We have audited the accompanying financial statements of SANBLUE
CORPORATION LIMITED, which comprise the Balance Sheet as at March 31,
2014, 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 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
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956, read with
General Circular 15/2013 dated 13 September, 2013 issued by the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act 2013. This responsibility includes the design,
implementation and maintenance of internal control 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 conducted our audit in
accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India. 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 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 control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. 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.
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 31, 2014;
(b) in the case of the statement 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
Emphasis of Matter
Attention is invited to note no. 7 (a) of the financial statement,
whereby the Company has made investment in unquoted equity shares of
enterprise whose net worth has turned negative. After considering the
intrinsic value of business and nature of investment being non current,
the management is of the view that no provision for any possible loss
in the value of investment has been required.
Our opinion is not qualified with respect to this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's report) (Amendment) order, 2004
(together with "Order") issued by the Central Government of India in
terms of sub-section (4A)of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. 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;
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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the accounting standards notified under
the Companies Act, 1956, read with General Circular 15/2013 dated 13
September, 2013 issued by the Ministry of Corporate Affairs in respect
of Section 133 of the Companies Act 2013.
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS REPORT Referred to in paragraph 1
under the heading of "Report on Other Legal and Regulatory Requirements
of our report of even date.
(i) (a) The company, has maintained proper records showing full
particulars including quantitative details and situation of Fixed
assets.
(b) As explained to us, the said fixed assets have been physically
verified by the management during the year, which in our opinion is
reasonable, having regard to the size of the company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
(c) The company has not disposed off substantial part of fixed assets
includes fixed assets held for sale during the year.
(ii) There are no inventories at the beginning and at the end of the
year, hence Para 4 (ii) clause (a)(b) & (c) are not applicable.
(iii) In respect of loans, secured or unsecured,
granted or taken by the company to or from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956 :
The Company has not granted or taken any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under section 301 of the Act. hence, Paragraph 4 (iii)(a),
(b), (c), (d), (e), (f) and (g) are not considered applicable to the
company.
(iv) 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 purchase of fixed assets and sale of services. During the
course of audit, we have not observed any continuous failure to correct
major weaknesses in internal control system.
(v) In respect of contracts or arrangements referred to in section 301
of the Companies Act, 1956:
[a] In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act, have been entered in the register required
to be maintained under that section.
[b] According to the information and explanations given to us there are
no transactions made in pursuance of contracts or arrangements that are
needed to be entered in the register maintained under section 301 of
the Companies Act, 1956 and aggregating during the year to Rupees five
lakhs or more in respect of any party.
(vi) Company has not accepted any deposit from the public during the
year.
(vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and the nature of its
business.
(viii) We are informed that Central Government has not prescribed under
section 209 [1][d] of the Companies Act, 1956, maintenance of cost
records for the products manufactured by the company.
(ix)(a) The company wherever applicable, is generally regular in
depositing undisputed provident fund, investor education & protection
fund, employees state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other material
statutory dues to appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amount in respect of aforesaid statutory dues were
outstanding as at 31st March, 2014 for the period of more than six
months from the date they become payable
(c) According to the information and explanations given to us, there
are no dues of sales tax/ income tax/ custom duty/ wealth tax/ excise
duty/ service tax/ cess which have not been deposited on account of any
dispute.
(x) The company has accumulated losses of Rs.22.16 lakhs at the end of
the year which is not more than fifty percent of its net worth and has
incurred cash losses of Rs.1.86 lakhs during the current financial year
and Rs. 8.72 lacs during the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not taken loan from financial institution
or banks. The company has not obtained any borrowings by way of
debentures.
(xii) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The company has not given guarantee for loans taken by others
from banks or financial institutions.
(xiv) According to the records of the company no term loans have been
raised during the year by the company.
(xv) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xvi) During the year, the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
(xvii) According to the information and explanations given to us, the
company has not issued any debentures during the year.
(xviii) The company has not raised any money by way of public issue
during the year.
(xix) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
(xx) In our opinion and according to the information and explanations
given to us, the nature of the company's business/activities during the
year are such that clause;
4(xiii) provisions of any special statute applicable to chit fund,
4(xiv) dealing or trading in shares, securities, debentures and other
investments of Company (Auditors' Report) Order, 2003 as amended by the
Companies (Auditor's report) (Amendment) order, 2004 (together with
"Order") are not applicable to the company.
For KANTILAL PATEL & CO.
CHARTERED ACCOUNTANTS
Firm Regn. No. 104744W
Place : Ahmedabad
Date : May 30, 2014
[Mayank S. Shah]
Partner
Membership No.: 44922
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