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Accel Frontline Ltd.

BSE: 532774 Sector: IT
NSE: AFL ISIN Code: INE020G01017
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NSE 14:34 | 25 May 57.00 2.50
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OPEN 55.10
PREVIOUS CLOSE 54.85
VOLUME 110
52-Week high 81.80
52-Week low 48.25
P/E
Mkt Cap.(Rs cr) 169
Buy Price 55.00
Buy Qty 300.00
Sell Price 56.75
Sell Qty 210.00
OPEN 55.10
CLOSE 54.85
VOLUME 110
52-Week high 81.80
52-Week low 48.25
P/E
Mkt Cap.(Rs cr) 169
Buy Price 55.00
Buy Qty 300.00
Sell Price 56.75
Sell Qty 210.00

Accel Frontline Ltd. (AFL) - Auditors Report

Company auditors report

TO THE MEMBERS OF

ACCEL FRONTLINE LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Accel FrontlineLimited ("the Company") which comprise the Balance Sheet as at 31 March 2016the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information in whichare incorporated the returns for the year ended on that date audited by the branchauditors of the Company's branch at Singapore.

Management's Responsibility for the Standalone Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act; safeguarding the assetsof the Company; preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.

Basis for Qualified Opinion

8. As detailed in note 30 to the financial statements the Company has made a provisionfor bad and doubtful debts and written off as bad debts ' 132 lakhs and ' 5117 lakhsrespectively for the year ended 31 March 2016. According to the information andexplanations given to us in respect of the trade receivables amounting to ' 9166 lakhsas at 31 March 2016 the management is taking steps including obtaining balanceconfirmations to assess the existence of the said trade receivables and/or any additionaladjustments required to the trade receivables. Pending completion of the aforesaid processand in absence of sufficient appropriate evidence we are unable to comment upon theexistence of the aforesaid trade receivables or any adjustments required to the remainingtrade receivables and the consequent impact if any on the accompanying financialstatements. Our limited review report for the quarter and period ended 31 December 2015was also qualified in this regard.

9. As disclosed in note 33 to the financial statements the Company's inventory atmaintenance divisions is carried at ' 3823 lakhs as at 31 March 2016 (31 March 2015: '3044 lakhs). According to the information and explanations given to us the management isunable to comply with the requirement of valuing the inventory in accordance with therequirements of Accounting standard (AS) 2 - Valuation of Inventories. Owing to the natureof the Company's records relating to valuation of inventory pertaining to its maintenancedivisions and in the absence of sufficient appropriate evidence we are unable to commentupon the impact of the aforesaid matter on carrying value of aforesaid inventory as at 31March 2016 changes in inventories of stock-in-trade and spares prior period expensesand the consequent impact on the accompanying financial statements. Our audit opinion onthe financial statements for the previous year ended 31 March 2015 and the review reportsfor the quarters and periods ended 30 June 2015 30 September 2015 and 31 December 2015were also qualified in this regard.

10. As disclosed in note 32 to the financial statements the Company has provided foran amount of ' 750 lakhs during the year in respect of discrepancies noted on the physicalverification of inventory of maintenance division as at 31 March 2016. The management ispresently in the process of evaluating the reasons for such material discrepancies notedon the aforesaid physical verification. Pending completion of such process and in theabsence of sufficient appropriate audit evidence we are unable to comment upon theappropriateness of the provision so recognized and the corresponding impact if any onthe existence of inventory purchases of stock-in-trade for the year ended 31 March 2016trade payables as at 31 March 2016 and consequential impact on the accompanying financialstatements.

11. As disclosed in note 31 to the financial statements the Company's fixed assets asat 31 March 2016 comprise fixed assets having a gross book value of ' 3104 lakhs andaccumulated depreciation of ' 2309 lakhs in respect of which company is in the processconducting a physical verification and reconciliation with books of account. Pendingcompletion of such process and in the absence of other sufficient appropriate auditevidence we are unable to comment upon the existence and carrying value of the aforesaidassets depreciation expense for the current year and accumulated depreciation in respectthereof and the consequential impact on the accompanying financial statements.

12. As disclosed in note 20(a) to the financial statements revenues aggregating to '397 lakhs pertaining to the year ended 31 March 2016 were recognized in the previous yearended 31 March 2015. Had the Company followed the accounting principles as laid down underAccounting Standard 9 - 'Revenue Recognition' the net sales/income from operations (netof excise duty) changes in inventories of finished goods and stock-intrade and priorperiod items for the year ended 31 March 2016 would have been higher by ' 397 lakhs ' 368lakhs ' 29 lakhs respectively. Similarly the net sales/income from operations (net ofexcise duty) the changes in inventories of finished goods and stock-intrade for the yearended 31 March 2015 would have been lower by ' 397 lakhs ' 368 lakhs respectively and netloss for the period after tax would have been higher by ' 29 lakhs. Our audit report forthe previous year ended 31 March 2015and the review reports for the quarters and periodsended 30 June 2015 30 September 2015 and 31 December 2015 were also qualified in thisregard.

Qualified Opinion

13. In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects/ possible effects of the matters described in theBasis for Qualified Opinion paragraphsthe aforesaid standalone financial statements givethe information required by the Act in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2016 and its loss and its cash flows forthe year ended on that date.

Emphasis of Matters

14. We draw attention to note 34 to the financial statements which indicates that theCompany has incurred loss after tax of ' 13759 lakhs during the year ended 31 March 2016and as of that date the Company's negative reserves amounted to ' 5332 lakhsresultingin complete erosion of the net worth of the Company. Further as of that date theCompany's current liabilities exceeded its current assets by ' 6458 lakhs. Theseconditions along with matters as set forth in note 29 indicate the existence of materialuncertainty that may cast significant doubt about the Company's ability to continue as agoing concern. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

15. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure Aa statement on the matters specified in paragraphs 3 and 4 of the Order.

16. Further to our comments in annexure A as required by Section 143(3) of the Act wereport that:

a. we have sought and except for the matters/effects/ possible effects of the mattersdescribed in the Basis for Qualified Opinion paragraph obtainedall the information andexplanations which to the best of our knowledge and belief were necessary for the purposeof our audit;

b. except for the effects/possible effects of the matters described in the Basis forQualified Opinion paragraph in our opinion proper books of account as required by lawhave been kept by the Company so far as it appears from our examination of those books andproper returns adequate for the purposes of our audit have been received from the branchnot visited by us;

c. the report on the accounts of the branch officeof the Company audited under Section143(8) of the Act by the branch auditors have been sent to us and have been properly dealtwith by us in preparing this report;

d. the standalone financial statements dealt with by this report are in agreement withthe books of account and with the returns received from the branch not visited by us;

e. except for the effects/possible effects of the matters described in the Basis forQualified Opinion paragraph in our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014 (as amended);

f. the matters described in paragraph 14 under the Emphasis of matter paragraph andparagraph 9 in Annexure B in our opinion may have an adverse effect on the functioningof the Company;

g. Mr. N R Panicker the director of the Company has not produced a writtenrepresentation as to whether any Company in which he is a director as on 31 March 2016had not defaulted in terms of sub-section (2) of the section 164 of the Act. In theabsence of this representation we are unable to comment whether he is disqualified frombeing appointed as a director under sub-section (2) of section 164 of the Act. As far asother directors are concerned on the basis of the written representations received fromsuch directors as on 31 March 2016 and taken on record by the Board of Directors wereport that none of the remaining directors are disqualified as on 31 March 2016 frombeing appointed as a director in terms of Section 164(2) of the Act;

h. the qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph;

i. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as of 31 March 2016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated1 August 2016 as per Annexure B expressed an adverse opinion.

j. with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets

(b) The Management has physically verified certain assets during the year and materialdiscrepancies were noticed on such verification which have been properly dealt with in thebooks of account. As stated in paragraph 11 of the Independent Auditor's report fixedassets having a gross block and accumulated depreciation of ' 3104 lakhs and ' 2309lakhs respectively have not been physically verified by the management includingreconciliation with the books of account during the year and we are therefore unable tocomment on the discrepancies if any which could have arisen on such verification. In ouropinion the frequency of verification of fixed assets is reasonable having regard to thesize of the Company and the nature of its assets.

(c) The Company does not hold any immovable property (in the nature of 'fixed assets').

Accordingly the provisions of clause 3(i)(c) of the Order are not applicable.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year except for goods-in-transit and stocks lying withthird parties. For stocks lying with third parties at the year-end written confirmationshave been obtained by the management. As described in paragraph 10 of the IndependentAuditor's Report material discrepancies noticed on such physical verification have beenprovided for in the books of according to the explanations given to us:

i. as detailed in Note 45 to the standalone financial statements the Company hasdisclosed the impact of pending litigations on its standalone financial position;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Sumesh E S Partner

Membership No.: 206931

Place : Chennai

Date : 1 August 2016

Annexure A to the Independent Auditor's Report of even date to the members of AccelFrontline Limited on the financial statements for the year ended 31 March 2016

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Management has physically verified certain assets during the year and materialdiscrepancies were noticed on such verification which have been properly dealt with in thebooks of account. As stated in paragraph 11 of the Independent Auditor's report fixedassets having a gross block and accumulated depreciation of ' 3104 lakhs and ' 2309lakhs respectively have not been physically verified by the management includingreconciliation with the books of account during the year and we are therefore unable tocomment on the discrepancies if any which could have arisen on such verification. In ouropinion the frequency of verification of fixed assets is reasonable having regard to thesize of the Company and the nature of its assets.

(c) The Company does not hold any immovable property (in the nature of 'fixed assets').Accordingly the provisions of clause 3(i)(c) of the Order are not applicable.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year except for goods-in- transit and stocks lying withthird parties. For stocks lying with third parties at the year-end written confirmationshave been obtained by the management. As described in paragraph 10 of the IndependentAuditor's Report material discrepancies noticed on such physical verification have beenprovided for in the books of account however due to the reasons mentioned in the saidparagraph we are not able to comment upon the appropriateness of the provision sorecognized and the consequential impact on the financial statements.

(iii) (a) The Company has not granted during the year any loan secured or unsecured tocompanies or other parties covered in the register maintained under Section 189 of theAct. Accordingly the provisions of clauses 3(iii)(a) of the Order is not applicable.

(b) The schedule of repayment of the principal and the payment of the interest has notbeen stipulated and hence we are unable to comment as to whether repayments/receipts ofthe principal amount and the interest are regular;

(c) In the absence of stipulated schedule of repayment of principal and payment ofinterest we are unable to comment as to whether there is any amount which is overdue formore than 90 days and whether reasonable steps have been taken by the Company for recoveryof the principal amount and interest.

(iv) In our opinion company has complied with the provisions of Sections 185 and 186of the Act in respect of loans investments guarantees and security.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales- tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable have generally beenregularly deposited to the appropriate authorities though there has been a slight delayin a few cases. Further no undisputed amounts payable in respect thereof were outstandingat the year-end for a period of more than six months from the date they became payable.

(b) The dues outstanding in respect of income-tax sales-tax service tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Name of the statute Nature of dues Amount (Rs) Amount paid under Protest (Rs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income tax and interest 827 _ 2005-06 to 2009-10 Madras High Court
Income Tax Act1961 Income tax and interest 315 2011-12 to 2012-13 Commissioner of Income Tax (Appeals) Chennai.
Income Tax Act1961 Income tax and interest 78 - 2010-11 Income Tax Appellate Tribunal Chennai.
Customs and Excise Act 1964 Excise duty interest and penalty 411 175 2014-15 Customs Excise and Service Tax Appellate Tribunal Mumbai
Kerala Value Added Tax 2003 Value added tax interest and penalty 197 21 2013-14 and 2014-15 Kerala High Court
Kerala Value Added Tax 2003 Value added tax and interest 44 35 2007-08 Commissioner of Commercial Taxes Ernakulam
Kerala Value Added Tax 2003 Value added tax and interest 3 1 2013-14 Deputy Commissioner (Appeals) Ernakulam
Kerala Value Added Tax 2003 Value added tax and interest 3 1 2013-14 Deputy Commissioner (Appeals) Ernakulam
Kerala Value Added Tax 2003 Value added tax and interest 2 1 2009-10 and 2010-11 Assistant Commissioner (Appeals) Ernakulam
Kerala Value Added Tax 2003 Value added tax 1 - 2015-16 Investigation Officer Kochi.
Orissha Value Added Tax Act 2004 Value added tax interest and penalty 10 2 2011-12 and 2012-13 Joint Commissioner of Commercial Taxes Bhubaneswar
West Bengal Sales Tax Act 1994 Sales tax interest and penalty 3 - 2001-02 2003-04 and 2004-05 Commercial Tax Officer Kolkata
West Bengal Value Added Tax Act 2003 Value added tax and interest 1 - 2010-11 Commercial Tax Appellate and Revisional Board Kolkata
Jharkhand Value Added Tax Act 2005 Penalty 1 - 2007-08 Commissioner of Commercial Taxes Ranchi.
Uttar Pradesh Trade Tax Act 948 Sales tax and interest 1 - 2002-03 Trade Tax Tribunal Lucknow.
The Employees' Provident Fund And Miscellaneous Provisions Act 1952 Damages and interest 46 1999-2010 and 20122013 Employees' Provident Fund Appellate Tribunal Pune

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly theprovisions of clause 3(ix) of the Order are not applicable.

(x) We draw attention to note 29 to the financial statements. We have been explainedthat these amounts were recognised in the books of account of the Company through overrideof internal financial controls by the erstwhile management in the earlier years. Themanagement is in the process of deciding the future course of action.

(xi) Managerial remuneration has been paid and provided by the company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

(xvi) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Sumesh E S

Partner

Membership No.: 206931

Place : Chennai

Date : 1 August 2016

Independent Auditor's report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the standalone financial statements of AccelFrontline Limited ("the Company") as of and for the year ended 31 March 2016 wehave audited the internal financial controls over financial reporting (IFCoFR) of thecompany as of that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of the company's business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Basis of Adverse opinion

8. According to the information and explanations given to us and based on our auditthe following material weaknesses have been identified as at 31 March 2016:

a) The Company did not have appropriate internal controls over revenue with respect torecognition of revenue assessment of recoverability of trade receivables which hasresulted or could have potentially resulted in material misstatement in the value of theCompany's revenue trade receivables and resultant impact on the loss after tax and thereserves and surplus.

b) The Company did not have appropriate internal controls over inventory with respectto receipt issue for production of inventory and valuation of inventory which resultedor could have potentially resulted in material misstatement in the value of Company'sinventory trade payables cost of sales and resultant impact on the loss after tax andthe reserves and surplus.

c) The Company did not have appropriate internal controls over physical verification offixed assets which resulted or could have potentially resulted in material misstatement inthe value of Company's fixed assets depreciation and resultant impact on the loss aftertax and the reserves and surplus.

d) The Company did not have appropriate internal controls over recording of expensesand accounting of prepaid expenses which resulted or could have potentially resulted inmaterial misstatement in the value of the Company's operating expenses trade payables andresultant impact on the loss after tax and the reserves and surplus.

A 'material weakness' is a deficiency or a combination of deficiencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company's annual or interim financial statements willnot be prevented or detected on a timely basis.

Adverse Opinion

9. In our opinion because of the effects/possible effects of the material weaknessesdescribed above on the achievement of the objectives of the control criteria the Companyhas not maintained adequate internal financial controls over financial reporting and suchinternal financial controls over financial reporting were not operating effectively as of31 March 2016 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by TheInstitute of Chartered Accountants of India.

10. We have considered the material weaknesses identified and reported above indetermining the nature timing and extent of audit tests applied in our audit of the 31March 2016 standalone financial statements of the Company and these material weaknesseshas affected our opinion on the financial statements of the Company and we have issued aqualified opinion on the financial statements.

For Walker Chandiok & Co LLP

Chartered Accountants Firm's Registration No.: 001076N/N500013

per Sumesh E S
Place : Chennai Partner
Date : 01st August 2016 Membership No.: 206931