We were engaged to audit the accompanying standalone financial
statements of KRISHNA VENTURES LIMITED (the Company), which comprise
the Balance Sheet as at March 31, 2015, and the Statement of Profit and
Loss and the Cash Flow Statement for the year then ended, and a summary
of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone 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 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 for ensuring 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 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 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 standalone
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
except for the possible effects of matters described in the Basis for
disclaimer of opinion paragraph, the financial statements give a true
and fair view in conformity with the accounting principles generally
accepted in India:
in the case of Balance Sheet, of the state of affairs of the Company as
at March 31, 2015;
in the case of Statement of Profit and Loss, of the profit/loss for the
year ended on that date; and
in the case of 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 Report) Order, 2015 (the
Order), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Companies Act, 2015, we give in
the Annexure a statement on the matter specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by Section143 (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 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 for which there were any material foreseeable
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
Statement referred to in Report on Other Legal and Regulatory
Requirements of our report of even date to the members of KRISHNA
VENTURES LIMITED, on the accounts for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:- i. a) The
Company has maintained proper records showing full particular including
quantitative details and situation of its fixed assets.
b) The assets have been physically verified by the Management during
the year and also there is a regular program of verification which in
our opinion is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
ii. Since the Company does not have inventories, the question of
physical verification of Inventories and maintaining proper records
thereof does not arise. Further, the question of commenting, on
reasonableness and adequacy of the procedures of physical verification
of Inventories in relation to the size of the Company and the nature of
its business, does not arise.
iii. As per the information furnished, 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
a) As 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, Clause iii) a) relating
to regularity of receipt of principal amount and interest and Clause
iii) b) relating to steps 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 is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, assets and with regard to sales of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
v. In our opinion and according to information and explanation given to
us, the Company has not accepted deposits during the year and hence the
question of applicability of the directives issued by the Reserve Bank
of India and the provisions of Section 73 to Section 76 or any relevant
provisions of the Companies Act, 2013 and the rules framed there under,
does not arise.
vi. Based on the information and explanations given to us, the Central
Government has not prescribed maintenance of cost records under Section
148(1) of the Companies Act, 2013, in respect of the Company. Hence,
the question of maintaining such accounts and records and our
commenting there on does not arise.
vii. a) According to the information and explanations given to us, the
Company did not have the required number of employees during the year,
hence the question of depositing undisputed statutory dues of provident
Fund, Employees'' State Insurance dues with the appropriate authorities
does not arise. The Company is generally regular in depositing with
appropriate authorities undisputed amounts of Income Tax, Sales Tax,
Wealth Tax, Service tax, Custom duty, Excise Duty, Cess and other
material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax or Wealth Tax or
Sales Tax or Service tax or Customs Duty or Excise Duty or Cess were in
arrears as at March 31, 2015 for a period of more than six months from
the date they become payable.
c) According to the information and explanations given to us, there are
no amount required to be transferred to Investor Education and
Protection fund in accordance with relevant provisions of the Companies
Act, 1956(1 of 1956) and rules made there under.
viii. There are no accumulated losses of the Company as on March 31,
2015 and the Company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
ix. The Company has not borrowed any amount from any financial
institutions, Banks or debenture holders. Hence the question of our
commenting on whether the Company has defaulted in repayment to
Financial Institutions, Banks or Debenture holders does not arise.
x. In our opinion, the Company has not given guarantees for loans taken
by others from Banks or Financial Institutions.
xi. In our opinion and according to the information and explanation
given to us, the Company has not raised any new term loan during the
xii. On the basis of our examination of the books of accounts and other
relevant records and information made available to us, prima-facie we
have not noticed any fraud on or by the Company, during the year.
Further, the management has represented to us that no fraud on or by
the Company has been reported during the year. However, we are unable
to determine / verify as to whether any such reporting has been made,
during the year.
For BANSI S. MEHTA & CO
Firm Registration No. 100991W
DIVYESH I. SHAH
Place: Mumbai Partner
Date: 16thMay,2015 Membership No. 37326