| We have audited the accompanying standalone financial statements of
Aishwarya Technologies and Telecom Limited, ("the Company"), which
comprise the Balance sheet as at 31st March, 2015, the Statement of
Profit and Loss and the Cash Flow Statement for the year then ended,
and a summary of the significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The Company's 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, financial performance and
cash flows 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 and
free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 have conducted our audit in accordance with the Standards on
Auditing specified under section 143(10) of the Act. Those Standards
require that we comply with the ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 the internal financial control
relevant to the Company's preparation of the financial statements that
gives a true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31st March, 2015;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(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, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereafter referred to the "order") and on the
basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes 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 maintained.
(d) In our opinion, the aforesaid 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 31st March, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of 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 does not have any pending litigations which would
impact its financial position in its financial statements.
(ii) The Company has not entered into any long-term contracts including
derivatives contracts requiring provision under applicable laws or
accounting standards, for material foreseeable losses and
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 2013.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 of Report on Other Legal and Regulatory
Requirements, of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets of the company have been physically verified by
the management during the year as per a programme of verification,
which in our opinion is reasonable having regard to the size of the
company and the nature of its fixed assets. No material discrepancies
were noticed on such verification.
2. (a) The inventories of the company have been physically verified by
the management at regular intervals during the year. In our opinion,
the frequency of verification is reasonable.
(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) On the basis of our examination of records of stock, in our
opinion, the company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on such
physical of inventory as compared to the book records.
3. 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 Companies Act. Accordingly, the sub clauses
(a) and (b) are not applicable to the company.
4. In our opinion and according to information and explanations given
to us, there is adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
5. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits in terms of
directives issued by Reserve Bank of India and the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under are applicable.
6. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148 of the Companies Act, and
we are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made the
detailed examination of the same.
7. (a) The company is not regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2015 for a period of more than six months
from the date they became payable except the following.
Particulars Amount Rs.
VAT 2,95,172
CST 40,88,805
Service Tax 2,97,466
TDS 25,55,986
PF 3,00,285
ESI 42,589
TOTAL 75,80,033
(b) According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute except for the following dues outstanding on account of
disputes:
Name of Statute Nature of Dues Amount (in Period for
Rs Lakhs) which, amount
relates
AP Vat Act, 2005 Sales tax 19.06 2003-04
Name of Statute Forum where dispute is Pending
AP Vat Act, 2005 Andhra Pradesh Sales Tax Appellate Tribunal
(c) According to information and explanations given to us, there were
no amounts which were required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act.
8. In our opinion, the Company did not have any accumulated losses as
on March 31, 2015. Further the company has not incurred any cash losses
for the financial year ended on that date and also in the immediately
preceding financial year.
9. According to the information and explanation given to us, the
company has not defaulted in repayment of dues to any financial
institution or banks.
10. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
11. In our opinion and according to the information and explanations
given to us and on an overall examination, the Company has not availed
any term loan during the year under audit.
12. To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the course of our audit.
for RAMANA REDDY & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN:003246S
Sd/-
(CA.RAMANA REDDY A.V)
PARTNER
Membership No.024329
PLACE : HYDERABAD
DATE : 30.05.2015 |