To the Members of Acrow India Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Acrow India Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2015 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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.
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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 control 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements. Opinion
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
1. in the case of the Balance Sheet of the state of affairs of the Company as at March31 2015;
2. in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
3. in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
f. 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 according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note no.28 to the financial statements;
ii. The Company did not have any foreseeable losses on long-term contracts includingderivative contracts.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For V. SANKAR AIYAR & CO
(Firm's Resn No.l09208W)
Date: 29th May 2015
Membership No. 124082
ANNEXURE REFERRED TO IN THE AUDITOR'S REPORT TO THE MEMBERS OF ACROW INDIA LIMITED ONTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2015
a. The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
b. As explained to us the fixed assets have been physically verified by the managementat year end which in our opinion is reasonable having regard to the size of the Companyand nature of its assets. No material discrepancies were noticed on such physicalverification
a. As explained to us the inventories were physically verified during the year by themanagement at reasonable intervals.
b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c. In our opinion and according to the information and explanations given to us thecompany is maintaining proper records of inventories and no material discrepancies werenoticed on physical verification as compared to the record of inventories.
3. The company has granted unsecured interest-bearing loan to One Company covered inthe register maintained under section 189 of the Companies Act 2013.The amountoutstanding at the year end is Rs. 530 lacs. According to information and explanationgiven to us principal is repayable on demand. During the year the said loan has beenrenewed. Interest has been received as per terms of loan. There are no overdues as onMarch 312015.
4. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business for the purchase of inventories and fixed assets and for the saleof goods and services. During the course of our audit we have not observed any continuingfailure to correct major weaknesses in the internal control system.
5. The Company has not accepted any deposits from the public during the year.
6. We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company pursuant to the rules made by the CentralGovernment for the maintenance of the Cost records under Section 148(1) of the Act and weare of the opinion that prima-facie the prescribed accounts and records have been madeand maintained.
a. According to the records maintained by the company the company is generally regularin depositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income tax sales tax wealth tax service tax customduty excise duty cess and other statutory dues where applicable. According to theinformation and explanations given to us no undisputed amounts in respect of theaforesaid statutory dues were in arrears as at 31st March 2015 for a period of morethan six months from the date they became payable.
b. According to the information and explanations given to us the following disputedstatutory dues on account of Wealth Tax Employee State Insurance Fund and Service Taxhave not been deposited with the appropriate authorities:
|Nature of dues ||Amount not deposited in ||Period to which the amount relates ||Forum where dispute is pending |
| ||(Rs. In lacs) || || |
|Wealth Tax ||15.43 ||1999-2000 ||Commissioner of Wealth Tax (Appeals) Mumbai |
|Employee State Insurance Fund ||5.08 ||1986-1988 ||Divisional Industrial Court Mumbai |
|Service Tax ||0.98 ||Aug'12 toMar'14 ||Appellate Commissioner Nagpur |
c. According to the information and explanations given to us and the records of thecompany there are no amounts which are required to be transferred to investor educationand protection fund.
8. The Company does not have accumulated losses at the end of the financial year. Thecompany has not incurred cash loss during the financial year and has incurred cash loss ofRs 38.70 lacs in the immediately preceding financial year.
9. On the basis of verification of records and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to Banks. Thecompany has not taken any loan from any financial institution or by way of issue ofdebentures.
10. In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for loans taken by others from bank or financialinstitution.
11. The Company has not raised any term loans from banks and financial institutionsduring the year.
12. According to the information and explanations given to us and based on auditprocedures performed and representations obtained from the management we report that nofraud on or by the company has been noticed or reported during the year under audit.
For V. SANKAR AIYAR & CO
(Firm's Resn No.l09208W1
Date: 29th May 2015
Membership No. 124082