We have audited the accompanying financial statements of ATHARV
ENTERPIRSES LIMITED (the Company), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of 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 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. 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, 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 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 qualified 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
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 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.
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
sub-section (4A) of section 227 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
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
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
d) In our opinion, the Balance sheet and the profit & Loss Account
dealt with by this report are in compliance 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 written representations received from the directors
concerned 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 clause (g) of sub- section (1) of section 274 of
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company
FINANCIAL YEAR ENDING 31ST MARCH, 2014 ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 1 of our Report of even date)
1. In respect of its assets
a) The Company has maintained records showing full particulars
including quantitative details of Fixed Assets. Cars and the loans
taken in respect there of are in the individual names of the directors.
b) As explained to us, fixed assets have been physically verified by
the management during the year, which in our opinion is reasonable,
having regard to the size of the Company and nature of the assets. No
material discrepancies were noticed in such physical verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of Inventories :
a) As explained to us, Inventories have been physically verified by the
management at regular intervals during the year.
b) In our opinion, and according to information and explanation given
to us, the procedures of physical v e r i f i c a t i o n o f i n v e n
t o r i e s f o llowed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted by the Company
to /from companies, firms or other parties covered in the registered
maintained under Section 301 of the Companies Act,1956 :
a) The Company has not given any loans to parties listed in the
register maintained under Section 301.
b) The Company has not taken any loans from parties listed in the
register maintained under Section 301.
4. In our opinion and according to our information and explanation
given to us, there are adequate internal control procedure commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of the goods.
During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. In respect of transactions covered under Section 301 of the
Companies Act,1956 :
a) In our opinion and according to the information and explanation
given to us, the transactions made in purchase of contracts on
arrangements, that under Section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and to the best of our information and knowledge the
transactions have been made at prices which appear as per information
available with the company.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
Records under Section 209, (1) (d) of the Companies Act, 1956 for the
9. In respect of statutory dues :
a) According to the records of the Company undisputed statutory dues
including Income-Tax, sales tax and other statutory dues have been
generally regularly deposited with the appropriate authorities except
for some minor delays in depositing TDS. According to the information
and explanation given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at 31 March, 2014 for a
period of more than six months form the date of becoming payable. The
company is not liable to Provident fund, Investor Education and
Protection Fund, ESI, Wealth Tax, Custom Duty and Cess as certified by
10. The accumulated losses of the company are not more than fifty
percent of its worth Company at the end of the financial year under
report and has not incurred any cash losses during the financial year
covered by our audit or in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to banks. It
does not have any liabilities towards financial institution or
12. In our opinion and according to the information and explanation
give to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / Society. Therefore clause 4 (xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of the transactions and
contracts of dealing in shares, securities, debenture and other
investments with timely entries having been made therein.
15. Based on our audit procedures and as per information given to us
the Company has not given guarantees for loans taken by others from
banks or financial institutions.
16. Based on our audit procedures and as per information given to us
the company has not raised any term loans during the year.
17. According to the information and explanations given to us and on
overall examination of the Balance Sheet of the Company, we are of the
opinion that the company has not utilized any short term resources for
investment in long term assets.
18. In our opinion and to the best of our information and knowledge,
the company has not made any preferential allotment of shares during
19. The Company has not issued any debentures.
20. The Company has not raised any money by way of public issue during
21. In our opinion and according to the information and explanation
given to us, no fraud on /or by the Company has been noticed or
reported during the year, that causes the financial statement to be
For and on behalf of
SANJAY VHANBATTE & CO.
FRN: 112996 W
Date : 27.05.2014
Sanjay M. Vhanbatte