| We have audited the accompanying financial statements of Mount Everest
Mineral Water Limited ("the Company"), 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
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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 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 entities 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 of Profit and Loss, of the profit 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, 2003 ("the
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 referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
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.
The Annexure referred to in Paragraph 1 of "Report on Other Legal and
Regulatory Requirements" section of our Independent auditors Report of
even date for the year ended 31st March 2014:
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Physical verification of Fixed Assets is carried out by the
management with a planned programme of verification, which, in our
opinion, provides for physical verification of all Fixed Assets at
reasonable intervals. The physically verified assets have been compared
with the book records and discrepancies noticed on such verification
were not material and have been properly dealt with in books of
accounts.
c) The Company has not disposed off substantial part of its fixed
assets during the year.
ii) a) The inventory of the Company has been physically verified by the
management during the year. In our opinion, the frequency of physical
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management were found reasonable and adequate
in relation to the size of the Company and nature of its business.
c) On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper records of inventory and the
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of account.
iii) a) In our opinion and according to the information and
explanations given to us, the Company has neither granted nor taken any
loan, secured or unsecured, to or from companies, firms or other
parties covered in the register maintained under section 301 of the
Act.
b) As the Company has not granted or taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Act paragraph iii (b),
iii(c) and iii(d) are not applicable.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchases of inventory, fixed assets and for the sale of goods. Further
on the basis of our examinations and according to the information and
explanations given to us, we have neither come across nor have been
informed of any instance of major continuing weaknesses in the
aforesaid internal control systems.
v) a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi) The Company has not accepted any deposit within the meaning of
Section 58A, 58AA or any other relevant provisions of the Companies
Act, 1956 and the rules framed there under.
vii) In our opinion, the Company has an Internal Audit System
commensurate with the size of the Company and nature of its business.
viii) The Central Government has prescribed maintenance of cost record
under Section 209 (1) (d) of the Companies Act, 1956 . We have broadly
reviewed the accounts and records of the company in this connection and
are of the opinion that prima facie, the prescribed accounts and
records have been maintained. We have not, however, carried out a
detailed examination of the same. We have been informed that the cost
statements are under preparation.
ix) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Wealth tax, Service Tax, Sales
Tax, Excise Duties, Custom Duty, Cess, and Other Statutory dues have
been regularly deposited with the appropriate authorities. According to
the explanations given to us, no undisputed arrears of Statutory dues
were outstanding as at March 31, 2014 for a period of more than six
months from the date they became payable.
b) According to the records of the Company, there were no dues in
respect of Sales Tax, Income Tax, Customs, Wealth Tax, Service Tax,
Excise duty and other statutory dues which were not deposited on
account of disputes except the following:
Name of the
Statute Nature of
the dues Period to which Amount (Rs) Forum where
the amount relates dispute is
pending
Income
- Tax Income Tax AY 2008-09 5,97,829/- Income Tax
Act , 1961 Appellate
Tribunal,
New Delhi.
x) The Company has accumulated losses as at the March 31, 2014 which
are more than 50% of its "net worth". The Company has not incurred
cash losses during the financial year ended on that date and has not
incurred cash losses in the immediately preceding financial year.
xi) According to the information and explanations given to us, there
were no dues payable to any financial institution or Banks or debenture
holders during the year.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute as specified under
paragraph xiii (a), xiii(b), xiii(c) and xiii(d) of the Order are not
applicable to the Company.
xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealer or trader in securities. The
Investments are held by it in its own name.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or Financial Institutions.
xvi) According to the information and explanations given to us, the
Company has not taken any new term loans from Bank and/or Financial
Institutions during the year hence paragraph xvii of the Order is not
applicable to the Company.
xvii) Based on the information and explanations given to us and on an
overall examination of the balance sheet of the Company, in our
opinion, there were no funds raised on a short term basis which have
been used for long term investment.
xviii) According to the information and explanations given to us, the
Company has not made, any preferential allotment of shares covered in
the register maintained under Section 301 of the Companies Act, 1956
during the year, hence paragraph xviii of the order is not applicable.
xix) As the Company has no debentures outstanding at any time during
the year, paragraph (xix) of the Order is not applicable to the
Company.
xx) The Company has not raised any money by public issue during the
year hence, paragraph xx of the Order is not applicable.
xxi) According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported.
For SNB Associates
Chartered Accountants
(S Lakshmanan)
Partner
Place: Chennai Membership No. 20045
Date: May 13, 2014 Firm Registration No. 015682N |