We have audited the accompanying financial statements of ARIHANT
AVENUES AND CREDIT LIMITED which comprise the Balance Sheet as at March
31, 2015, and the Statement of Profit and Loss and for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
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 flows of the Company in
accordance with the Accounting principles generally accepted in India,
including the Accountant Standards referred to in section 133 of the
Companies Act, 2013 (the Act) read with rule 7 of the Companies
Accounts Rules 2014. This responsibility 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 judgements and estimates that
are reasonable and prudent, and design, implementation and maintenance
of adequate internal financial control that we are 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.
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 and specified u/s 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 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. 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.
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 March 31,2015;
b) in the case of the Profit and Loss Account, 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.
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)ofthe 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the financial statements comply with the Accounting
Standards referred to in section 133 of the Companies Act, 2013 read
with rule 7 of 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 Companies
Act, 2013.
f) With respect to the other matters to be included in the Auditors
Report in accordance with Rule 11 of the Companies (Audit & Auditors)
Rules 2014, in our opinion and to the best of our information and
according to explanations given to us by the management, the
requirements of the same are duly complied with as under:
1. The company has disclosed the impact of pending litigations on its
financial position in its financial statements
2. In our opinion and as per the information and explanation given to
us, the company has not entered into any long term contracts including
derivative contracts, requiring provision under applicable laws or
accounting standards, formaterial foreseeable losses, and
3. There has not been an occasion in case of the company during the
year under the report to transfer any sums to the Investor Education
and Protection Fund, hence the question of delay in transferring such
sums does not arise.
ANNNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in our report to the members of the above
company for the year Ended on 31/03/2015. We report that:
S. No. Particulars Auditors Remark
(i) (a) whether the company is maintaining Not applicable as
proper records showing full no fixed assets
particulars, including quantitative
details and situation of fixed assets;
(b) whether these fixed assets have Not applicable
been physically verified
by the management at reasonable
intervals; whether any material
discrepancies were noticed on
such verification and if so, whether
the same have been properly dealt
with in the books of account;
(ii)(a) whether physical verification of yes
inventory has been conducted at
reasonable intervals by the
management;
(b) are the procedures of physical Yes, they are
verification of inventory followed reasonable and
by the management reasonable and adequate
adequate in relation to the size of
the company and the nature of its
business. If not, the
inadequacies in such procedures
should be reported;
(c) whether the company is maintaining Yes, no material
proper records of inventory and discrepancies
whether any material discrepancies were noticed
were noticed on physical verification
and if so, whether the same have been
properly dealt with in the books of
account;
(iii) whether the company has granted any No loans given to
loans, secured or unsecured to parties covered
companies, firms or other parties in the register
covered in the register maintained maintained under
under section 189 of the Companies section 189
Act. If so,
(a) whether receipt of the principal Not Applicable
amount and interest arc
also regular; and
(b) if overdue amount is more than rupees Not Applicable
one lakh, whether reasonable steps have
been taken by the company for
recovery of the principal and interest;
(iv) is there an adequate internal control yes no
system commensurate with the size of continuing failure
the company and the nature of its
business, for the purchase of inventory
and fixed assets and for the sale of
goods and services. Whether there is
a continuing failure to correct major
weaknesses in internal control
system.
(v) in case the company has accepted Not applicable as
deposits, whether the directives no fixed assets
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, where
applicable, have been complied with?
II not, the nature of contraventions
should be stated; If an order has
been passed by Company Law Board or
National Company Law Tribunal or
Reserve Bank of India or any court
or any other tribunal, whether the
same has been complied with or not?
(vi) where maintenance of cost records has Not applicable
been specified by the Central
Government under sub-section
(1) of section 148 of the Companies
Act, whether such accounts and records
have been made and maintained;
(vii)(a) is the company regular in depositing The company is
undisputed statutory dues including regular
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 if not, the extent of the arrears
of outstanding statutory dues as at the
last day of the financial year
concerned for a period of more than
six months from the date they became
payable, shall be indicated by the
auditor.
(b) in case dues of income tax or sales No such dues
tax or wealth tax or service tax or Pending
duty of customs or duty of excise or
value added tax or cess have not been
deposited on account of any dispute,
then the amounts involved and the
forum where dispute is pending shall
be mentioned. (A mere representation
to the concerned Department shall not
constitute a dispute).
(c) whether the amount required to be Not applicable
transferred to investor education and
protection fund in accordance with
the relevant provisions of the Companies
Act, 1956 (1 of 1956) and rules made
thereunder has been transferred to
such fund within time.
(viii) whether in case of a company which No accumulated
has been registered for a period not losses
less than five years, its accumulated
losses at the end of the financial
year are not less than fifty per cent
of its net worth and whether it has
incurred cash losses in such financial
year and in the immediately preceding
financial year;
(ix) whether the company has defaulted in No Such default
repayment of dues to a financial
institution or bank or debenture
holders? If yes, the period and amount
of default to be reported;
(x) whether the company has given any No such guarantee
guarantee for loans taken by
others from bank or financial
institutions, the terms and
conditions whereof are
prejudicial to the interest
of the company;
(xi) whether term loans were applied for Not applicable
the purpose for which the loans were
obtained;
(xii) whether any fraud on or by the No such instance
company has been noticed or reported
during the year; If yes, the nature
and the amount involved is to be
indicated.
Place : Ahmedabad V. K Moondra & Co.
Date : 28/05/2015 CHARTERED ACCOUNTANTS
FRN : 106563W
PROPRIETOR
