We have audited the accompanying financial statements of REAL STRIPS
LIMITED('the Company'), which comprises the Balance sheet as at 31st
March, 2015, the Statement of Profit and Loss and 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 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 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 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
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 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 31st, 2015;
(b) in the case of the Statement of Profit and Loss, of the loss 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.
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 the paragraph 3 and 4 of the
Order, to the extent applicable for the year.
2. As required by Section 143 (3) of the Act, we broadly 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, Statement of Profit and Loss and 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
director as on 31st March 2015 and 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; and
(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 has disclosed the impact of pending litigations on its
Financial position in its financial statements in note no. 2.26 to the
financial statements.
(ii) There are no long term contracts including derivative contracts
and accordingly no provision is required to be made for any loss from
the same; and
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended on March 31, 2015.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT [ANNEXURE REFERRED TO IN
PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF REAL STRIPS
LIMITED, FOR THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31st MARCH
2015]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a programme of physical verification of its fixed
assets by which fixed assets are verified at regular intervals. In
accordance with this programme 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) As informed to us, the inventory has been physically verified
by the management during the year. In our opinion, the frequency of such
physical verification is broadly reasonable.
(b) 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) The Company is maintaining proper records of inventory.
Discrepancies noted on physical verification of inventories, were not
material, and have been properly dealt with in the books of accounts.
(iii) As informed to us, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act, 2013 ('the
Act') and accordingly paragraph 3(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 an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and sale of goods and services.
We have not observed any major weakness in the internal control system
during the course of the audit.
(v) The Company has not accepted deposits from the public (other than
exempted public deposits) and accordingly paragraph 3 (v) of the Order
is not applicable.
(vi) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under sub section (1) of section
148 of the Companies Act, 2013 and are of the opinion that prima-facie,
the prescribed accounts and records have been made and maintained. We
have however not made a detailed examination of the same.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, the
Company is regular in depositing 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 other material statutory dues with the appropriate
authorities.
Further no undisputed amounts payable in respect of above dues were in
arrears as at 31st March 2015 for a period of more than six months from
the date they became payable.
(b) On the basis of information furnished to us, following are the
details of outstanding dues in respect of income tax, sales tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax or
cess, which have not been deposited on account of any dispute:-
Name of the Statute Nature of dues Rs. In lakhs
Central Excise Act, 1944 Penalty 1.00
Customs Act, 1962
Finance Act, 1994
(Co Applicant)
Central Excises Act, Service Tax (Penalty) 1.37
1944
Central Excises Act, Service Tax (Penalty) 1.59
1944
Central Excises Act, Service Tax (Duty) 7.42
1944
Income tax Act, 1961 Income Tax 92.30
Name of the Statute Period to which Forum where dispute
amount relates is pending
Central Excise Act, 1944 2003-04 Hon'ble CESTAT
Customs Act, 1962
Finance Act, 1994
(Co Applicant)
Central Excises Act, 2008-09& Hon'ble Gujarat High
1944 2009-10 Court
Central Excises Act, 2010-11 Hon'ble CESTAT
1944
Central Excises Act, 2011-12 Hon'ble CESTAT
1944
Income tax Act, 1961 2011-12 Hon'ble Commissioner
of Income Tax(Appeals)
(c) The amount required to be transferred to investor education and
protection fund has been transferred within time in accordance with the
relevant provisions of the Companies Act, 1956 and rules made there
under.
(viii) There are no accumulated losses of the company at the end of the
financial year. The Company has incurred cash loss in the current
financial year and not in immediate preceding year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to any financial
institution or Bank.
(x) The company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xi) During the year, the company has not taken any new Term Loans.
(xii) During the course of our examination of the books and records of
the company, carried out in accordance with generally accepted
practices in India, and according to the information and explanations
given to us, we have neither come across any instances of material
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
FOR, MEHTA LODHA & CO.
(FIRM REGD.NO: 106250W)
CHARTERED ACCOUNTANTS
PRAKASH D SHAH
Place: Ahmedabad PARTNER
DATE: 30th MAY, 2015 Membership .No. 34363
|