have been used for long
term investment.
(xviii) According to the information and explanations given to us, 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) As the Company has no debenture outstanding at any time during
the year, the provisions of Clause 4(xix) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For P.L. TANDON & Co.
Chartered Accountants
Place : KANPUR Registration Number: 000186C
Date: 29-05-2014 RAJENDRA KUMAR GUPTA
(Partner)
Membership No. 73250 |