1. We have audited the accompanying standalone financial statements of
DHOOT INDUSTRIAL FINANCE LIMITED (the Company), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and 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 Standalone Financial Statements
2. 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 and presentation of these standalone
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 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.
3. Our responsibility is to express an opinion on these standalone
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 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 standalone
4. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone 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 March 31, 2015, and its profit and cash
flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
5. As required by the Companies (Auditor''s Report) Order, 2015 (the
Order) issued by the Central Government in terms of sub-section (11)
of section 143 of the Act, we give in the Annexure a statement on the
matters specified in paragraph 3 and 4 of the Order, to the extent
6. 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 those
(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 standalone 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 of the Company as on March 31, 2015 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 of the Company in terms of
section 164 (2) of the Act;
(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 as on March 31,
2015 including derivative contracts;
iii. There were no amounts which were required to be transferred as on
March 31, 2015 to the Investor Education and Protection Fund by the
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
[Referred to in paragraph 5 of the Independent Auditor''s Report of even
date to the members of the Company on the standalone financial
statements for the year ended March 31, 2015.]
On the basis of such checks, as we considered appropriate and in terms
of information and explanations given to us, we report that:
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
(b) The fixed assets have been physically verified by the management
during the year. We are informed that no material discrepancies were
noticed by the management on such verification.
(ii) The Company is engaged in trading of chemicals, papers,
electronics and shares. All the goods purchased in respect of above
except (trading in shares) are directly supplied from the principal''s
factory/warehouse to the respective consignee''s. Hence there are no
stocks lying at the company''s disposal at any point of time. Thus
requirements of Clause 3(ii)(a) regarding verification of the
inventory, Clause 3(ii)(b) regarding adequacy of physical verification
in relation to size of the company and Clause 3(ii)(c) regarding
maintenance of proper records of inventory are not applicable.
However, in respect of shares, held as Stock in Tarde, the Company
physically verifies the same lying in dematerialized or physical form
from time to time.
(iii) As per the information furnished to us, 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, 2013.
(a) Accordingly, Clause (iii)(a) relating to regularity of receipt of
principal amount and interest and Clause (iii)
(b) relating to steps taken for recovery of overdue principal and
interest of more than rupees one lakh, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weakness has been noticed in
the internal control system.
(v) During the year the Company has not accepted any deposits from
public. Accordingly provisions of section 73 to 76 of the Act and other
relevant provisions of the Act and the Rules framed there under and the
directives issued by the Reserve Bank of India are not applicable.
As informed to us, No order has been passed by Company Law Board or
Reserve Bank of India or any Court or any other Tribunal during the
(vi) The maintenance of cost records has not been specified by the
Central Government under subsection (1) of section 148 of the Act, read
with Rule 3 of the Companies (Cost Records and Audit) Rules, 2014
notified by Ministry of Corporate Affairs, Government of India vide
notification dated June 30th, 2014.
(vii) (a) According to the information and explanations given to us and
the records examined by us, the Company has generally been regular in
depositing with appropriate authorities undisputed statutory dues
(except in respect of Service Tax Deposits, where there were delays)
being Income tax and other material statutory dues. There are
undisputed arrears of Gujarat Value Added Tax amounting to Rs,10.75 lacs
outstanding as at March 31, 2015 for a period of more than six months
from the date they became payable.
(b) According to the information and explanation given to us, there are
no outstanding dues which have not been deposited with any statutory
authority on account of disputes.
(c) According to the information and explanations given to us, during
the year there were no amounts required to be transferred to Investor
Education and Protection Fund.
(viii) There are no accumulated losses of the Company as on March 31,
2015. The Company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
(ix) As per the information and explanation given to us, the Company
has not defaulted in the repayment of dues to the Bank during the year.
(x) As per the information and explanations given to us, the Company
has not given any guarantee for loan taken by others from banks or
(xi) As per the information and explanations given to us, during the
year the term loans have been applied for the purpose for which they
(xii) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
For BANSI S. MEHTA & CO.
Firm Registration No.100991W
HARESH G. BUCH
Place: Mumbai Partner
Date: 29th May, 2015 (Membership No.33114)