INTERWORLD DIGITAL LIMITED New Delhi.
Report on the Financial Statements
We have audited the accompanying financial statements of INTERWORLD DIGITAL LIMITED("the Company"), which comprise the Balance Sheet as at March 31,2014, and theStatement of Profit and Loss and Cash Flow Statement for the year then ended, and asummary 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 give atrue and fair view of the financial position, financial performance of the Company inaccordance with the Accounting Standards referred to in sub-section (3C) of section 211 ofthe Companies Act, 1956 ("the Act") read with the general circular 15/2013 dated13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of thecompanies Act, 2013. This responsibility includes the design, implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, includingthe assessment of the risks of material misstatement of the financial statements, whetherdue to fraud or error. In making those risk assessments, the auditor considers internalcontrol relevant to the Company's preparation and fair presentation of the financialstatements 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'sinternal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management, aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for the year ended onthat date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.
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 ofthe Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and5 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 ourknowledge 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 theCompany so far as appears from our examination of those books [and proper returns adequatefor the purposes of our audit have been received from branches not visited by us];
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account [and with the returns receivedfrom branches not visited by us];
d. in our opinion, the Balance Sheet, Statement of Profit and Loss comply with theAccounting Standards referred to in subsection (3C) of section 211 of the Companies Act,1956, read with the general circular 15/2013 dated 13th September, 2013 of the Ministry ofCorporate 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 31,2013, and taken on record by the Board of Directors, none of the directors is disqualifiedas on March 31, 2013, from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued anyRules under the said section, prescribing the manner in which such cess is to be paid, nocess is due and payable by the Company.
For M/s. RMA & Associates
Firm Regn. 000978N
Place: New Delhi
Dated : 30th May, 2014
ANNEXURE TO THE AUDITORS' REPORT INTERWORLD DIGITAL LIMITED
(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified at reasonable intervals by themanagement and no material discrepancy was noticed on such verification.
(c) The company has not disposed off a substantial part of its fixed assets during theyear.
(ii) (a) The company is not dealing in any physical goods, therefore there is noinventory.
However, the company has inventory of bulk-SMS.
(b) As already stated, since the company is not dealing in any physical goods, there isno question of procedure of physical verification of inventory.
(c) As already mentioned, the company is not dealing in any physical goods andtherefore there is no question of proper records of inventory.
(iii) (a) The company has not granted any loans, secured or unsecured, to companies,firms or other parties covered in the register maintained under section 301 of the Act.(b) The company has not taken any loans, secured or unsecured, from companies, firms orother parties covered in the register maintained under section 301 of the Act.
(iv) In our opinion and according to the information and explanations given to us,there is an adequate internal control system commensurate with the size of the company andthe nature of its business, for the purchase fixed assets and for the sale of services.During the course of our audit, we have not observed any continuing failure to correctmajor weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we are of theopinion that the particulars of contracts or arrangements referred to in section 301 ofthe Act have been entered in the register maintained under that section, (b) In ouropinion, transactions if any made in pursuance of such contracts or arrangements have beenmade at prices which are reasonable having regard to the prevailing market prices at therelevant time.
(vi) The company has not accepted deposits from the public within the meaning ofsections 58A, 58AA or any other relevant provisions of the Act.
(vii) In our opinion, the company has an internal audit system commensurate with itssize and nature of its business.
(viii) Maintenance of cost records has not been prescribed by the Central Governmentunder clause (d) of sub-section (1) of section 209 of the Act.
(ix) According to the information and explanation given to us, no undisputed dues inrespect of provident fund, employees state insurance, income tax, wealth tax, service tax,sales tax, custom duty, excise duty , cess and other statutory dues were outstanding atthe yearend for a period of more than six months from the date they become payable exceptas service tax of Rs. 90,03,759/-.
(x) The company does not have any accumulated losses at the end of the financial yearcovered by our audit and has not incurred cash losses in the financial year and in theimmediately preceding financial year.
(xi) According to the information and explanations given to us, the company has notdefaulted in repayment of dues of the loan taken from bank. The company has neither takenany loan from a financial institution nor issued any debentures.
(xii) The company has not granted any loan or advance against the security by way ofpledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor'sReport) Order, 2003 are not applicable to the company.
(xiv) According to the information and explanations given to us, the company is notdealing or trading in shares, securities, debentures and other investments.
(xv) According to the information and explanations given to us, the company has notgiven any guarantee for loans taken by others from bank or financial institutions.
(xvi) According to the information and explanations given to us, the company has notobtained any term loans.
(xvii) According to the information and explanations given to us, we report that noshort term funds have been used for long term investment.
(xviii) According to the information and explanations given to us, the company has madepreferential allotment of shares to parties and companies covered in the registermaintained under section 301 of the Act. In our opinion, the price at which shares havebeen issued is not prejudicial to the interest of the company.
(xix) The company has not issued debentures during the period covered by our audit.
(xx) The company has not raised money by way of public issues during the period coveredby our audit.
(xxi) According to the information and explanations given to us, no fraud on or by thecompany has been noticed or reported during the course of our audit.
For M/s. RMA & Associates
Firm Regn. 000978N
Place: New Delhi
Dated: 30th May, 2014
Man Mohan Gupta , Managing Director
Ajay Sharma , Director
Kamal Kishore Sharma , Director
Company Head Office / Quarters:
701 Arunachal Building,
19 Barakhamba Rd Connaught Pla,
Phone : New Delhi-011-43574044/45 / New Delhi-
Fax : New Delhi-011-43571047 / New Delhi-
E-mail : firstname.lastname@example.org
Web : http://www.interworld.co.in
Skyline Financial Services Pvt
D-153/A 1st Flr ,Okhla Industrial Are,Phase-I ,New Delhi-110020