Mar 31, 2023
Frontier Springs Limited
Report on the Audit of the Standalone Financial Statements
I have audited the accompanying standalone financial statements of Frontier Springs Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2023, Statement of Profit and Loss( including other comprehensive income ), Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information.
In my opinion and to the best of my information and according to the explanations given to me, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) 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, and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and its profit and other comprehensive loss, changes in equity and its cash flows for the year ended on that date.
I have conducted my audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). My responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of my report. I am independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to my audit of the financial statements under the provisions of the Act and the Rules made there under, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. I believe that the audit evidence obtained by me referred to in paragraph (a) of the â Others Mattersâ section below is sufficient and appropriate to provide a basis for my audit opinion on the financial statements.
Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the standalone financial statements of the current period.
These matters were addressed in the context of my audit of the standalone financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matters described below to be the key audit matters to be communicated in my report.
Revenue from the sale of goods is recognized upon the transfer of control of the goods to the customer (mainly being supply to railways), usually on delivery of goods. The company uses a
variety of shipment terms across its operating markets and this has an impact on the timing of revenue recognition. As well as the company recognizes its revenue as per the various tenders received from railways which has overall impact on the timing of revenue recognition? There is a risk due to retention norms of 2% or 5% in all purchase orders by railways that revenue could be recognized in the period for sales transactions occurring on and around the year end therefore, revenue recognition has been identified as a key audit matter.
Refer to Note No. 21and 22 of the Standalone Financial Statements
Principal Audit Procedures
My audit procedures includes reading the Company''s revenue recognition accounting policies to assess compliance with Ind AS 115 âRevenue from contracts with customersâ.
I performed test of controls of management''s process of recognizing the revenue from sales of goods and placed specific attention on the timing of the revenue recognition as per the sales terms with the customers.
I performed test of details of the sales transactions testing based on a representative sampling of the sales orders to test that the related revenues and trade receivables are recorded appropriately taking into consideration the terms and conditions of the sale orders, including the shipping terms.
I also performed sales cut off procedures by agreeing deliveries occurring around the year end to supporting documentation to establish that sales and corresponding trade receivables are properly recorded in the correct period.
Retention by railways out of revenue received.
As per railway norms, terms and conditions there are demurrage charges which are retained in the form of 2% or 5% of invoice value which is recovered when the tenure as per terms and conditions of the purchase order is completed. The total retention amount for the period ended 31/03/2023 amounts to ^ 14,86,987/- out of total trade receivables and out of which ^ 4,36,987/- has been recovered up to 10/05/2023.
Principal Audit Procedures
My audit procedures includes reading the Company''s revenue recognition accounting policies to assess compliance with Ind AS 115 âRevenue from contracts with customersâ.
I performed test of controls of management''s process of recognizing the revenue from sales of goods and placed specific attention on the timing of the revenue recognition as per the sales terms with the customers.
I performed test of details of the sales transactions testing based on a representative sampling of the sales orders to test that the related revenues and trade receivables are recorded appropriately taking into consideration the terms and conditions of the sale orders, including the shipping terms.
I also performed sales cut off procedures by agreeing deliveries occurring around the year end to supporting documentation to establish that sales and corresponding trade receivables are properly recorded in the correct period.
Taxes including provision for current tax, valuation of uncertain tax positions and recognition of deferred taxes.
The company has recorded ^ 2,33,51,747/-of tax expense and deferred tax liabilities amounting to ^ 19,70,771/- for the year ended 31st March, 2023.
The company is subject to periodic tax challenges by tax authorities which may lead to protected litigations; as such accounting for taxes involves management judgement in developing estimates of tax exposures and contingencies in order to assess the adequacy of tax provision.
Principal Audit Procedures
Assessed the design, implementation and operating effectiveness of key controls in respect of the company''s process of recognition of tax expense, including uncertain tax provisions and deferred taxes.
Assessed the calculation for the current tax provisions and the procedures performed to analyze movements, including the rationale for any release, increase or continued provision in the year.
Assessed management''s judgments with respect to probability of outflow arising out of litigation after considering the status of recent tax assessments, audits and enquiries, recent judicial pronouncements and judgements in similar matters, developments in the tax environment and outcome of past litigations.
Gratuity Accounting.
Company has taken policy from Life Insurance Corporation regarding the gratuity for its Springs and Forging Div. units at Rania, and other Springs units at Paonta sahib in regards to this there is a trust Titled as ''Trustees Frontier Springs Ltd Employees Group'', as informed to me, there are no pending payment on this account as on 31.03.2023.
Principal Audit Procedures
My audit procedures includes reading the Company''s revenue recognition accounting policies to assess compliance with Ind AS 37 âProvisions, Contingent Liabilities and Contingent Assetsâ.
I performed test of controls of management''s process of recognizing the Provisions, Contingent Liabilities and Contingent Assets and placed specific attention on the timing of the provisions.
I performed test of details of the expense transactions testing based on a representative sampling of the Provisions to test that the Provisions, Contingent Liabilities and Contingent Assets are recorded appropriately.
I also performed cut off procedures relating to Provisions, Contingent Liabilities and Contingent Assets occurring around the year end and the same are properly recorded in the correct period.
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORâS REPORT THEREON
The Company''s Management and Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Company''s Annual Report, 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 financial statements and my auditor''s report thereon. The annual report is to be made available to me after the date of the auditor''s report.
My opinion on the standalone financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.
In connection with my audit of the standalone financial statements, my 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 financial statements or my knowledge obtained during the course of period under audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. I have nothing to report in this regard.
When I read the other information identified above, if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and take necessary actions, as applicable under the relevant laws and regulations.
MANAGEMENTâS AND BOARD OF DIRECTORSâ RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company''s Management and Board of Directors are responsible for the matters stated in section 134(5) of 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, changes in equity and cash flows of the Company in accordance with the AS and other accounting principles generally accepted in India including the Indian Accounting Standards (Ind AS ) specified under section 133 of the Act. 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are 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 the Board of Directors 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.
AUDITORâS RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
My objective is to obtain reasonable assurance about whether the standalone 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 my 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 financial statements.
As part of an audit in accordance with SAs, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:
? Identify and assess the risks of material misstatement of the standalone 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 my 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 controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, I am also responsible for expressing my opinion on whether the Company has adequate internal financial controls with reference to 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 and Board of Directors.
? Conclude on the appropriateness of management''s and Board of Directors use of the going concern basis of accounting in preparation of financial statements 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 I conclude that a material uncertainty exists, I am required to draw attention in my auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my 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 financial statements, including the disclosures, and whether the standalone 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 financial statements may be influenced. I consider quantitative materiality and qualitative factors in (i) planning the scope of my audit work and in evaluating the results of my work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
I 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 I identify during my audit.
I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be though to bear on my independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by Section 143(3) of the Act, based on my audit, I report that:
⢠I have sought and obtained all the information and explanations which are to the best of my knowledge and belief, as necessary for the purposes of my audit.
⢠In my opinion, proper books of account as required by law have been kept by the Company so far as it appears from my examination of those books.
⢠The Balance Sheet, the Statement of Profit and Loss (includes other comprehensive income), Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
⢠In my opinion, the aforesaid standalone financial statements comply with the AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
⢠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.
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 my separate Report in ''''Annexure Aâ. My report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended :
In my opinion and to the best of my information and according to the explanations given to me, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act. The remuneration paid to any director is in excess of the limit laid down under section 197 of the Act, and accordingly special resolutions and necessary approvals under SEBI (LODR) Regulations. 2015 has already been obtained.
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, as amended in my opinion and to the best of my information and according to the explanations given to me:
The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.
The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the company as certified by the management.
The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds 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 persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠Directly or indirectly lend or inverts in other person or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the company or
⢠Provide any guarantees, security or the like to or on behalf of the Ultimate Beneficiaries.
? The management has represented, that, to the best of its knowledge and belief, no funds have been received by the company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the company shall:
⢠Directly or indirectly lend or inverts in other person or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
⢠Provide any guarantees, security or the like to or on behalf of the Ultimate Beneficiaries.
? Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to my notice that has caused me to believe that the representations under sub-clause (d) (i) and (d) (ii) contain any material misstatement.
? The dividend declared or paid during the year by the company is in compliance with section123 of the act.
As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, I have give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
It is further categorically stated here that due to Covid-19, Pandemic, there is certain restrictions, restrain in conducting the audit, as well as there is certain other short comings in the nature of confirmations of balances and transactions from different parties, other related matters, evaluating impairment of assets, if any change in use full life of asset, other significant uncertainties, it''s effect in the subsequent year and appropriate audit evidences in certain matters.
For SANJEEVANI RAIZADA & CO.
Chartered Accountants Firm''s Registration No.: 021960C
(SANJEEVANI RAIZADA)
Proprietor
Membership No.: 414542 UDIN: 23414542BGXVD09465 Place: Kanpur Date: 30th May, 2023
Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of FRONTIER SPRINGS LIMITED (âthe Company") which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including Other Comprehensive Income, the Cash Flow Statement for the year then ended and the Statement of Changes in Equity for the year ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Act") 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 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, 2015. As amended and other Accounting Principles Generally Accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
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 of the Ind As 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 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 financial statements. The procedures selected depend on the auditor''s 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 Company''s 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the
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 aforesaid 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, its Cash Flow and changes in Equity for the year ended on that date. Subject to note 1 of Notes on Financial Statements for the year ending 31st March 2018.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order"), as amended, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the âAnnexure A" a statement on the matters specified in paragraphs 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 purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including 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 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.
e. On the basis of written representations received from the directors 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".
g. 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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE - âAâ TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the financial statements of the Company for the year ended March 31, 2018:
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of the immovable properties are held in the name of the company.
2) (a) The management has conducted the physical verification of inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6) As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
7) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute.
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised money by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanations given by the management, managerial remuneration has been paid by the Company in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
âAnnexure Bâ to the Independent Auditorâs Report of even date on the Financial Statements of FRONTIER SPRINGS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of FRONTIER SPRINGS LIMITED (âthe Company") as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s 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
âInstitute 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 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance 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 was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s 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 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 March 31, 2018, 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".
For SANJEEVANI RAIZADA & CO.
Chartered Accountants
Firm''s Regn. No. : 021960C
SANJEEVANI RAIZADA
Place : Kanpur Proprietor
Date : 28.05.2018 Membership No. 414542
Mar 31, 2015
We have audited the accompanying financial state- ments of Frontier
Springs Limited ("the Company") which comprise the Balance Sheet as at
31st March 2015, Profit and Loss Statement, the Cash Flow Statement for
the year then ended and a summary of the significant ac- counting
policies and other explanatory information.
Management's Responsibility for the Financial State- ments
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Compa- nies 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 ac- counting principles
generally accepted in India includ- ing the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Ac- counts) Rules,2014. This responsibility also includes
maintenance of adequate accounting records in accor- dance with the
provisions of the Act for safeguarding the assets of the Company and
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
account- ing records, relevant to the preparation and presenta- tion 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 provisions of the Act and Rules made there under. We
conducted our audit in accordance with the Stan- dards on Auditing
specified under Section 143(10) of the Act. Those Standards require that
we comply with the ethical requirements and plan, perform the audit to
obtain reasonable assurance about whether the finan- cial statements are
free from material misstatements. An audit involves performing
procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend
on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial state- ments, whether due to
fraud or error.
In making those risk assessments, the auditor con- siders the internal
financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit proce- dures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls systems over financial
reporting and the oper- ating effectiveness of such controls. An audit
also in- cludes evaluating the appropriateness of accounting policies
used and the reasonableness of the account- ing estimates made by the
Company's directors, as well as evaluating the overall presentation of
the financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit
opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles gener-
ally accepted in India, of the state of affairs of the Com- pany as at
March 31, 2015, and its profits and its cash flows for the year ended
on that date.
i) In few cases balance of sundry debtors, sundry creditors and sundry
advances are subject to confirmation from respective parties.
ii) Inventory of finished goods are valued at net realisable value
(refer Note no. J of significant Accounting policies).
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2015;
(b) in the case of the Statement of profit and Loss, of the Profit of
the Company for the year ended on the date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on the date.
Report on Other Legal and Regulatory Requirements
1. 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 Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid financial statement comply with the
Accounting Standards specified under Section 133 of the Act, read with
rule 7 of the Companies (Account) Rules,2014;
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2015, from being appointed as a director in terms of Section 164(2) of
the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rule,2014, in our opinion and to the best of our information and
according to the explanations given to u;
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Notes
X to the financial statements.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable loses, if any and
as required on long-term contracts including derivative contracts.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 1 of the Auditor's Report to the shareholders
of Frontier Springs Limited Regd. Off. E-14, Panki Industrial Area, Site
no.1, Kanpur on the account for the year ended on 31st March,2015.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and the situation of fixed
assets on the basis of available information.
(b) As explained to us ,all the fixed assets have been physically
verified by the management in a phased periodical manner ,which in our
opinion is reasonable ,having regard to the size of the company and the
nature of its assets .No material discrepancies were noticed on such
physical verification .
2. (a) The inventories have been physically verified during the year by
the management .In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and 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 has maintained proper records of inventories .As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. The Company has not granted any loans, secured or unsecured to
companies, firms or parties covered in the register maintained under
section 189 of Companies Act, 2013.
4. In our opinion and according to the information and explanation
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 also for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
5. The Company has no accepted deposits, as per the directives issued
by the Reserve Bank of India and the provisions of section 73 to 76 or
any other relevant provisions of the Companies Act and the rules
framed.
6. The Central Government has prescribed maintenance of cost records
under Section 148(1) of the Companies Act, in respect of certain
manufacturing activities of the Company. We have broadly reviewed the
accounts and records of the company in this connection and are of the
opinion, that prima facie, the prescribed accounts and record have been
made and maintained .We have not, however, carried out a detailed
examination of the same.
7 (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 and any other statutory dues have
been generally regularly deposited with the appropriate authorities
within the stipulated time except some delay in deposit of T.D.S.,
Excise and Service tax. According to the information and explanation
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at March 31,2015 for the period exceeding 6
months from the date of becoming payable. (b) According to the
information and explanation given to us, there are no dues of income
tax, sales tax, custom duty, excise duty and cess, which have not been
deposited on account of dispute.
(c ) There is no amount required to be transferred to Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act,2013 (1 of 1956) and rules made there
under.
8. The Company does not have accumulated losses at the end of the
financial year covered by the audit and in the immediately preceding
financial year.
9. Based on our audit procedures and according to the information and
explanation given to us, we are of opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks and
debenture holders.
10. As per the information furnished to us by the management, the
Company has not given guarantees for loans taken by others from banks
and financial institutions.
11. The Company has raised new term loan during the year. The term loan
outstanding at the beginning of the year and those raised during the
year have been applied for the purposes for which they were raised.
12. Based upon the audit procedures 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 before by the company has been noticed or reported
during the course of our audit.
For SANJAY NANDANI & CO.
Sanjay Nandani & Co. Chartered Accountants
229, IInd Floor, Firm's Regn. No. : 006941C
City Centre,The Mall, SANJAY MALHOTRA
Kanpur Partner
Date : 28.05.2015 Membership No. 71140
Mar 31, 2014
We have audited the accompanying financial state- ments of Frontier
Springs Limited which comprise the Bal- ance Sheet as at 31st March
2014, the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended, and a summary of the significant accounting poli-
cies and other explanatory information.
Management''s Responsibility for the Financial State- ments
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 perfor- mance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
3(C) of section 211 of Companies Act, 1956("the Act") read with the
General Circular 15/2013 dated 13 Sep- tember 2013 of the Ministry of
Corporate Affairs in re- spect of Section 133 of the Companies Act,
2013. This responsibility includes the design, implementation and
maintenance of internal control relevant to the prepara- tion and
presentation of the financial statements that give a true and fair view
and are free from material misstate- ment, whether due to fraud and
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 the
ethical requirements and plan perform the audit to obtain rea- sonable
assurance about whether the financial state- ments are free from
material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
state- ments, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s preparation and fair presenta- tion of the financial
statement in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting polices used and the reasonableness of
the accounting estimates made by the Management, as well as evaluating
the overall presentation of the financial statements. We believe that
audit evidence we have ob- tained is sufficient and appropriate to
provide 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 con- formity with the accounting principles generally accepted
in India:
i) Balance of sundry debtors, sundry creditors and
sundry advances are subject to confirmation from respective parties
(referred note no. of Note on Ac- counts).
ii) Inventory of finished goods are valued at net realisable value
(referred Note no. J of significant Accounting policies).
iii) Provision for payment of gratuity to director has been made on the
payment basis (referred Note no. M of significant Accounting policies).
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) in the case of the Statement of profit and Loss, of the profit of
the Company for the year ended on the date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on the date.
Report on Other Legal and Regulatory Requirements
1. As required by the Company (Auditor''s Report) or- der, 2003 ("the
Order") issued by the Central Gov- ernments of India in terms of
sub-section (4A) of section 227 of Act, we give in the Annexure a
state- ment 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 ex- planations 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 re- quired by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statements 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 Com- ply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Act, 1956 read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of
Cor- porate Affairs in respect of Section 133 of the Companies Act,
2013. : and
(e) On the basis of the written representations re- ceived from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a direc- tor in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO AUDITORS'' REPORT
Referred to in paragraph III of the Auditor''s Report to the
Shareholders of Frontier Springs Limited on the financial statement for
the year ended 31st March, 2014.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) Physical verification of Fixed Assets has been conducted by the
management at the end of the year, to the best of our knowledge, no
serious discrepancies have been noticed on verifica- tion.
(c) No Fixed Assets except car have been disposed off and sale of which
does not affect the Con- cept of going Concern.
2. (a) The stocks of Finished Goods, Stores, Spare Parts & Raw
Materials have been physically veri- fied during the year by the
management. In our opinion, frequency of verification is reasonable.
The Company is maintaining proper records of inventory.
(b) In our opinion, procedures of physical verifica- tion of stocks
followed by management are rea- sonable and adequate in relation to the
size of the Company and nature of its business.
(c) The discrepancies noticed on verification be- tween the physical
stocks and books records were not significant.
3. (a) The Company has not granted any loans, se- cured or unsecured
to companies, firms or par- ties covered in the register maintained
under Sec.301 of the Companies Act,1956 during the year.
(b) The Company has accepted deposits amount- ing to Rs. 27,00,000.00
from Shri Neeraj Bhatia Director of the Company, out of which principle
amount of Rs. 8,05,000.00 and interest amount- ing to Rs. 1,74,004.00
has been paid, The Bal- ance outstanding at the end of the year is
Rs.19,60,223.00.
(c) The Company has repaid interest amounting to Rs. 10,63,487.00 to
M/s Vishpa Rail Equipment Pvt. Limited balance outstanding at the end
of the year is Rs.1,27,72,663.00 listed in the regis- ter maintained
under Section 301 of the Com- panies Act,1956.
(d) In our opinion rate of interest and other terms and conditions of
Loans taken by the Company are not prima-facie prejudicial to the
interest of the Company. Further, payment of the principal amount if
any and interest are regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate inter- nal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of Inventory and Fixed assets and for the sales of Goods.
There are no continuing failures to correct major weaknesses on
internal control system.
5. (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
ar- rangements referred to in section 301 of the Act that need to be
entered into the register main- tained under section 301 have been so
entered.
(b) In our opinion, and according to the information and explanations
given to us , the transactions made in pursuance of contracts and
arrange- ments referred to in (5)(a) above and exceed- ing the value of
Rs. 5 lakh with any party during the year have been made at prices
which are reasonable having regard to the prevailing mar- ket prices at
the relevant time.
6. According to the information and explanations given to us, the
Company has accepted deposit from the public that is from Director Mr.
Neeraj Bhatia, within the meaning of sections 58A and 58AA of the Com-
panies Act, 1956 and the rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business
8. The Central Government has prescribed mainte- nance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 in respect to the
manufac- turing activities of the Company. We have broadly reviewed the
accounts and records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, carried out a detailed
examination of the records.
9. (a) According to the records of the Company, un- disputed statutory
dues including Provident Fund, Employees State Insurance ,Excise Duty
,Service tax , Income tax, Sales tax and any other statutory dues have
been generally regularly deposited with the appropriate authorities
within the stipulated time except some delay in de- posit of T.D.S.,
Excise, & Service Tax. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at the last day of financial year concerned
for a period of more than six months from the date they be- come
payable.
(b) The Company has no disputed statutory dues.
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current year and in the
immediately preceding financial year.
11. Based on our audit procedures and as per the infor- mation and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial institu-
tion, bank.
12. In our opinion and according to the information and explanation
given to us, The Company has not granted any loans and advances on the
basis of security by way of pledge of share, debentures and other
security.
13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit, Fund/ Society, therefore clause 4(xiii) of the Companies
(Auditors Report) order, 2004 is not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments.
15. In our opinion and according to the information & explanation
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company has raised new term loans during the year. The term
loans raised during the year have been applied for the purposes for
which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, we report that no funds raised on short-term basis have
been used for long-term investment.
18. The Company has not made any preferencial allot- ment of shares to
any parties or Companies cov- ered in the registered maintain under
section 301 of the Act.
19. No debentures have been issued during the year.
20. No public issue has been made during the year.
21. Based upon the audit procedures 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 no- ticed or reported
during the course of our audit.
For SANJAY NANDANI & CO.
Sanjay Nandani & Co. Chartered Accountants
229, IInd Floor, Firm''s Regn. No. : 006941C
City Centre,The Mall, SANJAY MALHOTRA
Kanpur Partner
Date : 16.05.2014 Membership No. 71140
Mar 31, 2013
We have audited the accompanying financial statements of Frontier
Springs Limited which comprise the Balance Sheet as at 31st March 2013,
the Statement of Profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of the significant ac- counting 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
3(C) of section 211 of 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 and 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 the
ethical requirements and plan perform the audit to obtain reasonable
assurance about whether the financial statements are free from
material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to
the Company''s preparation and fair presentation of the financial
statement in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the appropriateness
of accounting polices used and the reasonableness of
the accounting estimates made by the Management, as well as evaluating
the overall presentation of the financial statements. We believe that
audit evidence we have obtained is sufficient and appropriate to
provide 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 ac- cepted
in India:
i) Balance of sundry debtors, sundry creditors and sundry advances are
subject to confirmation from respective parties (referred note no. of
Note on Ac- counts).
ii) Inventory of finished goods are valued at net realisable value
(referred Note no. J of significant Accounting policies).
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
(b) in the case of the Statement of profit and Loss, of the profit of
the Company for the year ended on the date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on the date.
Report on Other Legal and Regulatory Requirements
1. As required by the Company (Auditor''s Report) order, 2003 ("the
Order") issued by the Central Governments of India in terms of
sub-section (4A) of section 227 of 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 purposes of
our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statements 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 Com- ply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors are 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 Act.
ANNEXURE TO AUDITORS'' REPORT
Referred to in paragraph III of the Auditor''s Report to the
Shareholders of Frontier Springs Limited on the financial statement for
the year ended 31st March, 2013.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) Physical verification of Fixed Assets has been conducted by the
management at the end of the year, to the best of our knowledge, no
serious discrepancies have been noticed on verification.
(c) No fixed Assets except Car have been disposed off and sale of which
does not affect the Con- cept of going Concern.
2. (a) The stocks of Finished Goods, Stores, Spare Parts & Raw
Materials have been physically verified during the year by the
management. In our opinion, frequency of verification is reason- able.
The Company is maintaining proper records of inventory.
(b) In our opinion, procedures of physical verification of stocks
followed by management are reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) The discrepancies noticed on verification between the physical
stocks and books records were not significant.
3. The Company has not granted any loan secured or unsecured to
Companies, firm or other parties listed in the register maintained
under Sec.301 of the Companies Act. 1956 during the year , however
during the year, the Company has accepted deposits amounting to Rs.
21,50,000.00 balance outstanding Rs.1,24,65,000.00 from corporate
body listed in the register maintained under Section 301 of the
Companies Act,1956 and has repaid amounting Rs.12,20,216.00 towards
interest. In our opinion rate of interest and other terms and
conditions of Loans taken by the Company are not prima-facie prejudicial
to the interest of the Company. Further, payment of the principal
amount and interest are also regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate install control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of Inventory and Fixed assets and for the sales of Goods.
There are no continuing failures to correct major weaknesses on
internal control system.
5. According to the information and explanations pro- vided by the
management, we are in the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered. It has been further explained and informed to us by the
Company that all the transaction are made at cash on prevailing mar-
ket prices.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has prescribed maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 in respect to the
manufacturing activities of the Company. We have broadly reviewed the
accounts and records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, carried out a detailed
examination of the records.
9. (a) According to the records of the Company, un- disputed statutory
dues including Provident Fund, Employees State Insurance ,Excise Duty,
Service tax, Income tax, Sales tax and any other statutory dues have
been generally regularly deposited with the appropriate authorities
within the stipulated time except some delay in de- posit of T.D.S.,
Excise, & Service Tax. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at the last day of financial year concerned
for a period of more than six months from the date they be- come
payable.
(b) The disputed statutory dues aggregating Rs.2.19 lacs, that have not
been deposited on account of disputed matters pending before
appropriate authorities are as under:
Sl. Name Nature Amount Period to Forum where
No. of Statute of dues (in Lacs) which the dispute is
amount pending
relates
1. Central sales Penalty 2.19 2000-01 High Court
tax Act,1956 2001-02 Allahabad
and Sales tax
Act of of U.P.
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current year and in the
immediately preceding financial year.
11. Based on our audit procedures and as per the in- formation 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.
12. In our opinion and according to the information and explanation
given to us, The Company has not granted any loans and advances on the
basis of security by way of pledge of share, debentures and other
security.
13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit, Fund/ Society, therefore clause 4(xiii) of the Companies
(AuditorÂs Report) order, 2004 is not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments.
15. In our opinion and according to the information & explanation
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company is not utilising any term loan facility for Plant &
Machinery. However, there are Car loans as found by us and as explained
and informed to us by management.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Com- pany, we report that no funds raised on short-term basis have
been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
any parties or Companies.
19. No debentures have been issued during the year.
20. No public issue has been made during the year.
21. Based upon the audit procedures 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.
For SANJAY NANDANI & CO.
Sanjay Nandani & Co. Chartered Accountants
229, IInd Floor, Firm''s Regn. No. : 006941C
City Centre,The Mall, SANJAY MALHOTRA
Kanpur Partner
Date : 29.05.2013 Membership No. 71140
Mar 31, 2012
We have audited the attached Balance Sheet of Frontier Springs Limited
as at 31.03.2012, the annexed Profit & Loss Account and the Cash Flow
Statement for the year ended on that date. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these fi- nancial statements based on our
audit.
We conducted our audit in accordance with audit- ing standards
generally accepted in India. Those stan- dards require that we plan and
perform the audit to ob- tain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence support- ing the amounts
and disclosures in the financial state- ments. An audit also includes
assessing the accounting principles used and significant estimates made
by man- agement, as well as evaluating the overall presentation of
financial statement. We believe that our audit pro- vides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) order, 2003 as amended
by the Companies (Auditors Report) order 2004 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 explana- tions, which to
the best of our knowledge and belief were necessary for the purposes of
our audit;
ii). 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
these books ;
iii). The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agree- ment with the books of account;
iv). In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow Statement dealt with by this report comply with the applicable
Accounting Stan- dards 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 31/03/2012 and taken on record by the Board of
directors, we report that none of the director is prima facie
disqualified as on 31/ 03/2012 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 read together with the
significant account- ing Policies and notes thereon give the
information required by the Companies Act,1956, in the man- ner so
required and give a true and fair view in con- formity with the
accounting principles generally ac- cepted in India:
i) Balance of sundry debtors, sundry creditors and sundry advances are
subject to confirmation from respective parties (referred note no. of
Note on Ac- counts).
ii) Inventory of finished goods are valued at net realisable value
(referred Note no. J of significant Accounting policies). gives 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 prin- ciples generally accepted in India:
a) In the case of Balance Sheet, of the state of af- fairs of the
Company as at 31/03/2012;
b) In the case of Profit & Loss Account, of the profit for the year
ended on that date.
And
c) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph III of the Auditor's Report to the
Shareholders of Frontier Springs Limited on the financial statement for
the year ended 31st March, 2012.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) Physical verification of Fixed Assets has been conducted by the
management at the end of the year, to the best of our knowledge, no
serious discrepancies have been noticed on verifica- tion.
(c) No fixed Assets except Car have been disposed off and sale of which
does not affect the Con- cept of going Concern.
2. (a) The stocks of Finished Goods, Stores, Spare Parts & Raw
Materials have been physi- cally verified during the year by the
manage- ment. In our opinion, frequency of verification is reasonable.
The Company is maintaining proper records of inventory.
(b) In our opinion, procedures of physical verifica- tion of stocks
followed by management are rea- sonable and adequate in relation to the
size of the Company and nature of its business.
(c) The discrepancies noticed on verification be- tween the physical
stocks and books records were not significant.
3. The Company has not granted any loan secured or unsecured to
Companies, firm or other parties listed in the register maintained
under Sec.301 of the Companies Act. 1956 during the year , however
during the year, the Company has accepted depos- its amounting to Rs.
20,15,000.00 balance outstand- ing Rs.1,03,15,000.00 from corporate
body listed in the register maintained under Section 301 of the
Companies Act,1956 and has repaid amounting Rs.9,72,528.00 towards
interest. In our opinion rate of interest and other terms and
conditions of Loans taken by the Company are not prima-facie prejudi-
cial to the interest of the Company. Further, payment of the principal
amount and interest are also regu- lar.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of Inventory and Fixed assets and for the sales of Goods.
There are no continuing failures to correct major weaknesses on
internal control system.
5. According to the information and explanations pro- vided by the
management, we are in the opinion that the particulars of contracts or
arrangements re- ferred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered. It has been further ex- plained and informed to us by the
Company that all the transaction are made at cash on prevailing mar-
ket prices.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has prescribed mainte- nance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 in respect to the
manufac- turing activities of the Company. We have broadly reviewed the
accounts and records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, carried out a detailed
examination of the records.
9. (a) According to the records of the Company, un- disputed statutory
dues including Provident Fund, Employees State Insurance, Excise Duty,
Service tax , Income tax, Sales tax and any other statutory dues have
been generally regularly deposited with the appropriate authorities
within the stipulated time except some delay in de- posit of T.D.S.,
Excise, & Service Tax. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at the last day of financial year concerned
for a period of more than six months from the date they be- come
payable.
(b) The disputed statutory dues aggregating Rs.2.19 lacs, that have not
been deposited on account of disputed matters pending before
appropriate authorities are as under:
Sl. Name Nature Amount Period to Forum where
No. of Statute of dues (in Lacs) which the dispute is
amount pending
relates
1. Central sales Penalty 2.19 2000-01 High Court
tax Act,1956 2001-02 Allahabad
and Sales tax
Act of of U.P.
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current year and in the
immediately preceding financial year.
11. Based on our audit procedures and as per the in- formation and
explanations given by the manage- ment, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank.
12. In our opinion and according to the information and explanation
given to us , The Company has not granted any loans and advances on the
basis of security by way of pledge of share, debentures and other
security.
13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit, Fund/ Society, therefore clause 4(xiii) of the Companies
(Auditors Report) order, 2004 is not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments.
15. In our opinion and according to the information & explanation
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company is not utilising any term loan facility for Plant &
Machinery. However, there are Car loans as found by us and as explained
and informed to us by management.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, we report that no funds raised on short-term basis have
been used for long-term investment.
18. The Company has not made any preferencial allot- ment of shares to
any parties or Companies.
19. No debentures have been issued during the year.
20. No public issue has been made during the year.
21. Based upon the audit procedures 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 no- ticed or reported
during the course of our audit.
Sanjay Nandani & Co. For SANJAY NANDANI & CO.
229, IInd Floor, Chartered Accountants
City Centre,The Mall, SANJAY MALHOTRA
Kanpur Partner
Date : 28.05.2012 Membership No. 71140
Mar 31, 2010
We have audited the attached Balance Sheet of Fron- tier Springs
Limited as at 31.03.2010, the annexed Profit & Loss Account and the
Cash Flow Statement for the year ended on that date. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our 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 presentation of
financial statement. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 as amended
by the Companies (Auditors Report) Order 2004 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 explana- tions,
which to the best of our knowledge and belief were necessary for the
purposes of our audit ;
ii) 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
these books ;
iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
;
iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash
Flow Statement dealt with by this report comply with the applicable
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 31/03/2010 and taken on record by the Board of directors, we
report that none of the director is prima facie disqualified as on
31/03/2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Compa- nies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and notes on accounts annexed thereto, subject to
the followings:
i) Balance of sundry debtors, sundry creditors and sundry advances are
subject to confirmation from respective parties (referred note no. 2 of
ScheduleS of Note on Accounts).
ii) Inventory of finished goods are valued at net realiseble value
(referred point no. B of Schedules of Significant Accounting
Policies). gives 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 Balance Sheet, of the state of affairs of the
Company as at 31/03/2010;
b) In the case of Profit & Loss Account, of the profit for the year
ended on that date;
And
c) In the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph III of the Auditors Report to the
Shareholders of Frontier Springs Limited on the Financial Statement for
the year ended on 31st March, 2010.
1. (a) The Company has maintained proper records
showing full particulars including quantitative details and situation
of Fixed Assets.
(b) Physical verification of Fixed Assets has been conducted by the
management at the end of the year, to the best of our knowledge, no
serious discrepancies have been noticed on verification.
(c) No fixed Assets except Car have been disposed off and sale of which
does not affect the Concept of Going Concern.
2. (a) The stocks of Finished Goods, Stores, Spare Parts & Raw
Materials have been physically verified during the year by the
management. In our opinion, frequency of verification is reasonable.
The Company is maintaining proper records of inventory.
(b) In our opinion, procedures of physical verification of stocks
followed by management are reasonable and adequate in relation to the
size of the Company and nature of its business.
(c) The discrepancies noticed on verification between the physical
stocks and books records were not significant.
3. The Company has not granted any loan secured or unsecured to
Companies, firm or other parties listed in the register maintained
under Sec. 301 of the Companies Act, 1956 during the year, however
during the year, the Company has accepted deposits amounting to Rs.
21,50,000.00 from 10 nos. of parties listed in the register
maintained under Section 301 of the Companies Act,1956 and has repaid
to 12 nos. of parties amounting Rs. 14,90,461.00 (Rs. 5,57,614.00
towards interest and Rs. 9,32,847.00 to- wards principal). In our
opinion rate of interest and other terms and conditions of Loans taken
by the Company are not prima-facie prejudicial to the interest of the
Company. Further, payment of the principal amount and interest are also
regular.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with re-
gard to purchases of Inventory and Fixed assets and for the sales of
Goods. There are no continuing failures to correct major weaknesses
on internal control system.
5. According to the information and explanations provided by the
management, we are in the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered. It has been further explained and informed to us by the
Company that all the transaction are made at cash on prevailing
market prices.
6. The Company has accepted deposits from the public during the year
and the same are in compliance with the provisions of section 58A and
58AA or any other relevant provisions of the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. According to explanation and information given to us, maintenance
of cost records has not been prescribed by the Central Government
under Section 209 (1)(d) of the Companies Act, 1956 in respect to the
business of the Company.
9. (a) According to the records of the Company, the
Provident Fund, Employees State Insurance, Excise Duty, Service tax,
Income tax, Sales tax and any other statutory dues have been regu-
larly deposited with the appropriate authorities within the stipulated
time except some delay in deposit of T.D.S., Excise, Sales Tax & Entry
Tax. There are no dues outstanding as at the last day of financial
year concerned for a period of more than six months from the date they
become payable.
(b) In our opinion, explanation and information given to us, there is
no statutory dues as stated in para 9(a) above pending due to any
dispute, hence provisions of para 4 (ix) b) of the said order is not
applicable to the Company.
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current year and
immediately preceding financial year.
11. Based on our audit procedures and as per 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.
12. In our opinion and according to the information and explanation
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of share, debentures and other
security.
13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual
Benefit, Fund/ Society, therefore clause
4(xiii) of the Companies (Auditors Report) Order, 2004 is not
applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments.
15. In our opinion and according to the information & explanation
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
16. The Company is utilising term loan facility from State Bank of
India for Plant & Machinery including Car Hire Purchase loan as found
by us and as explained and informed to us.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the Company, we report that no funds raised on short-term basis have
been used for long-term investment.
18. The Company has not made any preferencial allotment of shares to
any parties or Companies.
19. No debentures have been issued during the year.
20. No public issue has been made during the year.
21. Based upon the audit procedures 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.
Sanjay Nandini & Co. For SANJAY NANDINI & CO.
229, IInd Floor, Chartered Accountants
City Centre,The Mall, SANJAY MALHOTRA
Kanpur Partner
Date : 12.08.2010 Membership No. 71140