We have audited the accompanying standalone financial statements of
WORLDWIDE LEATHER EXPORTS LIMITED ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015. the Statement ot Profit and Loss,
the Cash Flow Statement for the year then ended, and summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 Rule7 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.
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 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 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 the disclosures in the financial statements. The
procedures selected depend cm 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 financial control relevant
to the Company's preparation of the financial statements that give 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 there as on
ableness 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
Basis of Qualified Opinion
The Company is not disclosing particulars as required in pursuance to
Accounting Standard - 15 "Employee Benefit'' (Note 2 7(9)).
Qualified Opinion
in our opinion and to the best our information and according to the
explanations given to us, except for the effects ot matter described at
the Basis of Qualified Opinion paragraph, 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.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 issued by
the Central Government of India in terms of section 143 of the Act, we
give in the Annexure a statement on the matters specified in paragraphs
3and 4 of the said Order.
As required by Sectionl43 (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 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 and with the returns received from branches visited by us;
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule7 of the Companies (Accounts) Rules. 2014.
(e) On the basis of the written representations received from the
directors as on 31 st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 st 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 Auditors)
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;
ii. the Company does not have any material foreseeable losses on long
term contracts including derivative contracts which would impact its
financial position;
iii, there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 6 of our Report of even date for the year
ended 31st March, 2015
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that
(i) (a) The Company has maintained propel records showing full
particulars, including quantitative details and situation of fixed
assets are being updated by the Company.
(b) According to the information and explanations given to us, all the
assets have not been physically verified by the management during the
year but there is a regular program of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification.
(ii) (a) According to the information and explanations given to us, the
management has conducted physical verification of inventory at
reasonable intervals during the year. However, there is no inventory'
at the dose of the year under review.
(b) in our opinion, the procedures of physical verification of
inventory 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 the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory and there are no material discrepancies between physical
inventory and book records were noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and for the sale of goods and services. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits within the
meaning of Sections 73 to 76 of the Companies Act. 2013 Act and the
Companies (Acceptance of Deposits) Rules, 2014 (as amended).
(vi) As per information and explanations given to us, maintenance of
Cost records as prescribed under section 148(1) of the Companies Act.
2013 is not applicable to the Company.
(vii) (a) According to the records of the company, the company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax, service tax, duty of customs, duty
excise, value added tax, cess and other material statutory dues, as
applicable, and no such statutory dues were outstanding as at the last
day of the financial year under review for a period of more than six
months from the date they became payable except for Fringe Benefit Tax
payable Rs. 39,110/- for A. Y. 2007- 2008 and Rs. 15,279/- for A. Y.
2008 - 2009.
(b) According to the information and explanations given to us, no dues
of income-tax, sales-tax, wealth tax, service tax, duty of customs,
duty of excise, value added tax and cess, as applicable, which have not
been deposited on account of any dispute.
(c) There were no amount which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with relevant provisions of the Act.
(viii) The Company does not have accumulated losses. The Company has
not incurred any cash losses during the financial year covered by our
audit but has incurred cash loss in the immediately preceding financial
year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institution, bank or debenture holder.
(x) As per the information and explanations provided to us, the Company
has not given any guarantees for loans taken by others from banks or
financial institutions.
(xi) The Company has not taken any Term Loan during the year under
review,
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period covered by our audit,
For B. Chhawchharia & Co.
Chartered Accountants
Place: New Delhi Abhishck Gupta
Date. 30th May, 2015 Partner
Firm Registration No: 305123E
Membership No: 529082
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