THE MEMBERS OF
Alka India Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Alka India Limited("thecompany")/which comprise the Balance Sheet as at March 31 2017 theStatement of Profit andLoss the Cash Flow Statement for the year then ended and asummary of significant accountingpolicies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe CompaniesAct 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a trueand fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company andforpreventing and detecting the frauds and other irregularities; selection and applicationof appropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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 arefree from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. Wehave taken into account the provisions of the Act the accounting and auditingstandards andmatters which are required to be included in the audit report under theprovisions of the Act andthe Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified undersection143(10) of the Act. Those Standards require that we comply with ethicalrequirements and planand perform the audit to obtain reasonable assurance about whetherthe financial statements arefree 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'sjudgmentincluding 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 true and fairview in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the over all presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide abasis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid financial statements give the information required by the Actin the manner sorequired and give a true and fair view in conformity with the accountingprinciples generallyaccepted in India;
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;
b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate. Emphasis of Matters
The reports should be read together with the Notes to the financial statements.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of sub section (11) of section 143 of the Act wegive in the 'Annexure 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) We have sought and obtained all the information and explanations which to the bestof ourknowledge 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 theCompanyso far as appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith bythis Report are in agreement with the books of account.
d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in section 133 of the CompaniesAct2013 read with rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March 312017taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in 'Annexure B'; and
g) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialpositionin its financial statements;
ii. The Company does not have any long-term contracts including derivatives contractsforwhich any provision is required;
iii. The Company is not required to transfer amounts to the Investor EducationandProtection Fund.
For Agrawal Jain & Gupta
Chartered Accountants Firm Registration No.:013538C
CA Narayan Swami
M. No - 409759
Place: Mumbai Date: August 11 2017
ANNEXURE A' TO AUDITORS' REPORT
Additional Information annexed to the Independent Auditors' Report
(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) We are informed that fixed assets have been physically verified by the managementat reasonable intervals; no material discrepancies were noticed on such verification.
(c) We are informed that the title deeds of immovable properties are held in the nameof the company.
(ii) (a) As explained to us physical verification of inventory has been conducted atreasonable intervals by the management in our opinion the frequency of such verificationis reasonable.
(b) As per the information given to us the procedures of physical verification ofinventory followed by the management are in our opinion reasonable and adequate inrelation to the size of the company and the nature of its business;
(c) The company is maintaining proper records of inventory and in our opiniondiscrepancies noticed on physical verification of inventory were not material in relationto the operations of the Company and the same have been properly dealt with in the booksof account.
(iii) As explained to us the company has not granted any loans secured or unsecuredto companies firms Limited Liability Partnerships or other parties covered in theregister maintained under section 189 of the Companies Act 2013.
(iv) As explained to us in respect of loans investments guarantees and securityprovisions of section 185 and 186 of the Companies Act 2013 have been complied with.
(v) As explained to us the company has not accepted any deposits whether thedirectives issued by the Reserve
(vi) We are informed that maintenance of cost records specified by the CentralGovernment under sub-section (1) of section 148 of the Companies Act 2013 are notapplicable to the company.
(vii) (a) According to information and explanation given to us and records examined byus the company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues to theappropriate authorities and there were no undisputed arrears of outstanding statutorydues as on the March 31 2017 for a period of more than six months from the date theybecame payable.
(b) As explained to us there are no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax which have not been deposited onaccount of any dispute except Income tax demand of Rs. 10.38 lacs u/ s 271(1C) for theassessment year 2007-08. And sales tax (VAT) demand of Rs. 179.52 lacs u/ s for thefinancial year 2006-07.
(viii) As explained to us the company has not defaulted in repayment of loans orborrowing to a financial institution bank Government or dues to debenture holders.
(ix) As explained to us no moneys were raised by way of initial public offer orfurther public offer (including debt instruments) and no term loans were applied for thepurposes other than for which those are raised.
(x) According to information and explanation given to us and records examined by us nofraud by the company or any fraud on the Company by its officers or employees has beennoticed or reported during the year.
(xi) According to information and explanation given to us and records examined by usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.
(xii) This clause is not applicable to the company.
(xiii) According to information and explanation given to us and records examined by usall transactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards;
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under.
(xv) According to information and explanation given to us and records examined by usthe company has not been entered into any non-cash transactions with directors or personsconnected with him.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For Agrawal Jain & Gupta Chartered Accountants
FRN: 013538C Sd/-
CA Narayan Swami
M. No - 409759 Mumbai August 11 2017
ANNEXURE B' TO AUDITORS' REPORT
Additional Information annexed to the Independent Auditors' Report Report on theInternal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ALKA INDIALIMITED ("the Company") as of March 31 2017 in conjunction with our audit ofthe 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such 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 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 auditors' judgement 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 companys' 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) 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
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 March 31 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 ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India
For Agrawal Jain and Gupta
Firm Reg. No. 013538C
CA Narayan Swami
Membership No. 409759
Dated: August 11 2017