We have audited the accompanying financial statements of Vyapar
Industries Limited (the Company), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss and 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 (''the Act'') with respect
to the preparation and presentation of these financial statement 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
withe 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We 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 thereunder.
We conducted our Audit 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 judgement, 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, of the state of affairs of the Company as
at March 31, 2015 and its profits and its cash flows for the year ended
on that date.
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 (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 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 obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
b. In our opinion, proper books of accounts as required by law have
been kept by the company, so far as it appears from our examination of
c. The Balance Sheet, Profit and Loss Statement and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d. In our opinion the aforesaid 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
director, as on March 31st, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 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 on its
financial position in its financial statements and referred to in Note
26 to the Financial Statement.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foresable losses, if any, and
as required on long-term contracts including derivative contracts.
iii. The Company does not have any amounts to be transferred to the
Investors Education and Protection Fund in terms of the relevant
provisions of the Companies Act, 2013 and rules thereunder.
The Annexure referred to in our Independent Auditors Report to the
Members of the Company on the financial statements for the year ended
31st March, 2015, we report that :
i. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available records.
b) As explained to us, all the fixed assets have been physically
verified by the Management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the company and
nature of its assets. No material discrepancies were noticed on such
c) In our opinion, the company has not disposed off substantial part of
its fixed assets during the year and the going concern status of the
company is not affected.
ii a) On the basis of explanation and submission given to us, physical
verification of inventory has been conducted at reasonable intervals by
b) In our opinion and on the basis of examination done by us, 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) The company is maintaining proper records of Inventory and
discrepancies noticed on physical verification if any, have been
properly dealt with in the books of accounts.
iii 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 and accordingly the
reporting requirements under paragraph 3 (iii) of the order is not
iv In our opinion and according to the information and explanation
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 purchase of inventory and fixed assets and sale of goods. We have
not observed any major weaknesses in the internal control system during
the course of the audit.
v The Company has not accepted any deposits from the public.
vi The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the goods dealt by
vii a) According to the information and explanation given to us and on
the basis of our examination of the records of the company, amount
deducted / accrued in the books of account in respect of applicable
undisputed statutory dues including income tax, sales tax, service tax,
duty of customs, value added tax and other materials statutory dues
have been regularly deposited during the year by the company with the
appropriate authorities. As explained to us, the company did not have
any dues on account of provident fund, employees state insurance and
duty of excise. According to the information and explanations given to
us, no undisputed amounts payable in respect of provident fund, income
tax, sales tax, service tax, duty of customs, value added tax and other
material statutory dues were in arrears at 31st March, 2015 for a
period of more than six months from the date they became payable.
b) According to information and explanations given to us, there are no
material dues of duty of customs and cess which have not been deposited
with the appropriate authorities on account of any dispute. However,
according to information and explanation given to us, the following
dues of Service Tax and Income Tax have not been deposited by the
Company on account of disputes.
Sr. Name of the Nature of Amount
No. Statute the Dues
1 Chapter V of Service 32,60,228
Finance Act, 1994 Tax
2 Income Tax Act, Income Tax 29,645
3 Income Tax Act, Income Tax 38,41,020
4 Income Tax Act, Income Tax 2,41,560
5 Income Tax Act, Income Tax 5,38,420
Name of the Statute Period to Forum
which the where dispute
amount relates is pending
Chapter V of Finance Act 2007- 08 Commissioner of
1994 Service Tax, Mumbai
Income Tax Act 1961 2008- 09 Income Tax Officer
Income TAx Act 2009- 10 Income Tax Officer
Income Tax Act 2010- 11 Appellate Tribunal
Income Tax Act 2012-13 Income Tax Officer
c According to the information and explanation given to us, the company
does not have any amount to be transferred to the Investors Education
and Protection Fund in terms of the relevant provisions of the
Companies Act, 2013 and rules thereunder.
viii The Company has accumulated losses at the end of the financial
year and its accumulated losses are less than 50% of its net worth. The
Company has incurred cash loss in the financial year of Rs.
ix The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
x In our opinion and according to the information and explanation given
to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions.
xi The Company did not have any term loans outstanding during the year.
xii According to the information and explanation given to us, no
material fraud on / or by the Company has been noticed or reported
during the course of our audit.
For Salim A. Kantawala
Registration No.: 0104006510 (S1/5)
Salim A. Kantawala
(Membership No. 038859)
Date: 25th May, 2015