Mar 31, 2018
Independent Auditorsâ Report
To the Members of Adhunik Industries Limited,
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Adhunik Industries Limited (âthe companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss(including Other Comprehensive Income), the Cash Flow Statement and the Statement of changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory notes for the year ended on that date (hereinafter referred to as â Ind AS Financial Statementsâ).
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 Ind AS 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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 the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS 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 Ind AS 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 of the Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS 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 accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the Ind AS 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, its profit including other comprehensive income, its cash flows and the changes in equity 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 âAâ statement of the matters specified in paragraph 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 appears from our examination of those books [and proper accounts adequate for the purposes of our audit have been received from the branches not visited by us ]
c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt by us in preparing this report.
d) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account and the accounts received from the branches not visited by us.
e) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 , Companies (Indian Accounting Standards) Rules, 2015, as amended;
f) On the basis of 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.
g) with respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, please refer to our separate report in Annexure âBâ and
h) 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 our 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 to the financial statements.
ii. the Company does not have any long-term contracts including derivatives contracts for which there are any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditors Report
The Annexure referred to in our report to the members of Adhunik Industries Limited (âThe Companyâ) for the year ended Marchâ 2018.
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:
i. (a) the company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The company has a regular programme of physical verification of its fixed asset by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to size of the company and the nature of its assets.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the company, the title deed of immovable property held in the name of the company.
ii. The company has a regular programme of physical verification of its inventory by which inventories are physically verified in regular intervals by the management.
iii. According to information and explanation given to us and on the basis of our examination of the books of accounts, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Consequently, the provisions of paragraph 3 of clause iii (a) and iii (b) of the order are not applicable to the company.
iv. According to information and explanation given to us and on the basis of examination of the books of accounts, the company has complied provision of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantee and security.
v. According to the information and explanation given to us, the company has not accepted any deposits, and accordingly, the provisions of paragraph 3 of clause v of the Order are not applicable to the Company.
vi. As per information & explanation given by the management, maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013, and we are of the opinion that prima facie such prescribed accounts and records have been made and maintained.
vii. (a) According to the records, the company has generally been regular in depositing undisputed statutory dues including
provident fund, employeesâ state insurance, income-tax, service tax, custom duty, excise duty, value added tax, cess and any other statutory dues applicable to the Company with appropriate authorities during the year.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, service tax, custom duty, excise duty, value added tax, cess and any other statutory dues were in arrears as at 31st March, 2018 for a period of more than six month from the date they became payable.
(b) According to the information and explanations given to us, there is no material dues of income tax or service tax or custom duty or excise duty or value added tax or cess which have not been deposited on account of any dispute;
viii. 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 or bank.
ix. The company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised;
x. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, there is no any fraud by the company and any fraud on the company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us, managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act.
xii. In our opinion and according to the information and explanation given to us, the company is not a nidhi company. Therefore, the provisions of paragraph 3 of clause xii of the order is not applicable to the company.
xiii. Based on our audit procedures and on the information and explanations given to us, we report that transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the Ind AS financial statements etc., as required by the applicable accounting standards.
xiv. According to the information and explanation given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the financial year covered by our audit. Consequently, the provisions of paragraph 3 of clause xiv of the order is not applicable to the company.
xv. Based on our audit procedures and on the information and explanations given to us, the company has not entered into any noncash transactions with directors or persons connected with him. Consequently, the provisions of paragraph 3 of clause xv of the order is not applicable to the company.
xvi. Based on our audit procedures and on the information and explanations given to us, the company is not required to registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure âBâ to the Independent Auditorâs Report
Report on the Internal Financial Controls over financial reporting 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 Adhunik Industries Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the Ind AS 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 the 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 were 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 auditorsâ 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 the 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, 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.
FOR SUDHIR KUMAR JAIN & ASSOCIATES
(Chartered Accountants)
Firm Regn No: 318016E
Sd/-
CA. S Jain
Place: Kolkata (Partner)
Date: 28th May 2018 Membership No. 053537
Mar 31, 2016
To the Members of Adhunik Industries Limited,
Report on the Financial Statements
We have audited the accompanying financial statements of Adhunik Industries Limited (âthe companyâ), which comprise the Balance Sheet as at 31st March 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.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 of the financial 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 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 true and fair view 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 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, 2016;
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 2016 (''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 âAnnexure Aâ statement of the matters specified in paragraph 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 appears from our examination of those books [and proper accounts adequate for the purposes of our audit have been received from the branches not visited by us ]
c) The reports on the accounts of the branch offices not visited by us of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt by us in preparing this report.
d) 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 the accounts received from the branches not visited by us.
e) 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.
f) On the basis of written representations received from the directors as on 31 March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
g) With respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, please refer to our separate report in ''Annexure-B'' and
h) 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 our 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 32 to the financial statements.
ii. The Company does not have any long-term contracts including derivatives contracts for which there are any material foreseeable losses;
iii.There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our report to the members of Adhunik Industries Limited (''The Company'') for the year ended 2016.
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:
i. (a) the company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The company has a regular programme of physical verification of its fixed asset by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to size of the company and the nature of its assets.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the company, the title deed of immovable property held in the name of the company.
ii. The company has a regular programme of physical verification of its inventory by which inventories are physically verified in regular intervals by the management.
iii. According to information and explanation given to us and on the basis of our examination of the books of accounts, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Consequently, the provisions of paragraph 3 of clause iii (a) and iii (b) of the order are not applicable to the company.
iv. According to information and explanation given to us and on the basis of examination of the books of accounts, the company has complied provision of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantee and security.
v. According to the information and explanation given to us, the company has not accepted any deposits, and accordingly, the provisions of paragraph 3 of clause v of the Order are not applicable to the Company.
vi. As per information & explanation given by the management, maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013, and we are of the opinion that prima facie such prescribed accounts and records have been made and maintained.
vii. (a) According to the records, the company has generally been regular in depositing undisputed statutory dues including
provident fund, employees'' state insurance, income-tax, service tax, custom duty, excise duty, value added tax, cess and any other statutory dues applicable to the Company with appropriate authorities during the year.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, service tax, custom duty, excise duty, value added tax, cess and any other statutory dues were in arrears as at 31st March, 2016 for a period of more than six month from the date they became payable.
(b) According to the information and explanations given to us, there is no material dues of income tax or service tax or custom duty or excise duty or value added tax or cess which have not been deposited on account of any dispute;
viii. 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 or bank
ix. The company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised;
x. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, there is no any fraud by the company and any fraud on the company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us, managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act.
xii. In our opinion and according to the information and explanation given to us, the company is not a nidhi company. Therefore, the provisions of paragraph 3 of clause xii of the order is not applicable to the company.
xiii. Based on our audit procedures and on the information and explanations given to us, we report that transactions with the related parties are in compliance with section 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
xiv. According to the information and explanation given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the financial year covered by our audit. Consequently the provisions of paragraph 3 of clause xiv of the order is not applicable to the company.
xv. Based on our audit procedures and on the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him. Consequently, the provisions of paragraph 3 of clause xv of the order is not applicable to the company.
xvi. Based on our audit procedures and on the information and explanations given to us, the company is not required to registered under section 45-IA of the Reserve Bank of India Act, 1934.
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 Adhunik Industries Limited (''the Company'') as of 31 March 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 the Company''s 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 ''Guidance Note'') 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 were 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 auditors'' 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 Company''s 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 the 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 31 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 SUDHIR KUMAR JAIN & ASSOCIATES
Firm Regn No: 318016E
Chartered Accountants
CA. S Jain
(Partner)
Membership No. 053537
Place: Kolkata
Date: The 27th Day of May, 2016
Mar 31, 2015
We have audited the accompanying financial statements of Adhunik
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March 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, in which are
incorporated the accounts for the year ended on that date audited by
the branch auditors of the Company's branch at Mandi, Punjab.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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 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 true and fair view 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 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; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Other Matter
We did not audit the financial statements / information of branch
included in the financial statements of the Company whose financial
statements/financial information reflect total assets of
Rs.28,53,300/-as at 31st March, 2015 and total revenues of Rs. Nil for
the year ended on that date, as considered in the financial statements.
The financial statements / information of this branch have been audited
by the branch auditor whose report has been furnished to us, and our
opinion in so far as it relates to the amounts and disclosures included
in respect of the branch, is based solely on the report of such branch
auditor.
Our opinion is not modified in respect of this matter
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 Companies Act, 2013 we give in
the Annexure a statement of the matters specified in paragraph 3 and 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 accounts as required by law have been
kept by the Company so far, as appears from our examination of those
books (and proper accounts adequate for the purposes of our audit have
been received from the branch notvisited by us),
c) The reports on the accounts of the branch offices of the Company
audited under Section 143(8) of the Act by branch auditors have been
sent to us and have been properly dealt by us in preparing this report;
d) 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
accounts and the returns received from the branch notvisited by us,
e) 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.
f) The going concern, in our opinion, may not have an adverse effect on
the functioning of the Company.
g) On the basis of written representations received from the Directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the Directors is disqualified as on 31st March, 2015, from being
appointed as a Director in terms of Section 164 (2) of the Act.
h) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us:
1) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
32 to the financial statements.
2) The Company does not have any long-term contracts including
derivatives contracts for which there are any material foreseeable
losses;
3) There is no amount which required to be transferred, to the Investor
Education and Protection Fund by the Company for the year ended on that
date.
Annexure to the Independent Auditors Report
The Annexure referred to in our report to the members of Adhunik
Industries Limited ('The Company') for the year ended 2015.
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:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets.
(b) as explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification;
ii. (a) as explained to us, physical verification of inventory has been
conducted at reasonable intervals by the management;
(b) in our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable 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 examination of the records, the
Company is generally maintaining proper records of inventory and no
material discrepancies were noticed on physical verification;
iii. According to information and explanation given to us and on the
basis of our examination of the books of accounts, the Company has not
granted any loans, secured or unsecured to companies, firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013. Consequently, the provisions of clause iii (a) and
iii(b) of the order are not applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
v. According to the information and explanation given to us, the
Company has not accepted any deposits, and accordingly, the provisions
of clause (v) of paragraph 3 of the Order are not applicable to the
Company.
vi. As per information & explanation given by the management,
maintenance of cost records has been specified by the Central
Government under sub-section (1) of section 148 of the Companies Act
2013, and we are of the opinion that primafacie such prescribed
accounts and records have been made and maintained.
vii. (a) According to the records, the Company has generally been
regular in depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and any
other statutory dues applicable to the Company with appropriate
authorities during the year. According to the information and
explanations given to us there were no arrears of outstanding statutory
dues as at the last day of the financial year concerned 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 dues of Income Tax or Wealth Tax or Service Tax or Custom Duty or
Excise Duty or Value Added Tax or Cess which have not been deposited on
account of any dispute;
(c) According to the information and explanations given to us, there is
no amount 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.
viii. The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
ix. 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 or bank.
x. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xi. Based on our audit procedures and on the information and
explanations given by the management, we report that the Company has
not raised any term loan during the year.
xii. Based on our audit procedures and on 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 we have been informed
of such case by the management.
FOR SUDHIR KUMAR JAIN & ASSOCIATES
(Chartered Accountants)
Firm Registration. No: 318016E
CA. S. Jain
Place: Kolkata (Partner)
Date: The 29th Day of May 2015 Membership No. 053537
Mar 31, 2014
We have audited the accompanying financial statements of Adhunik
Industries Limited, ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation or 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 notified under 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
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
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, 2014;
b) in the case of the Profit and 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.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) From our examination of those books and branch auditor report for
the purpose of our audit have been received from branch not visited by
us.
d) 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.
e) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
f) 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.
g) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Adhunik Industries Limited on the accounts of the
company for the year ended 31st March, 2014.
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) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) As per the information and explanations given to us, the Company
has not disposed off a substantial part of fixed assets during the
period so as to affect its going concern status.
2. (a) As explained to us, inventories 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 iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(b) 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
sub clauses (f) & (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, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
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 has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess 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, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial 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 not trading in Shares, Mutual funds & other Investments. Therefore,
the provision of this clause of the Companies (Auditor''s Report) Order,
2003 (as amended) is not applicable to the Company.
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 SUDHIR KUMAR JAIN & ASSOCIATES
Firm Regn No: 318016E
Chartered Accountants
Place: Kolkata CA. S Jain
Date: The 29th Day of May, 2014 (Partner)
Membership No. 053537
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Adhunik
Industries 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
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").
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
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 Profit and Loss Account, of the profit/ loss 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
("theOrder") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books
ofaccount.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (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.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to In paragraph 1 of the Our Report of even date
to the members of Adhunik Industries Limited on the accounts of the
company for the year ended 31st March, 2013,
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) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) As per the information and explanations given to us, the Company
has not disposed off a substantial part of fixed assets during the
period so as to affect its going concern status.
2. (a) As explained to us, inventories 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 materia! 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
iii (b), iii(c) and iii (d) of the order are not ; applicable to
the Company.
(b) 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 °f the Companies Act, 1956. Thus
sub clauses (f) & (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 size 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, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act exceeds five lacs rupees in a financial year have been
made at a price which are reasonable having regard to prevailing market
price at the relevant time.
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 an interna! audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
9. (a) According to the records of the company, undisputed statutory
dues includin Provident Fund, Investor Education and Protection Fund,
Employees'' State insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess 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 31'' of
March, 2013 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, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by, our audit and
in the immediately preceding financial 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 t0 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 deoentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society, ere ore, 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 Companv
is not trading in Shares, Mutual funds & other Investments. Hence the
provision of this clause is not applicable to the company,
15. According to the information and explanations given to us, the
Comoany has not given any guarantees for loan taken by others from a
bank or finance institution.
16. Based on our audit procedures and on the information given by the
Management WE reP°rt that the company has not raised term loans during
17. Based on the information and explanations given to us and on an
overall examination of the Ba[ance Sheet of the Company as at 31th
March. 2013 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
explanation 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
explanation reportethat on or by the company has been noticedor
management have we been informed of such case by the management
FOR SUDHIR KUMAR JAIN & ASSOCIATES
Firm Regn. No: 318016E
Chartered Accountants
CA. Ravi Kumar
(Partner)
Membership No. 303138
Place: Kolkata
Date: The 30th Day of May, 2013
Mar 31, 2012
1). we have audited, the attached Balance Sheet of Adhunik Industries
LTD. (fotmerly Magwati Resources LTD.) as at 31st Match 2012 and also
the profit & Loss Account and the Cash Blow Statement for the year
ended dii 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 out audit in accordance with 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, oh s 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 Will 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 (Auditor's Report) Order, 2003(as
amended) issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Companies Act, 1936 (''the order''),
we enclose in the Annexure a statement on She matters specified in
paragraphs 4 & & of the said Order.
4) Further to our comments ifi the Attnexure referred to above, we
report that:
i. ifre have obtained all the information and explanations, which to
the best Of our knowledge and belief were necessary for the purpose's
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 Opr examination of .such
books;
iii. The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this repott afe in agreement with the books Of
account;
iv. in our opinion, the Balance sheet. Profit. S Loss Account and cash
Flow statement dealt with by this report comply with the Accounting
Standard's referred to In sub-section (3c) of Section 211 of the
Companies Act, 1956.
Vi On the basis of written representations received from the director®
as van 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors disqualified as on 5EF March, 2012
frpm being appointed at director in terms of clause (g) Of submsectioh
(1) of section 274 of the Companies Act, 1956;
5. In our opinion and to the best df Opr information and according to
the explanations .given tb us, the. said Statements of accounts give
the information required by the Companies Act., 19.56 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 3lst March 2012; and
(b) in. the case of Profit and loss Account, of the profit of the
Company for the year ended on that date.
(c) in the case of cash Flow statement, of the cash flows for the year
ended Oh that date.
(REFERRED To IN our REPORT OF EVEN DATE TO THE MEMBERS OF ADHUNIK
INDUSTRIES LTD. AS AT AND FOR THE TEAR ENDED 3Ist,MARCH, 2012)
(i))(a)The Company ha a maintained proper records showing, -fell
particulars including quantitative details and situation of fixed
assets.
(b)According to the information and explanations given to us, the
Fixed Assets were physically verified by the management in accordance
to the programme of verification. The discrepancies ail noticed on such
Verification were not material and have been properly dealt with in
the books of Account.
(c)There was no substantial disposal of fixed assets during the year..
ii) (a) The management has conducted Physical verification of
inventories at reasonable intervals during the year.
(b.) In pur opinion and according to the information and explanation
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) The company is maintaining Proper records of inventory and na
material discrepancies noticed on such physical verification carried
out at the- end of the year.
(iii) (According- to the information and explanation given to us, the
company has not granted any loans secured or unsecured to companies-,
-firms of other parties covered in the- register maintained section 301
of the Companies Act,1956. Accrdingly clauses (a) to (d) of para iii the
order are not applicable to the company.
(b)According to the information and explanation given to us, the company
has not taken any loans secured ox unsecured from companies, firms or
other parties covered in the register maintained under section 3'Cri of
the Companies Act, 1956-. Accordingly Clauses (e) to (g) of para III the
order are ndt applicable- so the company.
(iv) In our opinion and according to the information and explanations
given to us,, there is an adequate internal control system commensurate
with the size Of the Company and the nature of -its btisihe'Ss, Er6r
the purchases Of inventory .and fixed assets and for Sale Of goods and
services. During the course of our audit, w.e have not observed any
major weaknesses or continuing failure fee correct any major weakness
in the internal control system of the company in respect of .
(v) (a )according to the infornation and explanations provided by
Che management, We are of the opinion that the- particulars of the
Contracts or arrangement referred to in section 301 of the Companies
Act, 1956 that needs to be entered into the register maintained under
section 301 has been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lakhs entered into
during the financial year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(viii) The cdtipany MS not accepted any deposits from the public within
the mtmMMM PE section 58A,58M M any Other relevant provisions of
Companies Act, 1956,-and rules framed there under,.
(ix) In our opinion, the Company has .an. internal audit system which
needs to. be further strengthened to make the same with the size and
nature of its business. The Central Government has not prescribed
the maintenance of any cost records under clause for of sub- section (i)
of section 289 of the Act for the company. Thuese, the requirements of
clause 4(viii) are not applicable to the company.
(ix) (a) Undisputed statutory dues including Provident Fund, Income Tax
except wealth Tax, Sales Tax, Service Tax,- Excise Duty,
Cess have been deposited with appropriate authorities though in general
there have been delays In payments of dues other than Excise Duty and
Service Tax.
(b) According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, excise
duty and cess which have not been deposited on account of any dispute.
(x) in Our opinion, the Company has ho accumulated, losses. The
company has not iiicatred cash losses during the financial year coveted
by Out audit and the immediately preceding financial year.
(Xi) According to the information and explanation given to us# the
Company has not defaulted in repayment of dues to the financial
institution and batiks.
(xii) According to the .information and explanations given to its and
based bit the documents and reddtdS produced to Us, the company has not
granted 1SW and advances on the- bails of security by way of pledge of
shares;., debentures and other securities.
(xiii) but opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provisions of clause 4
(xi'ii)
of the Companies (Auditor's Report) Order, 20.03(as amended) are hot
applid.ible to -the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.. Accordingly,
the provisions of clause 4(xiii) of the Companies (Auditor's Report)
Order, 3003(as amended) are not applicable to the company.
(XiV) According tp the information end explanations given to us, the
company has not given atiy guarantees for loans taken by others from
banks and financial institution. Accordingly, the provisions of clause
4(xv) of the Companies (Auditor's Report) Order, ' 2.0:0,3 (as
attended) are not applicable to the company .
(xvi) On the basis of review of utilisation of funds pertaining to
term loans on overall basis and related information as made available
to as, the term -loans taken by the Company were prima facie been used
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, we
report that no fhndS raised on short-term basis have been used
for-long-term investment.
(xviii) The company has not made any preferential allotment during the
financial year fee parties and companies covered in the register
maintained under section 301 of the Act.
(xix) The company did not issue any debentures during the year.
Therefore, the provisions of elapse 4 (xix) of the Companies (Auditor's
Report) Order, 2603(ds attended) are not applicable to the company.
(XX) The company did not raise any money from public, issue. Therefore,
the provisions of clause 4(xx) of the Companies (Auditor's Report)
order, 2Q03 (as amended) are not applicable to the COMipany.
(xxi) According tq the information and explanations given by the
management, we report that no fraud on or by the. Company has been
noticed or reported during the course of our audit.
For SODHIR KOMAR JAIN 6 ASSOCIATES
Firm Reg .No-. ; 318016E
CHARTERED ACCOUNTANTS
Place: Kolkata S.JAIN
Date: the 4th Day of september 2012, (Partner)
Membership No.: 53537
Mar 31, 2011
1. We have audited the attached Balance Sheet of Adhunik Industries
Limited ("the Company") as at March 31, 2011 and also the Profit and
Loss Account and the Cash Row.Staterr.ont for the year ended on that
day 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 .n India. Those Standards require that we plan and
perform the audit to obtain reasonable asiurance about whether the
financial statements are free of materia! misstatement. An audit
incudes 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 wet! 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 (Auditor''s Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 ("the
order"), we enclose in the Annexure a statement on the nna(ter
specified in paragraphs 4 & 5 of the said order.
4. Further to our comments in the Annexure referred to above, we report
that:
have obtained all the information and explanations, which to the
best of our ^howledge and belief were necessary for the purposes of our
audit our opinion, proper books of account as required by iaw have been
kept by the ^0rhpany so far as appears from our examination of those
books; ili'' Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this rebort are in agreement with the books of
account; i''/'' Iri Our opinion, the Balance Sheet, Profit and Loss
Account and Cash Flow statement ^ealt with by this report comply with
the accounting standards referred to in sub-section of section 211 of
the Companies Act, 1955
V. On the basis of the written representations received from the
directors, as on March 31, 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
5. 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 March 31, 2011;
b. In the case of the Profit and Loss Account, of the profit for the
yehr ended on that date; and
c. In the case of Cash Flow statement, of the cash flows for the year
ended on that date.
Annexure to the Auditor''s Report {REFERRED TO IN OUR REPORT OF EVEN
DATE TO THE MEMBERS OF ADHUNIK INDUSTRIES LTD AS AT AND FOR THE YEAR
ENDED 31sr MARCH 2011)
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situations of fixed
assets.
(b) According to the information and explanation given to us, the fixed
assets were physically verified by the management in accordance to the
programme of verification. The discrepancies noticed on such
verification were not material and have been properly dealt with in the
books of Account
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The management has conducted physical verification of
inventories at reasonable intervals during the year.
(b) In our opinion and according to the information and explanation
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) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on such physical verification
carried out at the end of the year.
(iil) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act''1956. Accordingly clauses (a)
to (d) of para III of the order are not applicable to the company.
(b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act''1956. Accordingly clauses (e) to (g) of para
III of the order are not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us,there Is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
{v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangement referred to In section 301 of the companies act 1956 that
needs to be entered into the register maintained under section 301 has
been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rs. 5,00,000, entered into during
the financial year have been made at a prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the provisions of section 58A, 58AA or''any other relevant provisions of
the Companies Act, 1956, and rules framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prima fade, the prescribed accounts and records have been made and
maintained.
(ix) (a) Undisputed statutory dues Including provident fund, employees
state insurance, income-tax, sales-tax, wealth-tax, service tax, customs
duty, excise duty, cess have been deposited with the appropriate
authorities though in general there have been delay and as explained,
there is no amount due for deposit to investor education and protection
fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable In respect of provident fund, investor
education and protection fund, employees state Insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of sales-tax, income-tax, custom duty, wealth-tax, excise
duty and cess that have not been deposited 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 losses in the current and immediately
preceding financial year.
Based on our audit procedures and as per the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to a financial institution, bank or debenture
holders.
(xli) According to the information and explanations given to us and
based on the documents and records produced 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) in our opinion, the Company is not a chit fund or a Nidhi /
Mutual benefit fund / Society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable. in our opinion, the Company is
not dealing in or grading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause (xiv) of the Order
are not applicable.
(xv) According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from bank or
financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us by the management, term loans are applied for the purpose
for which the ioans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment
(xviii) The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under section 301 of the Companies Act, 1956.
(xix) The company has not issued any secured debentures during the
year.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) Based upon the audit procedure performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our Audit
Place: Kolkata For R L MUNDHRA & Co.
Date: 03rd September,2011 firm No 307051E
( R. K. MUWDAARA)
Partner
Membership No:016658