Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of The Central Provinces Railways Company Limited (âthe Companyâ), which comprise the Balance Sheet as at 31/03/2018, the Statement of Profit and Loss, for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The 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 and financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 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, of the state of affairs of the Company as at 31/03/2018, and its Loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraph 3 and 4 of the order.
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 and the cash flows statement dealt with by this Report are in agreement with the books of account.
(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 31/03/2018 taken on record by the Board of Directors, none of the directors is disqualified as 31/03/2018 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 Bâ; and
(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 is having pending financial litigations with CENTRAL RAILWAY the same has been reported in note no.14- Contingent Liabilities of financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. The Company does not required to be transferred fund to the Investor Education and Protection Fund.
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31st March 2018, we report that:
(i) (a) The Company has no proper records for Fixed Capital Expenditure on Railway Construction account as shown in schedule No. 5 annexed to Balance Sheet which is in possession and control of the Central Railway.
(b) Physical verification could not be conducted by the management of fixed Assets under railway construction account since the assets are in possession and control of the Central Railway and hence discrepancies, if any are not presently ascertainable.
(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.
(ii) (a) As explained to us, shares are held as stock in trade which treated as inventories which have been physically verified during the year by the management at reasonable intervals.
(b) Procedures for physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.
(c) Company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification.
(iii) In our opinion and according to the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured to/ from the companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). Hence, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
(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) The Company is not required to maintain cost records pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (l) of section 148 of the Companies Act.
(vii) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company is not required to deposit undisputed statutory dues including Provident Fund, Employees State Insurance, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues except Income-Tax with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
According to the information and explanations given to us, no undisputed amounts payable in respect statutory dues were in arrears as at 31st March 2018 for a period of more than six months from the date they became payable.
(viii) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, Clause 3(viii) of the Order is not applicable.
(ix) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(x) 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, Clause 3(xii) of the Order is not applicable.
(xiii) The Company has not entered into any transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act.
(xiv) According to the information and explanations give 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, Clause 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of The Central Provinces Railways Company Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s 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 company''s 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 company''s 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 company''s 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 31st 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.
For S B JAJOO & CO.
chartered accountants
FRN: 125915W
Sd/-
Santosh B Jajoo
Proprietor
Membership No: 118622
Place: Mumbai
Date: 28.05.2018
Mar 31, 2016
TO, THE MEMBERS OF
THE CENTRAL PROVINCES RAILWAYS COMPANY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of The Central Provinces Railways Company Limited (âthe Companyâ), which comprise the Balance Sheet as at 31/03/2016, the Statement of Profit and Loss, for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The 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 and financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 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, of the state of affairs of the Company as at 31/03/2016, and its Loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraph 3 and 4 of the order.
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, and dealt with by this Report are in agreement with the books of account.
(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 31/03/2016 taken on record by the Board of Directors, none of the directors is disqualified as 31/03/2016 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; and
(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 did not have any pending litigations on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. The Company does not required to be transferred fund to the Investor Education and Protection Fund.
Annexure - A to the Auditors'' Report
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31st March 2016, we report that:
(i) (a) The Company has No proper records for Fixed Capital Expenditure on Railway Construction account as shown in schedule No. 5 annexed to Balance Sheet which is in possession and control of the Central Railway.
(b) Physical verification could not be conducted by the management of fixed Assets under railway construction account since the assets are in possession and control of the Central Railway and hence discrepancies, if any are not presently ascertainable.
(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.
(ii) (a) As explained to us, shares are held as stock in trade which treated as inventories which have been physically verified during the year by the management at reasonable intervals.
(b) Procedures for physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.
(c) Company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification.
(iii) In our opinion and according to the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured to/ from the companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (''the Actâ). Hence, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
(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) The Company is not required to maintain cost records pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (l) of section 148 of the Companies Act.
(vii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employeesâ state insurance and duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31st March 2016 for a period of more than six months from the date they became payable.
(viii) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, Clause 3(viii) of the Order is not applicable.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, Clause 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) 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, Clause 3(xii) of the Order is not applicable.
(xiii) The Company has not entered into any transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act.
(xiv) According to the information and explanations give 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, Clause 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
Annexure - B to the Auditors'' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of The Central Provinces Railways Company 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.
Management''s 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 (''ICAI''). 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s 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 company''s 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 company''s 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 company''s 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 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 S B JAJOO & CO.
chartered accountants
FRN: 125915W
Sd/-
Santosh B Jajoo
Proprietor
Membership No: 118622
Place: Mumbai
Date: 28.05.2016
Mar 31, 2015
We have audited the accompanying financial statements of The Central
Provinces Railways Company Limited ("the Company"), which comprise the
Balance Sheet as at 31/03/2015, the Statement of Profit and Loss, for
the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is 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 and financial performance of the
Company in accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of 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
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 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. 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, of the state of affairs of the Company as
at 31/03/2015, and its Loss and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
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 Act, we give in the annexure a
statement on the matters specified in paragraph 3and 4 of the order, to
the extent applicable.
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, and dealt with
by this Report are in agreement with the books of account.
(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 31/03/2015 taken on record by the Board of Directors,
none of the directors is disqualified as 31/03/2015 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 did not have any pending litigations on its financial
position in its financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. The Company does not required to be transferred fund to the
Investor Education and Protection Fund.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(1) In Respect of Fixed Assets
(a) No records are available for Fixed Capital Expenditure on Railway
Construction account as shown in schedule No. 5 annexed to Balance
Sheet which is in possession and control of the Central Railway.
(b) Physical verification could not be conducted by the management of
fixed Assests under railway construction account since the assets are
in possession and control of the Central Railway and hence
discrepancies, if any are not presently ascertainable.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
(2) In Respect of Inventory
(a) As explained to us, shares are held as stock in trade which treated
as inventories which have been physically verified during the year by
the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
(3) Loans and advances to parties covered under section 189
In our opinion and according to the information and explanations given
to us, the Company has neither granted nor taken any loans, secured or
unsecured to/ from the companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act, 2013;
The company not granted or taken any loans from parties covered in the
register maintained under Section 189 hence clause 3 (a) and 3 (b) is
not applicable.
(4) Internal Control in reference to Purchase of Inventory and Fixed
Assets and whether there is continue failure of Internal control
In our opinion and according to the information and explanations given
to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed
(5) Rules followed while accepting Deposits
No deposits within the meaning of Sections 73 to 76 or any other
relevant provision of the Act and rules farmed thereunder have been
accepted by the Company.
(6) Maintenance of cost records
The Company is not required to maintain cost records pursuant to the
Rules made by the Central Government for the maintenance of cost
records under sub-section (l) of section 148 of the Companies Act.
(7) According to the information and explanations given to us in
respect of statutory dues
(a) According to the records of the company, undisputed statutory dues
including Income-tax & other material statutory dues to the extent
applicable and any other statutory dues have generally been regularly
deposited with the appropriate authorities. According to the
information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2015 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax & other material statutory
dues which have not been deposited on account of any disputes.
(c) The Company does not required to transfer fund to the Investor
Education and Protection Fund.
(8) Company which has been registered for a period less than five years
and accumulated losses are more than 50% of Net worth, Reporting of
cash Losses
The Company is a potentially Sick Company under clause (o) of Section 3
of Sick Industrial Companies (Special Provisions) Act, 1985 since the
accumulated losses of the Company exceed 50% of the Net worth of the
Company. Further the company has incurred cash losses in current year &
immediately preceding year.
(9) Default in Repayment of Loans taken from Bank or Financial
Institutions
The company has not taken any loans from Bank or Financial Institutions
(10) Terms for Loans and Advances from Banks or Financial Institutions
prejudicial to the interest of the company
The company has not taken any loans from Bank or Financial
Institutions, thus this clauses is not applicable.
(11) Application versus purpose of Term Loan.
During the year, the Company has not taken any term loans..
(12) Reporting of Fraud During the Year Nature and Amount
According to the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the year.
For S B Jajoo & Co.
chartered accountants
FRN: 125915W
Sd/-
Santosh B Jajoo
Proprietor
Membership No: 118622
Place: Mumbai
Date: 28.05.2015
Mar 31, 2014
1. We have audited the accompanying financial statements of The
Central Provinces Railway Company Limited , which comprise the Balance
Sheet as at 31 March, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company
in accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013 and in accordance with the accounting principles generally
accepted in India. 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.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. Subject to our remark in para 7 below, in our opinion and to the
best of our information and according to the explanations given to us,
the financial statements give the information required by the Act in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014.
(b) In the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date, and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Other Matter
7. The Company has, as a matter of prudence not recognized income
accrued from C e n t r a l Railways for the period 1st April 2013 to
31st March 2014 amounting to Rs 738,972 /- on the ground that the same
has been adjusted by the Central Railways against capital expenditure
claimed to have been incurred by them. No provision has been made for
this liability nor has the assets been recognized in the f i n a n c i
a l statements on the ground that the company has disowned the entire
liability. (Refer Note 19 (ii) (c)).
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
9. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
The Annexure to Independent Auditor''s Report
(Referred to in paragraph 1 under "Report on Other Legal and Regulatory
Requirements" section of our report of even date)
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) No records are available for Fixed Capital Expenditure on
Railway Construction account as shown in schedule No. 5 annexed to
Balance Sheet which is in possession and control of the Central
Railway.
(b) Physical verification could not be conducted by the management of
fixed Assests under railway construction account since the assets are
in possession and control of the Central Railway and hence
discrepancies, if any are not presently ascertainable.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, shares are held as stock in trade which
treated as inventories which have been physically verified during the
year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses 3
(b), 3(c) and 3 (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
clauses 3 (f) & 3 (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, there were no
contracts or arrangements referred to in section 301 of the Act, 1956.
Hence Clause (b) of 5 of the said order is not applicable.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company did not have any internal audit system commensurate with its
size and the nature of its business.
8. As per information & explanation given by the management, the
company was not required to maintain cost records has been prescribed
by the Central Government under clause (d) of sub-section (1) of
section 209 of the Act, 1956.
9. (a) According to the records of the company, undisputed statutory
dues including Income-tax & other material statutory dues to the extent
applicable and any other statutory dues have generally been regularly
deposited with the appropriate authorities. According to the
information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2014 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax & other material statutory
dues which have not been deposited on account of any disputes.
10. The Company is a potentially Sick Company under clause (o) of
Section 3 of Sick Industrial Companies (Special Provisions) Act, 1985
since the accumulated losses of the Company exceed 50% of the Net worth
of the Company. Further the company has incurred cash losses in current
year & immediately preceding year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the 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.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is trading in Shares. Proper records & timely entries have been
maintained.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For S.B.JAJOO & CO,
Chartered Accountants.
(Reg.No.125915W)
Sd/-
(Santosh .B. Jajoo)
Proprietor
Membership No.118622
Place: Mumbai
Date: 29.05.2014
Mar 31, 2012
1 We have audited (he attached Balance Sheet of The Central Provinces
Railways Company Limited as at 31st March, 2012 and also Profit and
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the
responsibility of the company management Our responsibility is to
express an opinion on these financial statements based on our audit
2 We conducted our audit in accordance with auditing standards generaly
accepted in India. These 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 amount and
disclosures in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management as well as evaluating the overal financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (Audit Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 and on the basis of such check of books and records
of the company, as we considered appropriate, we enclose in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
(he said order to the extent applicable to the company.
4 The Company has, as a matter of prudence not recognised income
accrued from Railways for the period 1st April 2011 to 31st March 2012
amounting to Rs.25,l7,886.04 ( Rs.20,76,071.25) on the ground that the
same has been adjusted by the Central Railways against capital
expenditure of Rs. 2,37,00,000 /- approx. daimecMo have been incurred
by them. No provision has been made for this liability nor has the
assets been recognised in the financial statements on the ground that
the company has disowned the entire (ability (Refer Note 1 ).
5 Attention is invited to note 1A regarding non provision of interest
in respect of interest bearing loan granted to a company. We are unable
to express our opinion on the readability of Rs.20,00,000/- and
interest thereon.
6 Further to our comments in the Annexure referred to above, we report
that
a) We have obtained an 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 it appears from our examination of these
books;
- c) The Balance Sheet, Profit & Loss account and Cash Flow statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet and Profit & Loss account referred
to in this report comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act 1956 to the extent
applicable to this Company;
e) On the basis of the written representations received from directors
of the compa-ny, and taken on record by the Board Of Directors, we
report that no director is disqualified as on March 31, 2012 from being
appointed as a oTrector under clause (g) of sub-section (1) of Section
274 of the Companies Act 1956;
0 During the year the company has transferred the balance between many
party accounts without any documentary evidence. This, coupled with
non-availability of confirmation from the parties for their year-end
balances, we are unable to vouch for the correctness of the entries
made in these parties accounts accounts and consequently unable to
express any opinion about the correctness of the year end balances of
these parties.
g) We have not been able to verify the Register to be maintained u/s
301 of the Companies Act, 1956 as the same was not furnished to us.
Hence we are unable to express any opinion on the same and the various
clauses in the annexure to this report
h) We have not been able to verify some of the bank balances with the
Sank statements, due to unavailability of the bank statements.
7 Subject to our remark in para 4, 5 & 6 above, in our opinion and to
the best of our information and according to the explanations given to
us, the said Balance Sheet and Profit & toss account read together with
the notes forming part thereof, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in confirmity with the accounting principles generally accepted m
India;
i) In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March 2012;
ii) In so far as it relates to the Profit & Loss Account, of the loss
of the Company for the year ended on that date;
AND
ii) In case of Cash Flow statement, of the cash flows of the company
for the year ended on that date;
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN OUR REPORT OF EVEN DATE
of The Central Provinces Railways Company Limited for the year ended on
31st March-2012
1 (a)No records are available for Fixed Capital expenditure on Railway
construction account as shown in Schedule No.3 annexed to Balance Sheet
which ae in possession and control of the Central Railway.
(b) Physical verification could not be conducted by the management of
Fixed Assets under railway construction account since the assets are in
possession and control of the Central Railway and hence discrepancies,
if any are not presently ascertainable.
(c) During the year Company has not disposed of any part of fixed
assets.
G) The Company did not have inventory at any point of time during the
year. Hence Clouse 4(ii) of the said order pertaining to Inventory is
not applicable.
m) The Company has not taken/granted any Loan from/to Companies, firms
or other parties listed in the register maintained under section 301 of
the companies Act, 1956 Hence clause (iii) of the said order pertaining
to loans is not applicable.
iv) In our opinion and according to the information and explanations
given to us there is adequate internal control procedures commensurate
with the size cf the company and the nature of its business with regard
to purchase of fixed assets and sale of services. During the course of
our audit we have not observed any continuing failure to correct major
weakness in internal control system. We are informed that the nature of
Company's business does not involve purchase of inventory and sale of
goods.
v) According to the information and explanations given to us, in our
opinion, there were no contract or arrangements needing entry in the
register to be maintained under section 301 of the Companies Act,
1956.Hence Clause 4(v) of the said order is not applicable.
vi) In our opinion , and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
within the meaning of the provisions of section 58A, 58AA or any other
relevant provisions of the Act and the Rules framed there under.
vii) The company did not have any internal audit system.
vii) According to the information and explanations given to us, the
Company was not required to maintain cost records under section
209(1)(d) of the Companies Act, 1956.
ix) According to the information and explanations given to us, the
company is regular in depositing undisputed statutory dues including
provident fund, employee's state insurance, sales tax and any other
statutory dues with the appropriate authorities.
x) In our opinion , the accumulated losses of the company were not more
than fifty percent of its net worth as at 31st March 2012. The company
incurred cash losses during the year ended 31st March 2012 and also in
the immediately preceding financial year.
xi) The Company did not have outstanding debentures or outstanding
loans from financial institution or bank during the year. Hence clause
4(xi) of the said Order is not applicable.
xii) The Company has not granted any loans and.advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence clause 4(xii) of the said Order is not applicable.
xiii) The Company is not a chit fund /nidhi/mutual benefit fund
/society. Hence clause 4(xiii) of the said order is not applicable .
xiv) In our opinion, and according to the information and explanation
given to us, the company did not deal or trade in share .securities,
debentures & other investment. Hence Clause 4(>dv) of the said order is
not applicable.
xv) According to the information and explanation given to us, the
company has not given guarantee for loans taken by others from bank or
financial institutions.
xvi) The Company had no term loans outstanding at any point of time
during the year
xvii) According to the information & explanation given to us and on an
overall examination of balance sheet of the company, we report that
during the year the company has not utilized short term funds for long
term investment.
xviii) During the year 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.Hence Clause
4(xviii) of the said Order is not applicable.
xix) The Company did not have outstanding debentures at any point of
time during the year. Accordingly no securities or charge have been
created.
xx) The company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us , no
fraud on or by the Company has been noticed or reported during the
year.
For BHANGARIA & Co.
Chartered Accountants
Nikunj G. Bhangaria
Proprietor M. No. 121369
Place: Mumbai
Date: 21/08/2012
Mar 31, 2010
1 We have audited the attached Balance Sheet of The Central Provinces
Railways Company Limited as at 31st March, 2010 and also Profit and
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the company management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted in India. These 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 amount and
disclosures in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (Audit Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 and on the basis of such check of books and records
of the company, as we considered appropriate, we enclose in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said order to the extent applicable to the company.
4 The Company has, as a matter of prudence not recognised income
accrued from Railways for the period 1st April 2010 to 31st March 2010
amounting to Rs.20,76,071.25 on the ground that the same has been
adjusted by the Central Railways against capital expenditure of Rs.
2.37 crores claimed to have been incurred by them. No provision has
been made for this liability nor has the assets been recognised in the
financial statements on the ground that the company has disowned the
entire liability (Refer Note Sch 10 1 (c)).
5 Attention is invited to note Sch 10 B (13) regarding non provision of
interest in respect of interest bearing loan granted to a company. We
are unable to express our opinion on the realisability of
Rs.20,00,000/- and interest thereon.
6 Further to our comments in the Annexure referred to above, 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 it appears from our examination of these
books;
c) The Balance Sheet, Profit & Loss account and Cash Flow statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet and Profit & Loss account referred
to in this report comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable to this Company;
e) On the basis of the written representations received from directors
of the company, and taken on record by the Board of Directors, we
report that no director is disqualified as on March 31, 2010 from being
appointed as a director under clause (g) of sub-section (1) of Section
274 of the Companies Act, 1956;
f) During the year the company has transferred the balance between many
party accounts without any documentary evidence. This, coupled with
non-availability of confirmation from the parties for their year-end
balances, we are unable to vouch for the correctness of the entries
made in these parties accounts accounts and consequently unable to
express any opinion about the correctness of the year end balances of
these parties.
g) We have not been able to verify the Register to be maintained u/s
301 of the Companies Act, 1956 as the same was not furnished to us.
Hence we are unable to express any opinion on the same and the various
clauses in the annexure to this report.
f) We have not been able to verify some of the bank balances with the
bank statements, due to unavailability of the bank statements.
Subject to our remark in para 4, 5 & 6 above, in our opinion and to the
best of our information and according to the explanations given to us,
the said Balance Sheet and Profit & Loss account read together with the
notes forming part thereof, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in confirmity with the accounting principles generally accepted in
India;
i) In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March 2010;
ii) In so far as it relates to the Profit & Loss Account, of the loss
of the Company for the year ended on that date;
AND ii) In case of Cash Flow statement, of the cash flows of the
company for the year ended on that date;
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN OUR REPORT OF EVEN DATE
The Central Provinces Railways Company Limited for the year ended on
31st March-2010
i) (a ) No records are available for Fixed Capital expenditure on
Railway construction account as shown in Schedule No 3 annexed to
Balance Sheet which ae in possession and control of the Central
Railway.
(b) Physical verification could not be conducted by the management of
Fixed Assets under railway construction account since the assets are in
possession and control of the Central Railway and hence discrepancies,
if any are not presently ascertainable.
(c) During the year Company has not disposed of any part of fixed
assets.
ii) The Company did not have inventory at any point of time during the
year. Hence Clouse 4(ii) of the said order pertaining to inventory is
not applicable.
iii) The Company has not taken/granted any Loan from/to Companies,
firms or other parties listed in the register maintained under section
301 of the companies Act, 1956 . Hence clause 4(iii) of the said order
pertaining to loans is not applicable.
iv) In our opinion and according to the information and explanations
given to us there is adequate internal control procedures commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets and sale of services. During the course of
our audit we have not observed any continuing failure to correct major
weakness in internal control system. We are informed that the nature of
Companys business does not involve purchase of inventory and sale of
goods.
v) According to the information and explanations given to us, in our
opinion, there were no contract or arrangements needing entry in the
register to be maintained under section 301 of the Companies Act,
1956.Hence Clause 4(v) of the said order is not applicable.
vi) In our opinion , and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
within the meaning of the provisions of section 58A, 58AA or any other
relevant provisions of the Act and the Rules framed there under.
vii) The company did not have any internal audit system.
viii) According to the information and explanations given to us, the
Company was not required to maintain cost records under section
209(1)(d) of the Companies Act, 1956.
ix) According to the information and explanations given to us, the
company is regular in depositing undisputed statutory dues including
provident fund, employees state insurance, sales tax and any other
statutory dues with the appropriate authorities except the Fringe
Benefit Tax amounting to Rs.22,364/ which is outstanding on the date of
balance sheet for a period exceeding six months.
x) In our opinion , the accumulated losses of the company were not more
than fifty percent of its net worth as at 31st March 2010. The company
incurred cash losses during the year ended 31st March 2010 and also in
the immediately preceding financial year.
xi) The Company did not have outstanding debentures or outstanding
loans from financial institution or bank during the year. Hence clause
4(xi) of the said Order is not applicable.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence clause 4(xii) of the said Order is not applicable.
xiii) The Company is not a chit fund /nidhi/mutual benefit fund
/society. Hence clause 4(xiii) of the said order is not applicable .
xiv) In our opinion, and according to the information and explanation
given to us, the company did not deal or trade in share ,securities,
debentures & other investment . Hence Clause 4(xiv) of the said order
is not applicable.
xv) According to the information and explanation given to us, the
company has not given guarantee for loans taken by others from bank or
financial institutions.
xvi) The Company had no term loans outstanding at any point of time
during the year
xvii) According to the information & explanation given to us and on an
overall examination of balance sheet of the company , we report that
during the year the company has not utilized short term funds for long
term investment.
xviii) During the year 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.Hence Clause
4(xviii) of the said Order is not applicable.
xix) The Company did not have outstanding debentures at any point of
time during the year. Accordingly no securities or charge have been
created.
xx) The company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us , no
fraud on or by the Company has been noticed or reported during the
year.
For BHANGARIA & Co.
Chartered Accountants
Nikunj G. Bhangaria
Proprietor
M. No. 121369
Place : Mumbai
Date : 23/Aug/10
Mar 31, 2009
1 We have audited the attached Balance Sheet of The Central Provinces
Railways Company Limited as at 31st March, 2009 and also Profit and
Loss Account and the Cash Row Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted in India. These 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 amount and
disclosures in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (Audit Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 and on the basis of such check of books and records
of the company, as we considered appropriate, we enclose in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said order to the extent applicable to the company.
4 The company has, as a matter of prudence not recognised income
accrued from Railways for the period 1st April, 08 to 31st March, 09
amounting to Rs.20,29,341/- on the ground that the same has been
adjusted by the Central Railways against capital expenditure of Rs.
2.58 crores claimed to have been incurred by them. No provision has
been made for this liability nor has the assets been recognised in the
financial statements on the ground that the company has disowned the
entire liability (Refer Note Sch 10 1 (c)).
5 Attention is invited to note Sch 10 B (13) regarding non provision of
interest in respect of interest bearing loan granted to a company. We
are unable to express our opinion on the realisability of
Rs.20,00,000/- and interest thereon.
6 Further to our comments in the Annexure referred to above, we report
that:
1) 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 it appears from our examination of these
books;
c) The Balance Sheet, Profit & Loss account and Cash Flow statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet and Profit & Loss account referred
to in this report comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable to this Company;
e) On the basis of the written representations received from directors
of the company, and taken on record by the Board of Directors, we
report that no director is disqualified as on March 31, 2009 from being
appointed as a director under clause (g) of sub-section (1) of Section
274 of the Companies Act, 1956;
7 Subject to our remark in para 4 & 5 above, in our opinion and to the
best of our information and according to the explanations given to us,
the said Balance Sheet and Profit & Loss account read together with the
notes forming part thereof, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in confirmity with the accounting principles generally accepted in
India;
i) In so far as it relates to the Balance Sheet, of the state of
affairs of the Company as at 31st March 2009;
ii) In so far as it relates to the Profit & Loss Account, of the loss
of the Company for the year ended on that date;
AND
ii) In case of Cash Flow statement, of the cash flows of the company for
the year ended on that date;
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN OUR REPORT OF EVEN DATE
of The Central Provinces Railways Company Limited for the year ended on
31st March-2009
i) (a ) No records are available for Fixed Capital expenditure on
Railway construction account as shown in Schedule No 3 annexed to
Balance Sheet which ae in possession and control of the Central
Railway.
(b) Physical verification could not be conducted by the management of
Fixed Assets under railway constuction account since the assets are in
possession and control of the Central Railway and hence discrepancies,
if any are not presently ascertainable.
(c) During the year Company has not disposed of any part of fixed
assets.
ii) The Company did not have inventory at any point of time during the
year. Hence Clouse 4(H) of the said order pertaining to inventory is
not applicable.
iii) The Company has not taken/granted any Loan from/to Companies,
firms or other parties listed in the register maintained under section
301 of the companies Act, 1956 . Hence clause 4(iii) of the said order
pertaining to loans is not applicable.
iv) In our opinion and according to the information and explanations
given to us there is adequate internal control procedures commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets and sale of services. During the course of
our audit we have not observed any continuing failure to correct major
weakness in internal control system. We are informed that the nature of
Companys business does not involve purchase of inventory and sale of
goods.
v) According to the information and explanations given to us, in our
opinion, there were no contract or arrangements needing entry in the
register to be maintained under section 301 of the Companies Act,
1956.Hence Clause 4(v) of the said order is not applicable.
vi) In our opinion, and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
within the meaning of the provisions of section 58A, 58AA or any other
relevant provisions of the Act and the Rules framed there under.
vii) The company did not have any internal audit system.
viii) According to the information and explanations given to us, the
Company was not required to maintain cost records under section
209(l)(d) of the Companies Act, 1956.
ix) According to the information and explanations given to us, the
company is regular in depositing undisputed statutory dues including
provident fund, employees state insurance, sales tax and any other
statutory, dues with the appropriate authorities except the Fringe
Benefit Tax amounting to Rs.22364/ which is outstanding on the date of
balance sheet for a period exceeding six months.
x) In our opinion , the accumulated losses of the company were not more
than fifty percent of its net worth as at 31st March 2009. The company
incurred cash losses during the year ended 31st March 2009 and also in
the immediately preceding financial year.
xi) The Company did not have outstanding debentures or outstanding
loans from financial institution or bank during the year. Hence clause
4(xi) of the said Order is not applicable.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Hence clause 4(xii) of the said Order is not applicable.
xiii) The Company is not a chit fund /nidhi/mutua! benefit fund
/society. Hence clause 4(xiii) of the said order is not
applicable.
xiv) In our opinion, and according to the information and explanation
given to us, the company did not deal or trade in share ,securities,
debentures & other investment. Hence Clause 4(xiv) of the said order is
not applicable.
xv) According to the information and explanation given to us, the
company has not given guarantee for loans taken by others from bank or
financial institutions. xvi) The Company had no term loans outstanding
at any point of time during the year
xvii) According to the information & explanation given to us and on an
overall examination of balance sheet of the company, we report that
during the year the company has not utilized short term funds for long
term investment
xviii) During the year 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.Hence Clause
4(xviii) of the said Order is not applicable.
xix) The Company did not have outstanding debentures at any point of
time during the year. Accordingly no securities or charge have been
created.
xx) The company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For V. S. Paranjape & Co.
Chartered Accountants
V. S. Paranjape
Sole Proprietor
M. No. 36273
Place Mumbai
Date 24/08/2009
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