INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AMBITION MICA LIMITED Report on theFinancial Statements
We have audited the accompanying financial statements of Ambition Mica Ltd. ("thecompany") which comprise the Balance Sheet as at 31st March 2017 theStatement of profit and Loss the Cash Flow Statement for the year then ended and asummary of significant 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 under 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 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 financial statements based on ouraudit.
We have taken into account the provision of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovision 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 statement 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 basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationgives 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 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 Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.
2. As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanation which to the best ofour knowledge and belief were necessary for the purpose 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the companies(Accounts) Rules 2014.
e) On the basis of the written representation 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 the internal financial controls 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 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:
The Company does not have any pending litigation which would impact its financialposition.
The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
There were no amounts which were required to be transferred to the investorEducation and Protection Fund.
The Company has provided requisites disclosures in the financial statements as toholding as well as dealing in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures in financial statement by wayof notes no. 44 are in accordance with books of account maintained by the company and asproduced to us by the management.
For Hitesh Gohel & Co.
Chartered Accountants (F.R.No. 129089W)
[CA Hitesh R. Gohel]
Membership No. 129427
Place: Ahmedabad Date: 29th August 2017
Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2017
The Members of AMBITION MICA LIMITED
(1) In Respect of Fixed Assets
(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) According to the Information and explanations given to us the fixed assets areverified in a phased manner by the management during the year which in our opinion isreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deed of all immovable assets are heldin the name of company.
(2) In Respect of Inventories
As explained to us the inventories have been physically verified by the management atreasonable intervals during the year.
(3) Compliance under section 189 of The Companies Act 2013
The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained u/s 189of the Companies Act 2013 (the Act).
(4) Compliance under section 185 and 186 of The Companies Act 2013
As per information and explanation given to us Company has not given any loan orgurantees and has not provided any securities. During the year company has invested '10000000/- in the securities of M/s Velsons Laminate Private Limited which is coveredby section 185 and 186 of the Companies Act 2013.
(5) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framed thereunder while accepting Deposits
The company has not accepted any Deposits from the public.
(6) Maintenance of cost records
As explained to us the Central Government has not prescribed the maintenance of Costrecords under sub section (1) of section 148 of the Companies Act 2013.
(7) Deposit of Statutory Dues
(a) Company is regular in depositing with appropriate authorities undisputed statutorydues including Income tax Sales-tax Service tax Duty of Excise Value added tax or Cessand any other statutory dues applicable to it except for a professional tax amounting toRs.30080/- which is in arrears on the last date of the financial year concerned for aperiod of more than six months from the date they became payable also there has been aslight delay in CST VAT Excise duty Service tax and TDS Payment.
(b) According to the information and explanation given to us there is no dispute withthe revenue authorities regarding any duty or tax payable.
(8) Repayment of Loans and Borrowings
According to the information and explanation given to us the company has not defaultedin repayment of its dues to financial institution bank or Government. The company doesnot have any borrowings from debenture holders.
(9) Utilization of Money Raised by Public Offers and Term Loan For which they Raised
According to the information and explanation given to us the company has not raisedany money by way of initial public offer or further public offer (including debtinstruments) during the year under review.
(10) Reporting of Fraud During the Year
According to the information and explanation given to us during the year under reviewSome employees of company were removing laminate sheets (finished goods) from the factorypremises without intimation of management since last one year. Company has filled FirstInformation Report (FIR) against 5 employees of the company in Dehgam Police Station.Total amount of fraud is not yet identified till the signing of this audit report andinquiry is going on. As exact amount of fraud is not known no provision is made for in thebooks of accounts.
(11) Managerial Remuneration
Company has complied with the provisions of managerial remuneration of section 197 readwith Schedule V to the Companies Act.
(12) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
As per information and records available with us the company is not Nidhi Company.
(13) Related party compliance with Section 177 and 188 of companies Act - 2013
All transactions with the related parties are in compliance with section 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.
(14) Compliance under section 42 of Companies Act - 2013 regarding Private placement ofShares or Debentures
According to the information and explanations given to us and based on our examinationof the records of the company the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review.
(15) Compliance under section 192 of Companies Act - 2013
According to the information and explanations given to us and based on our examinationof the records of the company the company has not entered into any non-cash transactionswith directors or persons connected with him.
(16) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934
The company is not required to be registered under section 45-IA of the Reserve Bank oflndia Act 1934.
Hitesh Gohel & Co.
Hitesh R. Gohel Proprietor M'ship No. 129427 Firm Reg. No. 129089W
Place: Ahmedabad Date: 29th August 2017
Report on the Internal Financial Control 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 AMBITIONMICA LIMITED ("the Company") as of 31st March 2017 in conjunctionwith our audit of the financial statement 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 conduct 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 plans 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 procedure 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 exist and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The procedureselected depends 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 purpose 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 authorization ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAuditing of Internal Financial Controls Over Financial Reporting issued by the Instituteof Chartered Accountants of India.
|Hitesh Gohel & Co. |
|Chartered Accountants |
|Hitesh R. Gohel |
|M'ship No. 129427 |
|Firm Reg. No. 129089W |
|Place: Ahmedabad |
|Date: 29th August 2017 |