| We have audited the accompanying financial statements of Indsoya Ltd,
which comprise the Balance Sheet as at March 31, 2014, and 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
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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 "the Act"). 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards or Auditing issued by the Institute of Chartered
Accountants of India. 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 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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by 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 basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2014;
(b) In the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of matter:
1. Fall in market value of Investment by Rs 19.40 lacs as in the
opinion of management the same is considered as temporary in nature,
hence no provision has been made.
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 for the purpose of our
audit;
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 those
books and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us;
d) in our opinion, the Balance Sheet, 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;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE "A" TO THE AUDITORS' REPORT
(Referred to in Paragraph of the Auditors' Report of even date to the
members of INDSOYA LTD. on the financial statements for the year ended
31st March 2014)
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. We are
informed that fixed assets were verified by the management at the end
of the year and no material discrepancy was noticed on such
verification by the management. No assets have been disposed off during
the year.
2. a. As informed, the Stock of finished/traded goods of the Company
(excepting those lying with third party etc.) have been physically
verified by the management during the year, which in our opinion is
reasonable.
b. According to the information and explanations given to us, the
procedures of physical verification of inventories followed by the
Company 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 according
to the information and explanations given to us, the discrepancies
noticed on physical verification were not material and the same have
been properly dealt with in the books of account. However there is no
stock at the end of the year.
3. a) The company has not taken unsecured loans from companies, firms
listed in the register maintained under section 301 of the Companies
Act, 1956. The company has granted unsecured loans to companies listed
in the register maintained under section 301 of the Companies Act, 1956
Rs 73.45 lacs.
b) In our opinion the terms & conditions of loan granted is not
prejudicial to the interest of the company.
c) Principal as well as interest are received regularly.
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, for the purchase of goods, securities and for the sale of
goods, securities.
5. As explained to us, in case of transactions exceeding the value of
Rs 5 Lakhs in the financial year in respect of any party (a) the
transaction need to be entered into a register in pursuance of Section
301 of the companies act,1956 have been so entered, (b) in our opinion
these transaction have been made at the prices which are reasonable
having regards to prevailing market price at relevant price
6. The company has not accepted deposit from public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. According to the information and explanation given to us,
maintenance of cost records have not been prescribed by the Central
Government under section 209(l)(d) of the Companies Act, 1956 with
regard to the nature of business of the company.
9. According to the information and explanations given to us, there are
no undisputed amounts payable in respect of Income-tax, Wealth-tax,
Sales Tax, Service tax, Customs duty and Excise duty were outstanding,
as at 31st March, 2014 for a period of six months from the date they
became payable. We have been informed that there is no disputed
statutory liability pending at the end of the year.
10. The company does not have any accumulated losses as at financial
year and it has not incurred cash loss in the financial year or in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Banks or Debentures holders.
12. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debenture and other securities.
Hence, there is no need to maintain the records regarding security of
loans.
13. As the company is not Chit fund, Nidhi or mutual benefit society,
the question of application of special statue does not arise.
14. The company has maintained proper records of the transactions and
contracts of investments in shares and has also made timely entries
therein. The shares held by the company at the end of the year are in
its own name.
15. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
16. The Company has not obtained any term loan during the year.
17. The Company has not raised any fund during the year.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. During the checks carried out by us, any frauds on or by company
has not been noticed or reported during the year under report.
For SHANKARLAL JAIN & ASSOCIATES
Chartered Accountants
Place: Mumbai Firm Reg. No.109901 W
Date : 29/05/2014
S.L. Agrawal
(PARTNER)
Membership No. 72184 |