| We have audited the accompanying financial statements of Citizen Yarns
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, 201 4. 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
(1) 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.
(2) 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.
(3) 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.
(4) We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the fi
nancial 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;
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
2. In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
3. 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
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 Paragraph 3 and 4 of the Order.
As required by section 143(3) of the Act, we report that:
- 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.
- 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
o d) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account. [And the
o 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.
o 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.
o h) In our Opinion and to the best of our information and according to
the explanation given to us, we report as under with respect to the
other matters included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit & Auditors) Rule 2014 :
1. The company does not have any pending litigations which would
impact its financial statement.
2. The company did not have any long term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
3. There has not been an occasion in case of the company during the
year under report to transfer any sums to the Investors Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
The Annexure referred to in our report to the members of CITIZEN YARNS
LIMITED for the year ended 31st March, 2015.
On the basis of the information and explanation given to us during the
course of our audit, we report that:
1. (a) There is no Fixed Assets, Hence Not Applicable.
(b) N.A.
2. (a) There is No Inventory at the end of the Year, hence Not
Applicable.
(b) N.A.
(c) N.A.
3. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act. Thus sub clauses (a) & (b) are not applicable to the
company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. In our opinion and according to the information and explanations
given to us company hasn't accepted any deposits, from the directives
issued by the Reserve Bank of India and as per the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act
6. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 148 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
7. (a) According to the records of the company, undisputed statutory
dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess to the extent applicable and any other
statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
(c) In our opinion company has transferred the 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 thereunder within time.
8. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
9. 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 a financial
institution, bank or debenture holders.
10 According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
11. In our opinion Terms Loans were applied for the purpose for which
loans were obtained
12. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
for , D.A. Rupawala & Associates
Chartered Accountants
Sd/-
(Dawoodi Rupawala)
Place : Ahmedabad Proprietor
Date : 29th May, 2015 M.No. 37674
FRN No. : 108902w
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