| We have audited the accompanying standalone financial statements of
DECO-MICA LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
2. Management's Responsibility for the Standalone Financial Statements
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 the preparation of these standalone 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
maintenance of adequate accounting records in accordance with the
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 adequate internal financial controls,
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.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
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.
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.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 on the standalone
financial statements.
4. Opinion
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:-
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
ii. In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Report on Other Legal and Regulatory Requirements
i. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act,2015, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order.
ii. As required by Section 143(3) of the Act, we report that:
(a) We have sought and 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 it 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 aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements. (Refer Note 25).
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 5(i) of our report of even date to the Members
of DECO-MICA LIMITED for the year ended 31st March 2015.
1. In respect of Fixed Assets :
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets on the
basis of available information.
(b) As per the information and explanations given to us, Fixed assets
were physically verified during the year by the Management in
accordance with a programme of verification, which in our opinion
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
2. In respect of its Inventories :
(a) As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
(b) In our opinion, and according to the information and explanation
given to us, the procedure of physical verification of inventory
followed by the management, are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion, and according to the information and explanation
given to us, the Company has maintained proper records of its
inventory, and 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. In respect of Loans and Advances granted during the year.
As per information and explanation give to us , the Company has granted
loan to one related party covered under the register maintained under
section 189 of the Companies Act, 2013, the yearend balance is
amounting to Rs. Nil and the maximum amount involved during the year
was Rs. 7 Lacs.
a. In our opinion and according to the information and explanations
given to us, the Company is regular in receipt of principal and
recovery of interest there on.
b. In our opinion and according to the information and explanations
given to us, there were no overdue outstanding as at 31st March 2015 in
respect of Loans and Advances granted during the year.
4. 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, no major continuing failures to correct major weaknesses has
been observed
5. During the year, the company has not accepted any public deposits
and hence the directives issued by the Reserve Bank of India and the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act and the rules framed there under are not applicable to
the company. We are informed that no order has been passed by company
Law Board (CLB) or National Company Law Tribunal (the NCLT) or Reserve
Bank of India or any court or any other tribunal.
6. We have broadly reviewed the books of accounts relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records as per the provisions of Companies (Cost
Records and Audit) Rules, 2014, and we are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. We have not, however made a detailed examination of the
records with a view to determine whether they are accurate or complete.
7. In respect of Statutory Dues :
(a) According to the records of the Company, the Company is by and
large regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees' state insurance,
income tax, sales tax, wealth tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues except there were
delay in payment of provident fund, employees' state insurance, income
tax, sales tax, value added tax, Service Tax.
(b) According to the information and explanations given to us,
undisputed amounts payable in respect statutory dues no amount were
outstanding as at 31st March, 2015 for a period of more than six months
from the date they became payable. However, there is an undisputed
amount of Rs. 21.30 lacs in respect of Advance Tax of current financial
year which has remained unpaid for a period exceeding six months from
the date it became payable.
(c) According to the records of the company, there are no dues of
income tax, sales tax, wealth tax or service tax or duty of customs or
duty of excise or value added tax or cess which have not been deposited
on account of disputes.
(d) According to the records of the company there are no amounts
required to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made there under.
8. The company has no accumulated losses and has not incurred any cash
losses during the financial year under review or in the immediately
preceding financial year.
9. Based on our audit procedure and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to the Financial Institutions, Banks 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 bank or financial institutions.
11. According to the information and explanations given to us, during
year under review the company has applied the term loan for the purpose
for which the loans were obtained.
12. To the best of our knowledge and according to the information and
explanations given to us, no material fraud by the Company and no
material fraud on the Company has been noticed or reported during the
year.
For, J T Shah & Company
Chartered Accountants
[Firm Regd. No. 109616w]
[J. T. Shah]
Place: Ahmedabad Partner
Date: 27.05.2015 [M. No. 3983]
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