We have audited the accompanying financial statements of Sobhagya
Mercantile Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, 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.
Management's Responsibility for Financial Statements
The Management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
("the Act") with respect to 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 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
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding 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; design,
implementation and maintenance of adequate internal financial controls,
that are 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 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 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 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and board of
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.
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, of the state of affairs of the Company as
at March 31, 2015, its Loss and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors' 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
statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143 (3) of the Act, we further 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, 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 aforesaid financial statements comply with the
applicable 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, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) in our opinion and to the best of our information and according to
the explanations given to us we report as under 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,;
The Company does not have any pending litigations which would impact
its financial position.
The Company did not have any long-term contracts including derivative
contracts as such the question of commenting on any material
foreseeable losses does not arise;
There has not been an occasion in case of the company during the year
under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure referred to in Paragraph 7 our report of even date to the
members of Sobhagya Mercantile Limited on the accounts of the Company
for the year ended 31st March 2015
i. (a) The company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, during the year fixed assets have been
physically verified by the management at reasonable intervals; no
material discrepancies were noticed on such verification.
ii. The nature of business of the Company does not require it to have
any inventory. Hence, the requirement of clause (ii) of paragraph 3 of
the said order is not applicable to the Company.
iii. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act, 2013. Consequently, the provisions of clauses iii
(a) & (b) of the order are not applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business with regard to purchase of shares & securities, other assets
and for the sale of share & securities and services. Further on the
basis of our examination of the books of records of the company, and
according to the information and explanations given to us, no major
instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits during the year
from the public to which the directives issued by the Reserve Bank of
India and the provisions of Sections 73 to 76 and any other relevant
provisions of the Act and the rules framed thereunder apply.
vi. In our opinion and according to the information and explanations
given to us, the Central Government has not prescribed maintenance of
cost records under sub-section (1) of Section 148 of the Act.
vii. (a) According to the information and explanations given to us,
the Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value
Added Tax, cess and any other statutory dues with the appropriate
authorities. There are no arrears of outstanding statutory dues as at
the last day of the financial year for a period of more than six months
from the date they became payable.
(b) According to the records of the Company examined by us and
information and explanations given to us, there were no dues of Income
tax, Sales-Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
Value Added Tax or cess, to the extent applicable, which have not been
not deposited on account of any dispute.
(c) There has not been an occasion in case of the company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
viii. The Company has accumulated losses at the end of the financial
year which is less than fifty per cent of its net worth. Also, the
company has incurred cash losses during the current financial year and
in the immediately preceding financial year.
ix. The Company has not borrowed from any financial institution, bank
or debenture holders. Accordingly, the Paragraph 3 (ix) of the Order
is not applicable to the Company.
X. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution. Accordingly, the Paragraph 3 (x) of the
Order is not applicable to the Company.
xi. Based on information and explanations given to us, we report that
the company has not raised any term loans during the year.
xii. During the course of our examination of the books of account and
records of the Company, carried out in accordance with generally
accepted auditing practices in India and according to the information
and explanations given to us, we have neither come across any fraud on
or by the Company noticed or reported during the year, nor have we been
informed of such case by management.
For VIJAY R TATER & CO.
Chartered Accountants
FRN: 111426W
Sd/-
Suresh G Kothari
(Partner)
Membership No. : 47625
Place: Mumbai
Date: 30.05.2015
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