Mar 31, 2023
INDEPENDENT AUDITOR''S REPORT
To the Members of Cantabil Retail India Limited
Report on the Standalone Ind AS financial Statements
We have audited the accompanying standalone Ind AS financial statements of Cantabil Retail India Limited (âthe Companyâ) which
comprises the Balance Sheet as at March 31,2023, the Statement of Profit and Loss (including Other Comprehensive Income),
Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of
the Company as at March 31 2023, and its profit, total comprehensive income, its cash flows and the changes in equity for the year
ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act,
2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone Ind AS
financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind
AS financial statements of the current period. These matters were addressed in the context of our audit of the Standalone Ind AS
financial statements as a whole, and informing our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined the matters described below to be the key audit matters to be communicated in our report
The Company''s Board of Directors is responsible for the other information. The other information comprises the information
included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business
Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone Ind AS financial
statements and our auditor''s report thereon.
Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with
the standalone Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
The Company''s 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 standalone Ind AS financial statements that give a true and fair view of the financial position,
financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance
with accounting principles generally accepted in India, including Indian Accounting Standards (Ind AS) prescribed under section
133 of the Act read with 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 implementation
and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial
statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, management is responsible for assessing the Company''s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to
do so. The Board of Directors are also responsible for overseeing the company''s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a
material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on
whether the company has internal financial controls with reference to Financial Statements in place and the operating
effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor''s report to the related disclosures in the standalone Ind AS financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s
report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the
disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the standalone Ind AS financial statements for the financial year ended March 31,2023 and are therefore the key audit
matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
1. As required by the Companies (Auditor''s Report) Order, 2020 (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 âAnnexure Aâ a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash
Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on March 31,2023 taken on record by the Board
of Directors, none of the directors is disqualified as on March 31,2023 from being appointed as a director in terms of
Section 164 (2) of the Act.
f) With respect to the adequacy of the Internal Financial Control with reference to Financial Statements of the Company and
the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over
financial reporting.
g) In our opinion the managerial remuneration for the year ended March 31,2023has been paid/provided by the Company to
its directors in accordance with the provisions of section 197 read with Schedule V to the Act.
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 the best of our information and according to the explanations given
to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS
financial statements - Refer Note 60 to the Standalone Ind AS financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses;
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company.
(iv) a) The Management has represented that, to the best of its knowledge and belief, other than as disclosed in notes
to accounts, no funds (which are material either individually or in the aggregate) have been advanced or loaned
or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person or entity, including foreign entity (''Intermediaries'') with the understanding,
whether recorded in writing or otherwise, that the intermediary shall, whether directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''Ultimate
Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) The Management has represented that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) have been received by the Company from any person or entity, including
foreign entity (''Funding Parties'') with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.
c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances,
nothing has come to our attention that has caused us to believe that the representations under sub-clause (i)
and (ii) of Rule 11 (e) as provided under (a) and (b) above, contain any material misstatement.
(v) The dividend declared and paid by the Company during the year is in accordance with Section 123 of the Act, as
applicable.
(vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting
software which has a feature of recording audit trail (edit log) facility is applicable to the Company w.e.f. April 1,2023,
and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the
financial year ended March 31,2023.
Chartered Accountants
(Firm''s Registration No. 0003316N)
Partner
(Membership No. 0088256)
Place: New Delhi
Date: 15 May, 2023
UDIN:23088256BGQXED1933
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Cantabil Retail India Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone 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 standalone 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 the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 standalone Ind AS financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) the Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act, read with relevant rules issues thereunder.
e) on the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure B â. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer note 52 to the standalone Ind AS financial statements.
ii. There are no material foreseeable losses on long term contracts including derivative contracts therefore, no such provision is required to be made.
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 Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended March 31, 2018, 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 program of physical verification of its fixed assets by which fixed assets are verified in a phased manner. In accordance with this program, 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 the 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 deeds of the immovable properties are held in the name of the company.
ii. a) The management of the Company has conducted the physical verification of inventory at reasonable intervals during the year.
b) The procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the Company and nature of its business.
c) The Company has maintained the proper records of inventory and no material discrepancies were noticed on physical verification.
iii. The Company has not granted any loans to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
iv. The company has not granted any loans under provisions of section 185 and has complied with provisions of section 186 of the Companies Act, 2013in respect of loans, investments, guarantees, and security.
v. The Company has not accepted any deposits under provisions of sections 73 to 76 or any other relevant provisions of the Companies Actâ 2013.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act.
vii. a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales-tax, service tax, duty of customs, duty of excise, goods and services tax, value added tax, cess and any other material statutory dues with the appropriate authorities.
b) According to the information and explanations given to us, below given dues of income tax, sales tax, service tax, duty of excise, value added tax and cess have not been deposited with the appropriate authorities on account of dispute.
Name of the statute |
Nature of dues |
Amount (in Rs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Denial of CENVAT of Service Tax |
86,35,176 |
FY 2012-13 |
Honâble High court of Delhi |
viii. The company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
ix. The company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) and term loans availed by the company were applied for the purposes for which those are raised.
x. In our opinion no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. In our opinion and according to the information and the explanations given to us and based on examination of records of the company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
xii. In our opinion and according to information given to us the company is not a nidhi Company. Accordingly paragraph 3(xii) of the order is not applicable.
xiii. In our opinion and according to the information and the explanations given to us and based on our examination of the records of the company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where ever applicable and the details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and the explanations given to us the company has not entered into any non-cash transactions with directors or persons connected with him under the provisions of section 192 of Companies Act, 2013
xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Reprt of even date on the Standalone Ind AS financial statements of Cantabil Retail India Limited.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of Cantabil Retail India Limited (âthe companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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 tocompanyâs 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 (theâGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that amaterial weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, 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 providea basis for our audit opinion on the Companyâs internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
1. pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
3. provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, ordisposition 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, includingthe possibility of collusion or improper management override of controls, material mis statements 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 March 31, 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 Akhil Mittal & CO.
Chartered Accountants
(Firmâs Registration No. 026177N)
CA Akhil Mittal
Place : New Delhi Partner
Date : May 25, 2018 (Membership No. 517856)
Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Cantabil Retail India Limited (âthe companyâ), which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss, the Cash Flow Statement and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone 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 lndia, 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; matching judgments and estimates that are reasonable and prudent; and 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 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 standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. ln making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
ln our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 lndia, of the state of affairs of the Company as at March 31,2016 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books,
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) ln our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of 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;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ and
g) With respect to the other matters included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,2014, in our opinion and to the best of our information and according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 33(c) to the financial statements,
ii. There are no material foreseeable losses on long term contracts including derivative contracts therefore, no such provision is required to be made.
iii. There has been no delay in transferring amount, required to be transferred, to the investor education and protection fund by the company.
The Annexure referred to in our Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31st March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a-phased manner. ln accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. ln our opinion, this periodicity of physical verification is reasonable having regard to the 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 deeds of the immovable properties are held in the name of the company.
(ii) (a) The management of the Company has conducted the physical verification of inventory at reasonable intervals during the year.
(b) The procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the Company and nature of its business.
(c) The Company has maintained the proper records of inventory and no material discrepancies were noticed on physical verification.
(iii) The Company has granted loans to a body corporate covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
(a) ln our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under Section 189 of the Act were not, prima facie, prejudicial to the interest of the Company
(b) ln the case of the loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, the borrowers have been regular in the payment of the principal and interest as stipulated.
(c) There are no overdue amounts in respect of the loan granted to a body corporate listed in the register maintained under section 189 of the Act.
(iv) The company has not granted any loans under provisions of section 185 and has complied with provisions of section 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
(v) The Company has not accepted any deposits under provisions of sections 73 to 76 or any other relevant provisions of the Companies Actâ 2013.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other material statutory dues with the appropriate authorities.
(b) According to the information and explanations given to us, below given dues of income tax, sales tax, wealth tax, service tax, duty of excise, value added tax and cess have not been deposited with the appropriate authorities on account of dispute.:
Name of the statute |
Nature of dues |
Amount (in Rs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Denial of CENVAT of Service Tax |
86,35,176* |
FY 2012-13 |
CESTAT, Bench Delhi |
* A stay order has been received against the amount disputed and not deposited.
(viii) The company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(ix) The company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) and term loans availed by the company were applied for the purposes for which those are raised.
(x) ln our opinion no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) ln our opinion and according to the information and the explanations given to us and based on examination of records of the company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) ln our opinion and according to information given to us the company is not a nidhi Company. Accordingly paragraph 3(xii) of the order is not applicable.
(xiii) ln our opinion and according to the information and the explanations given to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where ever applicable and the details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and the explanations given to us the company has not entered into any non-cash transactions with directors or persons connected with him under the provisions of section 192 of Companies Act, 2013.
(xvi) The company is not required to be registered under section 45-lA of the Reserve Bank of lndia Act, 1934.
For SURESH & ASSOCIATES
FRN:003316N
Chartered Accountants
(CA SURESH K GUPTA)
Dale :27th May, 2016 Partner
Place : New Delhi M. No. 080050
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Cantabil Retail India Limited ('the company'), which comprise the
Balance Sheet as at 31st March 2015, the Statement of Profit and Loss,
the Cash Flow Statement and a summary of significant accounting
policies and other explanatory information for the year then ended.
Management's Responsibility for the Standalone 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 standalone 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 standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 standalone 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, 2015 and its profit and its cash
flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
Sub-Section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in the 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;
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of 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; and
f) With respect to the other matters included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules,2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 30 to the
financial statements
ii. There are no material foreseeable losses on long term contracts
including derivative contracts therefore, no such provision is required
to be made.
iii. There are no instances of delay in transferring amount, required
to be transferred, to the Investor Education and Protection Fund by the
company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31st March 2015, 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 program of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. In
accordance with this program, 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 the size of the Company and the nature
of its assets.
(ii) a) The management of the Company has conducted the physical
verification of inventory at reasonable intervals during the year.
b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and nature of its business.
c) The Company has maintained the proper records of inventory and no
material discrepancies were noticed on physical verification
(iii) The Company has not granted any loans to companies, firms or
other parties covered in the register maintained under Section 189 of
the Companies Act, 2013 ('the Act').
(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 with regard
to purchase of fixed assets and sale of goods. We have not observed any
major weakness in the internal control system during the course of the
audit.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost
records under Section 148(1) of the Act..
(vii) a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, the
company is regular in depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income-Tax, Sales-Tax,
Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added
Tax, Cess and any other material statutory dues with the appropriate
authorities.
(b) According to the information and explanations given to us, below
given dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Value
Added Tax and Cess have not been deposited with the appropriate
authorities on account of dispute.
Nature of dues Amount (in Rs) Period to which Forum where
the amount dispute is
relates pending
Labour Dues 3.55 Lacs F.Y 2010-11 High Court, Delhi
CENVAT of Service 86.35 Lacs F.Y. 2012-13 CESTAT Bench, Delhi
Tax
(c) According to the information and explanations given to us, no
amount was 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 there under.
(viii) The Company has accumulated losses at the end of the Financial
Year which do not exceed fifty percent of its net worth. The company
has not incurred cash losses in current Financial Year but incurred
cash losses in the immediately preceding Financial Years.
(ix) The Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders during the year.
(x) In our opinion and according to the information and the
explanations given to us, the Company has not given guarantee for loans
taken by others from banks or financial institutions.
(xi) The Company has utilised term loans for the purpose for which the
loans were obtained.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For SURESH & ASSOCIATES
FRN: 003316N
CHARTERED ACCOUNTANTS
Date : 25th May, 2015 (CA SURESH K GUPTA)
Place : DELHI PARTNER
M. No.080050
Mar 31, 2014
We have audited the accompanying financial statements of Cantabil Retail
India Limited (''the Company'') which comprise the balance sheet as at
31st March 2014, the statement of Profit and loss and the cash fow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, 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 suffcient 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2014;
(ii) in the case of the statement of Profit and loss, of the loss for
the year ended on that date; and
(iii) in the case of the cash fow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, 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; and
e. on the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITOR''S REPORT Referred to Paragraph 1 of our report of
even date attached
(i) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the assets
on basis of the information available.
b) According to information and explanation given to us, the fixed
assets of the company have been physically verifed by the management at
reasonable intervals during the year. No material discrepancies have
been noticed on such verifcation.
c) In our opinion and according to the information and explanations
given to us, there was no substantial disposal of fixed assets by the
company, which may affect the going concern concept.
(ii) a & b) As explained to us, the inventory has been physically
verifed by the management at reasonable intervals during the year. In
our opinion, the frequency of such verifcation is reasonable
considering size and nature of the business.
c) In our opinion and according to information and explanation given to
us, the procedures of physical verifcation of inventory, followed by
the management, are reasonable and adequate. No serious discrepancies
have been noticed in physical verifcation.
(iii) Company has not granted any loans to companies, firms or other
parties covered in the register maintained u/s 301 of the Act.
(iv) In our opinion and according to information and explanation given
to us, there are adequate internal control procedures commensurate with
the size and nature of the company for purchase of inventory and fixed
assets and sale of goods.
(v) a) According to the information and explanation given to us, the
company has entered into transaction pursuance of contract or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956.
b) In respect of the transactions made in pursuance of such contracts
or arrangements and exceeding value Rupees Five Lacs in respect of any
party during the year, because of the absence of the comparable prices
and variation in the quality of the goods involved, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit and there is no contravention of the
directives issued by the RBI and the provisions of 58A and 58AA of the
Act and rules framed there under.
(vii) In our opinion, the company has an internal audit system
commensurate with it size and nature of business.
(viii) The maintenance of the cost record has been prescribed by the
Central Government under section 209(1)(d) of Companies Act, 1956 to
the company. As explained to us such accounts and records have been
made & maintained.
(ix) (a) According to the books of accounts examined by us company is
generally regular in depositing undisputed statutory dues in respect of
PF, ESI, Income Tax, VAT, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Cess and other statutory dues with the appropriate authorities.
(b) Except for cases detailed hereunder, there are no disputed
liability in respect of PF, ESI, Income Tax, Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Cess and other statutory dues which are
outstanding as at 31st March, 2014:-
S Period of Demand Amount involved Particulars of Demand
No. (In lacs)
1. Financial Year 2008-09, 11.97 Under Labour Act
2009-10, 2010-11, 2011-12
2. Financial Year 2012-13 86.35 Under Central Excise
Act,1944
3. Financial Year 2009-10 256.29 Demand under section
201(1) and 201(1A) of
Income Tax Act, 1961.
Period of Demand Authority where appeal is Pending
Financial Year 2008-09, Labour Court, Karkardooma Court, Delhi
2009-10, 2010-11, 2011-12
Financial Year 2012-13 CESTAT,Bench Delhi
Financial Year 2009-10 CIT(A), Delhi
S Period of Demand Amount involved Particulars of Demand
No. (In lacs)
4. Financial Year 2010-11 164.59 Demand under section
201(1) and 201(1A) of
Income Tax Act, 1961.
Period of Demand Authority where appeal is Pending
Financial Year 2010-11 CIT(A), Delhi
(x) There are accumulated losses at the end of the financial year in the
case of the company. Further, the company has incurred cash losses
during the financial year under report.
(xi) As per explanation and information provided to us, the company has
not defaulted in repayment of dues to financial institutions or banks.
(xii) The company has not granted loans and advances on basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/ nidhi/ mutual benefit fund/
society.
(xiv) As per information given to us, the company is not dealing or
trading in shares, securities, debentures and other investments.
However, the Company has investments in shares, mutual funds of equity
and debts amounting of Rs. 1.64 Lacs as on 31.03.2014.These investment
are held by the company in its own name.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given guarantee for loans taken by
others from banks or financial institutions.
(xvi) To the best of our knowledge and belief and according to
information given to us, the company has not availed any term loan
during the current financial year.
(xvii) As per information and explanation given to us and overall
examination of balance sheet of the company, we report that funds
raised on short term basis have prima facie not being used for long
term investment .
(xviii) As per information and explanation given to us, the company has
not made any preferential allotment of shares to promoters of the
company covered in the category of persons mentioned under section 301
of the Companies Act.
(xix) As per information and explanation given to us, the company has
not issued any debentures and no security or charge has been created
against the debentures.
(xx) In our opinion the management has disclosed the end use of money
raised through public issue in the year 2010- 11 and the same has been
verifed.
(xxi) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For SURESH & ASSOCIATES
FRN: 003316N
CHARTERED ACCOUNTANTS
Date : 26th May, 2014 (CA. SURESH K GUPTA)
Place : DELHI PARTNER
M. No. 080050
Mar 31, 2013
We have audited the accompanying financial statements of Cantabil
Retail India Limited (''the Company'') which comprise the balance sheet
as at 31 st March 2013, the statement of profit and loss and the cash
flow statement for the year then ended and a summary of significant
accounting policies and other explanatory information
1. Management''s Responsibility for the Financial Statements
Management is responsible forthe 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.
2. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whetherthe 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.
3. 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2013;
(ii) in the case of the statement of profit and loss, of the loss for
the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
4. Report on Other Legal and Regulatory Requirements
i. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
ii. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, 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; and
e. on the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITOR''S REPORT
Referred to Paragraph 1 of our report of even date attached
(i) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the assets
on basis of the information available.
b) According to information and explanation given to us, the fixed
assets of the company have been physically verified by the management
at reasonable intervals during the year. No material discrepancies have
been noticed on such verification.
c) In ouropinion and according to the information and explanations
given to us, there was n o substantial disposal of fixed assets by the
company, which may affect the going concern concept.
(ii) a&b) As explained to us, the inventory has been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable
considering size and nature of the business.
c) In our opinion and according to information and explanation given to
us, the procedures of physical verification of inventory, followed by
the management, are reasonable and adequate. No serious discrepancies
have been noticed in physical verification.
(iii) Company has not granted any loans to companies, firms or other
parties covered in the register maintained u/s 301 of the Act. However,
Company has accepted unsecured loans from two persons aggregating Rs
59, 50,197/- and Rs. 59,50,197/- has been repaid. In our opinion, terms
of acceptance of loans are not prejudicial to the interest of company.
(iv) In our opinion and according to information and explanation given
to us, there are adequate internal control procedures commensurate with
the size and nature of the company for purchase of inventory and fixed
assets and sale of goods.
(v) a) According to the information and explanation given to us, the
company has entered into transaction pursuance of contract or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956.
b) In respect of the transactions made in pursuance of such contracts
or arrangements and exceeding value Rupees Five Lacs in respect of any
party during the year, because of the absence of the comparable prices
and variation in the quality of the goods involved, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit and the directives issued by the RBI and
the provisions of 58A and 58AA of the Act and rules framed there under.
(vii) In our opinion, the company has an internal audit system
commensurate with it size and nature of business.
(viii) The maintenance of the cost record has been prescribed by the
Central Government under section 209(1 )(d) of Companies Act, 1956 to
the company. As explained to us such accounts and records have been
made & maintained.
(ix) (a) According to the books of accounts examined by us company is
generally regular in depositing undisputed statutory dues in respect of
PF, ESI, Income Tax, VAT, Sales Tax, Wealth Tax Custom Duty, Excise
Duty, Cess and other statutory dues with the appropriate authorities.
x) There are accumulated losses at the end of the financial year in the
case of the company.
Further, the company has incurred cash losses during the financial year
under report.
(xi) As per explanation and information provided to us, the company has
not defaulted in repayment of dues to financial institutions or banks.
(xii) The company has not granted loans and advances on basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/ nidhi/ mutual benefit
fund/ society.
(xiv) As per information given to us, the company is not dealing or
trading in shares, securities, debentures and other investments.
However, the Company has made investments in shares, mutual funds of
equity and debt amounting to Rs. 723.00 Lacs (Previous Year Rs.1556.00
Lacs).
(xv) In our opinion and according to the information and explanations
given to us, the company has not given guarantee for loans taken by
others from banks or financial institutions.
(xvi) To the best of our knowledge and belief and according to
information given to us, the term loan availed by the company were
prima facie applied by company during the year for the purpose for
which they were obtained.
(xvii) As per information and explanation given to us and overall
examination of balance sheet of the company, we report that funds
raised on short term basis have prima facie not being used for long
term investment and vice versa.
(xviii) As per information and explanation given to us, the company has
not made any preferential allotment of shares to promoters of the
company covered in the category of persons mentioned under section 301
of the Companies Act.
(xix) As per information and explanation given to us, the company has
not issued any debentures and no security has been created against the
debentures.
(xx) In our opinion the management has disclosed on the end use of
money raised through public issue in the year 2010-11 and the same has
been verified.
(xxi) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For SURESH & ASSOCIATES
FRN: 003316N
CHARTERED ACCOUNTANTS
(CA. SURESH K GUPTA)
DATE : 27th May, 2013 PARTNER
PLACE : DELHI M. No. 080050
Mar 31, 2012
We have audited the attached Balance Sheet of CANTABILRETAILINDIA
LIMITED, B-47 1st FLOOR , LAWRENCE ROAD INDUSTRIAL AREA, DELHI-110035,
as at 31st March, 2012 and the Profit and Loss Account and also Cash
Flow statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted 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, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act. 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:-
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit ;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books ;
(iii) The Balance Sheet and Profit and Loss Account, dealt with by this
report, are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet and Profit and Loss Account,
dealt with by this report, comply with the accounting standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 ;
(v) On the basis of written representations received from the
directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act. 1956 ;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
(b) in the case of the Profit and Loss Account, of the Loss for the
year ended on that date.
(c) In the case of cash flow statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to Paragraph 1 of our report of even date attached
(i) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the assets
on basis of the information available.
b) According to information and explanation given to us, the fixed
assets of the company have been physically verified by the management
at reasonable intervals during the year. No material discrepancies have
been noticed on such verification.
c) In our opinion and according to the information and explanations
given to us, there was no substantial disposal of fixed assets by the
company, which may affect the going concern concept.
(ii) a&b) As explained to us, the inventory has been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable
considering size and nature of the business.
c) In our opinion and according to information and explanation given to
us, the procedures of physical verification of inventory, followed by
the management, are reasonable and adequate. No serious discrepancies
have been noticed in physical verification.
(iii) Company has not granted any loans to companies, firms or other
parties covered in the register maintained u/s 301 of the Act. However,
Company has accepted unsecured loans from two persons aggregating Rs
1,46,12,798/- out of which Rs 135,62,601/- has since been repaid. In
our opinion, terms of acceptance of loans are not prejudicial to the
interest of company.
(iv) In our opinion and according to information and explanation given
to us, there are adequate internal control procedures commensurate with
the size and nature of the company for purchase of inventory and fixed
assets and sale of goods.
(v) a) According to the information and explanation given to us, the
company has entered into transaction pursuance of contract or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956.
b) In respect of the transactions made in pursuance of such contracts
or arrangements and exceeding value Rupees Five Lacs in respect of any
party during the year, because of the absence of the comparable prices
and variation in the quality of the goods involved, we are unable to
comment whether the transactions were made at prevailing market prices
at the relevant time.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit under the directives issued by the RBI and
the provisions of 58A and 58AA of the Act and rules framed there under.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of business.
(viii) The maintenance of the cost record has been prescribed by the
Central Government under section 209(1)(d) of Companies Act, 1956 to
the company. As explained to us such accounts and records have been
made & maintained.
(ix) (a) According to the books of accounts examined by us, company is
generally regular in depositing undisputed statutory dues in respect of
PF, ESI, Income Tax, VAT, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Cess and other statutory dues with the appropriate authorities.
(b) (b) Except for cases detailed hereunder, there are no disputed
liability in respect of PF, ESI, Income Tax, Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Cess and other statutory dues which are
outstanding as at 31st March, 2012:-
S Period of Demand Amount involved Particulars of Demand
Authority
No.
where
appeal
is
pending
1. Financial Year
2003-04 4.38 Lacs ESI on Job
work Civil
Court
Rohini,
Delhi
2. Financial Year
2008-09 , 15.81 Lacs Under Labour
Act Labour
Court,
2009-10 & 2010-11 Karkar
dooma
Court,
Delhi
3. Financial Year
2011-12 2.00 Lac Under Delhi
Pollution Karkar
dooma
Control Committee Court,
Delhi
4. Financial Year
2011-12 Not Informed
by Under Delhi
Pollution Karkar
dooma
the concerned Control Committee Court,
Delhi
authority
5. Financial Year
2005-06 18.48 Lacs Under Sales
Tax Act/ Appellate
DVAT Tribunal,
Value
Added
Tax
6. Financial Year
2007-08 1.26 Lacs Under Delhi Value
Added Joint
Tax Commiss
ioner,
Depart
ment of
Trade &
Taxes
7. Financial Year
2009-10 256.29 Lacs Demand under
section CIT(A),
Delhi
201(1) and
201(1 A) of
Income Tax Act,
1961.
(x) There are no accumulated losses at the end of the financial year in
the case of the company. Further, the company has incurred cash loss
during the financial year under report and there was no cash loss in
the immediately preceding financial year.
(xi) As per explanation and information provided to us, the company has
not defaulted in repayment of dues to financial institutions or banks.
(xii) The company has not granted loans and advances on basis of
security by way of pledge of shares, debentures and other securities.
(xiii) Provisions of clause (xiii) are not applicable to the company.
(xiv) As per information given to us, the company is not dealing or
trading in shares, securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the company has given guarantee for loans taken by others
from banks or financial institutions and terms and conditions whereof
are not prejudicial to the interest of company.
(xvi) To the best of our knowledge and belief and according to
information given to us, the term loan availed by the company were
prima facie applied by company during the year for the purpose for
which they were obtained.
(xvii) As per information and explanation given to us and overall
examination of balance sheet of the company, we report that funds
raised on short term basis have prima facie not being used for long
term investment and vice versa.
(xviii) As per information and explanation given to us, the company has
not made any preferential allotment of shares to promoters of the
company covered in the category of persons mentioned under section 301
of the Companies Act.
(xix) As per information and explanation given to us, the company has
not issued any debentures and no security has been created against the
debentures.
(xx) In our opinion the management has disclosed the end use of money
raised by public issue in the Financial year 2010-11 and the same has
been verified.
(xxi) As per information and explanation given to us, no fraud has been
noticed or reported during the year.
For SURESH & ASSOCIATES
FRN: 003316N
CHARTERED ACCOUNTANTS
Date : 28th May, 2012 (CA. SURESH K GUPTA)
Place : New Delhi PARTNER
M. No. 080050