We have audited the accompanying financial statements of DALAL STREET
INVESTMENTS LIMITED (the Company), which comprise the Balance Sheet
as at March 31, 2015, 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 Financial Statements
The Company''s Board of Directors is responsible for matters stated in
134(5) of Companies Act 2013(the Act) with respect to 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 the maintenance of adequate
accounting records in accordance with provision of the act for
safeguarding the assets of the company and for preventing and detecting
the frauds and other irregularities; selection and application of
appropriate accounting policies; making judgement and estimates that
are reasonable and prudent; and design, implementation and maintenance
of internal financial control, that were operating effectively for
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.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provision of the act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provision of the act and the rules made
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 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 on the financial
Basis for Qualified Opinion
Company being listed company is required to appoint Internal Auditor
under section 138 of Company''s Act 2013 and Key Managerial Personnel
under section 203 of Company''s Act 2013 but company has not complied
with such provision of the Company''s Act 2013.
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effect of matter
described in the basis for Qualified Opinion paragraph, 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 Statement of the Profit and Loss Account, of the
Loss 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 as 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 explanation
s given to us, we give in the Annexure a statement on the matters
specified in paragraph 3 and 4 of Order.
2. As required by section 143(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, the 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, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
section 133 of
the companies'' act, 2013, read with rule 7 of the Companies (Accounts)
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 sub-section (2) of section 164 of
the Companies Act, 2013.
f) With respect to the matters included in the auditor''s report and to
best of our information and according to the explanation given to us.
1) There has been no delay in transferring amounts, required to be
transferred, to the investor''s education and protection fund by the
Annexure to Independent Auditors'' Report
Referred to in paragraph 1 of the Our Report of even date to the
members of DALAL
STREET INVESTMENTS LIMITED on the accounts of the company for the year
ended 31st March, 2015.
i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
(b) The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies have been noticed on
ii) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory.
iii) 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) In our opinion, and according to information and explanation given
to us, there is an adequate internal control system commensurate with
the size of the company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of inventory.
v) Company has not accepted deposits from public within the meaning of
section 73 and 74 of the Act and rule framed there under to the extent
vi) There is no requirement of maintenance of cost records has been
specified by the Central Government under sub-section (1) of section
148 of the Companies Act.
vii) (a) According to information and explanation given to us and the
records of the company examined by us , in our opinion, the company is
regular in depositing the undisputed statutory dues , including
provident fund, employees'' state insurance, income-tax, sales-Lax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate authorities
(b) According to the information and explanation given to us, there is
no amount payable in respect of income tax or sales tax or wealth tax
or service tax or duty of customs or duty of excise or value added tax
or cess have not been deposited on account of any dispute.
(c) There are no amount 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
viii) The Company has accumulated losses and has incurred cash loss
during the financial year covered by our audit.
ix) The company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
x) The company has not given any 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) In our opinion, and according to the information and explanation
given to us, the company had not taken any term loan.
xii) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation given to us, we have not come across any instance of
material fraud on or by the company, noticed or reported during the
For A K NEVATIA AND ASSOCIATES
CA ANIL KUMAR NEVATIA
Membership No. : 040403