We have audited the accompanying financial statements of NIRAV
COMMERCIALS LIMITED (''the Company''), which comprise the Balance Sheet
as at 31 st March, 2015, the Profit and Loss Statement, 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 FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated
in section 134 (5) of the Companies Act, 2013 (hereinafter referred to
as the Act) with respect to 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 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, which have been used for
the purpose of preparation of the financial statements by the Directors
of the Company, as aforesaid.
Our responsibility is to express an opinion on these 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 there under.
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 financial
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 Act 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 March 31,2015;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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 (the
Order) issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
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 relating
to preparation of the aforesaid financial statements have been kept so
far as it appears from our examination of those books.
(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 financial statements comply with the
Accounting Standards specified underSection 133ofthe 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 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 Act.
(f) With respect to the other matters to be included in the Audi tor''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 no pending litigations and therefore the disclosure
of the impact on its financial position is not applicable.
(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.
The Annexure referred to in our Independent Auditors'' Report to the
members of the Company on the financial statements for the year
ended on 31st March 2015. We report that:
(1) In Respect of its fixed assets:
(a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets of the company have been physically verified by
the management at reasonable intervals. No material discrepancies
between the book records and the physical inventory have been noticed.
(2) In respect of its inventories:
(a) As explained to us the inventory has been physically verified by
the management at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(3) According to the information and explanation given to us, the
company has granted loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act.
a) Receipt of the principal amount and interest are regular and
b) The overdue amount is not above Rs. 1,00,000.
(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 with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(5) The company has not accepted any deposits from public.
(6) We have broadly reviewed the Cost Records maintained by the company
pursuant to the Rules made by the Central Government for maintenance of
cost records under sub-section (1)of section 148 of the Companies Act,
2013and are of the opinion that prima facie the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the same.
(7) In respect of statutory dues:
(a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the company is generally regular in depositing the
undisputed statutory dues including provident fund, employees'' state
insurance, income-tax, sales-tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory
dues as applicable with the appropriate authorities.
According to the information and explanations given to us no undisputed
amounts payable in respect of provident fund, employees'' state
insurance, income-tax, service-tax, excise duty, sales tax, customs
duty and cess were in arrears, as at 31st March, 2015 for the period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no material dues of wealth tax, income tax, duty of customs and
cess which have not been deposited with the appropriate authorities on
account of any dispute.
(c) According to the Record of the Company and information and
explanation given to us, there are no amount that are due to be
transferred to the Investor Education and Protection Fund in accordance
with the relevant provisions of the Company''s Act, 1956 (1 of 1956) and
Rules made thereunder.
(8) The company does not have accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by the audit and in the immediately proceeding
(9) According to the records of the company examined by us and the
information and explanations given to us, the company has not availed
any loans from any financial institution or bank as at the balance
(10) In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions.
(11) The Company has not taken any term loan during the year and hence
the question of applying term loans for the purpose for which they were
obtained does not arise.
(12) 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
explanation 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.
For MOTILAL & ASSOCIATES
Membership No 042975
Mumbai, 30th May, 2015