D & H INDIA LIMITED,
Report on the Financial Statements
We have audited the accompanying financial statements of D & H India 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") 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. 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.
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.
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
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, the Statement of Profit and Loss, and the Cash
Flow Statement comply with Accounting Standards notified under 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;
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.
|Place : Indore
||For ABN & Co.
|Date : 30 May, 2014
||FRN : 004447C
||M. No. : 071232
ANNEXURE TO THE AUDITORS` REPORT
(Referred to in paragraph 1 of our report of even date on the accounts for the year
ended 31" March 2014 of D & H India Limited)
I a. The proper records showing full particulars including quantitative details and
situation of the fixed assets are being maintained by the company.
b. All the fixed assets have been physically verified by the management during the
year, which in our opinion is reasonable having regard to the size of the company and the
nature of its assets. As per information and explanations given to us, no material
discrepancies were noticed.
c. In our opinion and according to the information and explanations given to us, any
substantial part of fixed assets has not been disposed off by the company during the year
and the going concern status of the company is not affected.
II a. The inventory of the company has 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 inventory followed by the management are reasonable
& adequate, in relation to the size of the company & 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 as explained to us, the discrepancies
noticed on physical verification of inventory, as compared to book records were not
material and have been properly dealt with in the books of account.
III a. The company has not granted any loan secured or unsecured to companies, firms or
other parties covered in the register maintained under section 301 of the Companies Act,
1956. Hence clause (a) to (d) is not applicable to the company.
e. The company has taken unsecured loan from two party covered in the register
maintained under section 301 and, the maximum amount involved during the year was
Rs.16,50,000/- and year-end balance of loan was Rs. 49,23,707/-.
f. The rate of interest and other terms and conditions of unsecured loans taken by the
company, are prima-facie not prejudicial to the interest of the company.
g. The unsecured loan taken from parties has not been squared up during the year.
IV In our opinion and according to information & explanations given to us, there is
adequate internal control system commensurate with the size of the company & nature of
its business with regard to the purchase of inventory & fixed assets & for the
sale of goods. Further on the basis of our examination of the books and records of the
company, carried out in accordance with the generally accepted auditing practices in
India, we have neither come across nor have been informed of any instances of major
weaknesses in the internal control system.
V a. Based on audit procedures applied by us, to the best of our knowledge & belief
and according to the information & explanations given to us. We are of the opinion
that the particulars of contracts or arrangements referred to in section 301 of the Act
have been entered in the register required to be maintained under that section. b. In our
opinion and according to information & explanations given to us, transactions made in
pursuance of contracts or arrangement entered in the register maintained under section 301
of the Companies Act, 1956 have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time where such market prices are available.
VI In our opinion and according to the information & explanations given to us, the
company has not accepted deposit from public, within the meaning of provisions of section
58A & 58AA of Companies Act, 1956 & Rules framed there under.
VII In our opinion, the company has an internal audit system commensurate with the size
and nature of its business.
VIII We have broadly reviewed the books of accounts maintained by the company pursuant
to the rules made by the Central Government for the maintenance of cost records under
section 209(1) (d) of the Companies Act, 1956, and Companies (Cost accounting records
Rule), 2011, and are of the opinion that prima-facie, the prescribed accounts and records
have been made and maintained. We have not, however, made a detailed examination of
records with a view to determine whether they are accurate or complete.
IX a. According to the records of the company examined by us and the information &
explanations given to us, in our opinion
the company is, generally regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investors Education & Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, service tax Excise Duty, Wealth Tax,
Custom Duty, cess and other statutory dues applicable to it. No undisputed amount payable
as at 31.03.2014 for a period of more than 6 month from the date they became payable. b.
According to records of the company examined by us and the information & explanations
given to us, there are following statutory dues which have not been deposited on account
|Nature of Statute
||Nature of the dues
||Period to which the amount relates
||Amount in Rs.
||Forum where the dispute is pending
||D. Comm. of App.
||Add. Comm. App.
||D. Comm. of App.
||D. Comm. of App.
X The Company does not have accumulated losses at the end of the financial year and it
has not incurred any cash losses in the current year and immediately preceding financial
XI Based on our audit procedure & on the basis of information & explanations
given by the management, we are of the opinion that the company has not defaulted in
payment of dues to the financial institution or bank during the year. The company does not
have any borrowing by way of debentures.
XII The Company has not granted any loans & advances on the basis of security by
way of pledge of shares, debentures and other securities.
XIII In our opinion and according to the information & explanations given to us,
the company is not a chit fund and nidhi / mutual benefit fund / society. Therefore,
provisions of this clause is not applicable to the company.
XIV Based on our examination of records and the information & explanations given to
us, the company has maintained proper records of the transactions & contracts in
respect of dealing & trading in shares, securities, debentures and other investments
and timely entries have been made. All the investments have been held by the company in
its own name.
XV According to the information & explanations given to us, the company has not
given any guarantee for loans taken by others from the banks and financial institutions
during the year.
XVI According to the records of the company, examined by us and the information &
explanations given to us, the company has raised new term loan during the year. The term
loan taken have been applied for the purposes for which they were raised.
XVII According to the information & explanations given to us and on the basis of an
overall examination of balance sheet of the company, in our opinion no funds raised by
company on short term basis, have been used for long term investments.
XVIII During the year company has not made any preferential allotment to parties and
companies covered under register maintained under section 301 of the Companies Act, 1956.
XIX As explained to us, during the period covered by our audit, the company has not
issued any debentures.
XX The company has not raised any money through public issue during the year.
XXI According to the information & explanation given to us, no fraud on or by the
company has been noticed or reported during the course of our audit.
||For ABN & Co.
||FRN : 004447C
|Place : Indore
|Date : 30 May, 2014
||M. No. : 071232