We have audited the accompanying financial statements of Ritesh
International Ltd ("the company"), which comprise the Balance Sheet as
at 31st March 2015 and 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 the Financial Statements
Management is responsible for the matters stated in section 134(5) of
the Companies Act, 2013 ("the Act") with respect to the preparation and
presentation of these financial statements that give a true and fair
view of the financial position, financial performance and cash fows 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 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 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 specied 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 auditors'
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, 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
Management, 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 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, of the state of affairs of the Company as
at 31st March, 2015, and its Loss and its 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 ("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.
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;
(d) 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;
(e) on the basis of 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 Auditors'
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 has disclosed the impact of pending litigation on its
financial position in its financial statements as referred to in Note
No. 32 on Notes to the Financial Statements.
ii. The company did not have any long-term contracts including
derivatives 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 AUDITORS' REPORT
(Referred to in Paragraph (1) 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. On 13.02.2005 there was a fire in the office premises, in which
some of the records of the company maintained up to 31.03.2004 have
been destroyed including the fixed assets register.
b) The fixed assets were physically verified during the year by the
Management in accordance with a phased programme of verification,
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals having regard to the size of the
Company, nature and value of its assets. According to the information
and explanation given to us, no material discrepancies were noticed on
such verification.
2. a) As explained to us, the inventory has been physically verified by
the management a t reasonable intervals.
b) In our opinion and according to information and explanation given to
us, 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) (b) In our opinion and according to information and explanation
given to us, the company has generally maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and book records were not material.
3. a) The company has granted loans to two companies (Previous year
two) covered in the register maintained under Section 189 of the
Companies Act, 2013.
b) In the case of loans granted to the bodies corporate listed in the
register maintained under section 189 of the Act, the terms of
arrangements do not stipulate any repayment schedule and interest
thereon. The loans are repayable on demand.
(c) There are no overdue amounts of more than rupees one lakh in
respect of loans granted to bodies corporate listed in the register
maintained under section 189 of the Act.
4. In our opinion and according to the information and explanations
given to us, there has an adequate internal control system commensurate
with the 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.
5. According to the information and explanation given to us, the
company has not accepted any deposits from the public to which the
provisions of section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under would apply.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by The Central Government under section 148 (1) of the
Companies Act, 2013 and are of the opinion that, prima facie, the
prescribed accounts and cost records have been maintained. We have,
however not made a detailed examination of the cost records with a view
to determine whether they are accurate or not.
7. In respect of statutory dues:
(a) According to the records of the company, the company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Employees' State Insurance, Income tax, Wealth tax, Service tax,
Duty of Custom, Duty of Excise, Cess, Sales Tax, Value Added Tax and
any other statutory dues applicable to it with the appropriate
authorities. No undisputed amounts are payable in respect of such
statutory dues which were outstanding as on 31st March 2015 for a
period of more than six months from the date it became payable.
(b) According to the records of the company and the information given
to us, as on date, there are no statutory dues like Income tax, Wealth
tax, Service tax, Duty of Custom, Duty of Excise, cess and any other
statutory dues applicable to it with the appropriate authorities which
are in dispute and have not been deposited with the appropriate
authorities except the excise duty demand of Rs.6.62 Crores which is
pending with the Customs, Excise & Service Tax Appellate Tribunal, New
Delhi.
(c) According to the information and explanation given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Branch in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and the
rules made thereunder.
8. The accumulated losses of the Company are not more than 50% of its
net worth. The Company has incurred cash losses of Rs. 247.40 lacs in
the financial year under review and earned cash profit of Rs. 133.62
lacs in the previous year.
9. In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institution or banks.
10. In our opinion and 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. The company has not obtained any term loan during the year, so this
para of the order is not applicable.
12. In our opinion and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the
Company has been noticed or reported during the year.
For Ashok Shashi & Co.
(FRNo. 013258N)
Chartered Accountants
sd/-
Place:Ludhiana (Budh Kumar)
Dated 30.05.2015 Partner
M. No.098415
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