Auditor Report of ABC India Ltd.
Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of ABC India limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. In conducting 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 thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, 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 on the financial statements.
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, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, 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, we give in the Annexure B, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143(3) of the Act, we report that :
(a) we have sought and 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, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act;
(e) on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting;
(g) with respect to the other matters to be included in the Auditorâs 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 has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses during the year ended March 31, 2018.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of ABC India Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure âBâ to the Independent auditorsâ report
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of ABC India Limited of even date)
(i) In respect of the Companyâs fixed assets :
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and building that have been taken on lease and disclosed as fixed assets in the financial statements, the lease agreements are in the name of the Company.
(ii) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) The Company has not granted any secured/unsecured loan to Companies, Firms or other parties covered in the register maintained under section 189 of the Companies Act 2013. Therefore, the provisions of sub clause (a) (b) and (c) to clause 3 (iii) of Companies (Auditorsâ Report) Order 2016 are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from public. Therefore, the provisions of clause 3 (v) of the Companies (Auditorsâ Report) Order, 2016 are not applicable to the Company.
(vi) Maintenance of cost records has been prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013 and the company has accordingly appointed cost auditor for the same.
(vii) (a) The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employeeâs State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Goods and Service Tax, Cess and any other statutory dues applicable to it with the appropriate authorities. No undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, and on the basis of our examination there are no material disputed dues on account of Sales Tax, Service Tax, Custom Duty, Excise duty, Value Added Tax, Goods and Service Tax and any other statutory dues that have not been deposited with appropriate authorities on account of any dispute.
(viii) In our opinion and as per information and explanations given to us, the Company has not defaulted in repayment of dues to bank and financial institutions and it has not taken any loan from Government and debenture holders.
(ix) In our opinion and according to the information and explanations given to us, the money raised through term loans were applied for the purposes for which they were raised. The Company has not raised any money through initial public offer or further public offering including debt instruments.
(x) In our opinion and according to the information and explanations given to us, no significant fraud by the Company and on the Company by the officers or employees was noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Hence, the provisions of clause 3(xii) of the Companies (Auditorsâ Report) Order, 2016 are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with Section 177 and 188 of the Act where applicable and proper disclosures have been made in the Financial statements as required by the applicable accounting standards.
(xiv) In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, the provisions of clause 3(xiv) of the Companies (Auditorsâ Report) Order, 2016 are not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with the directors or persons connected with the director. Accordingly, the provisions of clause 3 (xiv) of the Companies (Auditorsâ Report) Order, 2016 are not applicable to the Company.
(xvi) In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and hence the provisions of clause 3 (xvi) of the Companies (Auditorsâ Report) Order, 2016 are not applicable to the Company.
For B D S & CO.
(Formerly Bharat D. Sarawgee & Co.)
Chartered Accountants
Firmâs Registration No. : 326264E
(Bharat D. Sarawgee)
Date : the 7th June, 2018 Partner
Place : Kolkata Membership No. 061505
Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
To the Members of ABC India Limited Report on the Financial Statements
We have audited the accompanying financial statements of ABC India Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to 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 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.
Auditorâs 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 Act. 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 the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, 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 on the financial statements.
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 as at March 31, 2016;
(b) in the case of the Statement of Profit and Loss, of the loss for the year ended on that date;
(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 (Auditorâs Report) Order, 2016, (âthe Orderâ) issued by the Central Government of India in terms of sub section (11) of section 143 of the Companies Act, 2013, we give in the Annexure A a statement on the matters specified in Paragraphs 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 sought and 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us.
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditorâs 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 has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note 28.1 to the financial statements.
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.
ANNEXURE A
(Referred to in paragraph 1 on report on other Legal and Regulatory Requirements in our report of even date on Balance Sheet as at March 31, 2016 and Statement of Profit and Loss for the year ended on that date.)
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification 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 verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, all the title deeds of immovable properties are held in the name of the company.
(ii) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) The Company has not granted secured/unsecured loan to Companies, Firms or other parties covered in the register maintained under section 189 of the Companies Act 2013. Therefore, the provisions of sub clause (a) (b) and (c) to clause
(iii) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public.
(vi) Maintenance of cost records has been prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013 and the company has already appointed cost auditor for the same.
(vii) (a) The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employeeâs State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues applicable to it with the appropriate authorities.
However, an undisputed amount of Rs, 6,89,167/- payable in respect of WCT TDS were outstanding as at 31st March, 2016 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us, and on the basis of our examination there are no disputed dues of sale tax or service tax or duty of excise or value added tax pending except the following income tax dues which have not been deposited with appropriate authorities on account of dispute:
|
Assessment Year |
Amount (?) |
Forum |
|
2011-12 |
7,28,300.00 |
Before Assessing Officer |
|
2013-14 |
2,69,75,800.00 |
Commissioner of Income Tax (Appeals)-4 |
(viii) In our opinion and as per information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, bank and it has not taken any loan from Government and debenture holders.
(ix) In our opinion and according to the information and explanations given to us, the money raised through term loans were applied for the purposes for which those are raised. The Company has not raised any money through initial public offer or further public offering (including debt instruments).
(x) To the best of our knowledge and belief and according to the information and explanations given to us, no significant fraud on or by the Company by its officers or employees were noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) According to the information and explanations given to us and based on our examination of the records of the company, the company is not required to be registered under 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of ABC India Limited (âthe Companyâ) as of 31st March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has generally, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were reasonably operating effectively as at 31st March
2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For AGARWAL KEJRIWAL & CO.
Chartered Accountants
Firmâs Registration No. : 316112E
(M. Agarwal)
Place : Kolkata Partner
Date : 30th May, 2016 Membership No. 052474
Mar 31, 2015
We have audited the accompanying financial statements of ABC India
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss, the 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
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 and cash
flows 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.
Auditor's 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 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 internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 on the financial
statements.
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 as at March 31, 2015;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date.
(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, 2015,("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the Companies Act, 2013, we give in the
annexure a statement on the matters specified in Paragraphs 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 sought and 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 and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from the branches not visited by
us.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors are disqualified as on 31st March,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act.
(f) 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 has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
28.1 to the financial statements.
ii) The Company did not have any Long term Contracts including
derivative contracts for which there were any material forseeable
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 on report on other Legal and Regulatory
Requirements in our report of even date on Balance Sheet as at March
31, 2015 and Statement of Profit and Loss for the year ended on that
date.)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification 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 verification.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The Company has not granted secured/unsecured loan to
Companies, Firms or other parties covered in the register maintained
under section 189 of the Companies Act 2013. Therefore, the provisions
of sub clause(b) and (c) to clause (iii) are not applicable to the
Company.
(iv) In our opinion and according to the information and explanations
given to us, there exist an adequate internal control system
commensurate with the size of the company and the nature of its
business for purchases of inventory, fixed assets and with regard to
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system of the Company.
(v) In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India & the provisions of section 73 to 76 of the
Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules,
2014. Since the Company has not defaulted in repayment of deposits,
compliance of section 73(4) or obtaining any order from the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
court or any other Tribunal, does not arise.
(vi) Maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub section (1) of section 148 of the
Companies Act, 2013 and the company has already appointed cost auditor
for the same.
(vii) (a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Employee's State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Value Added Tax, Cess and any other statutory dues applicable to
it with the appropriate authorities. No undisputed amounts payable in
respect of aforesaid dues were outstanding as at 31st March, 2015 for a
period of more than six months from the date they become payable.
(b) According to the information and explanations given to us, there
are no material dues on account of Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise duty, Value Added Tax, Cess and any
other statutory dues that have not been deposited with appropriate
authorities on account of any dispute.
(c) No amount is required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder and hence
this clause is not applicable.
(viii) The Company has no accumulated losses at the end of the
financial year and it has not incurred cash loss in such financial year
and in the immediately preceding financial year.
(ix) In our opinion and as per information and explanations given to
us, the Company has not defaulted in repayment of dues to financial
institutions or banks and it has no debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the provisions of clause 3(x) of the Companies (Auditors'
Report) Order, 2015 are not applicable to the company, as the company
has not given any guarantee for loans taken by others from bank or
financial institutions.
(xi) According to information and explanations given to us, term loans
were applied for the purpose for which they were obtained
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no significant fraud on or by
the Company was noticed or reported during the year.
For AGARWAL KEJRIWAL & CO.
Chartered Accountants
Firm's Registration No. 316112E
(M. Agarwal)
Place : Kolkata Partner
Date : 26th May, 2015 Membership No. : 52474
Mar 31, 2014
We have audited the accompanying financial statements of ABC 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, which we have signed under
reference to this report.
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 General Circular No.
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs
in respect of the 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.
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 and other applicable authoritative
pronouncements 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 and not for the
purpose of the expressing an opinion on the effectiveness of the
entity''s internal control. 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 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 that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended by the Companies (Auditor''s Report) (Amendment)
Order, 2004 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 and proper returns adequate for the purpose of our audit have
been received from branches not visited by us;
(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 and with the returns received from branches not visited by us;
(d) in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub- section (3C) of section 211 of the Companies Act, 1956;
(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.
ANNEXURE
(Referred to in paragraph 1 on report on other Legal and Regulatory
Requirements in our report of even date on Balance Sheet as at March
31, 2014 and Statement of Profit and Loss for the year ended on that
date.)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification 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 verification.
(c) During the year, the Company has disposed off certain fixed assets,
which in our opinion and according to the information and explanations
given to us are not a substantial portion of its Fixed Assets, and as
such the disposal of such fixed assets has not affected the going
concern status of the Company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(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 Act. Therefore, the provisions of sub
clause(b) to (d) to clause (iii) are not applicable to the Company.
(e) The Company has not taken any loan, secured or unsecured, from
Companies, Firms or other parties covered in the register maintained
under section 301 of the Act. Therefore the provisions of sub clause
(f) and (g) of clause (iii) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there exist an adequate internal control system
commensurate with the size of the company and the nature of its
business for purchases of inventory, fixed assets and with regard to
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system of the Company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered in the register maintained under that section have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of the five lakhs
rupees in the financial year in respect of any party; have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India & the provisions of section 58A of the Companies
Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975. Since
the Company has not defaulted in repayment of deposits, compliance of
section 58AA or obtaining any order from the National Company Law
Tribunal does not arise.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub section (1) of section 209
of the Companies Act, 1956.
(ix) (a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investors Education and
Protection Fund, Employee''s State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it with the appropriate authorities. No
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date they become payable.
(b) According to the information and explanations given to us, there
are no material dues on account of Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise duty, Cess and any other statutory
dues that have not been deposited with appropriate authorities on
account of any dispute.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash loss in such financial year and in
the immediately preceding financial year.
(xi) In our opinion and as per information and explanations given to
us, the Company has not defaulted in repayment of dues to financial
institutions or banks and it has no debenture holders.
(xii) In our opinion and as per information and explanations given to
us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) As per information and explanations given to us the Company is
not a chit fund or a Nidhi or a mutual benefit fund/society.
Therefore, the provisions of clause (xiii) are not applicable to the
Company.
(xiv) As per information and explanations given to us, the Company is
not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause (xiv) are not
applicable to the Company.
(xv) As per information and explanations given to us, the Company has
not given any guarantee for loan or other facilities taken by others
from banks or financial institutions.
(xvi) According to information and explanations given to us term loans
were applied for the purpose for which they were obtained
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis have not been used for long-term investment.
(xviii) 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 Companies Act,1956.
(xix) The Company had no outstanding debentures in the year.
(xx) The Company has not raised any money by public issues.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no significant fraud on or by
the Company was noticed or reported during the year.
For AGARWAL KEJRIWAL & CO.
Chartered Accountants
Firm''s Registration No. 316112E
M. Agarwal
Place : Kolkata Partner
Date : 29th May, 2014 Membership No. : 52474
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of ABC India
Limited ("the "Company"), which comprise the Balance Sheet as at March
31, 2013, 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 March 31,2013;
(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 that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended 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 and proper returns adequate for the purpose of our audit have
been received from branches not visited by us;
(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 and with the returns received from branches not visited by us;
(d) in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub- section (3C) of section 211 of the Companies Act, 1956;
(e) on the basis of written representations received from the directors
as on March 31,2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE
Re: ABC INDIA LIMITED
(Referred to in paragraph 1 on report on other Legal and Regulatory
Requirements in our report of even date on Balance Sheet as at March
31,2013 and Statement of Profit and Loss for the year ended on that
date.)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification 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 verification.
(c) During the year, the Company has disposed off certain fixed assets,
which in our opinion and according to the information and explanations
given to us are not a substantial portion of its Fixed Assets, and as
such the disposal of such fixed assets has not affected the going
concern status of the Company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(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 Act. Therefore, the provisions of sub
clause(b) to (d) to clause (iii) are not applicable to the Company.
(e) The Company has not taken any loan, secured or unsecured, from
Companies, Firms or other parties covered in the register maintained
under section 301 of the Act. Therefore the provisions of sub clause
(f) and (g) of clause (iii) are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there exist an adequate internal control system
commensurate with the size of the company and the nature of its
business for purchases of inventory, fixed assets and with regard to
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system of the Company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered in the register maintained under that section have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of the five lakhs
rupees in the financial year in respect of any party; have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India & the provisions of section 58A of the Companies
Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975. Since
the Company has not defaulted in repayment of deposits, compliance of
section 58AA or obtaining any order from the National Company Law
Tribunal does not arise.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub section (1) of section 209
of the Companies Act, 1956.
(ix) (a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investors Education and
Protection Fund, Employee''s State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it with the appropriate authorities. No
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2013 for a period of more than six months
from the date they become payable.
(b) According to the information and explanations given to us, there
are no material dues on account of Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise duty, Cess and any other statutory
dues that have not been deposited with appropriate authorities on
account of any dispute.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash loss in such financial year and in
the immediately preceding financial year.
(xi) In our opinion and as per information and explanations given to
us, the Company has not defaulted in repayment of dues to financial
institutions or banks and it has no debenture holders.
(xii) In our opinion and as per information and explanations given to
us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) As per information and explanations given to us the Company is
not a chit fund or a Nidhi or a mutual benefit fund/society.
Therefore, the provisions of clause (xiii) are not applicable to the
Company.
(xiv) As per information and explanations given to us, the Company is
not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause (xiv) are not
applicable to the Company.
(xv) In our opinion terms and conditions on which the Company has given
guarantees for loan or other facilities taken by others from banks or
financial institutions, are prima-facie not prejudicial to the interest
of the Company.
(xvi) According to information and explanations given to us term loans
were applied for the purpose for which they were obtained
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis have not been used for long-term investment.
(xviii) 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 Companies Act,1956.
(xix) The Company had no outstanding debentures in the year.
(xx) The Company has not raised any money by public issues.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no significant fraud on or by
the Company was noticed or reported during the year.
For AGARWAL KEJRIWAL & CO.
Chartered Accountants
Firm''s Registration No. 316112E
M. Agarwal
Place: Kolkata Partner
Date : 25th May, 2013 Membership No. 52474
Mar 31, 2012
1. We report that we have audited the attached Balance Sheet of ABC
INDIA LIMITED as at 31st March, 2012, and the Statement of Profit and
Loss and also the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company's management. Our responsibility' is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provided a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 as
amended, and issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, (the*Act)
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 audit we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order so far as the same are applicable, on the facts and
circumstances to the Company.
4. Further to our comments in the Annexure referred to above, we
report that: .
(i) 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.
(ii) 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, and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(iii) The Balance Sheet and Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet,-Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Act.
(v) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information,and according to
the explanations given to us, the said accounts give the information
required by the Companies Act,1956, 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 31 st March, 2012;
(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 that date.
ANNEXURE .
Re: ABC INDIA LIMITED
Referred to in paragraph 3 of our report of even date.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification 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 verification.
(c) During the year, the Company has replaced a portion of its Fixed
Asset in the regular course business and disposed off one of its non
productive office premises and a vacant plot. In our opinion and
according to the information and explanations given to us sale of such
assets has not affected the going concern status of the Company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between the physical stocks
and the book records.
(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 Act. Therefore, the provisions of sub
clause(b) to (d) to clause (iii) are not applicable to the Company.
(b) The Company has not taken any loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Therefore the provisions of sub clause
(f) and (g) of clause (iii) are not applicable to the company.
(iv) 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 for
purchases of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered in the register maintained under that section have been so
entered.
(b) No transaction exceeding the value of rupees five lacs have been
made in pursuance of contracts referred to in section 301 of the
Companies Act 1956.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public.
Therefore the provisions of clause (vi) are not applicable to the
company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub section (1) of section 209
of the Companies Act, 1956.
(ix) (a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Employee's State Insurance,
Investors Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it with the appropriate authorities. No
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2011 for a period of more than six months
from the date they become payable.
(b) According to the information and explanations given to us, there
are no material dues on account of Sales Tax, Wealth Tax, Service
Tax,Custom Duty, Excise duty,Cess and any other statutory dues that
have not been deposited with appropriate authorities on account of any
dispute.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash loss in such financial year and in
the immediately preceeding financial year.
(xi) In our opinion and as per information and explanations given to
us, the Company has not defaulted in repayment of dues to financial
institutions or banks and it has no debenture holders.
(xii) In our opinion and as per information and explanations-given to
us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) As per information and explanations given to us the Company is
not a chit fund or a Nidhi or a mutual benefit fund/society.
Therefore, the provisions of clause (xiii) are not applicable to the
Company.
(xiv) As per information and explanations given to us, the Company is
not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause (xiv) are not
applicable to the Company.
(xv) In our opinion terms and conditions on which the Company has given
guarantees for loan or other facilities taken by others from banks or
financial institutions, are prima-facie not prejudicial to the interest
of the Company.
(xvi) According to information and explanations given to us term loans
were applied for the purpose for which they were obtained
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis have not been used for long-term investment.
(xviii) 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 Companies Act ,1956.
(xix) The Company had no outstanding debentures in the year.
(xx) The Company has not raised any money by public issues.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no significant fraud on or by
the Company was noticed or reported during the year.
For AGARWAL KEJRIWAL & CO.
Chartered Accountants
Firm's Registration No. 316112E
M. Agarwal
Place: Kolkata Partner
Date : 28th May, 2012 Membership No. 52474
Mar 31, 2010
1. We report that we have audited the attached Balance Sheet of ABC
INDIA LIMITED as at 31 st March, 2010, and the Profit and Loss Account
and also the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provided a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, (the Act) 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 audit we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order so far as
the same are applicable, on the facts and circumstances to the Company.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) 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.
(ii) 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, and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(iii) The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act.
(v) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2010 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act,1956, 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, 2010;
(b) in the case of the Profit & Loss Account, 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 that date.
ANNEXURE
(Referred to in paragraph 3 of our report of even date on Balance Sheet
as at 31st March, 2010 and Profit & Loss Account for the year ended on
that date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification 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 verification.
(c) During the year, the Company has replaced a portion of its Fixed
Asset in the regular course of business and disposed off one of its non
productive residential flat. In our opinion and according to the
information and explanations given to us sale of such assets has not
affected the going concern status of the Company.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on verification between the physical stocks
and the book records.
(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 Act. Therefore, the provisions of sub clause
(b) to (d) to clause (iii) are not applicable to the Company.
(b) The Company has not taken any loan, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Therefore the provisions of sub clause
(f) and (g) of clause (iii) are not applicable to the company.
(iv) 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 for
purchases of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 that need to be
entered in the register maintained under that section have been so
entered.
(b) No transaction exceeding the value of rupees five lacs have been
made in pursuance of contracts referred to in Section 301 of the
Companies Act 1956.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public.
Therefore the provisions of clause (vi) are not applicable to the
company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub section (1) of Section 209
of the Companies Act, 1956.
(ix) (a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Employees State Insurance,
Investors Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues applicable to it with the appropriate authorities. No
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March, 2010 for a period of more than six months
from the date they become payable.
(b) According to the information and explanations given to us, there
are no material dues on account ot Income Tax,Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise duty, Cess and any other statutory
dues that have not been deposited with appropriate authorities-on
account of any dispute. However according to the information and
explanations given to us, the following dues of Income Tax have not
been deposited by the company on account of disputes :
Name of the Name of the Amount Period to which Forum Where
Statute Dues (Rs.) the amount
relates Dispute is
pending
Income Tax Income tax 59224/- Assessment year CIT(Appeals)
XI /
Act,1961
2007-08 KOLKATA
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash loss in such financial year and in
the immediately preceeding financial year.
(xi) In our opinion and as per information and explanations given to
us, the Company has not defaulted in repayment of dues to financial
institutions or banks and it has no debenture holders.
(xii) In our opinion and as per information and explanations given to
us, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) As per information and explanations given to us the Company is
not a chit fund or a Nidhi or a mutual benefit fund/society.
Therefore, the provisions of clause (xiii) are not applicable to the
Company.
(xiv) As per information and explanations given to us, the Company is
not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause (xiv) are not
applicable to the Company.
(xv) In our opinion terms and conditions on which the Company has given
guarantees for loan or other facilities taken by others from banks or
financial institutions, are prima-facie not prejudicial to the interest
of the Company.
(xvi) According to information and explanations given to us term loans
were applied for the purpose for which they were obtained
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis have not been used for long-term investment.
(xviii) 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 Companies Act, 1956.
(xix) The Company had no outstanding debentures in the year.
(xx) The Company has not raised any money by public issues.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no significant fraud on or by
the Company was noticed or reported during the year.
For AGARWAL KEJRIWAL & CO.
Firm Reg. No. 316112E
Chartered Accountants
M. Agarwal
Place: Kolkata Partner
Date : the 27th day of May, 2010 Membership No. 52474
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