| Report on the Financial Statements
We have audited the accompanying financial statements of V.R.Woodart
Ltd.("the Company"), which comprise the Balance Sheet as at December
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. 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 December 31,2014;
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, 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 December 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on December 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 REQUIREMENT"
OF OUR REPORT OF EVEN DATE.
Referred to in paragraph 1of our report of even date
i. In respect of Fixed Assets
(a) The Company does not have Fixed assets.
(b) The clause relating to physical verification is not applicable to
the Company in view of our reporting in 1(a) above.
(c) The clause relating to sale of substantial part of fixed assets is
not applicable to the Company in view of our reporting in i (a) above.
ii. In respect of Inventories
(a) The Company does not Inventory and hence the clause 2 (a) of the
order relating to the frequency being reasonable is not applicable the
Company.
(b) In view of our report in ii (a) above, the clause relating to
reasonableness of the procedures of physical verification of
inventories followed by the management and adequacy of the procedures
in relation to the size of the Company and the nature of its business
is not applicable.
(c) In view of our report in ii(a) above, maintaining of proper records
of inventories and dealing with the discrepancies noticed on
verification between the physical records and book records are not
applicable to the Company.
iii. In respect of loans, Secured or Unsecured, granted or taken by the
Company to / from Companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956:
(a) Based on the audit procedures applied by us and according to the
information and explanations given to us, the Company has taken
interest free unsecured loans from 2 companies listed in the register
maintained under section 301 of the Companies Act, 1956. The maximum
outstanding during the year and the yearend balance was Rs.390.16 lacs.
(b) As per the information and explanations given to us, rate of
interest and the terms and conditions of the said loans taken, are not
prima facie prejudicial to the interest of the Company.
(c) As explained to us no amount of principal and interest has become
due during the year of the said loans.
(d) In view of our comment in above para, Para iii (a) (b) (c) (d) of
the Order is not applicable are not applicable to the Company for the
year.
(e) The company has not given loan to the parties listed in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly the para iii (e) to (g) of the order are not 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 with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct weaknesses in internal controls.
v. In respect of transactions covered under Section 301 of the
Companies Act, 1956
(a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered in the Register
maintained under section 301 of the Act have been so entered.
(b) As per the information and explanations given to us, there are no
transactions of purchase and sale of goods, materials and services made
in pursuance of contracts or arrangements entered in the Register
maintained under section 301 of the companies Act 1956 aggregating
during the year to Rs. 5.00 lakhs or more in respect of each party.
vi. The Company has not accepted any deposits from the public within
the meaning of Sec 58A and 58AA of the Act and the Rules framed there
under.
vii. In our opinion, the Company has an Internal Audit System, which is
commensurate with the size and nature of its business.
viii. We have been informed that the Central Government has not
prescribed maintenance of cost records under Section 209 (1)(d) of the
Companies Act, 1956.
ix. In respect of Statutory dues
(a) The company has been generally regular in depositing undisputed
statutory dues including Provident Fund, Investors Education and
Protection Fund, Employees State Insurance, Income- Tax, Sales-Tax,
Wealth- tax, Customs Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities. According to the information and
explanation given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at 31st December 2014 for a
period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, the
details of dues of income-tax which have not been deposited on account
of dispute are given below:-
Name of the statute Nature of dues Amount (Rs)
Income tax laws TDS including interest 5,80,612.00
Name of the statute Period to which the Forum where
amount relates pending
Income tax laws 1993-1994 to 1996-1997 Income Tax Officer
(TDS), Range 3,
Kochi.
x. The accumulated losses of the Company as at 31st December 2014 is
Rs 184216495/-, which is more than 50% of its net worth. The Company
has incurred cash loss during the accounting year ended 31st December,
2014 but not in the immediately preceding financial year.
xi. Based on our audit procedures and according to the information and
explanations given to us we are of the opinion that the Company has not
defaulted in repayment of dues to the financial institutions, or banks.
The Company does not have debenture loan.
xii. In our opinion and according to the information and explanation
given to us no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii. The Company is not a chit fund or a nidhi / mutual benefit fund/
society. Therefore Para 4 (xiii) is not applicable to the Company.
xiv. In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments and hence, the
requirements of para 4(xiv) of the Order are not applicable to the
Company.
xv. The Company has not given any guarantee for loan taken by others
from banks or financial institutions.
xvi. The Company has not raised any term loans during the year.
xvii. On the basis of our examination & according to the information
and explanations given to us, on an overall examination of the Balance
sheet of the Company, funds raised on short term basis have, prima
facie, not being used during the year for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year to parties and Companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year and
therefore para 4(xix) of the Order is not applicable to the Company.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. During the course of our examination of the books and records of
the Company carried out in accordance with generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the Company noticed or reported during the year, nor have we been
informed of such case by the management.
MAJIBAIL & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 105870W
M. V. Rao
Proprietor
Place: Mumbai M.No. 7082
Date: 27.02.2015
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