We have audited the accompanying financial statements of Vakharia Power
Infrastructure Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, 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
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 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 the
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 the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgment and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
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
thereunder.
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 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 of the
financial statements that give true and fair view 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
companies 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
statements.
Opinion
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:
(i ) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2015.
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) 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, 2015 ("the
Order") issued by the Central Government of India in its terms of
sub-section (11) of section 143 of Companies Act 2013, we give in the
Annexure a statement on the matters specified in paragraph 3 and 4 of
the Order.
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 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 it 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
section 133 of the Companies Act, 2013, read with rule 7 of the
Companies (Accounts) Rules, 2014.
e) on the basis of written representations received from the directors
as on March 31,2015, and 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 sub-section (2) of section 164 of
the Companies Act, 2013.
f) With respect to the other matters included in the auditor's report
and to best of our information and according to the explanation given
to us.
1) The Company does not have any pending litigations which would impact
its financial position.
2) The Company did not have any long-term contracts for which there
were any material foreseeable losses.
3) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITOR'S REPORT REFERRED TO CLAUSE 1 OF OUR REPORT OF
EVEN DATE:
i) a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) Fixed Assets have been physically verified by the management during
the year.
In our opinion, the frequency of verification of the fixed assets by
the management is reasonable having regard to the size of the Company
and the nature of the assets. According to information furnished to us
no material discrepancies have been noticed on such verification.
ii) a) The inventory have been physically verified by the management at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and books were
not material and have been properly dealt with in the books of account.
iii) The company has not given any loans during the year to parties
covered in the register maintained u/s.189 of Companies Act, 2013.
iv) In our opinion and according to the information and explanations
provided to us there are adequate Internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to Purchase of Inventory, Fixed Assets and for
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal control.
v) The Company has not accepted any deposits from public.
vi) We have broadly reviewed, without carrying out a detailed
examination, the books of account maintained by the Company pursuant to
the rules made by the Central Government for the maintenance of cost
records under Section 148 (1) of the Companies Act, 2013 and are of the
opinion that prima facie the prescribed accounts and records have been
maintained. We have not however, made detailed examination of the
records with a view to determining whether they are accurate or
complete.
vii) a) According to the records and as per information and explanations
provided to us, the Company is regular in depositing with appropriate
authorities undisputed amount of provident fund, employee state
insurance, income tax, sales tax, custom duty, cess and other statutory
dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31st
March 2015, for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, there are
no dues of income tax, wealth tax, sales tax, customs duty, excise duty
and cess which have not been deposited on account of any dispute
d) According to the information and explanation given to us there is no
amount require to be transferred to Investor Education and Protection
Fund.
viii) In our opinion, the accumulated losses of the Company at the end
of the financial year are not more than fifty percent of it net worth.
The Company has not incurred cash losses during the current financial
year and not incurred cash losses during the immediately preceding
financial year.
x) The Company has not taken loans from financial institution or has
not issued debentures to any party, hence the question of default in
repayment does not arise.
xi) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xii) The Company has not raised new term loans during the year. The
outstanding term loan at the beginning of the year were applied for the
purpose for which raised.
xiii) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has not been noticed or reported during the course of
our audit.
For POLADIA & CO.
Chartered Accountants
(Firm Regn No. 128274W)
- sd -
P.T. POLADIA
Partner
M.NO. 38757
Place: Mumbai
Date: 30lh May 2015
|