AUDITORS REPORT
To the Members of Shoppers Stop Services (India) Limited. Report on the Financial
Statements
We have audited the accompanying financial statements of Shoppers Stop Services
(India) Limited 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.
Managements 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") read with the General
Circular 15/2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. 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.
Auditors 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 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 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 entitys 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:
1. in the case of the Balance Sheet, of the state of affairs of the Company as at March
31,2014;
2. in the case of the Statement of Profit and Loss, of the Profit for the year ended on
that date; and
3. in the case of 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 (Auditors 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 ofthe 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, Statement of Profit and Loss and Cash Flow Statement dealt with
by this Report are in agreement with the books of account
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement comply with the Accounting Standards referred to in subsection (3C) of section
211 of the Companies Act, 1956 read with the General Circular 15/2013 of the Ministry of
Corporate 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,
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.
|
For G.M. Kapadia & Co. |
|
Chartered Accountants |
|
Firms Registration Number: 104767W |
|
Atul Shah |
| Place: Mumbai |
Partner |
| Date : April 23, 2014 |
Membership Number : 39569 |
ANNEXURE TO THE AUDITORS REPORT
(i) (a) As explained to us the Company did not have any fixed asset, hence sub- clause
(a) regarding maintenance of Fixed Asset Record, sub-clause (b) regarding procedure of
physical verification, sub-clause (c) regarding material discrepancies on physical
verification and treatment in books, of clause 4(i) are not applicable..
(ii) As explained to us the Company did not have any inventories of finished goods,
stores, spare parts and raw materials, hence sub-clause (a) regarding physical
verification of stock, sub-clause (b) regarding procedure of physical verification,
sub-clause (c) regarding material discrepancies on physical verification of stocks, of
clause 4(ii) are not applicable.
(iii) The Company has neither granted nor taken any loans, secured or unsecured to and
from companies, firms or other parties covered in the register maintained under Section
301 of the Act. Accordingly, the sub-clauses (a) to (g) of the clause 4 (iii) of the Order
are not applicable.
(jv) As explained to us, the Company did not purchase any fixed assets and
inventory and has not sold any goods and services, hence the question of reporting
under clause (iv) of the Order on internal control system commensurate with the size of
the Company and the nature of its business with regard to purchase of inventory, fixed
assets and with regard to sale of goods and services does not arise.
(v) (a) According to the information and explanations given to us, we are of the
opinion that the transactions for the year that need to be entered into the register
maintained under section 301 of the Act have been so entered.
(b) In our opinion and according to the information and explanation given to us, the
transactions made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of Companies Act and exceeding the value of rupees five lakhs
in respect of any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time where such market prices
are available.
(vi) In our opinion and according to the information and explanation given to us, the
Company has not accepted deposits from the public and therefore, the provisions contained
in sections 58A, 58AA or any other relevant provisions of the Act and Rules framed there
under are not applicable to the Company.
(vii) The provisions related to internal audit are not applicable to the company.
(viii) To the best of our knowledge and as explained, the Central Government has not
prescribed the maintenance of cost records under clause (d) of subsection (1) of section
209 of the Companies Act for any of the activities of the Company.
(ix) (a) Based on the records produced before us, the Company is generally regular in
depositing with appropriate authorities undisputed statutory dues such as provident fund,
investor education and protection fund, employees state insurance, income-tax, sales-tax,
wealth tax, Service tax, custom duty, excise duty, cess and other material statutory dues
wherever applicable and there are no amounts in arrears as at 31s1 March, 2014
for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are no dues payable
by the Company on account of any dispute in case of income tax, wealth tax, sales tax,
custom duty, service tax, excise duty and cess as on 3 Is1 March 2014. Hence
the question of depositing such dues on account of any dispute does not arise.
(x) The Company does not have accumulated losses at the end of the financial year. The
Company has not incurred cash loss during the financial year covered by our audit and in
the immediately preceding financial year.
(xi) The Company does not have any borrowings from banks and Financial institutions and
therefore clause (xi) of para 4 of the Order is not applicable.
(xii) The Company has not granted any loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the company is not a nidhi / mutual fund / society. Therefore
the provisions of clause 4(xiii) of the Order are not applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities, debentures and other
investments. Accordingly, the question of reporting under clause 4(xiv) of the Order
regarding maintenance of proper records in respect of the same does not arise.
(xv) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from banks or financial institutions.
(xvi) The Company has not taken any term loans and therefore, clause (xvi) of para. 4
of the Order is not applicable.
(xvii) According to the information and explanations given to us and overall
examination of the Cash Flow Statement and Balance Sheet of the Company, we report that
the Company has not raised any funds on short-term basis.
(xviii) The Company has not made any preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the Act, during the year
hence the question of whether the price at which shares have been issued is prejudicial to
the interest of the company does not arise.
(xix) The Company has not issued any debentures hence the question of whether
securities or charge have been created does not arise.
(xx) The Company has not raised any money by public issues during the year covered by
our report.
(xxi) Based upon the audit procedures performed and the information and explanation
given by the management, we report that no fraud on or by the Company has been noticed or
reported during the year.
+91-9892691696
