to the members of
Alfred Herbert (India) Limited
Report on the Standalone Financial Statements we have audited the accompanyingstandalone financial statements of alfred herbert (india) limited ("theCompany") which comprise the balance sheet as at 31st march 2017 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 Standalone 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 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. this responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the act for safeguarding of 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 standalone financial statementsbased on our audit.
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 there under.
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 is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in india of the state of affairs of the Companyas at 31st march 2017 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 subsection (11) of section 143of the Companies act 2013 (the act') we give in the annexure a statement on thematters specified in paragraphs 3 and 4 of the said order to the extent applicable. 2. asrequired by section 143 (3) of the act we report to the extent applicable 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 standalone financial statements comply with theaccounting standards specified under section 133 of the act read with rule 7 of theCompanies (accounts) rules 2014.
(e) on the basis of the written representations received from the directors as on 31stmarch 2017 taken on record by the board of Directors none of the directors isdisqualified as on 31st march 2017 from being appointed as a director in terms of section164 (2) of the act.
(f) with respect to the adequacy of internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer ourseparate report in "annexure a".
(g) 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 read with theCompanies (audit and auditors) amendment rules 2017 in our opinion and to the best ofour 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 3 to the financial statements;
ii. the Company did not have any longterm contracts including derivativecontracts for which 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.
iv. the Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in specified bank notes during the period from 8th november2016 to 30th December 2016. based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as provided to us by the management. refer note 13 to thefinancial statements.
(h) according to the information and explanations given to us and on the basis of suchchecks as we considered appropriate was carried out by us during the course of the auditof the company our report on the matters specified under the para 3(a) and 3(C) ofnon banking financial Companies auditor's report (reserve bank) Directions 2008 isas follows:
i) the Company which was incorporated prior to 9th January 1997 has applied forregistration as provided in section 45ia of reserve bank of india act 1934 (2 of1934) and has received registration certificate from the reserve bank of india and theCertificate no. n. 05. 04665 dated 29th november 2001. the Company is engaged in thebusiness of non banking financial institution.
ii) the asset/income pattern of the Company as on 31.03.2017 are as follows: investmentincome to total income: 50.42% total investments to total assets: 56.79% in view of theabove ratios the Company is entitled to hold Certificate of registration issued by thereserve bank of india as on 31.03.2017.
iii) the Company has not been classified as assets finance Company as defined innonbanking financial Companies acceptance of public Deposits (reserve bank)Directions 1998 with reference to the business carried on by it during the financial yearunder reference.
iv) the Company has not been classified as micro finance institution as defined innonbanking financial Company micro finance institutions (reserve bank)Directions 2011 with reference to the business carried on by it during the financial yearunder reference.
v) the board of Directors of the Company had passed a resolution at its meeting held on2nd february 2017 for not accepting any public deposit.
vi) the Company has not accepted any public deposit during the year under reference.
vii) the Company has complied with the prudential norms relating to income recognitionaccounting standards assets classification and provisioning for bad and doubtful debts asapplicable to it in terms of nonbanking financial (nondeposit accepting orholding) Companies prudential norms (reserve bank) Directions 2007.
viii) the Company is not a systemically important nonDeposit taking nbfC asdefined in paragraph 2 (1) (xix) of the non banking financial (nonDepositaccepting or holding) Companies prudential norms (reserve b a n k) Directions 2007.
| ||FOR RAY & RAY |
| ||CHARTERED ACCOUNTANTS |
| ||(FIRM'S REGISTRATION NO.301072E) |
| ||ASISH KUMAR MUKHOPADHYAY |
|PLACE: KOLKATA ||PARTNER |
|Date: 19th may 2017 ||MEMBERSHIP NO.056359 |
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(referred to in paragraph 1 under the heading report on other legal andregulatory requirements' of our report of even date)
(i) (a) the Company has maintained proper records showing full particulars includingquantitative details and situations of its fixed assets.
(b) aii the fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. no materialdiscrepancies were noticed on such verification.
(c) the title deed of immoveable properties are held in the name of the Company.
(ii) the Company does not have any inventory. accordingly provisions of Clause (ii) ofparagraph 3 of the aforesaid order are not applicable to the Company.
(iii) according to the information and explanation given to us the company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theact. accordingly provisions of clauses (iii) (a) (b) and (c) of paragraph 3 of theaforesaid order are not applicable to the Company.
(iv) in our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the act in respect ofthe loans and investments made and guarantees and security provided by it as applicable.however no interest has been recognized during the year on loan given to its subsidiarycompany considering the prudential Guidelines issued by reserve bank of india(refer note6 to the financial statements).
(v) the Company has not accepted any deposits from the public within the meaning ofsections 73 to 76 or any other relevant provisions of the act and the rules framed thereunder.
(vi) the maintenance of Cost records has not been specified by the Central Governmentunder subsection (1) of section 148 of the act for the Company.
(vii) (a) according to the information and explanations given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employee's state insurance income tax sales tax service taxDuty of Customs Duty of excise value added tax Cess and any other statutory dues to theappropriate authorities. on the basis of the records of the Company and the informationand explanations given to us there was no arrears of outstanding statutory dues as on thelast day of the financial year concerned outstanding for a period of more than six monthsfrom the date they became payable.
(b) according to the records of the Company and according to the information andexplanations given to us there are no dues of income tax sales tax service tax Dutyof Customs Duty of excise value added tax and Cess which have not been deposited onaccount of any dispute.
(viii) the Company has no borrowings from financial institution bank government andthe Company has no debenture holders. accordingly clause (viii) of paragraph 3 of theaforesaid order is not applicable to the Company.
(ix) according to the information and explanations given to us the Company has notraised money by way of initial public offer or further public offer including debtinstruments and term loan during the year. accordingly clause (ix) of paragraph 3 of theaforesaid order is not applicable to the Company.
(x) according to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear. (xi) according to the information and explanations given to us no managerialremuneration is paid during the year by the Company. accordingly clause
(xi) of paragraph 3 of the aforesaid order is not applicable to the Company.
(xii) the Company is not a nidhi Company. accordingly clause (xii) of paragraph 3 ofthe aforesaid order is not applicable to the Company.
(xiii) on the basis of our examination of the books of account of the Company andaccording to the information and explanations given to us the transactions entered intowith the related parties are in compliance with section 177 and 188 of the act and thesame has been disclosed in the financial statements as required by the applicableaccounting standards.
(xiv) the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
(xv) on the basis of our examination of the records of the Company and according to theinformation and explanations given to us the Company has not entered into anynoncash transactions with directors or persons connected with him.
(xvi) the Company is registered under section 45ia of the reserve bank of indiaact 1934 and has received registration certificate from the reserve bank of india and theCertificate no. is n. 05. 04665 dated 29th november 2001.
| ||FOR RAY & RAY |
| ||CHARTERED ACCOUNTANTS |
| ||(FIRM'S REGISTRATION NO.301072E) |
| ||ASISH KUMAR MUKHOPADHYAY |
|PLACE: KOLKATA ||PARTNER |
|DATE: 19TH MAY 2017 ||MEMBERSHIP NO.056359 |