| We have audited the accompanying financial statements of M/S. RAINBOW
FOUNDATIONS LIMITED, CHENNAI - 600 017 ( the Company ), which comprise
the Balance Sheet as at March 31, 2015 and 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 general
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 of the assets of the Company and for preventing and
detecting frauds and other irregularities, selection and application of
appropriate accounting policies, making judgements 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 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
thereunder.
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 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 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.
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, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its 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 ( the
Order ), issued by the Central Government of India in terms of
Sub-Section (11) of Section 143 of the Act, 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, 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 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 Auditor)
Rules, 2014, in our opinion 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
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in Paragraph 1 under the heading Report on
Other Legal and Regulatory Requirements of our Independent Auditors
Report to the shareholders of M/S RAINBOwW FOUNDATIONS LIMITED, for the
year ended 31st March 2015 and in terms of the information and
explanations given to us and also on the basis of such checks as we
considered appropriate we further state that:
(I) 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.
(ii) a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable
b. 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. The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) According to the information and explanations given to us and in
our opinion, 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.
(iv) According to the information and explanations given to us and in
our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and for the sale of flats and
plots. Further, on the basis of our examination of the books and
records of the company, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control procedure.
(v) According to the information and explanations given to us and in
our opinion, the Company has not accepted any deposit within the
meaning of the Provisions of Section 73 to 76 or any other relevant
provisions of Companies Act and the rules framed thereunder. According
to the information and explanation given to us, no order been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any court or any other tribunal.
(vi) In our opinion, and according to the information and explanations
given to us, the company is not required to maintain cost records under
Section 148 of the Companies Act.
(vii) a. According to the information and explanations given to us and
in our opinion, the company is regular in depositing undisputed
statutory dues including provident fund, employee s 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 no dues for a period of more than six months
from the date they became payable.
b. According to the information and explanation given to us, there are
no dues of sale tax or wealth tax or duty of customs or duty of excise
or value added tax or cess have not been deposited on account of any
dispute.
The particulars of Income Tax and Service Tax as at 31st March 2015
which have not been deposited on account of dispute are as follows:
Name of the Nature of Dues Amount under dispute
Statue not yet deposited Rs.
Income Tax Income tax 2,85,218
Act 1961 including
interest till
the date of
assessment
Income Tax Income Tax Rs. 3,33,003/-
Act 1961 Along with
Interest till
the date of
Assessment
Finance Service Tax & Rs. 7,91,330/-
Act 1994 Penalty, Interest
(Service lax) to be quantified
till the date of
actual payment
Finance Service Tax &
Act 1994 Penalty, Interest
(Service lax) to be quantified
till the date of Rs. 29,71,557/-
actual payment
Name of the Period to which Forum where the
Statue amount relates dispute is pending
Income Tax AY 2002-03 The Hon'ble Madras
Act 1961 High court, Chennai
Income Tax AY 2007-08 The Commissioner of Income
Act 1961 Tax (Appeals) Chennai
Finance From November 2004 The Commissioner of Central
Act 1994 to Excise (Appeals) Chennai
(Service lax) September 2007
Finance 2006-2007 The Commissioner of Central
Act 1994 to Excise (Appeals) Chennai
(Service lax) 2010-20 11
c. According to the information and explanations given to us and in
our opinion, there were no amounts which were required to be
transferred to the Investor Education and Protection Fund by the
company.
(viii) In our opinion and according to the information and
explanations given to us, the company does not have any accumulated
loss. The company has not incurred cash losses during the financial
year and the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution and banks, and there are no debenture holders.
(x) 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.
(xi) In our opinion, and according to the information and explanations
given to us, the company has taken term loans from financial
institutions and the term loans have been applied for the purpose for
which loans were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
PLACE: CHENNAI For JAIN BAFNA AND CO.
DATE: 29.05.2015 (Chartered Accountants)
Firm Reg No:010657 S
(S.MUTHU KUMAR)
(Partner)
Address: F-1,58, Greams Road,
Chennai 600 006 Mem No: 209636 |