INDEPENDENT AUDITOR
TO THE MEMBERS OF
BOBSHELL ELECTRODES LIMITED
Report on the Financial Statements :
We have audited the accompanying financial statements of ("the Company"),
which comprise the Balance Sheet as at March 31, 2014, 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 :
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 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.
Auditor’s 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 evidences 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 controls relevant to the Company’s 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 company’s internal control . 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. 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 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;
(b) In the case of the Statement of Profit and Loss, of the Loss for the year ended on
that date;
(c) 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, 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 and Statement of Profit and Loss dealt with by this Report are in
agreement with the books of account;
d. In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the
Accounting Standards referred to in subsection (3C) of section 211 of 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:
f. Since the Central Government has not issued any notification as to the rate at which
the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any
Rules under the said section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
|
For, DJNV & CO. |
|
Chartered Accountants |
|
(Firm Reg. No: 115145W) |
|
Jayesh Parikh |
| Date : 27th May 2014 |
(Partner) |
| Place : Ahmedabad |
Membership No: 40650 |
ANNEXURE TO THE AUDITOR’S REPORT
(1) (a) In our opinion and according to the information and explanation given to us,
the company has maintained all the relevant records showing full particulars including
quantitative details and situation of fixed assets.
(b) In our opinion, the fixed assets have been physically verified by the management at
reasonable intervals having regard to the size of the company and the nature of its
assets. No material discrepancies were noticed on such verification. (c) The fixed assets
disposed off during the year, in our opinion, do not constitute a substantial part of the
fixed assets of the company and the going concern status of the company is not affected.
(2) (a) As explained to us, inventories have been physically verified by the management
at reasonable intervals during the year. In our opinion, the frequency of such
verification is reasonable.
(b) In our opinion and according to the information and explanation given to us, the
procedures of physical verification of stock followed by the management are reasonable and
adequate in relation to the size of the company and the nature of the business.
(c) The company has maintained proper records of inventory. No material discrepancies
were noticed on physical verification.
(3) The company has neither granted nor taken any loans, secured or unsecured to or
from parties covered in the register maintained under Section 301 of the companies Act,
1956. Accordingly, clauses III (a) to (g) of the Order are not applicable.
(4) In our opinion and according to the information and explanation 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 the purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, no major weakness has been
noticed in the internal controls.
(5) According to the information and explanation given to us, during the year, there
were no transactions that need to be entered into the register maintained under section
301 of the Companies Act, 1956.
Accordingly, paragraph (v) (a) and (b) of the order, are not applicable.
(6) In our opinion and according to the information and explanations given to us, the
company has not accepted any deposits from the public which falls within the provisions of
section 58 A and 58 AA of the Companies Act, 1956, and the rules framed there under.
(7) In our opinion, the company has an internal audit system commensurate with the size
and nature of its business.
(8) According to the best of knowledge and according to the information given to us,
the Central Government has prescribed maintenance of cost record under section 209 (1)(d)
of the Companies Act, 1956 and the same have been maintained and audited.
(9) (a) According to the information and explanations given to us and on the basis of
our examination of the books of accounts, the company is regular in depositing undisputed
statutory dues including Provident Fund, Investor education protection fund, Employee
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise Duty,
Cess and other statutory dues to the extent applicable with the appropriate authorities.
According to information and explanation given to us, there are no dues which have not
been deposited on account of any dispute as on 31st March, 2014 for a period of more than
six months from the date they became payable.
(b) According to information and explanation given to us, there are no dues in respect
of Income Tax, Sales Tax, Excise Duty, ESI, Wealth Tax and Service Tax which have not been
deposited on account of any dispute.
(10) In our opinion, the accumulated losses of the company are not more than fifty per
cent of its net worth at the end of the financial year. Further, the company has not
incurred cash losses during the financial year covered by our audit and the immediately
preceding financial year.
(11) In our opinion and according to the information and explanation given to us, the
company has not defaulted in repayment of dues to a financial institution / bank.
(12) According to the information & explanation given to us, the company has not
granted loans and advances on the basis of security by way of pledge of shares, debentures
and other securities.
(13) 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’s
Report) Order, 2003 are not applicable to the company.
(14) In our opinion, the company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor’s Report) Order, 2003 are not applicable to the company.
(15) According to the information & explanations given to us, the company has not
given any guarantees for the loans taken by others from banks or financial institutions
(16) The company has raised term loans from financial institution during the year and are
specifically utilized for the purpose it is 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 the no funds raised on
short term basis have been used for long term investment.
(18) According to the information and explanation given to us, the company has not made
preferential allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
(19) According to the information and explanations given to us, Company has not issued
any debenture during the year. Accordingly, the provisions of clause 4(xix) of the
Companies (Auditor’s Report) Order, 2003 are not applicable to the company.
(20) The company has not raised any fund by way of public issues during the year.
(21) Based upon the audit procedures performed and on the basis of information and
explanation provided by the management, we report that no fraud on or by the company has
been noticed or reported during the year.
|
For, DJNV & CO. |
|
Chartered Accountants |
|
(Firm Reg. No: 115145W) |
|
Jayesh Parikh |
| Date : 27th May 2014 |
(Partner) |
| Place : Ahmedabad |
Membership No: 40650 |
+91-9892691696
