| We have audited the accompanying financial statements of M/s.VSF
PROJECTS LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March , 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these
consolidated financial statements that give a true and fair view of the
consolidated financial position, consolidated financial performance and
consolidated 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"), read with the General circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Sec.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 consolidated
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 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 the
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 the 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 the 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 the 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 31st March, 2014,
(b) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date and
(c) in the case of the Cash Flow Statement, of the Cash Flows of the
Company 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 report that in the
annexure on the matters specified in paragraphs 4 and 5 of the said
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 purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss & 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 &
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act, read with the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
and.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph (3) of our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets of the company have been physically verified by
the management during the year as per a programme of verification,
which in our opinion is reasonable having regard to the size of the
company and the nature of its fixed assets. No material discrepancies
were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, during the year, the company has not disposed off any
substantial part of its fixed assets so as to affect its going concern.
2. (a) The stocks of construction materials, stores and consumables
have been physically verified by the management during the year, in our
opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks 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 our examination of records of stocks, in our
opinion, the company has maintained proper records of stocks. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
3. (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
u/s.301 of the Act.
(b) In our opinion and according to the information and explanations
given to us, the company has taken loans unsecured from other parties
listed in the register maintained u/s. 301 of the Companies Act,1956
Sl. Op. Balance Amount Amount Year end
No. Name of the Party Rs. taken Repaid Balance
During the Rs. Rs.
year Rs.
1. B. Narayana Murthy 82,52,924 61,20,000 - 1,43,72,924
2. A. Satya Prasad 60,00,000 0 14,00,000 46,00,000
(c) According to the information and explanation given to us, the terms
and conditions of such loans are not prima facie prejudicial to the
interest of the company.
(d) Since the loans taken are repayable on demand, the provisions of
clause 4(iii)(g) of the Companies (Auditor's Report) Order, 2003, as
amended, is not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business. Further,
on the basis of our examination and information and according to the
explanations given to us, we have neither come across nor have we been
informed of any instance of major weaknesses in the aforesaid internal
control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered into the Register maintained under section 301
of Act, have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the company has made contracts or arrangements that need
to be entered in the register maintained under section 301 of the Act,
and exceeding the value of five lakh rupees in respect of any party
during the year. However, the terms and conditions are not prejudicial
to the interest of the company.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
to which the provisions of sections 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under
are applicable.
7. The company has an internal audit system within the organization
commensurate with the size and nature of its business.
8. During the year under report, the company has maintained cost
records as prescribed by the Central Government under clause (d) of
sub-section (1) of section 209 of the Companies Act, 1956. We have
broadly reviewed the accounts and records of the company. However, we
have not made a detailed examination of the same.
9. (a) We were informed that the provisions of Provident Fund Act and
Employees State Insurance Act are not applicable to this company during
the year under report. However, the company is regular in depositing
with appropriate authorities undisputed statutory dues including income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues as applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2014 for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess, which have not been deposited on account of
any dispute except for the following dues outstanding of income tax on
account of disputes:
10. The company has neither accumulated losses as on 31.03.2014 nor it
has not incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to banks,
financial institutions etc., during the year.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to this
company.
14. The company has maintained proper records of transactions and
contracts in respect of investments and timely entries have been made
therein. All the investments have been hold by the company in its own
name.
15. The company has not given any guarantees for loans taken by
others, from banks or financial institutions, the terms and conditions,
whereof, in our opinion, are prima facie prejudicial to the interest of
the company. .
16. In our opinion and according to the information and explanations
given to us and on an overall examination, the term loans have been
applied for the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for long-
term investment.
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act, 1956.
19. According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
20. The company has not raised any money by public issue, during the
year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
for RAMANA REDDY & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Regn. No.003246S
PLACE: HYDERABAD.
DATE: 25.09.2014
(CA.RAMANA REDDY A.V.)
PARTNER
Membership No. 024329 |