Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of The Water base Limited ("the Company"), which comprise the Balance Sheet as at 31 st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS] prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS 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 Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS 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. 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 obtained by us 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 Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, 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 Indian Accounting Standards prescribed under section 133 of the Act.
e) on the basis of the written representations received from the directors of the Company as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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 "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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer Note 33(a) to the Ind AS Financial Statement;
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.
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
ANNEXURE âAâ TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph f) under âReport on Other Legal and Regulatory Requirements'' section of our report of even date)
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 The Water base Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the Ind AS 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 of the Company 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error
We believe that the audit evidence we have obtained, is sufficient and appropriate to 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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, 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 March 31, 2018, based on the criteria for internal financial control over financial reporting 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.
ANNEXURE B TO THE INDEPENDENT AUDITOR''S REPORT
(referred to in paragraph 2 under âreport on other Legal and regulatory requirements'' section of our report of even date)
i a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property plant and
equipment.
b) The Company has a program of verification of property plant and equipment to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain property, plant and equipment were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. Immovable properties of land and buildings whose title deeds have been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lenders.
ii As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
iii According to the information and explanations given to us, 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 Companies Act, 2013.
iv In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v According to the information and explanations given to us, the Company has not accepted any deposit during the year or did not had any unclaimed deposits at the beginning of the year and accordingly reporting under clause (v) of CARO 2016 is not applicable.
vi The maintenance of cost records has not been specified by the Central Government under section 148(1) of the Companies Act, 2013.
vii According to the information and explanations given to us, in respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty Value Added Tax, cess and other material statutory dues in arrears_as at March 31, 2018 for a period of more than six months from the date they became payable.
b) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty Excise Duty and Value Added Tax which have not been deposited as on March 31, 2018 on account of disputes are given below:
Name of the statute |
Nature of dues |
Forum where dispute is pending |
Period to which the amount relates |
Amount (Rs. in Lakhs) |
Customs Act, 1962 |
Custom Duty |
Chennai High Court |
1995-96 |
535.36 |
Finance Act,1994 (Chapter V) |
Service Tax (including penalty etc.) |
CESTAT-Hyderabad |
2006-07 |
61.87# |
Central Excise Act |
CENVAT Credit |
Andhra Pradesh High Court |
2007-09 |
22 86@ |
Central Sales Tax Act, 1956 |
Central Sales Tax |
Appellate Tribunal, Vizag |
2009-10 |
70 86'' |
Central Sales Tax Act, 1956 |
Central Sales Tax |
Asst. Commissioner (C.T.) (LTU) Nellore |
2012-13 |
2.38 |
Finance Act,1994 (Chapter V) |
Service Tax (including penalty etc.) |
Asst. Commissioner (C.T.) |
2012-13 to 2014-15 |
2.99 |
Income Tax Act |
Income Tax |
Deputy CIT, Kolkata |
2010-11 to 2013-14 |
CD 2 CD > |
# Net of Rs. 2.00 Lakhs paid under protest.
@ Net of Rs. 34. 72 Lakhs paid under protest and Rs. 14.88 Lakhs appropriated by the Department
* Net of Rs. 35.43 Lakhs paid under protest.
A Net of Rs. 14.68 Lakhs appropriated/ adjusted by the Department.
viii In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company has not taken any loans or borrowings from financial institutions and government or has not issued any debentures.
ix The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised, other than temporary deployment pending application of proceeds.
x To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material 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.
xii The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
xiii In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
xiv During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
xv In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any noncash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
xvi The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm''s Registration No. 1 1 7366W/W-100018)
Abhijit Bandyopadhyay
Partner
New Delhi, May 25, 2018 (Membership No. 054785)
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying Ind AS financial statements of The Waterbase Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements to 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 Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ 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 and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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 Ind AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes valuating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the 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 including Ind AS, of the state of affairs of the Company as at March 31, 2017, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
The financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2016 and March 31, 2015 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us and, and on which we expressed an unmodified opinion dated May 24, 2016 and May 21, 2015 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition, have been audited by us.
The financial statements of Pinnae Feeds Limited were audited by other auditor and whose report has been furnished to us by the Management which were included in the financial statements pursuant to amalgamation with the Company (refer Note 36) and our opinion on the merged financial statements, in so far as it relates to the amounts and disclosures included in respect of Pinnae Feeds limited is based solely on the reports of the other auditor.
Emphasis of Matter
As per the Order of the National Company Law Tribunal, Hyderabad (âNCLTâ) on the Scheme of Amalgamation of Pinnae Feeds Limited (the Transferor Company) with The Waterbase Limited (the Transferee Company), the financials have been restated with effect from August 1, 2015 being the appointed date for coming into force of the said scheme. The Order of NCLT dated November 14, 2017 was received on November 22, 2017 and the effect of amalgamation have been given by incorporating all the transactions in the books of accounts of Transferee Company with effect from August 1, 2015, to comply with the Order.
The financial statements of erstwhile Pinnae Feeds Limited (the âTransferor Companyâ) as audited by other auditor, were included in the financial statements pursuant to amalgamation with the Company (refer Note 36), which constitute total assets of Rs. 7,741.20 Lakhs and net assets of Rs. 1,350.97 Lakhs as at July 31, 2015, total revenue of Rs. 4,535.29 Lakhs and net profit of Rs. 9.52 Lakhs for the period then ended.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (âthe Orderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by Section 143 (3) of the Act, w e report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report ar e in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 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.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and t o the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2017 on its financial position in its Ind AS financial statements;
ii. The Company does not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2017;
iv. The Company has provided requisite disclosures in the Ind AS financial statements as to holding as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016, on the basis of information available with the Company. Based on audit procedures, and relying on managementâs representation, we report that disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the Management (refer Note 37).
Annexure B to Independent Auditorsâ Report
The Annexure referred to in Independent Auditorsâ Report of even date to the members of The Water base Limited on the Ind AS financial statements for the year ended March 31, 2017, we report that:
i. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme 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 the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties, are held in the name of the Company.
ii. The physical verification of inventory have been conducted at reasonable intervals by the Management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.
iii. In our opinion and according to the information and explanations given to us the Company has not granted any secured and or unsecured loans to companies, firms and or limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
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 the loans and investments made, and guarantees and security provided by it.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. The Central Government has not prescribed the maintenance of cost records under Section 148 (1) of the Act.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of sales tax including value added tax, employees state insurance, provident fund and income tax, and is regular in depositing undisputed statutory dues, including service tax, duty of customs, duty of excise, cess and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, the dues outstanding as at March 31, 2017 in respect of income tax, sales tax, service tax, customs duty, excise duty, value added tax and cess on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (in Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Custom Duty |
Import Duty on Raw Materials |
532.40 Lakhs |
1995-96 |
Chennai - High Court |
Custom-Central Excise & Service Tax |
Service tax on Commission to Foreign Agents |
63.86 Lakhs |
2006-07 |
CESTAT-Bangalore |
-Do - |
Disallowance of Cenvat Credit |
49.48 Lakhs |
February 2007 to March 2009 |
A.P. High Court |
Sales tax |
Sales Tax |
65.86 Lakhs |
April 2009 to March 2010 |
Dy. Commissioner (C.T.) Commercial Tax Dept. Andhra Pradesh. |
Income Tax |
Income Tax |
11.15 Lakhs |
Asst. Years 2009-10, 2010-1 1, 2012-13, 2014-1 5 |
Deputy CIT, Kolkata |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. In our opinion, and according to the information and explanations given to us, term loans have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the Ind AS financial statements as required under Ind AS 24, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015.
xiv. 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.
xv. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Mitra Kundu & Basu
Chartered Accountants
Firm Registration Number: 302061E
(S. Das)
New Delhi Partner
November 29, 2017 Membership No. 051391
Mar 31, 2016
Independent Auditor''s Report for the year ended 31st March, 2016
To the members of The Waterbase Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of The Waterbase Limited (''the Company''), which comprise the balance sheet as at 31st March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone 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 and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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, of the state of affairs of the Company as at 31st March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as 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 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 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 B"; and
(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 has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 31(1)(i) to the financial statements;
ii. the Company does 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.
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The physical verification of inventory has been conducted at reasonable intervals by the management. The loss of inventory during the year has been properly dealt with in the books of accounts.
(iii) In our opinion and according to the information and explanations given to us, 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 Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of duty of customs, sales tax, service tax and value added tax have not been deposited by the Company on account of disputes:
Name of the statue |
Nature of dues |
Amount (in Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Custom Duty |
Import Duty on Raw Materials |
535.36 Lakhs |
1995-96 |
Chennai - High Court |
Custom-Central Excise & Service Tax |
Service tax on Commission to Foreign Agents |
63.86 Lakhs |
2006-07 |
CESTAT - Bangalore |
- Do - |
Disallowance of Cenvat Credit |
49.48 Lakhs |
February 2007 to March 2009 |
A.P. High Court |
Sales tax |
Interest on Deferred Sales Tax |
35.56 Lakhs |
April 2009 to March 2010 |
Dy. Commissioner (C.T.) Commercial Tax Deptt. Andhra Pradesh |
(viii) The company has not defaulted in repayment of loans or borrowing to a financial institution or bank during the year. The Company has not raised any monies against issue of debentures.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, Clause (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under Clause (xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, Clause (xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For Mitra Kundu & Basu
Chartered Accountants
F R No. 302061E
(S. Das)
New Delhi Partner
May 24, 2016 M. No. 051391
Mar 31, 2015
We have audited the accompanying standalone financial statements of
The Water base Limited ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance
with the accounting principles generally accepted in 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 the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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
specifi ed 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 fi nancial 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, 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 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, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Emphasis of Matters
We draw attention to note no. 30 of the financial statements amounting
to Rs.670.94 Lakhs related to the law suits filed against the Company
by Canara Bank and Non-Provision of interest on dues.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies ( Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
order, to the extent applicable.
(2) As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as 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 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 are disqualified as on 31st March,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act and.
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note no. 30 to
the financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company
Annexure to Auditors' Report Independent Auditor's Report
Refer to paragraph (1) of the Report on Other Legal and Regulatory
Requirements.
(i) (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) The Company has a regular programme of physical verification of
its fixed assets by which assets are verified in a phased manner over
a period of three years. Accordingly, certain fi xed assets were
verified during the year and no material discrepancies were noticed
(ii) (a) The physical verification of inventory has been conducted at
reasonable intervals by the management;
(b) The procedures of physical verification of inventory, followed by
the Management, is reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under
section 189 of the Act.
(iv) In our opinion and according to the information and explanations
as given to us, there is an adequate internal control system
commensurate with the size of the company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods and services.
(v) The company has not accepted deposits.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government under
sub-section (1) of section 148 of the Act, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained.
(vii) (a) According to the records of the Company, the Company is
regular in depositing with appropriate authorities the undisputed
statutory dues including Provident Fund, Income Tax, Sales Tax and
other material statutory dues.
(b) According to the information and explanations given to us, there
are no disputed dues of Value Added Tax, Income Tax, Wealth Tax,
Service Tax, Custom duty, Excise duty or cess which have not been
deposited on account of any dispute other than the following items:
(Rs. Lakhs)
Forum where Dispute is
Name of Statute Nature of Dues Amount
pending.
Import duty on
Raw Materials
Custom Duty Chennai High Court 535.36
Imported during
1995-96
(a) Service Tax
on Commission CESTAT, Bangalore 63.86
Custom- Central
Excise & to Foreign Agents
2006-07
Service Tax (b) disallowance
of Cenvat credit AP High court 49.48
Dy, Commissioner(C.T)
Interest on
Deferred Sales Tax
Sales Tax Commercial Tax Deptt. - 33.89
Payment Andhra Pradesh.
(c) There are no amount required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under.
(viii) The Company does not have accumulated loss and has not incurred
cash losses during the financial year and in the immediately preceding
financial year;
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders except, working capital loan
of Rs. 459.85 lakhs from Canara Bank which is under dispute /
litigation. The unpaid balance interest as per books of accounts is Rs.
349.96 Lakhs.
(x) The company has not given any guarantee for loans taken by others
from bank or financial institutions, the terms and conditions whereof
are prejudicial to the interest of the company;
(xi) The Company has not applied for term loans during the year under
review.
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Mitra Kundu & Basu
Chartered Accountants
(F. R. No. 302061E)
(S. Das)
(Partner)
(Membership No. 051391)
New Delhi, 21st May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of The Waterbase
Limited ("the Company")which comprise the Balance Sheet as at 31st.
March,2014, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The 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 Companies Act, 1956 (the
Act) read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatements of the financial statements,
whether due to fraud or error. In making those risk assessment, 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 for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company ended as at March 31, 2014.
(ii) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date, and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year 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 Central Government of India in terms of
sub-sec(4A) of Sec 227 of the Act, we enclose in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the order.
2. As required by section 227(3) ofthe Act, 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 purposes of our
audit;
(ii) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry ofCorporate Affairs in respect of
Section 133 ofthe Companies Act, 2013
(v) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 ofthe Companies Act, 1956.
ANNEXURE TO AUDITOR''S REPORT
(referred to in paragraph 5 of our report of even date)
Referred to our report to the members of The Waterbase Limited 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) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. Accordingly, certain fixed assets were
verified during the year and no material discrepancies were noticed on
such verification. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
nature of its assets.
(c) During the year, the company has not disposed off any substantial
part of its fixed assets and the going concern status ofthe Company is
not affected.
2 (a) The inventory of the Company has been physically verified by the
management at reasonable intervals during the year.
(b) The procedure of physical verification appears to be reasonable and
adequate in relation to the size of the company and nature of its
business, on the basis of information and explanations received by us.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory and no material discrepancies were noticed on physical
verification.
3 (a) According to information and explanations given to us, the
company has not granted any loan, secured or unsecured to Companies,
firms or other parties covered in the register maintain under section
301 of the Companies Act, 1956. Consequently, clause (iii) (b), (c) &
(d) of paragraph 4 of the order are not applicable.
(b) According to the information and explanations as given to us in
respect of loans secured or unsecured, taken by the Company from
companies, firms or other parties covered in the register maintained
under section 301 ofthe Companies Act, 1956:
i) The Company has taken loan of L 680 lakhs as covered in the register
maintained under section 301 of the Companies Act, 1956. At the year
end, the outstanding balance of such loan is L 91 lakhs and the maximum
amount outstanding during the year is 680 lakhs.
ii) The rate of interest and other terms and conditions of such loan
are prima-facie not prejudicial to the interest ofthe company,
iii) The principal amount of L 589 lacs is repaid during the year and
the Company has defaulted in payment of interest to the tune of L 50.92
lakhs.
4 In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. Further, on the basis of our examinations, and according to
the information and explanations given to us, we have neither come
across nor have we been informed of any instance of major weakness in
the aforesaid internal control system.
5. In our opinion there are no contracts or arrangements that need to
be entered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4(v)(b) of
the Order is not applicable to the Company and hence not commented
upon.
6 The Company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposit)
rules, 1975 apply.
7 The internal audit of the company is being carried out by the
departmental staff which in our opinion is commensurate with the size
and nature of its business.
8 We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the central government for the
maintenance of cost records under section 209 ( 1 ) ( d ) of the
Companies Act,1956, and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
9 (a) According to the records of the company, the company is regular
in depositing with appropriate authorities the undisputed statutory
dues including Provident Fund, Income Tax, Sales Tax and other material
statutory dues.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
wealth tax, sales tax, customs duty, excise duty and other material
statutory dues were outstanding, as at 31st March,2014 for a period of
more than six months from the date they became payable.
10. According to information and explanations given to us, there are
no disputed dues of sales tax, income- tax, customs tax/wealth-tax,
excise duty/cess which have not been deposited except, Import Duty of L
535.36 lakhs levied by Custom Authority against import of raw
materials, which is under appeal by the department in the High Court of
Chennai and L 63.86 lakhs levied by Central Excise which is also under
CESCAT ,Bangalore.
11. The company has not incurred any cash loss during the year and in
the immediately preceding financial year.
12. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders except, working capital loan
of L 459.85 lakhs from Canara Bank which is under dispute / litigation.
13. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. Since the Company is not a chit fund / Nidhi / Mutual Benefit Fund
/ Society, the relative reporting requirements of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable.
15. Since the Company is not dealing or trading in shares, securities,
debentures or other investments, the relative reporting requirements of
clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable.
16. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
17. According to the information and explanations given to us and as
per available records, the Company has availed a fresh loan from banks
and the said fund was utilized for the purposes for which the loan has
been taken.
18. According to the information and explanations given to us and an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short term basis have been utilized for long term
investment.
19. The company during the period covered by our audit report has not
made a preferential allotment of shares to parties or companies covered
in the register maintained under section 301 ofthe Companies Act, 1956.
20. During the period covered by our audit report, the company has not
issued debentures.
21. During the year the Company has raised L 1286.77 lakhs by way of
Rights Issue to the Share holders and the end use objective as set out
in the prospectus has been fulfilled except settlement of a disputed
amount.
22. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For MITRA KUNDU & BASU
Chartered Accountants
Firm Regn.No.302061E
(SIBAJI DAS)
Partner.
Chennai, May 27, 2014 Membership No. 051391
Mar 31, 2013
Report on the Financial Statement
We have audited the accompanying financial statements of The Waterbase
Limited ("The CompanyÂ) which comprise the Balance Sheet as at 31
March, 2013, the Statement of Profit and Loss and Cash Flow Statement
for the year ended and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
The 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 principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 "(the ActÂ). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making these risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(ii) in the case of Statement of Profit and Loss Account, of the profit
of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ) issued by the Central Government of India in terms of
sub-sec(4A) of Sec 227 of the Act, we enclose in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the order.
2. As required by section 227(3) of the Act, 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 purposes of our audit; (ii) In our
opinion, proper books of account, as required by law, have been kept by
the Company so far as appears from our examination of those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account; (iv) In our opinion, the Balance Sheet, Statement of Profit
and Loss and Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956; (v) On the basis of written representations received from the
Directors as on March 31, 2013, and taken on record by the Board of
Directors, none of the Directors are disqualified as on March 31, 2013,
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT (referred to in paragraph 5 of our
report of even date)
Referred to our report to the members of The Waterbase Limited for the
year ended 31 March, 2013.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. Accordingly certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and nature of
its assets.
(c) During the year, the Company has not disposed off any substantial
part of the fixed assets and the going concern status of the Company is
not affected.
2. (a) The inventory of the Company has been physically verified by
the management at reasonable intervals
during the year.
(b) The procedure of physical verification appears to be reasonable and
adequate in relation to the size of the Company and nature of its
business, on the basis of information and explanation received by us.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory and no material discrepancies were noticed on physical
verification.
3. (a) According to information and explanations given to us, the
Company has not granted any loan, secured
or unsecured to Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Consequently, clause (iii) (b) (c) & (d) of paragraph 4 of the order is
not applicable.
(b) According to the information and explanations given to us the
Company has taken secured and unsecured loans from companies, firms or
other parties covered in the register maintain under section 301 of the
Companies Act, 1956:
The Company has taken loan of Rs. 680 lakhs as covered in the register
maintained under section 301 of the Companies Act, 1956. At the year
end, the outstanding balance of such loan is Rs. 680 lakhs and the
maximum amount outstanding during the year is Rs. 680 lakhs.
(c) The rate of interest and other terms and conditions of such loan
are prima-facie not prejudicial to the interest of the Company,
(d) The principal amount is not due for repayment and the Company has
defaulted in payment of interest to the tune of Rs. 194.92 lakhs.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and for sale of goods and
services. Further, on the basis of our examinations, and according to
the information and explanations given to us, we have neither come
across nor have we been informed of any instance of major weakness in
the aforesaid internal control system.
5. In our opinion there are no contracts or arrangements that need to
be entered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provision of clause 4(v)(b) of
the Order is not applicable to the Company and hence not commented
upon.
6. The Company has not accepted any deposits from the public to which
the provision section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposit) rules,
1975 apply.
7. The internal audit of the Company is being carried out by the
departmental staff which in our opinion is commensurate with the size
and nature of its business.
8. As per information and explanations given to us it is noted that
the maintenance of cost records has not been prescribed by the Central
Government under clause ( d ) of sub-section 209 of the Act.
9. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities the undisputed statutory
dues including Provident Fund, Income Tax, Sales Tax and other material
statutory dues. (b) According to the information and explanations
given to us, no undisputed amounts payable in respect of provident
fund, income tax, wealth tax, sales tax, customs duty, excise duty and
other material statutory dues were outstanding, as at 31st March 2013
for a period of more than six months from the date they became payable.
10. According to information and explanations given to us, there are
no disputed dues of sales tax, income- tax, customs tax/wealth-tax,
excise duty/cess which have not been deposited except, Import Duty of Rs.
535.36 lakhs levied by Custom Authority against import of raw
materials, which is under appeal by the department in the High Court of
Chennai.
11. The Company has not incurred any cash loss during the year and in
the immediately preceding financial year.
12. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders except working capital loan of
Rs. 459.85 lakhs from Canara Bank which is under dispute / litigation.
13. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
14. Since the Company is not a chit fund / Nidhi / Mutual Benefit Fund
/ Society, the relative reporting requirements of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable.
15. Since the Company is not dealing or trading in shares, securities,
debentures or other investments, the relative reporting requirements of
clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable.
16. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
17. According to the information and explanations given to us and as
per available records, the Company has availed a fresh term loan from
banks and the said fund was utilized for the purposes for which the
loan has been taken.
18. According to the information and explanations given to us and
asper the verification of the records of the Company, on an overall
basis, the Company has not utilised short term fund for long term
purposes.
19. The Company during the period covered by our audit report has not
made a preferential allotment of shares to parties or companies covered
in the register maintained under section 301 of the Companies Act,
1956.
20. During the period covered by our audit report, the Company has not
issued debentures
21. The Company has not raised any money by the way of public issue
during the year. Therefore the provisions of clause (xx) of the said
Order are not applicable to the Company.
22. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For MITRA KUNDU & BASU
Chartered Accountants
Firm Regn. No. 302061E
SIBAJI DAS
Partner
New Delhi, May 24, 2013 Membership No. 051391
Mar 31, 2012
We have audited the accompanying financial statements of The Waterbase
Limited which comprise the Balance Sheet as at 31st March, 2012, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended and a summary of significant accounting policies and other
explanatory information.
The 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 sub-section (3C) of section 211 of
the Companies Act, 1956. 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.
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 from material
misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. In making those assessments, the
auditor considers internal control relevant to the Company's
preparation and fair presentation of the financial statements in order
to design the audit procedures that are appropriate in the
circumstances. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at 31 March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) Amendment Order, 2004
issued by the Central Government of India in terms of sub-sec(4A) of
Sec 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss,
Cash Flow Statement comply with the Accounting Standards referred to
sub-section (3C) of section 211 of the Companies Act, 1956; and
(v) On the basis of written representations received from the directors
as on 31st. March,2012, and taken on record by the Board of Directors,
none of the directors are disqualified as on 31st. March, 2012, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR'S REPORT (referred to in paragraph 3 of our
report of even date)
Referred to our report to the members of The Waterbase Limited for the
year ended 31 March, 2012.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. Accordingly certain fixed assets were verified
during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the Company and nature of
its assets.
3. During the year, the Company has not disposed off any substantial
part of the fixed assets
4. The inventory of the Company has been physically verified by the
management at reasonable intervals during the year.
5. The procedure of physical verification appears to be reasonable and
adequate in relation to the size of the Company and nature of its
business, on the basis of information and explanation received by us.
6. On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory and no material discrepancies were noticed on physical
verification.
7. The Company has not granted any loan, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Consequently, clause
(iii) (b); (c) & (d) of paragraph 4 of the order are not applicable.
In respect of loans secured or unsecured taken by the Company from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956, according to the
information and explanations given to us:
a) The Company has taken loan of Rs. 780 lakhs as covered in the register
maintained under section 301of the Companies Act, 1956. At the year
end, the outstanding balance of such loan is Rs. 680 lakhs and the
maximum amount outstanding during the year is Rs. 780 lakhs.
b) The rate of interest and other terms and conditions of such loan are
prima-facie not prejudicial to the interest of the Company.
c) The principal amount is not due for repayment and the unpaid
interest to the tune of Rs. 143.62 lakhs is proposed for conversion
through Rights Issue.
8. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory and fixed assets and for sale of goods and
services. Further, on the basis of our examinations, and according to
the information and explanations given to us, we have neither come
across nor have we been informed of any instance of major weakness in
the aforesaid internal control system.
9. a) In our opinion and according to the information and explanations
given to us, the particulars of
contracts or arrangements referred to in section 301 of the Act, have
been entered in the register required to be maintained under that
section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained u/s 301of the Act and
exceeding the value of Rs. 5 lakhs, the transactions have been made on
prices which are prima-facie reasonable having regard to the prevailing
market prices at the relevant time.
10. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
under section 58A and 58AA of the Companies Act, 1956 and the rules
framed there under.
11. The internal audit of the company is being carried out by the
departmental staff which in our opinion is commensurate with the size
and nature of its business.
12. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 and are of opinion that prima facie, the prescribed
cost records have been maintained. We have, however, not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
13. According to the records of the Company, the Company is regular in
depositing with appropriate authorities the undisputed statutory dues
including Provident Fund; Income Tax; Sales Tax etc.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty and excise duty were outstanding, as at 31 March,
2012 for a period of more than six months from the date they became
payable.
14. According to information and explanations given to us, there are
no disputed dues of sales tax, income-tax, customs duty/wealth-tax,
excise duty/cess which have not been deposited except, Import Duty of Rs.
535.36 lakhs levied by Custom Authority against import of raw
materials, which is under appeal by the department in the High Court of
Madras.
15. The Company has not incurred any cash loss during the year and in
the immediately preceding financial year. The accumulated loss has been
set off and there is no loss at the end of the year.
16. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders except, a working capital loan
of Rs. 939.85 lakhs from Canara Bank which is under dispute / litigation.
17. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
18. Since the Company is not a chit fund / Nidhi / Mutual Benefit Fund
/ Society, the relative reporting requirements are not applicable.
19. Since the Company is not dealing or trading in shares, securities,
debentures or other investments, the relative reporting requirements
are not applicable.
20. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
21. According to the information and explanations given to us and as
per available records, the Company has availed a fresh term loan from
banks and the said fund was utilized for the purposes for which the
loan has taken.
22. According to the information and explanations given to us and as
per the verification of the records of the Company, on an overall
basis, the Company has not utilized short term funds for long term
purposes.
23. The Company has made a preferential allotment of 10,00,000 Equity
shares of Rs. 10/- each to M/s. Towerbase Services Pvt. Ltd., a Company
covered in the Registrar maintained under section 301 of the Act.
According to the information and explanations and available records we
are of the opinion that the prices at which shares have been issued is
not prejudicial to the interest of the Company.
24. During the period covered by our audit report, the Company has not
issued debentures
25. During the period covered by our audit report, the Company has not
raised money by public issues.
26. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For MITRA KUNDU & BASU
Chartered Accountants
Firm Regn. No. 302061E
SIBAJI DAS
Partner
Chennai, May 30, 2012 Membership No. 051391
Mar 31, 2011
We have audited the attached Balance Sheet of The Waterbase Limited, as
at 31st March, 2011 and the Profit and Loss account and the Cash Flow
statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the 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 also
includes assessing the accounting principles used and significant
estimates made by the management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act, 1956, we are giving in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement read with significant Accounting Policy and Notes on
Accounts as referred in Schedule 19 comply with the Accounting
Standards referred to in sub-section (3c) of section 211 of the
Companies Act, 1956.
(e) On the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors is disqualified as on 31st March, 2011 from being
appointed as a Director in terms of clause (g) of sub-section (1 ) of
Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read with the Notes in
Schedule 19 gives the information required by the Companies Act, 1956
(as amended) 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) In the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date; and
(iii) In the case of the cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT (referred to in paragraph 3 of our
report of even date)
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals during the year and no material discrepancy was
noticed during such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) (a) The inventory of the Company has been physically verified by
the management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loan, secured or unsecured to
Companies, firms, or other parties covered in the register maintain
under section 301 of the Companies Act, 1956. Consequently, clause
(iii) (b); (c) & (d) of paragraph 4 of the order are not applicable.
In respect of loans, secured or unsecured taken by the Company from
companies, firms or other parties covered in the register maintain
under section 301 of the Companies Act, 1956. According to the
information and explanations given to us:
(b) The Company has taken loan of Rs. 630 lakhs as covered in the
register maintained under section 301 of the Companies Act, 1956. At
the year end, the outstanding balance of such loan is Rs. 630 lakhs and
the maximum amount outstanding during the year is Rs. 630 lakhs.
(c) The rate of interest and other terms and conditions of such loan
taken are, in our opinion, prima-facie not prejudicial to the interest
of the Company.
(d) The principal amount is not due for repayment and the Company has
been regular in payment of interest.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory and fixed assets and for sale of goods and
services. Further, on the basis of our examinations, and according to
the information and explanations given to us, we have neither come
across nor have we been informed of any instance of major weakness in
the aforesaid internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts of arrangements
referred to in section 301 of the Act, has been entered in the register
required to maintain under the section.
(b) In our opinion and according to the information and explanations
given to us, for sale of goods made in pursuance of contracts or
arrangements entered into the register in pursuance of section 301 of
the Act and exceeding the value of Rs. 5.00 lakhs in respect of any
party during the year, the transaction have been made on prices which
are prima-facie reasonable having regard to the prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits under the provision of
section 58A and 58AA of the Companies Act, 1956 and the rules framed
there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) To the best of our knowledge, the Central Government has not
prescribed the maintenance of cost records by the Company under section
209 (1) (d) of the Companies Act, 1956 for any of its products.
(ix) (a) According to the information and explanations given to us and
according the books and records as produced and examined by us, in our
opinion, the Company is regular in depositing 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 other material statutory dues
with the appropriate authorities and no undisputed amounts payable in
respect of the aforesaid dues are outstanding as at 31st March, 2011
for a period of more than six months from the date of becoming payable.
(b) According to the records of the Company and the information and
explanations given to us, there are no disputed dues on account of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty and cess matters that have not been deposited.
(x) The Company has made profits during the financial year ended 31st
March 2011, the Company incurred a cash loss in the immediately
preceding financial year and has an accumulated loss as at 31st March
2011, this loss is less than 50% of its net worth.
(xi) In our opinion and according to the explanations given to us, the
Company has not defaulted in repayment of dues to banks.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The provision of any special statute as specified
under paragraph
(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanation
given to us, the Company is not a dealer or trader in securities.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xvii) Based on information and explanations given to us and on overall
examination of the balance sheet of the Company, in our opinion, there
are no funds raised on a short term basis which have been used for a
long term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956 during the year.
(xix) The Company has not issued any debentures during the
period covered by our report.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For MITRA KUNDU & BASU
Chartered Accountants
Firm Regn. No. 302061E
SIBAJI DAS
Partner
Membership No. 051391
New Delhi, July 18, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of The Waterbase Limited, as
at 31st March, 2010 and the Profit and Loss account and the Cash Flow
statement for the year ended on that date, annexed thereto. These
fmancial statements are the responsibility of the companys management.
Our responsibihty is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with the 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 also
includes assessing the accounting principles used and significant
estimates made by the management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act, 1956, we are giving in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to above, we report
that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement read with significant Accounting Policy and Notes on
Accounts as referred in Schedule 19 comply with the Accounting
Standards referred to in sub-section(3c)ofsection211 of the Companies
Act, 1956.
(e) On the basis of the written representations received from the
Directors and take no nrecord by the Board of Directors, we report that
none of the Directors is disqualified as on 31st March, 2010 from being
appointed as a Director in terms of clause (g) of sub section (1) of
Section 274 of the CompamesAct,1956;
(f) In our opinion and to the best of our information and according to
the explanatons given to us, the said Accounts read with the Notes in
Schedule 19 gives the information required by the Companies Act, 1956
(as amended) 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 the Balance Sheet, of the state of affairs of the
Company as at 3lMarch, 2010;
(ii) In the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date; and
(iii) In the case of the cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(referred to in paragraph 3 of our report of even date)
(i) (a) The Company is maintaining proper records showing Ml
particulars including quantitative details and situation of fixed
assets
(b) The fixed assets have been physically verified by the management at
reasonable intervals during the year and no material discrepancy was
noticed during such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) (a )The inventory of the Company has been physically verified by
the management at reasonable intervals duringthe year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii)The Company has neither granted / taken any loans, secured or
unsecured to / from Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Consequently, clause (iii) (b), (c), (d), (f) and (g) of paragraph 4 of
the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory and fixed assets and for sale of goods and
services. Further; on the basis of our examinations, and according to
the information and explanations given to us, we have neither come
across nor have we been informed of any instance of major weakness in
the aforesaid internal control system.
(v) In our opinion and according to the information and explanations
given to us, there are no transactions that need to be enered in the
register maintained in pursuance of section 301l of the Companies Act,
1956 hence paragraph (v) (b) of the order is not applicable.
(vi) The Company has not accepted any deposits under the provision of
section 58A and 58AA of the Companies Act, 1956 and the rules framed
there under.
(vii)In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) To the best of our knowledge, the Central Government has not
prescribed the maintenance of cost records by the Company under section
209(1) (d) of the Companies Act, 1956 for any of its products.
(ix)(a) According to the information and explanations given to us and
according the books and records as produced and examined by us, in our
option, the Company is regular in depositing 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 other material statutory dues
with the appropriate authorities and no undisputed amounts payable in
respect of the aforesaid dues are outstanding as at 31st March, 2010
for a penod of more than six months from the date of becoming payable.
(b) According to the records of the Company and the information and
explanations given to us, there are no disputed dues on account of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty and cess matters that have not been deposited.
(x) The Company has incurred cash loss during the financial year ended
31st March, 2010 and it has not incurred any cash losses in the
immediately preceding financial year. The Company has no accumulated
losses as at 3rlst March,2010.
(xi) In our opinion and according to the explanations given to us, the
Company has not defaulted in repayment of dues to banks
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The provision of any special statute as specified under
paragraph (xiii) of the Order are not applicable to the Company
(xiv) In our opinion and according to the information and explanation
given to us, the Company is not a dealer or trader in securities.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions
(xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xvii) Based on information and explanations given to us and on overall
examination of the balance sheet of the Company, in our opinion, there
are no funds raised on a short term basis which have been used for
along term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section301 of the Companies Act, 1956 during the year.
(xix) The Company has not issued any debentures during the period
covered by our report.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For MITRAKUNDU & BASU
Chartered Accountants
Firm Regn .No.302061E
SIBA JI DAS
Partner
New Delhi, August3,2010 MembershipNo. 051391