Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
Mega Corporation Limited (the Company), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss, 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 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 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
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 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, issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Companies Act, 2013 ( hereinafter referred to the
Order), and on the basis of such checks of books and records of the
Company as we considered appropriate and according to the information
and explanation given to us, 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 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 has disclosed the impact of pending litigations as at
31st Mach, 2015 on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
Referred to in paragraph 1 under the heading Report on Other Legal and
Regulatory Requirements of our report of even date to the members of
M/s Mega Corporation Limited on the standalone financial statements as
of and for the year ended March 31, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) All fixed assets have been physically verified by the Management at
reasonable intervals and as informed to us, no material discrepancies
were noticed on such verification.
II. The Company had no Inventory and as such Clause (ii) of the
Companies (Auditor Report) Order, 2015 is not applicable.
III. The company has granted unsecured loans to three companies
covered in the register maintained under section 189 of the Companies
Act. The company has not granted any secured/ unsecured loans to firms
or other parties covered in the register maintained under section 189
of the Companies Act.
(a) In respect of the aforesaid loans, the parties are repaying
principal amounts, as stipulated, and are also regular in payment of
interest as applicable.
(b) In respect of the aforesaid loans, there is no overdue amount more
than Rupees One Lakh.
IV. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory and fixed assets and for sale of
goods and services. In our opinion and according to the information and
explanations given to us, there is no continuing failure to correct
major weaknesses in internal control system.
V. The company has not accepted any deposits as per the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under.
VI. As informed to us, the maintenance of Cost Records has not been
prescribed by the Central Government under Section 148(1) (d) of the
Companies Act, 2013.
VII. (a) According to the information and explanations given to us and
on the basis of examination of the records of the Company, amounts
deducted / accrued in the books of accounts in respect of Undisputed
statutory dues including provident fund, investor education and
protection fund, employee''s state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, value added tax,
cess and any other statutory dues have been generally regularly
deposited with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employee''s state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, value
added tax and cess, etc were outstanding as at March 31, 2015 for a
period of more than six months from the date of their becoming payable.
(c) According to the information and explanations given to us and
records of the Company examined by us, the Company has not deposited
disputed Income Tax demand of Rs. 133.34 Lacs relating to A.Y. 2006-07.
The Company''s appeal is pending for adjudication before ITAT, Delhi.
(d) According to the information and explanations given to us, the
Company is not required to be transfer any amount to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
VIII. The Company does not have accumulated losses at the end of the
year and the company has not incurred any cash losses during current
year. The Company has incurred cash loss of Rs. 19,26,119/- during the
immediately preceding financial year.
IX. In our opinion and on the basis of information and explanations
given to us, the Company has not defaulted in the repayment of dues to
Financial Institutions and Banks.
X. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
XI. Based on information and explanations given to us by the
Management, the term loans were applied for the purpose for which the
loans were obtained.
XII. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Sipani & Associates
Registration No.: 007712N
Place: Delhi Proprietor
Dated: 29-05-2015 M. No. 083850