We have audited the accompanying financial statements of DHP INDIA
LIMITED (the Company), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit & Loss and the Cash Flow
Statement for the year ended and a summary of significant accounting
policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for 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 Accounting
Standards referred to in Section 211(3C) of the Companies Act, 1956
(the Act) (which continue to be applicable in respect of Section 133
of the Companies Act, 2013 in terms of General circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs). 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.
3. Auditors'' Responsibility
Our Responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plans and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedure
s selected depends on the auditor''s judgement, including the assessment
of the risk 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
We believe that 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
(a) in the case of Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit & Loss, 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.
5. Report on Other Legal and Regulatory Requirements
5.1 As required by the Companies (Auditors'' Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we give in the ANNEXURE, a
statement on the matters specified in paragraph 4 and 5 of the said
5.2 As required by section 227(3) of the Act, we report that :
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
(ii) 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 the
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
(iv) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act (which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in
terms of General circular 15/2013 dated September 13, 2013 of the
Ministry of Corporate Affairs);
(v) On the basis of written representations received from the
directors, as on March 31, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014
from being appointed as directors in terms of clause (g) of sub-section
(1) of Section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 5.1 UNDER THE HEADING OF REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE
1. In respect of its Fixed Assets :
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, having regard
to the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
(c) In our opinion, the Company has not disposed off a substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its Inventories :
(a) The inventory has been physically verified by the management during
the year. In our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed 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 inventories as compared to the book records.
3. According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Act. Accordingly, paragraph 4(iii)
of the Companies (Auditors'' Report) Order, 2003 is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchased of inventory, fixed assets and with regard
to sale of goods. During the course of our audit, we have neither
observed nor have been informed of any major weaknesses in the said
internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year, have been made at prices which are
reasonable having regard to the prevailing market prices at the
6. The company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to Companies (Cost Accounting Records) Rules, 2011 prescribed
by the Central Government under Section 209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie the prescribed cost
records have been maintained. We have, however not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the company
examined by us, in our opinion, the company is (generally) regular in
depositing the undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance,
employees group gratuity fund, income-tax, sales-tax, wealth tax,
service tax, customs duty, excise duty, cess and other material
statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues of Sales-Tax,
W.B. Vat, C.S.T., Wealth-Tax, Income-Tax, Service-Tax, Custom Duty,
Excise Duty, Cess, which has not been deposited on account of any
disputed for the year ended 31st March, 2014.
10. The company has no accumulated losses as at 31st March, 2014, and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders and any micro, small & medium enterprises as at the balance
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund/societies are not applicable to the
14. In our opinion, the company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. Further, such securities have been held
by the company in its own name.
15. In our opinion, and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
16. The company has not obtained any term loans.
17. On the basis of an overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The company has not created security or charge in respect of any
20. The company has not raised any money by public issues during the
21. 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
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
22. The other clauses of paragraph 4 of the Companies (Auditor''s
Report) Order 2003, are not applicable in the case of the Company for
the current year, since in our opinion there is no matter which arises
to be reported in the aforesaid order.
For NAVIN NAYAR & CO.
Firm Registration No. 317117E
4E, Jain Centre, 34A, Metcalfe Street NAVIN NAYAR
Kolkata - 700 013 Partner
The 18th day of July, 2014 Membership No. 053267