D.N.Adhikari Associates ICAN No: 7256 PAN: 301761268 Registered Audtior Tarakeshwor-10, Kathmandu REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF JAMUNA ALAICHI UTPADAN FARM We have audited the accompanying financial statements of SAMUNA ALAICHI UTPADAN FARM of 16th July 2018, (Corresponding to 32»! Ashad 2075 | and related Profit and Loss Account, Cash Flow Statement and Statement of Changts in Equity of the Company for the period ended on that date annexed thereto ard a ‘Summary of significant Accounting Policies and other explanatory notes. Management’s Responsibility for the financial statements ‘Management is responsible for the preparation and fair presentation of these financkl statements in accordance with Nepal Standards on Auditing. This responsibility includes designing, implementing and maintaining internal control relevant to tht preparation and fair presentation of the financial statements that are free from the material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies and, making accounting estimates that are reasonable in the circumstances. 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 Nepal Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance 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 our professional judgment, including the assessment of risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we considered internal controls relevant to the entity'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 entity’s internal control. An audit also includes evaluating the appropriateness of the 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 As per the requirement of the Companies Act 2063 we further report that: a) b) ¢) @) e) 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. In our opinion the Company has kept proper books of account as required by law so far, as appears from our examinations of those Books. The Balance Sheet are in agreement with the books of account. In our opinion and to the best of our information and according to the explanation given to us, the said Balance Sheet and Profit and Loss Account, read together with the notes forming part of the accounts give the information required by the Companies Act in the manner so required and give a true and fair view: i) In the case of Balance Sheet, of the state of affairs of the Company as at 32% Ashad, 2075; and ii) In the case of the Income Statement and Cash Flow Statement, Profit and Cash inflow and outflow of Company for the year ended on that. Neither we have come across any of the information about the misappropriation of fund by the directors or any of the representative or company's staffs during the course of our audit nor have we received any such information from the management. Dina Nath Adhikari Registered Auditor Date: Place: KathmanduJamuna Alaichi Utpadan Farm Dolakha, Nepal INCOME STATEMENT FOR THE YEAR ENDED S2nd ASHAD 2075 A) INCOME, Income from business un 1,125,000.00 1,125,000.00 Other Income ‘Other Income TOTAL 7735,000.00_ 1B) EXPENDITURE Direct Expenses 7 401,000.00, 401,000.00 Indirect Expenses ‘Administrative Expenses 2 117,000.00 113,000.00 Depreciation 4 147,500.00 110,000.00 Interest Expenses 150,000.00, 414,500.00 [323,000.00 TOTAL ——="wiss0000, | 587,000.00 NET PROFIT/(LOSS) BEFORE TAX & PROVISIONS 402,250.00 PROVISION FOR BONUS NET PROFIT /(LOSS) BEFORE TAX 402,250.00 PROVISION FOR INCOME TAX & PENALTIES 116,000.00 386,250.00 PROFIT/(LOSS) AFTER TAX [REVERSAL OF DEFFERED TAX PROFIT (LOSS) UPTO PREVIOUS YEAR ACCUMULATED PROFIT AFTER ADJUSTEMENT DIVIDEND PAID ACCUMULATED PROFIT/(LOSS) CARRIED TO BS Significant Accounting Policies & Notes on Accounts, 10 “The schedules refered to above from an integral part of financial Statements [As per our report on even date attached Manager ‘Mem ICAN No: 7256 Place: Kathmandu Accountant Date: