We have audited the accompanying financial statements of DSJ
Communication Limited (the Company), which comprise the Balance Sheet
as at 31st March ,2014, the Statement of Profit and Loss and Cash Flow
Statement of the Company for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility forthe Financial Statements
The Company''s Management is responsible for 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 Standards notified under 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. These 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 the accounting policies used and the reasonableness of the
accounting estimates made by the 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 reasonable basis for our audit opinion.
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 Companies Act 1956 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 31st March, 2014;and
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date.
(c) in the case of Cash Flow Statements, 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 forthe 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
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, the Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of Section 211 of the Companies Act, 1956 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
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
The Annexure referred to in our report to the members of DSJ
Communications Limited (the Company) for the year ended 31st March
2014 we report that:
1. (a) There are no Fixed Assets in the Company, hence this clause
does not apply to the company.
(b) As there are no Fixed Assets there is no question of physical
verification of Fixed Assets.
(c) As there are no Fixed Assets there is no question of disposal of
Fixed Assets during the year.
2. (a) The Company is in Service Industry. Accordingly it does not
hold any physical inventory. Therefore, the provisions of clause (ii)
of paragraph 4 of the order are not applicable to the company.
(b) As there are no stocks reporting under this clause does not apply.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has accepted loans during the period from the parties covered in the
register maintained under section 301 of the Companies Act, 1956,
According to the information and explanation provided by the
Management, we are of the opinion that the transactions that need to be
entered into the register maintained under Section 301 of the Act have
been so entered. The Company has not granted any loans during the
period to the parties covered in the register maintained underSection
301 of the Companies Act, 1956.
(b) Based on the information received and explanations given, as there
are no loans granted, this clause does not apply.
(c) In view of closure of operations of the Company, Interest and
Principal amount are not repaid regularly in respect of such loans.
(d) All loans are overdue as on the 31st March, 2014.
4. In our opinion and according to the information and explanations
given to us, as there is no business operation reporting on internal
control procedure does not apply.
5. The Company has not renewed/accepted any deposits from the public
and shareholders covered under section 58A and 58AA of the Companies
Act, 1956 and rules framed thereunder.
6. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
7. We are informed that the maintenance of cost records has not been
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956, in the respect of the Company''s products.
8. (a) The Company is generally regular in depositing undisputed
statutory dues with the appropriate authorities. We are informed that
at the year end there were no overdue outstanding. Income Tax
authorities have raised a demand of Rs. 39.27 lacs in respect of the
assessment year 1995-1996, the same has been disputed by the Company
and an appeal has been filed against the same.
(b) The Directorate of General of Foreign Trade (DGFT) Division has
raised a claim on the Company for the imports made by them in the year
1994-1995 for an amount of Rs. 28,956, 965/- (Principal Rs.
1,33,86,476/-, InterestRs. 88,77,251/- and Penalty Rs. 66,93,238/-).
The writ petition is pending with Delhi High Court.
(c) We are informed that there are no disputed dues to be deposited at
9. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
10. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause 4 (xiii) of the
Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the Company.
11. The accumulated losses of the Company at the end of the financial
year are more than fifty per cent of its net worth. The Company has
incurred cash loss only during the preceding financial year but has not
incurred any cash loss during the current financial year.
12. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments, the
provision of clause (xiv) of Companies (Auditor''s Report) Order, 2003
is not applicable to the Company.
13. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
14. No Term loan was obtained during the period.
15. According to the information and explanation received, the Company
has not applied short terms borrowings for long term use vice versa.
16. The Company has not made any preferential allotment of shares
during the period.
17. The Company has not issued any debentures during the period.
18. The Company has not raised any money by the way of public issue
during the period.
19. Based on the audit procedures performed and on the basis of
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year, nor have
we been informed of such case by the management.
For J. D. Jhaveri & Associates
Firm Registration No. 111850W
Membership No. 045072
Mumbai,29th May, 2014.