| We have audited the accompanying financial statements of BITS LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March,
2015, the Statement of Profit and Loss, the Cash Flow Statement for the
year then ended, and a 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 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 statement
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 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 nor for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial control 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 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 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 31st March, 2015, and its profit/loss and its cash flows for the
year ended on that date.
Subject To :
(i) Investment in shares quoted on regional stock exchange/ Unquoted
Shares does not have readily market value.
(ii) Loans & advances are subject to confirmation.
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 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 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 litigation which have impact
on its financial position in its financial statements.
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 AUDITOR'S REPORT
The Annexure referred to in paragraph 1 under the heading of "Report on
other Legal and Regulatory Requirements" of Our Report of even date to
the members of BITS LIMITED. on the accounts of the com- pany for the
year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. The Company does not have any fixed assets. Therefore provisions of
the clause are not applicable to the company.
2. a. As informed to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
c. As informed to us, the company has maintained proper records of
inventory. No material discrepancies were noticed on such verification.
3. The Company has not granted any loans to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods & services. During the course of our audit, we have not
observed any major weaknesses in internal controls.
5. The company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 73 to 76 or any
other relevant provision of the Companies Act, 2013 and rules made
there under. Hence, the clause (v) of the order is not applicable.
6. We have been informed that the Central government has not
prescribed maintenance of cost records under section 148 (l) of the
Companies Act, 2013.
7. a. According to the records of the company, undisputed statutory
dues including Provident Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and any other statutory dues to the extent
applicable have been regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2015 for a period of more than six months
from the date of becoming payable.
b. According to the information and explanation given to us, there are
no dues of Sales Tax, , Duty of Customs, Duty of Excise, Value Added
Tax, Cess which have not been deposited on account of any dispute. c.
There is no amount which is required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under.
8. The accumulated losses of the Company are not more than 50% of its
net worth. The Company has incurred cash loss during the financial year
2014-15 and in the immediately preceding financial year.
9. Based on our audit procedures and on the basis of information's and
explanations given by the management, the Company has not taken any
loans from any financial institution, bank or debenture holders, so
there is no question of default in repayment;
10. As explained by the management, company has not given guarantee
for loans taken by other from banks or financial institutions.
11. According to the information and explanations given to us, the
Company has not taken any term loan. Accordingly, the provisions of
clause are not applicable to the Company.
12. As explained to us, no fraud on or by the Company has been noticed
or reported during the year. Accordingly, provisions of clause are not
applicable to the Company.
For Soni Gulati & Co.
FRN No. :8770
Chartered Accountants
Sd/-
Sanjeev Kumar
Place: New Delhi [Partner]
Date: 29.05.2015 M.No.-091901
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