AUDITORS REPORT
To,
The Members of
Carina Finvest Ltd.
Report On the Financial Statement
We have audited the accompanying financial statements of CARINA FINVEST LTD. ("the
Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement
of Profit and Loss for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Managements 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 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.
Auditors 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. 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 auditors
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 Companys 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.
Opinion
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit 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; and
b) in the case of the Profit and Loss Account, of the Loss for the year ended on that
date; Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors 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.
c) The Balance Sheet, Statement of Profit and Loss, death with by this Report are in
agreement with the books of account
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, comply with the
Accounting Standards referred to in sub- Section (3C) of section 211of 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.
For Rajen T. Gala & Co.
Chartered Accountants (Firm Reg. No.121577W) Rajen Gala
Proprietor (Membership No.110376) Place: Mumbai
Date: 4th August 2014 8
ANNEXURE TO AUDITORS REPORT
CARINA FINVEST LIMITED
(Referred to in paragraph 1 of our report on other legal and regulatory
requirements)
1. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of Fixed Assets.
(b) All Fixed Assets have been physically verified by the management during the year.
In our opinion the frequency of such verification is reasonable having regard to the size
of the company and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) None of the Fixed Assets have been disposed off during the year.
2. The Company did not carry any inventory during the year.
3. (a) The Company had granted unsecured loans to one party listed in the register
maintained under
Section 301 and to the Companies Act, 1956. The maximum balance outstanding during the
year was Rs.95 lacs (year end outstanding balance Rs. 95 lacs).
(b) The rate of interest and other terms and conditions of unsecured loan given by the
company were not prima facie prejudicial to the interest of the company.
(c) According to the information and explanations given to us, party has been regular
in the payment of interest.
(d) The Company has not taken unsecured loans from parties listed in the register
maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and recording 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 with regard to purchase of inventory, fixed assets and with regard
to the sale of goods and services. During the course of our audit, no major weakness has
been notices in the internal controls.
5. (a) The particulars of contracts or arrangements referred to in section 301 of the
Companies Act, 1956 have been entered in the register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 have been made at prices which are
reasonable having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposit from public and consequently provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 are not applicable to the Company.
7. In our opinion, the Company has an internal audit system commensurate with the size
and nature of its business.
8. The Company is not required to maintain the cost records prescribed by the Central
Government under Section 209 (1)(d) of the Companies Act, 1956.
9. (a) According to the records of the Company, the Company is generally regular in
depositing with appropriate authorities undisputed statutory dues including Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory
dues applicable to it. Based on our audit procedures and according to the information and
explanations given us, there are no arrears of undisputed statutory dues which remained
outstanding as at 31st March, 2014 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company, there are no dues of Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess which have not been deposited
on account of any dispute.
10. The Company does not have any accumulated losses as per the Balance Sheet as at the
end of the financial year. The Company has not incurred cash losses in the financial year
covered by our audit and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations given to us, we
are of the opinion that the Company has not defaulted in repayment of dues to a financial
institution, banks. The Company does not have any outstanding debentures.
12. Based on our examination of documents and records and information and explanations
given to us, the Company has not granted any loans and advances on the basis of security
by way of pledge of shares and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund / society.
Therefore the provisions of clause 4(xiii) of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations given to us, the
Company is not dealing in or trading is shares, securities, debentures and the other
investments. Accordingly the provisions of clause 4 (XIV) of the Order are not applicable
to the Company.
15. The Company has not given any guarantee for loans taken by others from bank or
financial institutions.
16. The terms loans have been applied for the purpose for which they were raised.
17. According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that that the no funds raised
on short term basis have been used for long term investment.
18. According to the information and explanations given to us the Company has not made
any preferential allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act 1956.
19. The Company has not issued any debenture during the year.
20. The Company has not raised any money by way of public issue during the year.
21. According to the information and explanations given to us, no fraud on or by the
Company has been noticed or reported during the course of our audit year.
For Rajen T. Gala & Co.
Chartered Accountants (Firm Reg. No.121577W) Rajen Gala
Proprietor (Membership No.110376)
Place: Mumbai
Date: 4th August 2014
+91-9892691696
