TO THE MEMBERS OF
PUSHPSONS INDUSTRIES LIMITED.
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Pushpsons IndustriesLimited (the Company), which comprise the Balance Sheet as at March 31, 2014, 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
The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position, financial performanceand cash flows of the Company in accordance with the Accounting Standards notified underthe Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13thSeptember, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of theCompanies Act, 2013 and in accordance with the accounting principles generally accepted inIndia. This responsibility includes the design, implementation and maintenance of internalcontrol relevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatement, whether due to fraud orerror.
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 involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. An audit also includes evaluating the appt opt iatenesso< accounting policies used and the reasonableness of the accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us, the aforesaid financial statements give the information required by the Actin the manner 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 atMarch 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit of the Company forthe year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the Company for theyear 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 bythe Central Government of India in terms of Section 227(4A) of the Act, we give in theAnnexure 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 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.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statementdealt 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 CashFlow Statement comply with Accounting Standards notified under the Act read with theGeneral Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairsin respect of Section 133 of the Companies Act, 2013.
e. On the basis of the written representations received from the directors as on March31, 2014, taken on record by the Board of Directors, none of the directors is disqualifiedas on March 31, 2014, from being appointed as a director in terms of Section 274(1 )(g) ofthe Act.
|For R. Verma & Associates|
|Registration Number 08026N|
|28th May, 2014||Membership Number 83311|
Re. Pushpsons Industries Limited
Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirement" of our report of even date.
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) In our opinion, the management has physically verified the fixed assets during theyear at reasonable intervals having regard to the size of the company and nature of itsassets. No material discrepancy was noticed on such verification.
(c) In our opinion and according to the information and explanations to us, the Companyhas not disposed of a substantial part of its fixed assets during the year.
2. (a) As explained to us the inventories have been physically verified by themanagement at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations given to us, theprocedure of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the company and nature of its business.
(c) The Company has maintained proper records of inventory. According to theinformation and explanations given to us, no material discrepancy was noticed on suchverification.
3. (a) According to the information and explanations given to us, the Company hasduring the year not granted any loans, secured or unsecured to companies, firms, otherparties covered in the register maintained under Section 301 of the Companies Act, 1956.Accordingly, paragraph 4(iii)(a),(b),(c) and (d) of the Order, are not applicable.
(b) According to the information and explanations given to us, the Company has takenunsecured loan from two directors of the company, the amount outstanding as on 31st March,2014 is Rs. 80.00 lacs.
(c) The loans are interest free and other terms and conditions of the loans taken bythe company are not prima facie prejudicial to the interest of the company and there areno stipulations as to repayments.
4. In our opinion and according to the inlernation and explanation given to us, thereare adequate internal control procedures commensurate with the size of me company and thenature of its business with regard to the purchases of inventory and fixed assets and forthe sale of goods. There are no sale of services during the year. Further, on the basis ofour examination and according to the information and explanations given to us, we haveneither come across nor have any information of any instance of major weakness in theinternal controls systems.
5. In our opinion and according to the information and explanations given to us, therewere no transactions that need to be entered in pursuance of Section 301 of the Com,-snies Act, 1956.
S. According to the information and explanations given to us, the Company has notacceoted any deposits from the public, Therefore the provisions of paragraph 4(vi) of theOrder are not applicable to the Company.
7. In our opinion, the company has an internal audit system commensurate with its sizeand the nature of its business.
8. We have broadly reviewed the books of accounts maintained by the Company pursuant tothe Rules made by the Central Government for the maintenance of cost records under section209(1 )(d) of the Companies Act, 1956 and are of the opinion that prima facie theprescribed accounts have been maintained. We have, however not made a detailed examinationof these records.
9. (a) According to the information and explanations given to us, the company has beenregular in depositing undisputed statutory dues including Provident Fund, Employees' StateInsurance, Income Tax, Sales Tax, Service tax and other statutory dues applicable to itwith appropriate authorities. According to the information and explanations given to us bythe company, there were no arrears of outstanding statutory dues as at 31st March, 2014for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues ofsales tax, income tax, service tax, excise duty that have not been deposited withappropriate authorities on account of any dispute .
10. The company's accumulated losses at the end of the financial year are less thenfifty percent of its net worth and the Company has not incurred cash losses during theyear and in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to bank.
12. The company has not granted loans and advances on the basis of security by way ofpledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund, nidhi, mutual fund or a society.Therefore, the provisions of clause 4(xiii) of the Order are not applicable to theCompany.
14. According to the information and explanations given to us, the company is nothaving dealing or trading in shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the company has notgiven any guarantee for loans taken by others from banks or financial institutions.
16. The company has not taken any term loan during the year.
17. According to the information and explanations given to us, the company has notraised any funds on short-term basis.
18. The company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under section 301 of the Companies Act, 1956.
19. The company has not issued any debentures.
20. The company has not raised any money through a public issue during the year.
21. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements as per the information and explanations given by themanagement, we report that no fraud on or by the company has been noticed or reportedduring the course of our audit.
|For R. Verma & Associates|
|Registration Number 08026N|
|28th May, 2014||Membership Number 83311|
Pankaj Jain , Director
Dinesh Jain , Whole-time Director
Vikram Prakash , Director
S B L Jain , Director
Company Head Office / Quarters:
Beetal Fin.&Computer Ser.P Ltd
Beetal House 3rd Flr,Behind Local Shp Cen,Nr Dada Harsukh Das ,New Delhi - 110062