| We have audited the accompanying financial Statements of M/s. TAAZA
INTERNATIONAL LIMITED which comprise the Balance Sheet as at 31st March
2015, the statement of Profit & Loss and Cash Flow Statement for the
year ended and a summary of the significant accounting policies and
other explanatory information.
Managements 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 view
and are free from material misstatement, whether due to fraud or error.
Auditors 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
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 the accounting policies
used and the reasonableness of the accounting estimates made by the
Company's 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 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 said accounts read with other notes to
accounts and accounting policies give the information required by the
Companies Act 2013, in the manner so required and give a true and fair
view:-
i) In the case of Balance Sheet of the state of the affairs of the
Company as at 31st March 2015 and
ii) In the case of Profit & Loss Account of the Profit of the Company
for the year ended on that date.
iii) In the Cash Flow statement of the Cash Flow 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 ('the
Order') issued by the Central Government in terms of Section 143(11) of
the Act, 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 obtained all the information and explanations which to the
best our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion proper books of accounts as required by the law have
been kept by the company so far as appears from our examination of
these accounts.
c. The company's Balance Sheet and Statement of Profit & Loss and Cash
Flow Statement dealt with by the report are in agreement with the books
of accounts.
d. In our opinion the Balance Sheet and Statement of Profit & Loss and
Cash Flow Statement comply with the accounting standards referred to
section 133 of the Companies Act, 2013 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 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 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
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
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
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the Year ended 31
March 2015, we report that:
i. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. b. The Company has a regular programme of physical verification
of its fixed assets by which fixed assets are verified in a phased
manner. In accordance with this programme, certain fixed assets were
verified during the year and no material discrepancies were noticed on
such verification. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets.
ii. a. According to the information and explanations given to us, the
management has conducted physical verification of inventories at
reasonable 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 followed by the management for physical
verification of inventories are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories.
As per the information and explanation given to us, no material
discrepancies were noticed on physical verification.
iii. The Company has not granted any loans to bodies corporate covered
in the register maintained under section 189 of the Companies Act, 2013
('the Act').
iv. In our opinion and according to the information and explanations
given to us, the Company has an adequate internal control system
commensurate with its size and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
v. The Company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the Company.
vii. According to the information & explanations given to us in respect
of the statutory dues:
a) undisputed statutory dues including Investor Education and
Protection Fund, Employees' State Insurance, Sales Tax, Wealth Tax,
Customs Duty, Excise Duty, Cess, and any other material statutory dues
have been generally regularly deposited with the appropriate
authorities.
b) There were no undisputed amounts payable in respect of provident
fund, investor education and protection fund, employees' state
insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and any other material statutory dues in
arrears as at March 31,2015 for a period of more than six months from
the date they became payable except the dividend and dividend
distributable tax payable for the F.Y.2010-11. The details are as
follows
S. Particulars Amount(Rs) Statute
No.
1 Dividend payable 5,123,047.00 Sec205 of companies
act
2 Dividend Distributable
tax payable 1,205,481.00 Sec115of Income Tax
act
c) According to the information and explanations given to us, there are
no material dues of sales tax, service tax and value added tax, wealth
tax, duty of customs and cess which have not been deposited with the
appropriate authorities on account of any dispute. However, according
to information and explanations given to us, the following dues of
income tax not been deposited by the Company on account of disputes:
Particulars Demand U/s Period to
which the
amount relates
Income Tax 143(3) A.Y.2012-13
Act, 1961
Particulars Forum where the Amount in Rs.
dispute is
pending
Income Tax Commissioner of 3,31,76,640
Act, 1961 income tax Appeals (3)
viii. The Company has no accumulated losses at the end of the financial
year and has not incurred cash losses in the financial year and in the
immediately preceding financial year.
ix. The Company has no outstanding dues to the banks and financial
institutions.
x. In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
xi. The Company has not availed the term loans from banks and
financial institutions.
xii. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For M M REDDY & CO.,
Chartered Accountants
Firm Registration No.010371S
Sd/-
Place : Hyderabad M. Madhudhana Reddy
Partner
Date : May 29th 2015 Membership No.213077
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