| We have audited the accompanying financial statements of NILKANTH
ENGINEERING LIMITED ("the Company"), 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 gives 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") read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. 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 on Auditing issued by the Institute of Chartered
Accountants of India. These 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. 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 Statement of Profit and Loss, of the profit 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.
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 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 appears from our examination of those
books;
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;
d) In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub-section (3C) of Section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013;
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 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act 1956.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act 1956, and on the basis of such checks as we considered
appropriate, we further report that:-
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All assets have been physically verified by the Management during
the year and there is a regular programme of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of the asset. No material discrepancies were noticed on such
physical verification.
(c) No fixed assets has been disposed of during the year.
ii) The company does not hold any inventory and accordingly sub-clause
(a), (b) and (c) of the clause (ii) of the aforesaid order, are not
applicable.
iii) The Company has neither granted nor taken any loans secured or
unsecured to or from companies, firms and other parties covered in the
register maintained under Section 301 of the Companies Act, 1956, hence
in our opinion clause (iii)(b) to (iii)(d) and (iii)(f) to (iii)(g) of
Paragraph 4 of the Order are not applicable to the Company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to the purchase of fixed assets, shares, debentures and securities and
sale of goods & services. During the course of our audit, no major
weaknesses have been noticed in the internal controls system.
v) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that there are no particulars of contracts or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956. Accordingly, provisions of Paragraph 4(v) (b)
of the Order are not applicable.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public to
which provisions of Sections 58 A and 58 AA or any other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules,
1975 are applicable. We are informed by the management that no order
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
vii) The Company does not have a format internal audit system. The
internal audit is carried out by the staff and, in our opinion, the
internal audit system is commensurate with the size and nature of its
business;
viii) The Central Government has not prescribed the maintenance of cost
records under Section 209 of the Companies Act 1956 in case of the
Company.
ix) a) According to the records of the company, the company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education protection
fund, employees' state insurance, income-tax, sales-tax, service tax,
wealth tax, cess and other statutory dues applicable to it.
b) The company is regular in depositing undisputed statutory dues with
the appropriate authorities. There were no undisputed amounts payable
in respect of aforesaid statutory dues as at 31st March, 2014 for a
period of more than six months from the date they becoming payable.
c) According to the records of the company and the information and
explanations given to us, we are of the opinion that there are no
aforesaid statutory dues of that have not been deposited on account of
any dispute.
x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash loss during the financial year
covered under report and in the immediately preceding financial year;
xi) According to the records of the Company examined by us and the
information and explanations given to us, we are of the opinion that
the Company has not borrowed any amount from financial institution or
banks. Hence, in our opinion, provisions of clause (xi) of Paragraph 4
of the Order are not applicable.
xii) In our opinion and according to the explanations given to us and
based on the information available, the Company has not granted any
loans on the basis of security by way of pledge of shares, debentures
and other securities;
xiii) The Company is not a chit fund/nidhi/mutual benefit fund/society
therefore, the provisions of clause 4(xiii) of Paragraph 4 of the said
order are not applicable to the Company.
xiv) Based on our examination of the records and evaluation of the
related internal control, the Company has maintained proper records of
the transactions and contracts in respect of dealing or trading in
shares, securities, debentures and other investments and timely entries
have been made therein. The aforesaid securities have been held by the
company in its own name, except to the extent of the exemption granted
under section 49 of the Companies Act, 1956.
xv) As per the information and explanation given to us by the
management, the Company has not given any guarantees for loans taken by
others from any banks or financial institutions. Accordingly, the
provisions of clause 4(xv) of Paragraph 4 of the aforesaid 'Order' are
not applicable to the Company.
xvi) In our opinion, and according to the information and explanations
given to us, the Company has not raised any new term loans from banks
or financial institutions, and accordingly the requirement of clause
(xvi) of Paragraph 4 of the Order are not applicable to the Company.
xvii) Based on our examination of books of account and according to the
information and explanations given to us, we are of the opinion that
there are no funds raised on short term basis that have been used for
long-term investments. During the year, the Company has not raised
funds on long term basis.
xviii) As per the information and explanation given to us by the
management the Company has not made any preferential allotment of
shares to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the requirement of
Paragraph 4(xix) of the Order is not applicable.
xix) According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures and hence in our opinion, the question of creating
securities therefore does not arise;
xx) According to the information and explanations given to us, during
the period covered by our audit report, no public issue has been made
by the Company during the year and requirement of this sub-clause iii
(xx) of the aforesaid 'Order' is not applicable to the Company.
xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and to the
best of our knowledge and belief, and according to the information and
explanations given to us by the management, which have been relied upon
by us, we report that no fraud on or by the company has been noticed or
reported during the course of our audit.
For and on behalf of
KARNAVAT & CO.
Chartered Accountants
ICAI Firm Regn No. 104863W
192, Dr. D. N. Road (Viral Joshi)
Mumbai - 400001 Partner
Dated: 31.05.2014 Membership No. 137686 |