TO,
THE
MEMBERS OF ……………….PRIVATE LIMITED
Report on the Financial
Statements
We have audited the accompanying financial statements of …………….PVT
LIMITED, which comprise the Balance
Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of 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
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 also
includes the maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and for
preventing and detecting the 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
internal financial control, 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 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 thereunder.
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 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 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 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 financial statements.
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;
a)
in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b)
in the case of the Statement of Profit and Loss, of the profit
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.
Emphasis
of Matters
We draw
attention to the following matters in the Notes to the financial statements:
a)
Note … to the financial
statements which, describes the uncertainty related to the outcome of the
lawsuit filed against the Company by ABC Company.
b) Note… in the financial statement which indicates that the
Company has accumulated losses and its Net worth has been fully/substantially
eroded, the Company has incurred a net loss/net cash loss during the current
year and previous year(s) and, the Company current liabilities exceeded its
current assets as at the balance sheet date.
These conditions, along with other matters set forth in Note Y,
indicate the existence of a material uncertainty that cast significant doubt
about the Company’s ability to continue as a going concern. However, the
financial statements of the Company have been prepared on a going concern basis
for the reasons stated in the said Note.
Our
opinion is not modified in respect of these matters.
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 term of sub-section
(11) of section 143 of the Companies Act,2013, we give in the Annexure a
statement on the matters specified in the paragraphs 3 and 4 of the Order, to
the extent applicable.
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 appears from our examination of those books
(and proper returns adequate for the purposes of our audit have been received
from the branches not visited by us)
c)
[The reports on the accounts of
the branch offices of the Company audited under Section 143(8) of the Act by
branch auditors have been sent to us and have been properly dealt by us in
preparing this report]
d)
the Balance Sheet, the
Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report
are i agreement with the books of account.[and the returns received from the
branches not visited by us]
e)
In our opinion, the aforesaid
financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014.
f)
The going concern matter
described in sub-paragraph (b) under the Emphasis of Matters paragraph above,
in our opinion, may have an adverse effect on the functioning of the Company.
g) On the basis of written representations received from the
directors as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being appointed as
a director in terms of Section 164(2) of the Act.
h)
With respect to the other
matters included in the Auditor’s Report and to our best of our information and
according to the explanations given to us :
i.
The Company has disclosed the
impact of pending litigations on its financial position in its financial
statements – Refer Note XX to the financial statements ;[or 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 – Refer
Note XX to the financial statements; [or the Company did not have any long-term
contracts including derivatives contracts for which there were any material
foreseeable losses]
iii.
There has been no delay in
transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company [or, following are the instances of delay in
transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company or there were no amounts which required to be
transferred ]
For P.K Narula & Co. (Chartered
Accountants)
Firm Reg. No. 016470N
Place:
Dated:
(Partner) Membership No. .................
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