To,
The Members of,
Dune Mercantile Limited
Report on the Financial Statements:
We have audited the accompanying standalone financial statements of Dune Mercantile
Limited ("the Company"), which comprise the Balance Sheet as at March 31,
2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended,
and a summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements:
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position and financial performance of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, 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 standalone financial statements based on
our audit. We have taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the audit report under
the provisions of the Act and the Rules made there under. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants
of India specified under Section 143(10) of the Act. 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
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 of the financial
statements that give true and fair view 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 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:
(i) In the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2016;
(ii) In the case of the Statement of Profit and Loss, of the profit of the Company for
the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash flows of the Company for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of Section 143(11) of the Act, we give
in the Annexure "A" a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent possible.
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 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 Standalone Financial Statements 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 the written representations received from the Directors as on March
31, 2016, taken on record by the Board of Directors, none of the Directors is disqualified
as on March 31, 2016, from being appointed as a Director in terms of Section 164(2) of the
Act.
f. With respect to the adequacy of internal financial controls over financial reporting
of the Company and operating effectiveness of such controls, our separate report in
Annexure "B" may be referred;
g. With respect to the other matters to be included in the Auditors" Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanation given to us:
i. The Company does not have any pending litigations which would impact its financial
position;
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long term contracts including
derivative contracts;
iii. There has been no delay in transferring the amounts required to be transferred to
the Investor Education and Protection Fund by the Company.
|
For, Hemant C.Parikh & Co. |
|
Chartered Accountants |
| Place: Ahmedabad |
Hemant Parikh |
| Date: May 30, 2016 |
(Proprietor) |
|
M.NO. - 031780 |
Annexure A to Independent Auditors Report
Referred to in Paragraph 1 under the heading of "Report on other legal and
regulatory requirements" of our report of even date
1. In respect of the Companys fixed assets:
a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b) The fixed assets were physically verified by the management at reasonable intervals
during the year in a phased periodical manner in accordance with a programmed of physical
verification. No material discrepancies were noticed on such physical verification.
c) In our opinion, the Company has not disposed of substantial part of its fixed assets
during the year and the going concern status of the Company is not affected.
2. In respect of the Companys inventories:
a) As explained to us, inventories have been physically verified by the management at
regular intervals during the year.
b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the Company and the nature of its
business.
c) The Company has maintained proper records of inventories. As explained to us, there
was no material discrepancies noticed on physical verification as compared to the book
records
3. In respect of the loans, secured or unsecured, granted or taken by the Company to /
from Companies, firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013:
According to the information & explanations given to us, the Company has not
granted any loan to companies, firms or other parties covered in the register maintained
u/s. 189 of the Companies Act, 2013. The Company has not granted loans, secured or
unsecured to Companies, Firms, LLPs or other parties covered in the register maintained
U/s. 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Sections 185 and 186 of the Companies Act,
2013 in respect of grant of loans, making investments and providing guarantees and
securities, as applicable.
5. According to the information and explanations given to us, the Company has not
accepted any deposit covered under Section 73 to 76 of the Companies Act, 2013 during the
year.
6. According to the information and explanations provided by the Company, the Central
Government has not prescribed to Maintenance of cost records under Section 148(1) of the
Companies Act, 2013 in respect of product of the Company.
7. According to the information and explanations given to us, in respect of statutory
dues:
a) According to the records of the Company, undisputed statutory dues including
provident fund, employee state insurance, sales tax, wealth tax, service tax, income tax,
custom duty, excise duty, value added tax, cess and other material statutory dues have
been generally regularly deposited with appropriate authorities, wherever applicable to
it.
b) According to information and explanation given to us, there are no undisputed
amounts payable in respect of Income Tax, Sales Tax, Service Tax, or duty of custom or
duty of excise or value added tax or cess and other statutory bodies which have remained
outstanding as on 31st March, 2016 for a period of more than six months from the date they
become payable. Further, as per information and explanations, there are no such statutory
dues which have not been deposited on account of any dispute.
8. In our opinion and according to the information and explanations given to us, the
Company has not defaulted in the repayment of loans or borrowings to financial
institutions, banks and government and dues to debenture holders.
9. In our opinion and according to the information and explanations given to us, the
Company had not raised any term loans during the year. The Company has not raised moneys
by way of initial public offer or further public offer. Accordingly, paragraph 3(ix) of
the Order is not applicable.
10. To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company and no fraud on the Company by its officers or
employees has been noticed or reported during the year.
11. The Managerial remuneration has been paid / provided in accordance with the
requisite approvals mandated by section 197 r/w schedule V to the Companies act, 2013.
12. The Company is not a Nidhi Company and hence reporting under clause (xii) of the
CARO 2016Order is not applicable.
13. In our opinion and according to the information and explanations given to us the
Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements etc. as required by the
applicable accounting standards.
14. According to information and explanations given to us and based on our examination
of the records of the Company, the Company has not made any preferential allotment or
private placement of shares or fully or partly convertible debentures during the year in
terms of section 42 of the Act. Accordingly, paragraph 3(xiv) of the Order is not
applicable.
15. In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non cash transactions with its
directors or persons connected with him and hence provisions of Section 192 of the
Companies Act, 2013 are not applicable.
16. The Company is not required to be registered under section 45-I of the Reserve Bank
of India Act, 1934.
|
For, Hemant C.Parikh & Co. |
|
Chartered Accountants |
| Place: Ahmedabad |
Hemant Parikh |
| Date: May 30, 2016 |
(Proprietor) |
|
M.NO. - 031780 |
Annexure B to Independent Auditors Report
(Referred to in paragraph 2 (f) under „Report on Other Legal and Regulatory
Requirements" section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
Managements Responsibility for Internal Financial Controls
The Companys 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 companys 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. 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 auditors" judgment , 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys 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 companys 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 authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys 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, 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, Hemant C.Parikh & Co. |
|
Chartered Accountants |
| Place: Ahmedabad |
Hemant Parikh |
| Date: May 30, 2016 |
(Proprietor) |
|
M.NO. - 031780 |
+91-9892691696
