TO THE MEMBERS OF
ALLIED DIGITAL SERVICES LTD
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ALLIED DIGITALSERVICES LTD ("the Company") which comprise the Balance Sheet as at 31stMarch 2015 the Statement of Profit and Loss the Cash Flow Statement and a summary ofthe significant accounting policies and other explanatory information for the year thenended.
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 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 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 control 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 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 2015 and its profit and its cash flows for the year ended on that date.
Emphasis of Matters
Without qualifying our opinion we invite attention to:
a. Intellectual Property Rights (IPRs) which are in the process of being developedfurther these being technical in nature we have relied on the estimates and assumptionsmade by the management in determining the amount capitalised.
b. Balances relating to Trade Receivables and Loans and Advances are pending forconfirmations from the respective parties. Adjustments if any will be made in the yearin which the confirmations are received.
c. In respect of Investments in subsidiaries the Company has not made any provisionsfor diminution in the value of these Investments inspite of there being negative networth.
d. In respect of delays in deposit of statutory dues with Government Semi-Governmentand Local Authorities the Company has not made provision for interest/penalty for latepayment of these dues.
e. Trade Receivables outstanding for a period of more than six months Rs 205.56 Croresis considered good for recovery by the management.
Report on Other Legal and Regulatory Requirements
1. As required by The Companies (Auditor's Report) Order 2015 issued by the CentralGovernment in terms of sub-section (11) of Section 143 of the Act (hereinafter referred toas 'the Order') and on the basis of such checks of the books and records of the Companyas we considered appropriate and according to the information and explanations given tous we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 ofthe 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) 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.
(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 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. 26).
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been delay in transferring Unpaid Dividend amount of Rs 4.13 lacspertaining to FY 2006-07 which is required to be transferred to the Investor Education andProtection Fund by the Company.
For SHAH & TAPARIA
(Firm Regn No 109463W)
Annexure to Independent Auditor's Report
Referred to in paragraph 1 under the heading "Report on Other Legal and regulatoryRequirements" of our Report of even date
1. In respect of the Company's fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) There is no written policy for physical verification; however as per explanationgiven to us fixed assets were physically verified during the year by the Management inaccordance with a regular program of verification. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
2. In respect of the Company's inventories:
(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 werereasonable 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 has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification
3. The company has granted interest free unsecured loan to two companies covered in theregister maintained under section 189 of the Companies Act.
a) The terms of arrangements do not stipulate any repayment schedule and these arerepayable on demand. Accordingly this para of the Order is not applicable to the Companyin respect of the repayment of the principal.
b) There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to the bodies corporate listed in the register maintained u/s 189 of the Act.
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 inventory and fixed assets and for the sale ofgoods and services. During the course of audit no major weakness has been noticed in theinternal controls.
5. During the F.Y. 2014-15 the company has not accepted any deposits from the public.However in respect of existing deposits accepted during the preceding years the Companyhas not made the repayment of Principal and Interest due thereon as under:
|No. of Deposit Holders || |
Principal Amount due as at 31.03.2015
Interest due up to 31.03.2015
Total Dues as at 31.03.2015
|144 || |
The Company has paid a sum of Rs 1.13 lacs out of the above dues after the year end.
6. The Central Government has not prescribed the maintenance of cost records under subsection (I) of section 148 of the Act.
7. According to the information and explanations given to us in respect of statutorydues:
a) The company has not generally been regular in depositing undisputed statutory duesincluding Provident Fund Investor Education and Protection Fund Employees' StateInsurance Income Tax Sales Tax and Value Added Tax Wealth Tax Service Tax CustomDuty Excise Duty Cess and other material statutory dues applicable to it with theappropriate authorities.
b) There were undisputed amounts payable in respect of Provident Fund InvestorEducation and Protection Fund Employees' State Insurance Income Tax Sales Tax and ValueAdded Tax Wealth Tax Service Tax Customs Duty Excise Duty Cess and other materialstatutory dues in arrears as at March 312015 for a period of more than six months fromthe date they became payable. (Details as under):-
|Particulars || |
|Provident Fund || |
|Provident Fund || |
|ESIC || |
c) Details of dues of Sales Tax and Value Added Tax Service Tax and Income Tax whichhave not been deposited as at March 312015 on account of disputes are given below.
|Particulars ||Period to which amount relate ||Forum where dispute is pending || |
Amount (In Lacs)
|Sales Tax and Value Added Tax ||F.Y. - 2005-062006-07 2008-09 2010-11 ||Dy. Commissioner of Sales Tax Appeal || |
|Income Tax ||A.Y. - 2005-062006-07 2007-082008-09 2009-10 2011-12.2012-13 ||Dy. Commissioner of Income Tax. || |
There were no dues of Wealth Tax Customs Duty Excise Duty and Cess which have notbeen deposited as at March 312015 on account of dispute.
a) The Company has not transferred unpaid dividend required to be transferred toinvestor education and protection fund in accordance with the relevant provisions of theCompanies Act 1956 (1 of 1956) and rules made there under;
|Period || |
|2006-07 || |
8. The Company does not have accumulated losses. The Company has not incurred cashlosses during the financial year covered by our audit and in the immediately precedingfinancial year.
9. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to a bank. Further in our opinion andaccording to information and explanations given to us the Company did not have any amountoutstanding to financial institutions or debenture holders.
10. In our opinion and according to the information and explanations given to ushaving regard to the fact that the guarantee has been given for loan taken by subsidiarythe terms and conditions of the guarantee given by the Company for loan taken by thesubsidiary from a bank are not prima facie prejudicial to the interest of the Company.
11. In our opinion and according to the information and explanations given to us theterm loans taken have been applied for the purpose for which they were obtained.
12. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company and no material fraud on the Company hasbeen noticed or reported during the year.
For SHAH &TAPARIA
(Firm Registration No.: 109463W)
M. No.: 103840