To the Members of Adarsh Plant Protect Limited Report on the Financial Statements
We have audited the accompanying financial statements of Adarsh Plant Protect Limited(the Company') which comprise the Balance Sheet as at 31 March 2017 the Statement Profitand Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for 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.
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. 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. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
Emphasis of Matter Paragraph
Without qualifying our opinion we draw the attention to Note no. 37 of the FinancialStatements regarding Preparation of Accounts on going concern basis though accumulatedlosses have exceeded 50% of its net worth.
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 of the state of affairs of the Company as at 31March 2017 and its profit and its cash flows for the year ended on that date. issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure A a statement on the matters specified in the paragraph 3 and 4 ofthe order to the extent applicable.
2. As required by Section 143 (3) of the Act we report that:
(a) W e 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) I n 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) T he Balance Sheetthe Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report arein agreement the books of account; (d) I nour opinion the aforesaid financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014;
(e) T hough accumulated loss has exceeded 50% of net worth of the Company the accountsof the Company are prepared on going concern basis and in our opinion the same may nothave an adverse effect on the functioning of the Company. (Refer Note. 36 of FinancialsStatements) (f) O n the basis of the written representations received from the directorsas on 31 March 2017 taken on record by the Board of
Directors none of the directors is disqualified as on 31 March 2017 from beingappointed as a director in terms of Section 164 (2) of the Act; refer to our separatereport in "Annexure B";
(h) 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. th eCompany has the impact of pending litigations on its financial position in its financialstatements; ii. T he Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii. There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the
Company. iv. The Company had provided requisite disclosures in its financial statementsas to holding as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company.
| ||For Mukund & Rohit |
| ||Chartered Accountants |
| ||Registration No. 113375W |
|Place : Vadodara ||Mukund Bakshi |
|Date : 17th May 2017 ||Partner |
| ||Membership No. 041392 |
Annexure A to the Auditors' Report
The Annexure referred to in our report to the members of Adarsh Plant Protect Limitedfor the year ended March 31 2017 we report that: I.
(a) The Company is in process of updating the records maintained by it showing fullparticulars including quantitative details and situation of fixed assets.
(b) According to the information and explanation given to us the fixed assets havebeen physicallyverifiedby the management at reasonable intervals. Discrepancies noticedwere not material and the same have been properly dealt with in the books of account. (c)According to the information and explanation given to us the title deeds of immovableproperties are held in the name of the Company.
II. The Inventory have been physically verified by the management at reasonableintervals. Discrepancies noticed material and the same have been properly dealt with inthe books of accounts.
III. As informed to us the CompanyhasnotgrantedloanssecuredorunsecuredtoCompaniesfirmsLLP or other parties covered inregister maintained under section 189 of the Companies Act 2013. Hence the questions ofreporting whether the receipt of the principal amount and interest are regular; andwhether reasonable steps for the recovery of overdues of such loan are taken does notarise.
IV. In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security provisions of section 185 and 186of the Companies Act 2013 have been complied with.
V. Based on the our scrutiny of Company's record and according to the information andexplanation provided by the management in our opinion the Company has not accepted anyloans or deposits which "Deposits within the meaning of Rule 2(6) of the companies(Acceptance of Deposit's) Rules 2014.
VI. According to the information and explanation given to us the Central Governmenthas not prescribed the maintenance of cost records under sub-section (1) of section 148 ofthe Companies Act 2013.
(a) The Company is not regular in depositing undisputed statutory dues includingProvident Fund Income Tax Sales Tax Service tax duty of excise valueadded tax cess and any other statutory dues to the appropriate authorities and nostatutory dues were outstanding as at 31st March 2017 for a period of more than sixmonths from the date they became payable.
(b) According to the information and explanation given to us there are no dues ofIncome Tax or Sales Tax or or Service Tax or duty of excise or value added tax or cesswhich have not been deposited on account of any dispute.
VIII. Based on our audit procedures and as per the information and explanations givenby the management the Company has not defaulted in repayment of dues to financialinstitutions or bank or debenture holders.
IX. Based on our audit procedures and as per the information and explanations given bythe management Company has not raised money by initial public offer or further publicoffer (including debt instruments) and there are no term loans during the period coveredby our audit report.
X. Based on the audit procedure performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the year. information and explanation provided by the management in our opinionthe managerial remuneration has not been paid or provided and therefore reporting oncompliance with the provisions of section 197 read with Schedule V to the Companies Actdoes not arise.
XII. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of Companies (Auditor's Order 2016 are not applicable.
XIII. All transactions with the related parties are in compliance with sections177 and188 of Companies Act 2013 and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards at Note 32 of financialstatements.
XIV. Based on our examination of records and information provided to us by managementwe report that the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. XV. Basedon our examination of records and information provided to us by management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim/her.
XVI. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Therefore the provisions of clause 3(xvi) of Companies(Auditor's Report) Order 2016 are not applicable.
| ||For Mukund & Rohit Chartered |
| ||Accountants Registration No. 113375W |
| ||Mukund Bakshi |
|Place : Vadodara ||Partner |
|Date : 17th May 2017 ||Membership No. 041392 |
Annexure - B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AdarshPlant Protect Limited ("the Company") as of 31 March 2017 in conjunction withour audit of the 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of
India (ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act
2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) P ertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of assets of the company; (2) P rovide reasonable assurance that transactionsare recorded as necessary to permit preparation of financial statements accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and
(3) P rovide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.
| ||For Mukund & Rohit |
| ||Chartered Accountants |
| ||Registration No. 113375W |
|Place: Vadodara ||Mukund Bakshi |
|Date: 17th May 2017 ||Partner |
| ||Membership No. 041392 |