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Ankit Metal & Power Ltd.

BSE: 532870 Sector: Metals & Mining
NSE: ANKITMETAL ISIN Code: INE106I01010
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VOLUME 2000
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P/E
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Buy Price 0.00
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Sell Price 1.26
Sell Qty 11298.00
OPEN 1.26
CLOSE 1.32
VOLUME 2000
52-Week high 2.16
52-Week low 1.15
P/E
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.26
Sell Qty 11298.00

Ankit Metal & Power Ltd. (ANKITMETAL) - Auditors Report

Company auditors report

TO

THE MEMBERS

ANKIT METAL & POWER LIMITED

Report on the Ind AS Financial Statements

We have audited the acompanying Ind AS Financial Statements of ANKIT METAL &POWER LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the Significant Accounting Policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS Financial Statements that give a true and fair view of the financialposition financial performance including other Comprehensive Income Cash Flows andChanges in Equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateInternal Financial Controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation of theFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS Financial Statements basedon 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 have conducted our audit of the Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Financial Statements are free from materialmisstatement.

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 control relevant to the Company's preparation of the Ind AS FinancialStatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the Ind AS FinancialStatements.

We believe that the audit evidence we have obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the Financial Statements.

Basis of Qualified Opinion

We draw your attention to Note no. 29 of the Ind AS Financial Statements with regard toNon-Recognition of Interest Expense amounting to ` 15443.31 Lacs (including ` 2344.39Lacs relating to Previous Year) on the borrowings of the Company for the year ended 31stMarch 2017 which is not in accordance with the requirements of Ind AS 23: Borrowing Costsread with Ind AS 109 : Financial Instruments.

The Company has not provided accrued interest in its books of accounts during the yearand reversed interest provided in earlier period pertaining to the period the account wasdeclared NPA by the respective lenders. During the year the Company has reversed interestamounting to ` 5375.27 Lacs (including ` 2344.39 Lacs relating to Previous Year). Theunprovided liability in respect of interest on borrowings amounted to ` 15443.31 Lacs.The same have consequential impact on the reported figures of this year as well as earlierperiods. Had the aforesaid interest expense been recognised the finance cost would havebeen

` 16952.93 Lacs (including ` 2344.39 Lacs reversed for the Previous Year) instead of` 1509.62 Lacs and total Comprehensive Loss would have been ` 45364.89 Lacs instead of `29921.66 Lacs for the year ended 31st March 2017. Other Equity and other CurrentFinancial Liabilities as at 31st March 2017 would have been (` 46373.45) Lacs and `34917.14 Lacs.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of our observation stated above in the Basis ofQualified Opinion the aforesaid Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2017 and its loss total Comprehensive Loss Cash Flows and theChanges in Equity for the year ended on that date.

Emphasis of Matter

1. We draw your attention to Note no. 30 of the Financial Statements which indicatethat as at 31st March 2017 the Accumulated Losses amounting to ` 75561.25 Lacs haseroded the entire Net Worth of the Company indicating the existence of a materialuncertainty about the Company's ability to continue as a Going Concern. These FinancialStatements have been prepared on a Going Concern basis for the reasons stated in the saidnote.

2. We draw your attention to Note no. 35 of the Financial Statements which states thatthe Company has raised during the year debit notes of ` 152.78 Lacs on various supplierswhich are yet to be acknowledged by the respective suppliers. Pending suchacknowledgement the Company has recognised the same in the books. If these debit notesare not acknowledged it would have resulted in increase of purchases creditor'sbalances material consumption and loss for the year by the said amount.

3. In general it was noticed that applicable statutory dues were not deposited withindue dates to the respective authorities. Substantial amount of statutory dues amounting to` 1978.07 Lacs has become overdue and remain unpaid. Interest penalty if any in respectof the same remains unascertained and unaccounted for.

4. As referred in Note no. 34 of the Financial Statements the balance of SundryDebtors Advances Creditors etc. includes balances remaining outstanding for asubstantial period. The balances are subject to confirmations and reconciliation. Thereported financials might have consequential impact which remains unascertained.

Our report is not qualified in this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2016 (‘the order') issuedby the Central Government of India in terms of subsection (11) of the Section 143 of theAct we give in the "Annexure A" a statement on the matters specified inthe paragraphs 3 and 4 of the order to the extent applicable.

2. As required by Section 143(3) of the Act we report to the extent applicable that:

a. We have sought and except for the possible effects of the matters described inthe basis of qualified opinion paragraph above obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposeof our audit;

b. In our opinion except for the possible effects of the matters described in thebasis of qualified opinion paragraph above proper books of account as required by lawhave been kept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss including other Comprehensive Incomethe Cash Flow Statement and the Statement of Changes in Equity dealt with by this reportare in agreement with the books of account;

d. Except for the possible effects of the matters described in the basis ofqualified opinion paragraph above in our opinion the aforesaid Financial Statementscomply with the Indian Accounting Standards specified under Section 133 of the CompaniesAct 2013; read with Rule 7 of the Companies (Accounts) Rules 2014.

e. The matters described in the basis for the Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

f. On the basis of written representations received from the directors as on 31stMarch 2017 and 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 ofSection 164(2) of the Act.

g. 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

h. In our opinion and to the best of our information and according to the explanationgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:

i. The Company has disclosed the impact of pending litigations on the financialposition in the Financial Statements- Refer Note no. 31 (a) to (g) to its FinancialStatements.

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. During the year the Company has not transferred an amount of ` 1.08 Lacs toInvestor Education and Protection Fund (IEPF) pertaining to dividend for the year 2006-07.

iv. The Company has provided requisite disclosures in the Financial Statements asregard to its holding and dealings in Specified Bank Notes as defined in the NotificationS.O. 3407(E) dated the 8th November 2016 of the Ministry of Finance during the periodfrom 8th November 2016 to 30th December 2016. Based on audit procedures performed by usand the representations provided by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and produced to us (ReferNote no. 47 of the financial statements).

For R. Kothari & Company
Chartered Accountants
FRN: 307069E
CA Manoj Kumar Sethia
Place: Kolkata Partner
Date: 30th day of May 2017 Membership No.064308

Annexure to the Independent Auditors' Report

"ANNEXURE A"

The Annexure A referred to in paragraph 1 under the heading ‘Report on Other Legal& Regulatory Requirements' of our report of even date to the Financial Statements ofthe Company for the year ended 31st March 2017 we report that: (i) (a) The Company ismaintaining proper records showing full particulars including quantitative details andsituation of property plant and equipment. (b) The property plant and equipment of theCompany have been physically verified by the management during the year and no materialdiscrepancies were noticed on such verification. In our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and nature ofits assets. (c) According to the information and explanations given to us and on the basisof our examination of the records of the Company the title deeds of immovable propertiesare held in the name of the Company.

(ii) The inventory has been physically verified by the management during the year atreasonable intervals. In our opinion the frequency of such verification is reasonable. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material having regard to the size of the operations of the Company and the samehave been properly dealt with in the books of account.

(iii) The Company has not granted any loans secured or unsecured to Companies Firmsor other parties listed in the register maintained under Section 189 of the Companies Act2013. Therefore the reporting under Paragraph 3 (iii) of the said Order is not applicableto the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesas applicable.

(v) The Company has not accepted any deposits from the public and consequently thedirectives issued by Reserve Bank of India and provisions of Section 73 to Section 76 orany other relevant provisions of the Companies Act 2013 and the Companies (Acceptance ofDeposit) Rules 2015 with regard to the deposits accepted from the public are notapplicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company in respectof manufacture of Iron & steel product & Power generation unit pursuant to therules made by the Central Government for the maintenance of cost records under Section148(1) of the Companies Act 2013 and we are of the opinion that prima facie the recordshave been maintained. We have however not made a detailed examination of the records witha view to determining whether they are accurate and complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has generally delayed in depositingundisputed statutory dues including Provident Fund Income Tax Sales Tax Service TaxDuty of Customs Value Added Tax Cess and other statutory dues during the year withappropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at 31st March 2017 for a period ofmore than six months from the date on when they become payable except the following:

( in Lacs)
SI. No. Nature of Dues Amount involved
1. Income Tax Deducted at Source 91.97
2. Sales Tax Deducted at Source 0.32
3. Provident Fund 108.78
4. Central Sales Tax 5.95
5. Value Added Tax 85.93
6. Service Tax 366.30
7. Excise Duty 963.30
8. Withholding Tax 1.39
9. Professional Tax on Salary 0.37
10. Gratuity 0.61
TOTAL 1624.89

(b) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Value Added Tax Service Tax Customs Duty Excise Duty and Cesswhich have not been deposited with the appropriate authorities on account of any disputeexcept the following cases:

Name of the Statute Nature of Dues Amount (` in Lacs ) Period to which the amount relates Forum where the dispute is pending
Income Tax Act Income 6692.78 A.Y. 2012-13 Commissioner of Income Tax- Appeal Kolkata
1961 Tax 3143.26 A.Y. 2013-14 Commissioner of Income Tax- Appeal Kolkata
222.89 F.Y. 2005-06 Sr. Joint commissioner of Commercial Taxes Dharmtala circle.
917.91 F.Y. 2006-07 Sr. Joint commissioner of Commercial Taxes Dharmtala circle.
W.B. 358.16 F.Y. 2007-08 Sr. Joint commissioner of Commercial Taxes Dharmtala circle.
VAT Act 2003 Sales Tax 1946.82 F.Y. 2008-09 Sr. Joint commissioner of Commercial Taxes Dharmtala circle.
29.27 F.Y. 2009-10 Sr. Joint commissioner of Commercial Taxes Dharmtala circle.
112.72 F.Y. 2012-13 Sr. Joint commissioner of Commercial Taxes Bow Bazar circle.
77.02 F.Y. 2013-14 Add. Commissioner of Commercial Taxes Dharmtala Circle
403.60 F.Y. 2012-13 Sr. Joint Commissioner of Commercial Taxes Dharmtala Circle
Entry Tax 385.05 F.Y. 2013-14 Sr. Joint Commissioner of Commercial Taxes LTU Govt. of India
353.95 F.Y. 2014-15 Sr. Joint Commissioner of Commercial Taxes LTU Govt. of India
36.66 September 2007- January 2008 Joint commissioner Central Excise Bolpur Commissionerate
14.95 (15.00 paid as duty under protest) A.Y. 2012-13 Directorate General of Central Excise Intelligence Kolkata
10.15 (5.00 paid as duty under protest) 2011 - 12 Commissioner of Central Excise - Bolpur
4.32 July 2007- October 2007 Addi onal Commissioner of Central Excise & Service Tax Durgapur
37.46 2006 – 07 Joint Commissioner Central Excise Bolpur Commissionerate
(30.00 paid as duty under protest) 2007 – 08
2008 - 09
75.74 2008 - 09 Joint Commissioner Central Excise Bolpur Commissionerate
2009 - 10
132.60 2008 – 09 Joint Commissioner Central Excise Bolpur Commissionerate
2009 - 10
The Central Excise Act 1944 Excise Duty 73.42 August 2009 to February 2011 Joint Commissioner Central Excise Bolpur Commissionerate
1809.48 Director General Central Excise Delhi
0.65 Addi onal Commissioner Central Excise Bolpur Commissionerate
4.51 2011-12 Commissioner of Central Excise Kolkata-IV
30.91 01.02.2012 to 27.12.2012 Assistant Commissioner of Central Excise Bankura Division
389.63 2013-14 to 2014-15 Durgapur Commissionerate
59.36 Joint Commissioner Central Excise Durgapur Commissionerate
50.87 2015-16 Durgapur Commissionerate
16.51 Durgapur Commissionerate
1320.53 2015-16 Assistant Commissioner of Central Excise Bankura Division
31.09 September 2011 to Durgapur Commissionerate
December 2011
3773.90 2013-14 Durgapur Commissionerate
5.29 2013-17 Bankura Commissionerate
1337.07 2014-17 Durgapur Commissionerate

There were no other dues of duty which have not been deposited as at 31st March 2017on account of dispute.

(viii) Based upon the audit procedures performed and according to the records of theCompany examined by us and the informa on and explanation given to us the Company hasdefaulted in payment of interest and repayment of principal on borrowings to banks asfollows:

(` in Lacs )
Par culars Nature Principal "Interest (Net of reversal)" Period of default
State Bank of India 658.00 (29.86) October 15 to March 17
Indian Overseas Bank 288.00 285.05 December 15 to March 17
State Bank of Travancore 257.00 (10.90) September 15 to March 17
UCO Bank 146.00 109.60 October 15 to March 17
Andhra Bank 20.00 17.33 December 15 to March 17
IDBI Bank 29.00 27.02 January 16 to March 17
Syndicate Bank 38.00 33.40 October 15 to March 17
FITL
State Bank of Mysore 160.00 60.60 October 15 to March 17
State Bank of Hyderabad 89.00 (2.00) November 15 to March 17
Corporatoon Bank 225.00 (52.04) January 16 to March 17
State Bank of Bikaner & Jaipur 143.00 13.15 March 16 to March 17
United Bank of India 115.00 72.32 October15 to March17
Allahabad Bank 276.00 114.86 October 15 to March 17
State Bank of Pa ala 28.00 0.02 February 16 to March 17
TOTAL 2472.00 638.55
State Bank of India 66.00 - February 16 to March 17
Indian Overseas Bank 100.00 255.99 February 16 to March 17
State Bank of Travancore 9.00 0.22 December 15 to March 17
UCO Bank 107.00 174.48 February 16 to March 17
Andhra Bank 5.00 14.72 December 15 to March17
IDBI Bank 12.00 33.33 January 16 to March17
WCTL-1
Syndicate Bank 25.00 64.65 February16 to March17
State Bank of Hyderabad 24.00 (4.56) February 16 to March 17
Corporatoon Bank 1.00 - March 16 to March 17
State Bank of Bikaner & Jaipur 49.00 0.79 March 16 to March 17
United Bank of India 8.00 12.52 December 15 to March 17
Allahabad Bank 132.00 190.75 November 15 to March 17
TOTAL 538.00 742.89
State Bank of India 298.00 - February 16 to March 17
State Bank of Travancore 45.00 - January 16 to March 17
UCO Bank 41.00 71.42 February 16 to March 17
IDBI Bank 14.00 38.34 January 16 to March 17
State Bank of Mysore WCTL-2 30.00 15.24 February 16 to March 17
State Bank of Hyderabad 45.00 (8.34) February 16 to March 17
Corporatoon Bank 42.00 (0.00) March 16 to March 17
State Bank of Bikaner & Jaipur 28.00 0.45 March 16 to March 17
United Bank of India 37.00 60.47 December 15 to March 17
TOTAL 580.00 177.57
State Bank of India 393.00 17.46 December 15 to March 17
Indian Overseas Bank 320.00 761.35 February 16 to March 17
State Bank of Travancore 306.00 (56.82) January 16 to March 17
State Bank of Mysore 207.00 105.04 February 16 to March 17
State Bank of Hyderabad 59.00 (10.95) January 16 to March 17
TERM LOAN
Corporatoon Bank 270.00 - March 17
State Bank of Bikaner & Jaipur 114.00 27.18 March 17
United Bank of India 102.00 166.04 December 15 to March 17
Allahabad Bank 252.00 348.43 November 15 to March 17
State Bank of Pa ala 43.00 0.00 February 16 to March 17
TOTAL 2066.00 1357.74
GRAND TOTAL 5656.00 2916.75
State Bank of India 125.14 September15 to March17
Indian Overseas Bank 320.94 December15 to March17
State Bank of Travancore 68.96 November15 to March17
UCO Bank 599.98 September15 to March17
Andhra Bank 257.55 December15 to March17
IDBI Bank 383.54 December15 to March17
Syndicate Bank Cash Credit 457.16 November15 to March17
State Bank of Mysore 52.51 October15 to March17
State Bank of Hyderabad 50.89 October15 to March17
Corporatoon Bank 11.43 December15 to March17
State Bank of Bikaner & Jaipur 105.78 December15 to March17
United Bank of India 147.92 October15 to March17
Allahabad Bank 279.93 November15 to March17
TOTAL 2861.74

The unprovided liability amoun ng to ` 15443.31 Lacs as referred in Note no. 29of the financial statements also con nued to be a default.

The Company does not have any loans and borrowings from Government and has not issuedany debentures.

(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not raised moneys by way of initial publicissue/follow-on offer (including debt instruments) and term loans.

(x) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.

(xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the reporting under Paragraph 3 (xii) of theOrder is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usall 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 Ind ASFinancial Statements as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares of fully or partly convertible debentures and hence reporting underparagraph 3(xiv) of the Order is not applicable to the Company.

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with them. Accordingly the reporting under Paragraph 3(xv) of the Order is not applicable to the Company and hence not commented upon.

(xvi) In our opinion the Company is not required to be registered under Section 45 IAof the Reserve Bank of India Act 1934.

For R. Kothari & Company
Chartered Accountants
FRN: 307069E
CA Manoj Kumar Sethia
Place: Kolkata Partner
Date: 30th day of May 2017 Membership No.064308

Annexure to the Independent Auditors' Report

"ANNEXURE B"

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Controls over Financial Reporting of M/s. ANKITMETAL & POWER LIMITED ("the Company") as of 31st March 2017 in conjunctionwith our audit of the Ind AS Financial Statements of the Company for the year ended onthat 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'). Theseresponsibilities include the design implementation and maintenance of adequate InternalFinancial Controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing issued by ICAI and prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of Internal Financial Controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate Internal Financial Controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the Internal Financial Controls system over financial reporting and theiroperating effectiveness. Our audit of Internal Financial Controls over financial reportingincluded obtaining an understanding of Internal Financial Controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material 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 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.

Opinion

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 2017 based on theInternal Financial Control over Financial Reporting criteria established by the Companyconsidering the essential components of Internal Control stated in the Guidance note onaudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For R. Kothari & Company
Chartered Accountants
FRN: 307069E
CA Manoj Kumar Sethia
Place: Kolkata Partner
Date: 30th day of May 2017 Membership No.064308