The Members of ALBERT DAVID LTD.
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Albert David Limited("the Company") which comprise the balance sheet as at 31st March 2016 thestatement of profit and loss the cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.
MANAGEMENTS 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 of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview 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 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 Company's Directors as well as evaluating the overall presentation ofthe 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.
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 31stMarch'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 ofthe Act we give in the Annexure-2 a statement on the matters specified in paragraphs 3and 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books. c. The Balance Sheet Statement of Profit and Loss and theCash 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 Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules2014. e. On the basis of the written representations received from the directors ason 31stMarch'2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March'2016 from being appointed as a director in terms of Section164(2) of the Act. f. Our separate report on adequacy of internal financial control systemand operating effectiveness of such controls is enclosed in Annexure-1.
3. 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 our information and according to the explanations given to us: a. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements Refer Note 28.1 to the financial statements. b. The Company didnot have any long-term contract including derivative contract which may lead to anyforeseeable loss. c. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
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 AlbertDavid Limited ("the Company") as of 31st March 2016 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
MANAGEMENTS 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia.
Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.
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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
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 financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton 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 31st March 2016 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 ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
AUDITORS' REPORT AS PER THE COMPANIES (AUDITOR'S REPORT) ORDER'2016 :
1. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b. The fixed assets have beenphysically verified by the management at reasonable intervals. As informed no materialdiscrepancies between book records and the physical inventories have been noticed on suchverification. c. The title deeds of immovable property are held in the name of theCompany.
2. The inventories have been physically verified at reasonable intervals during theyear by the management. The discrepancies noticed on physical verification between thephysical stock and book records were not material and have been properly dealt with in thebooks of accounts.
3. The company has granted two unsecured loans to one company and another Partycovered in the register maintained under section 189 of the Companies Act 2013. Repaymentof loan and interest thereon form part of loan arrangement which have been regularlycomplied with. There is no overdue principal or interest outstanding.
4. The Company has complied to the provisions of section 185 and 186 of the CompaniesAct 2013 in respect to loans investments guarantees and securities.
5. The Company has accepted deposits from the shareholders within the meaning ofSections 73 to 76 of the Act and the Rules framed there under to the extent notified indue compliance of directives issued by RBI Provisions of section 73 & 76 of CompaniesAct 2013 and rules framed thereunder.
6. On the basis of records produced we are of the opinion that prima facie cost recordsand accounts prescribed by the Central Government under sub section (1) of section 148 ofthe Companies Act 2013 in respect of products of the company covered under the rulesunder said section have been made and maintained. However we are neither required to carryout nor have carried out any detailed examination of such accounts and records.
7 a. According to information and explanations given to us the company is regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees state insurance income tax sales tax service tax custom duty exciseduty value added tax cess and other statutory dues to the extent applicable to it.According to the information and explanations given to us no undisputed amounts payablein respect of the aforesaid dues were outstanding as at 31st March 2016 for a period ofmore than six months from the date of becoming payable.
b. The dues on account of Sales Tax Income Tax Excise Duty and cess disputed by thecompany and not being paid vis--vis forums where such disputes are pending arementioned below:-
|Name of the Statute ||Nature of dues ||Amount Rs. in lacs ||Period to which the amount relates ||Forum where dispute is pending |
|Sales Tax : || || || || |
|Central Sales Tax Act 1956 ||Tax on Lease Rental ||5.74 ||2002-2003 ||Calcutta High Court |
|Central Sales Tax Act 1956 ||Tax on Lease Rental ||1.52 ||2003-2004 ||- Do - |
|- Do - ||- Do - ||2.62 ||2005-2006 ||W.B. Com. Taxes Appealate & Revisional Board |
|West Bengal Vat Act 2003 ||Vat on sample dispute on sale & Purchase Tax ||51.86 ||2009-2010 ||- Do - |
|- Do - ||Dispute of sale and input tax credit ||2.07 ||2011-2012 ||- Do - |
|Income Tax : || || || || |
|Income Tax Act 1961 ||Tax on disallowance of expenditure ||0.20 ||1991-1992 ||Com. of Income Tax (Appeal) |
|- Do - ||- Do - ||6.95 ||1999-2000 ||Calcutta High Court |
|- Do - ||Tax on disallowance of Depreciation ||61.71 ||2012-2013 ||Com. of Income Tax (Appeal) |
|Excise Duty : || || || || |
|Central Excise Act 1944 ||Classification of Products ||188.04 ||01.06.2003 to 28.02.2008 ||CESTAT |
|- Do - ||Additional Levy of Duty ||0.99 ||13.06.1961 to 30.04.1962 ||Collector of Central |
| ||and Valuation of Sample || || ||Excise |
|- Do - ||Valuation of Exports ||2.84 ||08.01.2005 to 31.08.2007 ||CESTAT |
|- Do - ||Duty on scrap ||0.18 ||01.04.2003 to 31.03.2010 ||Com. of Central Excise (Appeal) |
|Cess : Water (Prevention & Control of Pollution) Cess Act 1977 ||Additional levy of Water Cess ||23.41 ||05.01.1994 to 31.03.2016 ||Allahabad High Court |
8. Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that the company has not defaulted in repayment ofdues to any bank or government. Company has no debenture holder or any financialinstitutional borrowing during the year.
9. Neither any term loan has been obtained during the year nor any money was raised byway of public offer (including debt instruments) during the year by the company.
10. No fraud has been noticed or reported on or by the company during the year.
11. The managerial remuneration has been paid or provided in accordance with theprovisions of section 197 read with Schedule V of the Act.
12. The Company is not a Nidhi Company accordingly paragraph 3 (xii) of the Order isnot applicable.
13. All the transactions with the related parties are in compliance with section 177and 188 of Companies Act 2013 and the details of related parties transactions have beendisclosed in the Financial Statements as required by the applicable accounting standard.
14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.
15. The Company has not entered into any non-cash transactions with directors.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||For G. Basu & Co. |
| ||Chartered Accountants |
| ||(Registration No.301174E) |
|Place : Kolkata ||S. Lahiri |
|Date : 30th May 2016 ||Partner |
| ||(Membership No.51717) |