ZYG & Co. 21 Nariman
point,
Chartered Accountants Second Floor
Mumbai - 700030
Phone :
22453671
============================================================
INDEPENDENT AUDITOR’S REPORT
TO
THE MEMBERS OF
ABC PVT LTD
Report on the Financial Statements
We have audited the accompanying financial
statements of ABC PVT LTD (“the Company”), which
comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit
and Loss 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 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 flow 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 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation
and presentation 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 the 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 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 the 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:
Contd …… P/2
XYZ & Co. 21 Nariman
point,
Chartered Accountants Second Floor
Mumbai - 700030
Phone :
22453671
============================================================
//2//
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 of the Company 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 section 227(4A) 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 it appears from our examination of those books
c) the
Balance Sheet and Statement of Profit and Loss dealt with by this Report are in
agreement with the books of account.
d) in
our opinion, the Balance Sheet and the Statement of Profit and Loss comply with
the Accounting Standards notified under 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.
e) on the basis of the written representations received
from the directors as on March 31, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014, from
being appointed as a director in terms of section 274(1)(g) of the Companies
Act, 1956.
For XYZ & CO.
CHARTERED ACCOUNTANTS
21 Nariman point,
Chartered Accountants Second Floor
Mumbai - 700030
Phone :
22453671
(XYZ )
PROPRIETOR
Membership No. 066325
FIRM REGS. NO. 326859E
XYZ & Co. 21 Nariman
point,
Chartered Accountants Second Floor
Mumbai - 700030
Phone :
22453671
===================================================================
ANNEXURE REFERRED TO IN PARAGRAPH 4 OF AUDITORS’
REPORT OF EVEN DATE TO THE MEMBERS OF ABC PVT LTD ON THE ACCOUNTS FOR THE YEAR
ENDED 31ST MARCH, 2014.
1. The Company
has no fixed assets an accordingly, matters specified in terms (a),(b)
and (c) of clause (i)
to paragraph 4 of the said order, is
not applicable to the Company.
2. The Company has no inventory hence,
matters specified in terms (a),(b),and (c) of clause (2) of paragraph 4 of the
said order is not applicable to the company.
3. As per information provided to us the company has neither
granted or nor taken any loans, secured or unsecured to / from companies ,
firms or other parties covered in the
register maintained under section 301 of the companies act, 1956, accordingly
clause (iii) of the said order do not applicable to the Company.
4. There are adequate internal control procedures commensurate
with the size of the Company and the nature of its business with regard to the
purchases inventories, fixed assets and
sale of goods and services.
5. On the basis of our examination of the
books of account, the company has not entered into any transactions exceeding
Rs. 5 lacks in respect of any party during the financial year that needs to be
entered in the registered pursuant to the Section 301 of the Act.
6. The Company has not accepted any deposits
under the provisions of Section 58A and 58AA of the Act
and the rules framed there
under.
7. In our opinion, the Company’s present internal control
system commensurate with its size and nature of business.
8. Maintenance of cost
records has not been prescribed by the Central Government under Section 209(1)
(d) of the Companies Act, 1956.
9. According
to the information and explanations given to us, in respect of statutory and
other dues.
(a) The Company has been regular
in depositing with appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Sales Tax, Custom Duty,
Excise duty, Income Tax, Wealth Tax, Service Tax, Cess and any other statutory
dues with the appropriate authorities during the year.
(b) There are no cases of
non-deposit with the appropriate authorities of disputed dues of Sales
Tax/Income Tax/Custom Duty/Wealth Tax/Excise Duty/Cess & Service Tax.
10. The
Company has not accumulated losses at the end of the financial year and has not
incurred any cash losses during the financial year.
Contd
…… P/2
XYZ & Co. 21 Nariman point,
Chartered Accountants Second Floor
Mumbai - 700030
Phone :
22453671
===================================================================
//2//
11.
According to the records of the Company, it has not defaulted in
repayment of its dues to any financial institution or bank or to debenture
holders during the year.
12. As explained to us, the Company has not granted any loans or
advance on the basis of security by way of pledge of shares, debenture and
other securities.
13. In our opinion, considering the nature of activities carried
on by the company during the year, the provisions of any special status
applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable
to it.
14.
The Company has not dealt or traded in shares, securities debentures or
other investments during the year.
15. 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.
16. The Company has not obtained any term
loan during the year and there is no term loan outstanding as at
the end of the year.
17.
On the basis of review of utilization of funds, which is based on
overall examination of the balance sheet of the company, related information as
made available to us and as represented to us by the Management, funds raised
on short terms basis have not been used for long term investment.
18
The Company has not made any preferential allotment of shares to
parties and companies covered in the
Register maintained under section 301
of the Act during the year.
19 No debenture have been issued by the Company and hence the
question of creating securities in respect
These do not arise.
20. The Company has not raised any money by
public issue during the year.
21. As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the company has been noticed
or reported during the financial year.
For XYZ & CO.
21 Nariman point,
Chartered Accountants Second Floor
Mumbai - 700030
Phone :
22453671
(XYZ )
PROPRIETOR
Membership
No. 066325
FIRM
REGS. NO. 326859E
Contd
......... P/2.
ABC PRIVATE LIMITED
SIGNIFICANT ACCOUNTING POLICIES & NOTES TO
FINANCIAL STATEMENTS :
(Annexed
to and forming part of Balance Sheet as at 31st March, 2014 and Profit &
Loss Statement for the year ended on that date)
1. SIGNIFICANT ACCOUNTING POLICIES :
a) BASIS
OF PREPRATIONS : -
The financial statements have been prepared and
presented under the historical cost convention on the accrual basis of
accounting and comply with the Accounting Standards prescribed by Companies
(Accounting Standards ) Rules, 2006 as amended, other pronouncements of the
Institute of Chartered Accountants of India ('ICAI').
b) USE
OF ESTIMATES : -
The preparation of the financial
statements is in conformity with Generally Accepted Accounting Principles
(GAAP) in India and requires management to make estimates and assumptions that
affect the reported amounts of income and expenses of the period, assets and
liabilities and disclosures relating to contingent liabilities as on the date
of the financial statements. Actual results could differ from those estimates.
Any revision to accounting estimates is recognized prospectively in future
periods.
c) INVESTMENTS :
Long-term/ Non-Current investments are stated at cost.
Provision is made for diminution in the value of the investments, if the same
is considered to be other than temporary in nature, in the opinion of the
management. Current investments are carried at lower of cost and fair value
determined on an individual basis.
d) SHORT TERM EMPLOYEE BENEFITS :
All employee benefits falling due wholly within twelve
months of rendering the services are classified as short term employee
benefits, which include benefits like salary. Short term compensated absences
and other emoluments are recognised as expenses in the period in which the
employee renders the related service.
e) REVENUE
RECOGNITION : -
Income and expenditure are
accounted for an accural basis.
f) EARNING PER SHARE :
The earnings in ascertaining the company's EPS
comprises the net profit after tax and includes the post tax effect of any
extraordinary items. The number of shares used in computing basic EPS is the
weighted average number of shares outstanding during the year.
g) TAXATION:
Tax expenses for the year comprising current tax &
deferred tax are considered in determining the net profit for the year. A
provision is made for current tax based on tax liability computed in accordance
with relevant tax rates & tax laws. Deferred tax assets and liabilities
arising on account of timing differences, which are capable of reversal in
subsequent periods, are recognised using tax rates and tax laws, which have
been enacted or substantively enacted. Deferred tax assets are recognized only
if there is reasonable certainty that they will be realized and are reviewed
for the appropriateness of their respective carrying values at each Balance
Sheet date.
h) PROVISIONS, CONTINGENT LIABILITIES
AND CONTINGENT ASSETS:
Provisions involving substantial degree of estimation
in measurement are recognised when there is a present obligation as a result of
past events and it is probable that there will be an outflow of economic
resources and a reliable estimate can be made of the amount of the obligation.
These are reviewed at each balance sheet date and adjusted to reflect the
current best estimate.
Contingent Assets are neither recognized nor disclosed
in the financial statements.
Contingent Liabilities are disclosed in respect of
possible obligations that arise from past events but their existence is
confirmed by occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company.
