We have audited the accompanying Financial Statements of Dhanalaxmi
Roto Spinners Limited which comprise the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of the 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
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
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 judgments
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 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 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
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 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 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 the 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 financial
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 loss 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
purposes 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
(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 the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
(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 Auditors)
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 in respect of which there were any material
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure referred to in paragraph 1 under the heading of Report on
Other Legal and Regulatory Requirements of our report dated 30/05/2015
to the members of Dhanalaxmi Roto Spinners Limited on the financial
statements for the year ended 31st March, 2015
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The company has a regular program of verifying fixed assets every
year which, in our opinion, is reasonable having regard to the size of
the company and nature of its assets. All Fixed assets have been
physically verified by the management during the year. As informed,
discrepancies noticed on such verification were not material and have
been properly dealt with in the books of account.
(ii)(a) The Company has conducted physical verification of inventories at
(b) The procedures followed for physical verification of inventories by
the management were reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The company is maintaining proper records of inventory and the
differences noticed on physical verification, which were not material,
have been properly dealt with in the books of account.
(iii) The company has not granted loans to parties covered under Sec
189 register, hence Clause (a) & (b) of point 3 is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an internal control system with regard to the
purchase of inventory, fixed assets and sale of goods and services
commensurate with the size of the Company and the nature of its
business. On the basis of our examination and according to the
information and explanations given to us, there is no continuing
failure to correct major weaknesses in the aforesaid internal control
(v) The Company has not accepted any deposits from the public hence the
directives issued by the Reserve Bank of India and the provision of
Section 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under are not applicable.
(vi) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 148 (1) of the Companies Act, 2013 in respect of services
carried out by the Company.
(vii)(a) According to the information and explanations given to us and the
records of the Company examined by us, the Company has generally been
regular in depositing undisputed statutory dues including provident
fund, employees'' state insurance, income-tax, sales tax, service tax,
duty of customs, duty of excise, value added tax, cess and any other
statutory dues applicable to it with the appropriate authorities .
According to the information and explanation given to us and the
records of the Company examined by us, no undisputed amounts payable in
respect of provident fund, employees'' state insurance, Income-tax,
sales tax, service tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues were in arrears, as at 31 st
March 2015 for a period of more than six months from the date they
(b) There are no dues relating to income tax / sales tax / wealth tax /
service tax / duty of customs / duty of excise / value added tax /
cess, which have not been deposited on account of disputes with the
related authorities .
(c) There are no amounts which require to be transferred to Investor
Education and Protection Fund in accordance with the provisions of the
Act and the rules made there under.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the current
financial year or in the immediately preceding financial year.
(ix) Based on our audit procedure and as per the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(x) According to the information and explanations given to us, the
company has not given any guarantee during the year for loans taken by
others from banks or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the company has applied the term loans for the purpose for
which it was obtained.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year ended 31 st
For G.D. UPADHYAY & CO.
Firm Regd No.05834S
Place: Hyderabad Partner
Date : 30.05.2015