TO THE MEMBERS OF
DHYANA FINSTOCK LIMITED
Report On the Financial Statements
We have audited the accompanying financial statements of DHYANA FINSTOCK LIMITED ("the
Company"), which comprise the Balance Sheet as at 31st March, 2016, the
Statement of Profit and Loss for the year ended, the cash flow statement for the year
ended and a summary 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 financial
statements that give a true and fair view of the financial position and financial
performance of the Company in accordance with the Accounting Standards notified under the
Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles respect of Section
133 of Companies Act, 2013 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.
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 evidence 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 control 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. 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, of the state of affairs of the company as at 31st
March, 2016 and its profit and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub-section (11) of
Section 143 of the Act, we give in the Annexure A hereto, a statement on the matters
specified in the paragraphs 3 and 4 of the said Order.
2. As required by section 143(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 Statements 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 specified under section 133 of the Act, read with rule 7 of the
companies (Accounts) Rules, 2014.
e. on the basis of written representations received from the directors as on 31st
March, 2016, and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2016 from being appointed as a director in terms
section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
g. With respect to the other matters to be included in the Auditor’s Report in
accordance with rule 11 the Companies (Audit and Auditor’s) Rules, 2014, in our
opinion and to the best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigation as at 31st
March, 2016 on its financial position in its financial statements.
ii. The company did not have any long term contracts including derivative contracts for
which there were any material foreseeable losses.
iii There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the company during the year ended 31st March,
2016.
|
For, Kamlesh Bhojani & Associates |
|
Chartered Accountants |
|
(Firm’s Registration No.127505W) |
|
S/d |
|
(KAMLESH BHOJANI) |
| Place : Ahmedabad |
(PROPRETOR) |
| Date : 05/09/2016 |
(M No. 119808) |
ANNEXURE "A" TO INDEPENDENT AUDITOR’S REPORT
(Annexure referred to in paragraph 1 under the heading of "report on other Legal
and Regulatory Requirements" of our report of even date to the members of Dhyana
Finstock Limited on the Standalone Financial Statements for the year ended 31st March,
2016)
i. In respect to Fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased
manner, designed to cover all the items over a period of three years, which in our
opinion, is reasonable having regard to the size of the company and nature of its
business. Pursuant to the program, a portion of the fixed asset has been physically
verified by the management during the year and no material discrepancies between the books
records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
ii. In respect of its inventories:
(a) The management has conducted the physical verification of inventory at reasonable
intervals.
b) The discrepancies noticed on physical verification of the inventory as compared to
books records which has been properly dealt with in the books of account were not material
c) There was no stock in trade as on year end.
iii. In our opinion the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained under section 189 of
the Act.
iv. In our opinion and according to the information and explanations given to us,
the company has not made any investments, loans and guarantees under section 185 and 186
of the Companies Act
v. The Company has not accepted any deposits from the public and hence the
directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or
any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules,
2015 with regard to the deposits accepted from the public are not applicable.
vi. According to the information and explanations given to us, Central Government
has not prescribed maintenance of cost records under sub-section (1) of Section 148 of the
Act in respect of activities carried on by the company. Therefore the provisions of clause
(vi) of paragraph 3 of the said Order are not applicable to the company.
vii. In respect to Statutory dues:
a. According to the records of the company, the company has been generally regular
during the year in depositing undisputed statutory dues, including Provident Fund,
Employees’ State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs
Duty, Excise Duty, Value Added tax, Cess and any other statutory dues as applicable to it
with the appropriate authorities. According to the information and explanations given to
us, no undisputed amounts payable in respect of such statutory dues were outstanding as at
31st March, 2016 for a period of more than six months from the date of becoming
payable.
b. In our opinion and according to the information and explanations given to us, there
are no disputed dues in respect of sales tax, Income Tax, excise duty, Service Tax, Cess
and other statutory dues payable by the company as on 31st March, 2016.
viii. In our opinion and according to the information and explanation given to us,
the company has not defaulted in the repayment of loans or borrowing to banks or financial
institutions. The company has not issued any debentures.
ix. The company did not raise any money by way of public offer or Further Public
Offer (including debt Instrument) and term loan during the year.
x. Based upon the audit procedures performed for the purposes of reporting the true
and fair view of the Standalone Financial Statements and as per the information and
explanations even by the management, we report that no fraud by the Company and no
material fraud on the Company has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our
examination of the records of the company, the company has not paid or provided managerial
remuneration. Therefore, this clause is not applicable
xii. In our opinion and according to the information and explanation given to us,
the company is not a nidhi company. Accordingly paragraph 3(xii) of the order is not
applicable.
xiii. In our opinion, all transactions with the related parties are in compliance
with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the
Financial statements as required by the applicable Accounting Standards.
xiv. Based upon the audit procedure performed and the information and explanations
given by the management, the company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year.
xv. Based upon the audit procedures performed and the information and explanation
given by the management, the company has not entered into any non-cash transactions with
directors or persons connected with him. Accordingly, the provisions of clause 3(xv) of
the order are not applicable to the company and hence not commented upon.
xvi. In our opinion, the company is not required to be registered under section
45IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause
3(xvi) of the order are not applicable to the company and hence not commented upon.
|
For, Kamlesh Bhojani & Associates |
|
Chartered Accountants |
|
(Firm’s Registration No.127505W) |
|
S/d |
|
(KAMLESH BHOJANI) |
| Place : Ahmedabad |
(PROPRETOR) |
| Date : 05/09/2016 |
(M No. 119808) |
ANNEXURE "B" TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph (f) under ‘Report on Other Legal and Regulatory
Requirements’ of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Dhyana
Finstock Limited. ("the Company") as of March 31, 2016 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on that
date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
"Guidance Note") issued by the Institute of Chartered Accountants of India and
the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal financial control over
financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2016, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
|
For, Kamlesh Bhojani & Associates |
|
Chartered Accountants |
|
(Firm’s Registration No.127505W) |
|
S/d |
|
(KAMLESH BHOJANI) |
| Place : Ahmedabad |
(PROPRETOR) |
| Date : 05/09/2016 |
(M No. 119808) |
+91-9892691696
