Independent Auditor's Report
To
The Members of M/s.Diksat Transworld Limited.
Report on Financial Statements
We have audited the accompanying financial statements of M/s. Diksat Transworld Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss for the year ended on that date along with the cash flow statement annexed thereto, and a summary of the significant accounting policies and other explanatory information for the year then ended.
Management's Responsibility for the Financial Statements
The Company's Board of Directors are responsible for the matters stated 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 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, 2014. This responsibility also includes 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 that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
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.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the companies Act 2013. 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 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:
a) in the case of the Balance Sheet, of the state of affairs of the Company for as at March 31, 2018;
b) in the case of the Profit and Loss Account, of the Profit for the year ended on that date;
c) in case of cash flow statement, of the cash flows for the year ended on the date;
Report on Other Legal and Regulatory Requirements:-
1. As required by the Companies (Auditor's Report) Order, 2016(" the Order") issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, we give in Annexure A a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(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, read with the General Circular 15/2013 dated 13 September 2013 of 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, 2018, and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2018, from being appointed as a director in terms of sub-section (2) of section 164 of the Companies Act, 2013.
f)The company has adequate internal financial controls system in place and these controls are operating effectively.
g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
I. The company does not have any pending litigations which would impact its financial position.
II. The company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
III. There were no amounts which were required to be transferred to the Investor Education and Protection fund by the company.
(Referred to in paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" of our Report of even date)
As required by the Companies (Auditor's Report) Order, 2016 issued by the Central Government in terms of section 143 (11) of the Companies Act, 2013 and on the basis of such checks of the books and records of the Company, as we considered appropriate and according to the information and explanations given to us during the course of the audit, we report that,
1.
a) he Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.
b) s explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such physical verification.
c) per information provided to us, title deeds of immovable properties are held in the name of company.
2. In our opinion and according to the information and explanations given to us, the inventories are purchased rights by the management and no material discrepancies were noticed during the physical verification.
3. According to the information and explanations given to us, there are transactions of granting loans to companies/firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013without stipulation as to the repayment of principal and interest.
a) In the light of above, we do not comment on terms and conditions of grant of such loans.
b) In the light of above, we do not comment on repayment of the principal amount and interest.
c) In the light of above, we do not comment on the reasonable steps have been taken by the company for recovery of the principal and interest.
4. According to the explanations given to us, there were no such cases of loans, investments, guarantees and security as mentioned in sections 185and 186 of Companies act, 2013. Hence, we do not comment on compliance with the respective sections.
5. he Company has not accepted any deposits from the public. Therefore the provisions of section 73 to Section 76 of the Companies Act 2013 and rules framed there under are not applicable.
6.In our opinion and according to the explanations given to us, maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act,2013.
7. a) According to the information and explanation given to us and according to the books and records as produced and examined by us, in our opinion, the Company is regular in depositing undisputed statutory dues such as income tax, service tax, cess and other statutory dues as applicable with the appropriate authorities except GST payable under Reverse charge mechanism with an amount payable of 18,93,054/- only.
b) According to the records of the Company and according to the information and explanations given to us, there are no dues of Income tax, service tax on account of any disputes.
8. According to the records of the company, the company has borrowed from banks. In our opinion the company has been regular in repayment of dues to the banks.
9. In our Opinion and according to the information and explanations given to us, the company has not raised money by way of initial public offer or further public offer during the year.
10. In our Opinion and according to information and explanations furnished to us no fraud on or by the Company has been noticed or reported during the year.
11. According to the information and explanations given to us the company has paid/ provided managerial remuneration in accordance with provisions of Section 197 read with schedule V of Companies Act, 2013.
12. As Company is not a Nidhi company, we do not comment on Net Owned Funds to Deposits ratio and unencumbered term deposits as specified in Nidhi Rules 2014
13. According to information and explanations given to us, the Provisions of Section 177 of Companies Act 2013 are compiled by company. According to information and explanations given to us, transactions has been entered with related parties as specified in Section 188 of Companies Act 2013 are duly disclosed in Books of Accounts.
14. The Company has not made any preferential allotment or Private placement of shares or fully or partly convertible debentures during the year. Hence we do not comment on Compliance of section 42 of Companies Act 2013.
15. According to the information and explanations given to us, the Company has not entered into any non cash transactions with directors or persons connected with him. Hence we do not comment on Compliance of Section 192 of Companies Act 2013.
16. The Company is not required to be registered under 45-IA of the Reserve bank of India Act, 1934.
For DPV & Associates
Chartered Accountants
(Firm's Registration No. 011688S)
CA Vaira Mutthu K
Partner
(MembershipNo.218791)
Chennai, May 29th , 2018
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