INDEPENDENT AUDITORS REPORT
To the Members of Gati - Kintetsu Express Private Ltd. Report on the Financial
Statements
We have audited the accompanying financial statements of Gati - Kintetsu Express
Private Ltd. ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the period
then ended, and a summary of significant accounting policies and other explanatory
information.
Managements Responsibility for the Financial Statements
The Companys 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
section 211(3C) of the Companies Act, 1956 ("the Act") 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.
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 misstatements.
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
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, but not for the purpose of expressing an opinion on the
effectiveness of the Companys internal control. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the 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 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:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st
March, 2014;
(b) in the case of the Statement of Profit and Loss , of the profit of the Company for
the period ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the Company for the
period 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 in terms of section 227(4A) 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 it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement comply with the Accounting Standards referred to in section 211 (3C) of the
Act, and
e) On the basis of the written representations received from the directors as on 31st
March, 2014, and taken on record by the Board of Directors, none of the directors is
disqualified as on 31 st March 2014 from being appointed as a director in terms of section
274 (1) (g) of the Act.
|
For R.S. Agarwala & Co. |
|
Chartered Accountants |
|
Firm Regn No:-304045E |
|
(R .S. Agarwala) |
|
Partner |
| Camp:- Secunderabad |
Membership No.05534 |
| Date: May 2014 |
|
Annexure to the Independent Auditors1 Report
Referred to in paragraph 1 under the heading of "Report on Other Legal and
Regulatory Requirements" of our report of even date.
1. The Company has maintained records showing full particulars including quantitative
details and situation of fixed assets like land, building, vehicles, plant and equipments,
computers etc. We are informed that a test physical verification of these assets was
carried out by the management during the period and no material discrepancies were
noticed. The management has informed us that in respect of other fixed assets like
furniture and fittings, office equipments, having regard to their numbers and the numerous
locations where these exist, maintenance of detailed records and reconciliation of their
value in general ledger is not feasible.
2. During the period the Company has not disposed off a substantial part of its fixed
assets.
3. The Company has not granted or taken during the period any loans secured or
unsecured from companies, firms or other parties covered in the register maintain under
Sec 301 of the Companies Act 1956.
4. There is an adequate internal control system commensurate with the size and
nature of the Companys business for the purchase of fixed assets and for the sale
of services. During the course of our audit no major weakness has been noticed in the
internal control system, nor we have been informed of any such instance.
5. (a) To the best of our knowledge and belief and according to the information and
explanations given to us, the particulars of contracts or arrangements that need to be
entered into the register in pursuance of Section 301 of the Act, have been so entered.
(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 into the register
in pursuance of Section 301 of the Act, 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 deposits from the public under Sec 58A, 58AA and
other relevant provisions of the Companies Act, 1956 and rules framed thereunder.
7. The in-house internal audit department of the company conducts internal audit
regularly. The internal audit system is commensurate with the size and nature of Companys
business.
8. The Central Government has not prescribed the maintenance of Cost records under
Section 209 (l)(d) of the Companies Act, 1956 in respect of any activities of the Company.
9. (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 generally regular in depositing
the undisputed statutory dues including provident fund, investor education and protection
fund, employees state insurance, income-tax, wealth tax, service tax and other material
statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the
Company examined by us, there are no statutory dues as at the period end which have not
been deposited on account of a dispute.
10. The Company has no accumulated losses as at March 31, 2014 and has not incurred any
cash losses in the financial year ended on that date or in the immediately preceding
financial year.
11. According to the records of the Company examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank.
12. The Company has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. The provisions of any special statue applicable to chitfund / nidhi / mutual
benefit fund/ societies are not applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares, securities,
debentures and other investments.
15. In our opinion, and according to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from banks or financial
institutions.
16. In our opinion, and according to the information and explanations given to us, on
an overall basis the term loans have been applied for the purpose for which they were
obtained.
17. On the basis of an overall examination of the balance sheet of the Company, in our
opinion and according to the information and explanations given to us, funds raised on
short-term basis, have not been used for the long-term investment.
18. The company has not made any preferential allotment of shares during the period.
19. There are no secured debentures issued during the period.
20. The company has not raised any money by public issue during the period.
21. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud on or by the Company, noticed or reported during the period,
nor we have been informed of such cases by the management.
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