| REPORT ON THE FINANCIAL STATEMENTS
1. We have audited the accompanying financial statements of Creative
Merchants Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss, for the year ended
on March 31, 2015 and a summary of significant accounting policies and
other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. 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 financial statements to give a true
and fair view of the financial position, financial performance 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.
3. 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.
AUDITOR'S RESPONSIBILITY
4. Our responsibility is to express an opinion on these financial
statements based on our audit.
5. We have taken into account the provisions of the Act, and the Rules
made thereunder including the accounting standards and matters which
are required to be included in the audit report.
6. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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.
7. 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.
8. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
OPINION
9. 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 profit for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
10. As required by 'the Companies (Auditors Report) Order, 2015',
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the 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 paragraph 3 and 4 of the Order.
11. 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
books;
c) The Balance Sheet, the Statement of Profit and Loss 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 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 March 31, 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
Act;
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 knowledge and belief
and according to the information and explanations given to us:
(i) The Company has a pending litigation as at March 31, 2015. The
details regarding litigation are:
Type Section of Brief Description
Companies Act
Civil Suit 220(3) of Default in
Companies Act submission of
1956 Annual Return
Type Details of penalty / Authority Appeal made,
punishment/ if any.
compounding fees
imposed
Civil Suit Pending for final Judicial N. A.
order Magistrate
1stClass,
Jalandhar
(ii) The Company is not required to make provision, as at March 31,
2015 as required under the applicable law or accounting standards, for
material foreseeable losses,
(iii) The Company is not liable to transfer any amounts, to the
Investor Education and Protection Fund during the year ended March 31,
2015.
ANNEXURE TO THE AUDITOR'S REPORT
REFERRED TO IN PARAGRAPH 10 OF OUR REPORT OF EVEN DATE
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
i) No fixed assets have been owned by the Company so there is no
requirement of maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets
No fixed assets have been owned by the Company so question of Physical
verification by the management during the year does not arise.
ii) a) The inventory has been periodically verified by the Management.
In our opinion, the frequency of such verification is reasonable;
b) The procedures explained to us, which are followed by the management
for physical verification of inventories are, in our opinion is
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 statements of Inventory held,
we are of the opinion that the Company is maintaining proper records of
inventory and no material discrepancies were observed between stock and
book records.
iii) The Company has not granted unsecured loan, repayable on demand,
to a Company, covered in the Registered maintained under Section 189 of
the Act. The Company has not granted any secured/unsecured loans to
firms or other parties covered in the Registered maintained under
Section 189 of the Act.
a) In respect of aforesaid loans, the parties are repaying the
principal amounts, as and when demanded, and are also regular in
payment of interest as applicable.
b) In respect of the aforesaid loans, there is no overdue amount more
than Rs. One Lakh.
iv) In our opinion and according to the information and explanation
given to us there are generally adequate internal control systems
commensurate with the size of the Company and the nature of its
business with regards to purchase of inventory and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in aforesaid internal
control system.
v) The Company has not accepted any deposits from the public under the
provisions of Section 73 and 74 of the Act and the rules framed there
under.
vi) We are informed that the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act in respect of the Company's activities.
vii) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing undisputed statutory dues including,
income-tax, sales tax, service tax, Value added Tax and other material
statutory dues as applicable with the appropriate authorities in India.
b) According to the information and explanations given to us and
records of the Company examined by us, there are no dues which have not
been deposited on account of any dispute in respect of Income-tax,
Sales Tax, Service Tax, Value Added Tax, Cess.
c) No amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules made thereunder during the period under
review.
viii) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
in the immediately preceding financial year.
ix) According to the books of account and records of the Company, there
has been no default in repayment of dues to financial institution or
bank or debenture holders during the year as at the balance sheet date.
x) According to the information and explanations given to us, and
representations made by the management, the Company has not given any
guarantee for loan taken by others from any bank or financial
institution therefore the requirement of said clause is not applicable
to the Company.
xi) In our opinion and according to the information and explanations
given to us and on an overall examination of balance sheet, the Company
has not taken term loan during the Financial Year therefore the
requirement of said clause is not applicable to the Company.
xii) During the course of our examination of the books of account 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, JIGNESH DOMADIYA & CO.
Chartered Accountants
FRN : 131400W
(Jignesh J Domadiya)
Proprietor
Membership No : 136708
Place: Ahmedabad
Date: 30/05/2015
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