| We have audited the accompanying financial statements of Paramount
Cosmetics (India) Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the 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 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 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 the 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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) 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 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 controls 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 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 financial
statements.
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 31st March, 2015
b) In the case of 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, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereinafter referred to 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
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. 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, 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 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 written representations received from the Directors
as on March 31, 2015, and 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.
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), 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,
(ii) In our opinion and as per the information and explanations
provides to us, the Company has not entered into any long-term
contracts including derivative contracts, requiring provision under
applicable laws or accounting standards, for material foreseeable
losses, and
(iii) The company is not required to transfer amount to investor
education and protection fund therefore there is no delay in
transferring the amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in Paragraph 1 under section (Report on Other Legal and
Regulatory Requirements, of our report of even date)
1.1. The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. However the addition made during the year are not updated.
1.2. Some of the fixed assets were physically verified during the year
by the management in accordance with a program of verification of fixed
assets at reasonable intervals. According to the information and
explanation given to us no material discrepancy were noticed on such
verification.
2.1. According to the information and explanation given to us ,
physical verification of inventory has been conducted by the management
at reasonable interval.
2.2. 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.
2.3. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of its
inventories and no material discrepancies were noticed on such physical
verification.
3. As informed to us, the company has not granted any loan, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventories, fixed assets and for the sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weaknesses, if any, in internal
control system.
5. According to the information and explanations given to us, the
Company has not accepted any deposits from public within the meaning of
section 73 to 76 or any other relevant provisions of the Companies Act,
2013 and the rules framed there under during the year under review.
6. The Central Government has not prescribed maintenance of Cost
Records under sub-section (1) of Section 148 of the Companies Act, 2013
in respect of products dealt with by the Company.
7.1 In our opinion and according to the information and explanation
given to us the company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, wealth tax, service tax, duty of customs, duty
of excise, value added tax, cess and any other statutory dues with the
appropriate authorities and we have been informed that there are no
arrears of outstanding statutory dues as at the last day of the
financial year under audit for a period of more than six months from
the date they became payable.
7.2 According to the information and explanations given to us and
records examined by us the particulars of dues of Vat as on 31st march
2015 which have not been deposited on account of dispute is as follows:
Name of the Nature of Amount Period to Forum where
statute dues which the the dispute
involve Rs is pending
(In Lakh) amount Relates
Gujarat sales Vat Dues 576.40 AY 2005-2006 The Commissioner
tax- sales tax commercial
department Taxes Surat,
Gujarat
According to information and explanations given to us and the records
of the company examined by us no dues of vat, duty of custom, duty of
excise, wealth tax, service tax which have not been deposited on
account of any dispute.
7.3 In our opinion and according to the information and explanations
given to us, the company is not required to transfer 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 at the end of the financial
year under audit. The company has not incurred cash losses during the
financial year covered by audit and in the immediately preceding
financial year.
9. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank.
10. 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.
11. According to the information and explanations given to us, term
loans were obtained during the year under audit and applied for the
purpose for which it has taken the loan.
12. Based upon the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year of our audit.
For S.S. Jain & Associates
Chartered Accountants
Firm Registration No. 103970W
Sd/-
S. K.Jain
Proprietor
Membership Number: 038664
Place: Bangalore
Dated: 30th May 2015
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