| 1. We have audited the accompanying financial statements of M/s
Malabar Trading Company Limited ("the Company"), which comprises the
Balance Sheet as at March 31, 2015, and the Statement of Profit and
Loss and Cash Flow statement for the year ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the preparation
of these financial statement in terms of the requirements of the
Companies Act, 2013 that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards 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. The
Board of Directors of the Company are responsible for 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 by the Directors of the Company, as aforesaid.
Auditors' Responsibility
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
While conducting the 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.
4. 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 misstatements.
5. 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 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 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 the Company's directors, as well as
evaluating the overall presentation of the financial statements.
6. 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
7. 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 March 31, 2015, and its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. 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,
to the extent applicable.
9. As required by Section 143(3) of the Act, we report to the extent
applicable, that:
a) We have sought and obtained all the information and explanations
which is 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 aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rule 2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
Annexure referred to in Paragraph 8 of the Auditors Report for the year
ended 31st March 2015 of MALABAR TRADING COMPANY LIMITED as required by
the Companies (Auditors Report) Order, 2015 and amendments thereto and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks of the books and
records as were considered appropriate, we report that:
1. In Respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets;
(b) According to the information and explanation given to us and the
records produce to us, fixed assets have been physically verified by
the management at reasonable intervals and no any material
discrepancies were noticed on such verification.
2. (a) As explained to us, inventories have been physically verified by
the management during the year. In our opinion, the frequency of such
verification is reasonable.
(b) On the basis of information and explanation given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) On the basis of examination of records of the inventory, we are of
the opinion that the company is maintaining proper records of
inventory. No material discrepancies were noticed on verification
between the physical stock and book records.
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, 2013.
4. In our opinion and according to information and explanations given
to us there is an adequate internal control procedure commensurate with
the size of the Company and the nature of its business with regards to
purchase of inventory, fixed assets and with regard to sale of goods
and services. We have not observed any major weakness in the internal
control system during the course of the audit.
5. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provision of sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and rules made there under are not applicable.
6. We have reviewed the books of accounts maintained by the Company
pursuant to the order made by the Central Government for the
maintenance of the cost records under provisions of Section 148(1) of
the Companies Act, 2013 and of the opinion that prima facie the
prescribed accounts and records have not been applicable to the
Company.
7. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the company
has been generally regular in depositing undisputed statutory dues
including income tax and other material statutory dues applicable to
it. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax were outstanding,
as at 31st march, 2015 for a period of more than six months from the
date they become due.
(b) According to the information and explanations given to us, and on
the basis of our examination of the books of account, there were no
dues of income tax, and other statutory dues, which have not been
deposited on account of any dispute.
(c) The Company not required to transfer any amount to the Investor
Education and Protection Fund.
8. The Company does not have any accumulated losses at the end of the
financial year and has not incurred any cash losses in the current year
and in the 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. According to the information and explanations given to us, the
Company has not taken any term loan during the year.
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, RISHI SEKHRI AND ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 128216W
PLACE: MUMBAI
DATE: 20.05.2015 Sd/-
CA RISHI SEKHRI PARTNER
M. No.: 126656
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