Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT To the Members of,
SQUARE FOUR PROJECTS INDIA LIMITED (FORMERLY ESSEN SUPPLEMENTS INDIA LIMITED)
Report On The Standalone Financial Statements
We have audited the accompanying standalone financial statements of SQUARE FOUR PROJECTS INDIA LIMITED (FORMERLY ESSEN SUPPLEMENTS INDIA LIMITED) ("the Company"),which comprise the Balance Sheet as at 31 March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, as applicable.
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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit under the provisions of the Act and the Rules made there under and the Order urine: section 143 (11) of the Act.
e conducted our audit of the standalone financial statements in accordance with the undress on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, subject to the matter stated under emphasis of matter:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;
b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that 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 Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under section 133 of the Act, as applicable.
e) On the basis of the written representations received from the directors as on 31 March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
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:
1. The Company has disclosed the impact of pending litigations on its financial position in its financial statements;
II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
III. There were no amounts which were required to be transferred by the Company to the Investor Education and Protection Fund during the year.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143 (11) of the Act, we give in "Annexure B'''' a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Refined to in paragraph l
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SQUARE FOUR PROJECTS INDIA LIMITED (FORMERLY ESSEN SUPPLEMENTS INDIA LIMITED)
I "the Company") as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 wrath the policies or procedures may deteriorate.
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at 31 March 2016, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
The Annexure referred to in paragraph 2 of the Our Report of even date to the members SQUARE FOUR PROJECTS INDIA LIMITED (FORMERLY ESSEN SUPPLEMENTS INDIA LIMITED) on the accounts of the Company for the year ended 31s'' March, 2016.
On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets
(b) As explained to us, the Company has a regular programme of physical verification of the fixed assets and the same are verified at reasonable intervals during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given to us and on the basis of an examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. Since the Company did not have any stock of finished goods, raw materials, stores and spares and packaging materials either at the beginning or at the end or during the year, matters specified in clauses (ii) of paragraph 3 of the said Order are not applicable to the Company for the relevant year.
iii. According to the information and explanations given to us, the Company has granted unsecured loans to its subsidiary Companies covered under Section 189 of the Act.
(a) The terms and conditions on which loan has been granted to the borrower Companies covered under Section 189 of the Act is not, prima facie, prejudicial to the interest of the Company.
(b) The principal amount is repayable on demand. The borrower has been regular in paying interest on the loan.
(c) There is no overdue amount of more than 90 days in respect of loan granted to the party listed in the register maintained under Section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. The Company has not accepted any deposits during the year and, accordingly, the provisions of clauses v of paragraph 3 the order is not applicable to the Company.
vi. As per information and explanation given by the management, maintenance of cost records have not been prescribed by the Central Government under subsection (1) of section 148 of the Act for the type of business the Company is currently in.
vii. (a) According to the records of the company, undisputed statutory dues
including Provident Fund, Employees'' State Insurance, Income-tax, Sales-Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax,
Cess and other material statutory dues to the extent applicable have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 3151 of March, 2015 for a period of more than six months from the date they became payable except land revenue payable of Rs 8,59,553/-(previous year Rs 7,34,243/-) to the Gram Panchayat Bollaram for a period between 2005-06 and 2015-16.
(b) According to the information and explanations given to us, there is no
amounts payable in respcct of income tax, wealth tax, service tax, sales tax,
customs duty, excise duty and value added tax which have not been deposited
viii. Since the Company has not taken any loan amounts from any financial institution, bank, Governments and debenture holders during the year under reference clause
(viii) of paragraph 3 of the said order is not applicable.
ix. The Company has not raised any amounts by way of initial public offer or further public offer (including debt instruments) or term loans during the year and accordingly matters specified in clause (ix) of paragraph 3 of the said order is not applicable to the Company for the relevant year.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013, as applicable.
xii. The Company is not a Nidhi Company and, accordingly, the matter specified in clause (xii) of paragraph 3 of the said order is not applicable.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Sections 188 and 177 of the Companies Act, I 2013, where applicable, for all transactions with related parties and the details of H related party transactions have been disclosed in the financial statements etc as I required by the applicable accounting standards.
xiv. The Company has not made any preferential allotment of shares or private placement of shares or fully or partly convertible debentures and, accordingly, matters specified in clause (xiv) of paragraph 3 of the said order is not applicable to the Company,
xv. In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its Directors or persons connected with them and hence the provisions of Section 192 of the Companies Act, 2013are not applicable.
xvi. The Company is not required to be registered under Section 45-1 of the Reserve Bank of India Act, 1934.
TO THE MEMBERS OF SQUARE FOUR PROJECTS INDIA LIMITED (FORMERLY ESSEN SUPPLEMENTS INDIA LIMITED)
We have examined the compliance of the conditions of Corporate Governance by SQUARE FOUR PROJECTS INDIA LIMITED (FORMERLY ESSEN
SUPPLEMENTS INDIA LIMITED) ("the Company") for the period between April, 2015 and 31st March, 2016 as stipulated in Chapter IV of Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 pursuant to the listing agreements of the said Company with the stock exchanges. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to the review of procedures and implementation thereof adopted by the Company for ensuring the compliance of conditions of Corporate Governance as stipulated in the said clause. It is neither an audit nor an expression of the opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, and the representations made by the Directors and Management, we certify that the Comp.iny has complied with the conditions of Corporate Governance as stipulated in the provisions as specified in Chapter IV7 of Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 pursuant to the listing Agreement of the said Company with stock exchanges.
We further state that such compliance is neither an assurance as to the future viability I of the Company nor the efficiency or effectiveness with which the Management has I concluded the affairs of the Company.
114E/1D Selimpur Road Membership No. 052145
Mar 31, 2015
We have audited the accompanying financial statements of SQUARE FOUR
PROJECTS INDIA LIMITED (FORMERLY ESSEN SUPPLEMENTS INDIA LIMITED)
("the Company"), which comprise the Balance Sheet as at March 31,
2015, the Statement of Profit and Loss, the Cash Flow Statement for the
year then ended and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend
on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers
internal financial
control relevant to the Company's preparation of the financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Matters
We draw attention to the following matter in the Notes to the financial
statements :
Note 10 to the financial statements regarding advance against purchase
of shares. Pending cmpletion of the transfer formalities and receipt of
share certificates from certain Companies, the shares purchased of such
have not been shown under investments but as advance against purchase
of shares. Also, consolidated financial statements have not been
prepared, since the Companies would be considered as Subsidiary
Companies only on completion of the transfer formalities and receipt of
share certificates.
Our opinion is not modified in respect of the this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 and 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)
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 are required to be transferred by the
Company to the Investor Education and Protection Fund
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of ESSEN SUPPLEMENTS INDIA LIMITED on the accounts of
the company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
2. Since the Company did not have any stock of finished goods, raw
materials, stores and spares and packaging materials either at the
beginning or at the end or during the year, matters specified in
clauses ii(a) to ii(c) of paragraph 3 of the said Order are not
applicable to the Company for the relevant year.
3. According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has not
granted any loans, secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section 189 of the
Companies Act, 2013. Consequently, the provisions of clauses iii (a)
and iii(b) of paragraph 3 the order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of fixed assets and payment for expenses and
for sale of fixed assets and goods. Further, during the course of our
audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed
5. The Company has not accepted any deposits during the year and,
accordingly, the provisions of clauses v of paragraph 3 the order is
not applicable to the Company.
6. As per information and explanation given by the management,
maintenance of cost records have not been prescribed by the Central
Government under sub-section (1) of section 148 of the Act for the type
of business the Company is currently in.
7. (a) According to the records of the company, undisputed statutory
dues including Provident
Fund, Employees' State Insurance, Income-tax, Sales-Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess to the
extent applicable and any other statutory dues have generally been
regularly deposited with the appropriate authorities. According to the
information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2015 for a period of more than six
months from the date they became payable, except land revenue tax
payable of Rs 7,34,243/- (Previous Year Rs 6,08,933/-) to the Gram
Panchyat, Bollaram for the period between 2005-06 and 2014-15.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty, excise duty and value added tax which have not
been deposited on account of any disputes.
(c) According to the information and explanations given to us, there
are no amounts required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder.
8. The accumulated losses of the Company as at 31st March, 2015 of Rs
5,50,46,594/- was more than 50% of the net worth of the Company on the
said date. There was no cash loss either during the year or in the
immediately preceding financial year.
In arriving at the accumulated losses and net month as above, we have
considered the quantification which are quantifiable in the audit
reports of the years to which these losses pertain
9. Since the Company has not taken any loan amounts from any financial
institution or bank during the year under reference, clause (ix) of
paragraph 3 of the said order is not applicable.
10. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution during the year and, accordingly, the
provisions of clause (x) of paragraph 3 of the said order is not
applicable for the relevant year.
11. The Company has not raised any term loan during the year and,
accordingly, the provisions of clause (xi) of paragraph 3 of the said
order is not applicable for the relevant year.
12. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices and based on the audit procedures performed and the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year, nor have
we been informed of any such case by the management.
Ravi Kumar Venkatesan
Membership No. 052145
Partner
For and on behalf of
Dated : 30th May, 2015 S Ramanand Aiyar & Co
114F/1D Selimpur Road Chartered Accountants
Kolkata 700 031 (Regn No 000990N)
Mar 31, 2014
We have audited the aecompanying financial statements of SQUARE FOUR
PROJEC TS INDIA LIMITED (FORMERLY ESSEN SUPPLEMENTS INDIA LIMITED) (
the Company"), which comprise the Balance Sheet as at March 31. 2014.
and the Statement of Profit and Loss and Cash f low Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the C ompanies
Act. 1956 ("the Act1'') (which continue to be applicable in respect of
Section 133 of the Companies Act 2013 in terms of General Circular
15/2013 dated 13th September. 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
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 of the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis lor our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us. the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31. 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the y ear ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the C entral Government of India in terms
of sub-section (4A) of section 227 of the Act. we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief w ere necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the C ompany so far as it appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet. Statement of Profit and Loss, and
C ash flow Statement comply with the Accounting Standards notified
under the Act (which continue to be applicable in respect of Section
133 of the Companies Aet 2013 in terms of General Circular 15/2013
dated 13,th September. 2013 of the Ministry of Corporate Affairs)
e) on the basis of w ritten representations received from the direetors
as on March 31. 2014. and taken on record bv the Board of Directors,
none of the directors is disqualified as on March 31. 2014. from being
appointed as a director in terms of clause (g) ol sub-section (1) of
section 274 of the Companies Act. 1956:
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of ESSEN SUPPLEMENTS INDIA LIMITED on the accounts of
the company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us. fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us. no fixed asset has been disposed of during the year and
therefore does not affect the going concern assumption.
2. Since the C ompany did not have any stock of finished goods, raw
materials, stores and spares and packaging materials either at the
beginning or at the end or during the year, matters specified in
clauses ii(a) to ii(c) of paragraph 4 of the said Order are not
applicable to the C ompany for the relevant year.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act. 1956. Consequently, the provisions of clauses iii
(b). iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans f rom companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act. 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us. there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of fixed assets and payment for expenses and
for sale of fixed assets and goods. Further, during the course of our
audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act, if any, have been entered in the register required to be
maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceed five lacs rupees in a financial year
and, therefore, the requirement of reasonableness of transactions does
not arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58 A A of the Companies Act, 1956.
7. The Company does not have an internal audit system commensurate with
its size and the nature of its business.
8. As per information and explanation given by the management,
maintenance of cost records have not been prescribed by the Central
Government under clause (d) of sub-section (I) of section 209 of the
Act for the type of business the Company is currently in.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund. Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales- tax, Wealth fax,
Service fax, Custom Duty, Excise Duty, cess to the extent applicable
and any other statutory dues have generally been regularly deposited
with the appropriate authorities. According to the information and
explanations given to us there were no outstanding statutory dues as on
31st of March, 2014 for a period of more than six months from the date
they became payable, except land revenue tax payable of Rs 6,08,933/-
(Previous Year Rs 4,83.623/-) to the Gram Panchyat, Bollaram for the
period between 2005-06 and 2013-14.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The accumulated losses of the Company as at 31st March, 2014 of Rs
5,56,55,801/- was more than 50% of the net worth of the Company on the
said date. There was no cash loss either during
the year or in the immediately preceding financial year. I
I I. Since the Compan> has not taken any loan amounts from any
financial institution or bank during the year under reference, clause
(xi) of paragraph 4 of the said order is not applicable.
12. According to the information and explanations given to us. the
Company has not granted loans I and advances on the basis of security
by way of pledge of shares, debentures and other securities. I
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision I
of this clause of the Companies (Auditor''s Report) Order, 2003 (as
amended) is not applicable to the Company.
14. Since the Company does not deal in shares, securities and
debentures, matters specified in I
clause (xiv) of paragraph 4 of the said Order are not applicable for
the relevant year. However, I
the Company has maintained proper records of dealing in commodity
transactions and timely I
entries have been made therein. I
15. According to the information and explanations given to us, the
Company has not given any I
guarantees for loan taken by others from a bank or financial
institution during the year. I
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short- term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the vear.
19. The Company has not issued any debentures and accordingly clause
(xiiiv) of paragraph 4 of the said order does not apply to the Company
for the relevant year.
20. The Company has not raised any money by public issue during the
year, and accordingly, clause (xx) of paragraph 4 of the said order is
not applicable.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices and based on the audit procedures performed and the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year, nor have
we been informed of any such case by the management.
Ravi Kumar Venkatesan
Membership No. 052145
Partner
For and on behalf of
S Ramanand Alvar & Co
Dated : 30th May. 2014 Chartered Accountants
(Regn No 000990N)
11417ID Selimpur Road
kolkata 700 031
Mar 31, 2010
1. We have audited the attached Balance Sheet of "ESSEN SUPPLEMENTS
INDIA LIMITED" as at 31st March, 2010 and Profit and Loss Account and
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statement based on our audit.
2. We have 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 mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as . evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of section 227(4A) of the Companies
Act, 1956 and according to the information and explanations given to us
during the course of the audit and on the basis of such checks as were
considered appropriate, we set out in the annexure a statement on the
matters specified in the said order.
4. We report that:
a) As stated in Note 5 of Notes to Accounts (Schedule 16), Royalty on
sales is not provided during the current year. (Accumulated Rs.
10,44,395/-).
5. Further to our comments in Paragraph 4 above, we report that :-
i. We have obtained all the information and explanations which to the
best of our knowledge and belief, were necessary for the purpose of our
Audit.
ii. In our opinion proper books of accounts as required by law, have
been kept by the company so far as it appears from our examination of
those books.
iii. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of accounts.
iv. On the basis of written representations received from the Directors
as on 31st March, 2010, and taken on record by the Board of Directors,
we report that none of the Directors are disqualified as on the date of
Balance Sheet from being appointed as a Director in terms of Clause (g)
of Sub-section (1) of Section 274 of The Companies Act, 1956.
v. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said statements read together with
the accounting policies and notes thereon attached gives the
information as required by the companies act, 1956 in the manner so
required and gives a true and fair view in conformity with the
Accounting principles generally accepted in India:
i) in the case of Balance Sheet, the State of affairs of the Company as
at 31st March, 2010 and Ã
ii) in the case of Profit & Loss Account, the Loss of the Company for
the accounting year ended on that date.
iii) In case of Cash flow Statement, the cash flows for the year ended
on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
DISCLOSURES FOR COMPANIES AUDITORS REPORT ORDER (CARP)
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that :-
1. A)The Company has generally maintained proper particulars of
quantitative details and situation of fixed assets;
B)As explained to us, fixed assets, according to the practice of the
Company, are physically verified by the management at reasonable
intervals, in a phased verification programme, which in our opinion is
reasonable, looking to the size of the Company and nature of its
business. According to the information and explanations given to us,
discrepancies noticed if any, on physical verification have been
adjusted in the books of accounts;
C) During the year, the Company has disposed off substantial part of
the fixed assets but not effecting its going concern;
2. A)As explained to us, inventories have been physically verified
during the year by the management;
B) The procedures explained to us, which are followed by the management
for physical verification of inventories, are, in our opinion,
reasonable and adequate in relation to the size of the Company and the
nature of its business;
C) On the basis of our examination of the inventory records of the
Company, we are of the opinion that, the Company is mamtaining proper
records of its inventory. Discrepancies, which were noticed on physical
verification of inventory as compared to book records, have been
properly dealt with in the books of accounts;
3. According to the information and explanations given to us, the
Company has neither taken nor granted any loan, secured or unsecured
from / to Companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories, fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal controls.
5. In our opinion and according to the information and explanations
given to us there are no transactions made in pursuance of contracts or
arrangements, that need to be entered into the register maintained
under Section 301 of the Companies Act, 1956;
6. The Company has not accepted deposits from the Public and
therefore, the provisions of Sec 58A and 58AA of the Companies Act,
1956 and Rules thereunder are not applicable to the Company;
7. The Company has no internal audit system;
8. In our opinion and according to the information and explanations
given to us, the Company is exempted from maintaining cost records
under section 209(1 )(d) of the Companies Act, 1956;
9. A)According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues including
Excise Duty, Cess and other statutory dues with appropriate
authorities. As explained, the provisions of Provident Fund and
Employees State Insurance are not applicable to the Company. There are
no arrears of outstanding statutory dues as at the last day of the
financial year for a period exceeding six months from the date they
became payable.
B) According to the information and explanations given to us, we are of
the opinion that there are no dues of sales - tax, Income tax and
wealth tax which have not been deposited because of any dispute.
10. In our opinion, the accumulated losses of the Company as at the end
of the financial year exceed net worth of the Company. The Company has
made not cash profits during current financial year under audit and
cash profit during the financial year immediately preceding it;
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks. The Company has not obtained any
borrowings by way of debentures.
12. According to the information and explanations given to us, the
Company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures or other securities.
13. In our opinion, the Company is not a chit fund company or a nidhi /
mutual benefit fund / Society. Therefore the provisions of clause
4{xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
14. Based on the records examined by us and according to the
information and explanations given to us, we are of the opinion that
the Company is not dealing in shares and securities. Based on our audit
procedures and to the best of our knowledge and belief and according to
the information and explanations given to us, the Company does not have
any investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to the information and explanations given to us, the
Company has not availed any term loan during the year.
17. According to the information and explanations given to us and on an
overall examinations of the balance sheet of the Company, we are of the
opinion that the funds raised on short term basis during the year have
prima facie not been used for long term investment and vice versa.
18. The Company has made preferential allotment of 20,00,000 Shares of
Rs.10 each during me year to parties and companies covered in the
register maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any Debentures during me year, and
accordingly, the question of creating security in respect thereof does
not arise.
20. The Company has not raised money by any public issues during the
year and accordingly, the question of disclosure and verification of
end use of such money does not arise.
21. On the basis of our examination and according to the information
and explanations given to us, no fraud on or by the Company was noticed
or reported during the year.
For Vimal C. Jain & Co.
Chartered Accountants
(FRN 004728S)
Place: Hyderabad.
Date : 14.08.2010.
(VIMAL CHAND JAIN)
(Partner - M No.021421)
Mar 31, 2009
1. We have audited the attached Balance Sheet of "ESSEN SUPPLEMENTS
INDIA LIMITED" as at 31st March, 2009 and Profit and Loss Account and
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statement based on our audit.
2. We have 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 mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of section 227(4A) of the Companies
Act, 1956 and according to the information and explanations given to us
during the course of the audit and on the basis of such checks as were
considered appropriate, we set out in the annexure a statement on the
matters specified in the said order.
4. We report that:
a, As stated in Note 5 of Notes to Accounts (Schedule 16), Royalty on
sales is not provided during the current year. (Accumulated Rs.
10,44,395/-).
5. Further to our comments in Paragraph 4 above, we report that :-
i. We have obtained all the information and explanations which to the
best of our knowledge and belief, were necessary for the purpose of our
Audit.
ii. In our opinion proper books of accounts as required by law, have
been kept by the company so far as it appears from our examination of
those books.
iii. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of accounts.
iv. On the basis of written representations received from the Directors
as on 31st March, 2009, and taken on record by the Board of Directors,
we report that none of the Directors are disqualified as on the date of
Balance Sheet from being appointed as a Director in terms of Clause (g)
of Sub-section (1) of Section 274 of The Companies Act, 1956.
v. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said statements read together with
the accounting policies and notes thereon attached gives the
information as required by the companies act, 1956 in the manner so
required and gives a true and fair view in conformity with the
Accounting principles generally accepted in India:
i) in the case of Balance Sheet, the State of affairs of the Company as
at 31st March, 2009 and
ii) in the case of Profit & Loss Account, the Loss of the Company for
the accounting year ended on that date.
iii) In case of Cash flow Statement, the cash flows for the year ended
on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date) DISCLOSURES FOR COMPANIES AUDITORS REPORT ORDER
(CARP)
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that :-
1. A)The Company: has generally maintained proper particulars of
quantitative details and situation of fixed assets;
B)As explained to us, fixed assets, according to the practice of the
Company, are physically verified by the management at reasonable
intervals, in a phased verification programme, which in our opinion is
reasonable, looking to the size of the Company and nature of its
business. According to the information and explanations given to us,
discrepancies noticed if any, on physical verification have been
adjusted in the books of accounts;
C)During the year, the Company has not disposed off substantial part of
the fixed assets so as to effect its going concern;
2. A)As explained to us, inventories have been physically verified
during the year by the management;
B)The procedures explained to us, which are followed by the management
for physical verification of inventories, are, in our opinion,
reasonable and adequate in relation to the size of the Company and the
nature of its business;
C)On the basis of our examination of the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies, which were noticed on
physical verification of inventory as compared to book records, have
been properly dealt with in the books of accounts;
3. According to the information and explanations given to us, the
Company has neither taken nor granted any loan, secured or unsecured
from / to Companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories, fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal controls.
5. In our opinion and according to the information and explanations
given to us there are no - transactions made in pursuance of contracts
or arrangements, that need to be entered into the register maintained
under Section 301 of the Companies Act, 1956;
6. The Company has not accepted deposits from the Public and
therefore,, the provisions of Sec 58A and 58AA of the Companies Act,
1956 and Rules thereunder are not applicable to the Company;
7. The Company has no internal audit system;
8. In our opinion and according to the information and explanations
given to us, the Company is exempted from maintaining cost records
under section 209(l)(d) of the Companies Act, 1956;
9. A)According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues including
Excise Duty, Cess and other statutory dues with appropriate
authorities. As explained, the provisions of Provident Fund and
Employees State Insurance are not applicable to the Company. There are
no arrears of outstanding statutory dues as at the last day of the
financial year for a period exceeding six months from the date they
became payable.
B)According to the information and explanations given to us, we are of
the opinion that there are no dues of sales - tax, Income tax and
wealth tax which have not been deposited because of any dispute.
10. In our opinion, the accumulated losses of the Company as at the
end of the financial year exceed net worth of the Company. The Company
has made cash profits during current financial year under audit and
also during financial year immediately preceding it;
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions and banks. The Company has not obtained any
borrowings by way of debentures.
12. According to the information and explanations given to us, the
Company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures or other securities.
13. In our opinion, the Company is not a chit fund company or a nidhi /
mutual benefit fund / Society. Therefore the provisions of clause
4(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
14. Based on the records examined by us and according to the
information and explanations given to us, we are of the opinion that
the Company is not dealing in shares and securities. Based on our audit
procedures and to the best of our knowledge and belief and according to
the information and explanations given to us, the Company does not have
any investments.
15. According to the information-and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to the information and explanations given to us, the
Company has not availed any term loan during the year.
17. According to the information and explanations given to us and on an
overall examinations of the balance sheet of the Company, we are of the
opinion that the funds raised on short term basis during the year have
prima facie not been used for long term investment and vice versa.
18. The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any Debentures during the year, and
accordingly, the question of creating security in respect thereof does
not arise.
20. The Company has not raised money by any public issues during the
year and accordingly, the question of disclosure and verification of
end use of such money does not arise.
A the basis of our examination and according to the information and
explanations given to us, no fraud on or by the Company was noticed or
reported during the year.
For VIMAL C.JAIN & CO
Chartered Accountants
Place: Hyderabad.
Date : 30.05.2009
(Partner - M No.021421