The Members of
ARTECH POWER PRODUCTS LIMITED
Report on Standalone Financial Statement
We have audited the accompanying Standalone financial statements of "ARTECH POWERPRODUCTS LIMITED" which comprise the Balance Sheet as at March 31 2015 theStatement of Profit and Loss for the year then ended Cash flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
Managements' Responsibility for 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 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 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 and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2015;
b) in the case of the Statement of Profit and Loss of the profit/ loss for the yearended on that date; and
c) in case of Cash Flow Statement for the year ended 31st March 2015.
Emphasis of Matter:
There is no such matter came across to put emphasis on during the course of our Audit.
Report on Other Legal and Regulatory Requirements.
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order.
2. As required by section 143(3) of the Act we report that:
a) we have obtained all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books;
c) The Balance Sheet the Statement of Profit and Loss dealt with by this Report are inagreement with the books of account.
d) In our opinion the Balance Sheet the Statement of Profit and Loss comply with theAccounting Standards referred to in section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) In our Opinion and Explanation provided to us to the best of our knowledge andbelief there is not any financial transaction that affect adversely on the functioning ofthe company.
f) On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of sub-section (2) ofsection 164 of the Companies Act 2013.
g) To the best of our knowledge and belief and explanation provided to us FinancialControl System in place are adequate and it is operating effectively.
h) With respect to other matters to be included in auditor's report in accordance withRule 11 of Companies ( Audit and Auditors) Rule 2014; in our opinion and to the best ofour information and according to the explanation provided to us:
a. It may be noted that at present no Rules relating to the amount of cess forrehabilitation or revival or protection of assets of sick industrial companies payable bya company under section 269 of the Act have been notified by the central Government. Thusit would not be possible for the auditor to comment on the regularity or otherwise aboutthe cess till the time relevant rules or regulations are issued.
b. The company does not have any pending litigations which would impact on financialposition
For Vishves A. Shah & Co.
(Vishves A. Shah)
Proprietor M. No. 109944
Date: May 29 2015
Annexure referred to in paragraph 1 of our report even date.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
(i) In Respect of the Fixed Assets:
a) There is No Fixed Assets during the year.
(ii) In respect of its Inventories:
a) There is No Inventories during the year.
(iii) In respect of Loan:
a) The company has taken any loans from Companies Firms or other parties and directorsand relative of the Director; Register maintained under section 189 of the Act.
b) In our opinion the terms and conditions on which loans have been taken fromcompanies firms or other parties listed in the register maintained under section 189 ofthe Companies Act 2013 and from the companies under the same management are not primafacie prejudicial to the interest of the company.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the companyand the nature of its business with regards to purchases of inventory fixed assets andwith regards to the sale of goods and services. During the course of our audit we havenot observed any continuing failure to correct major weaknesses in internal controls.
(v) In respect of Contracts or arrangements referred to in Section 189 of the CompaniesAct 2013:
According to the information and explanations given to us we are of the opinion thatthe transactions that need to be entered in into the register maintained under section 189of the Companies Act 2013 have been so entered.
In our opinion and according to the information and explanation given to us There isno any transaction more than Rs. 500000/- or more of purchase of goods and materials andsale of goods materials and services made in pursuance of contracts or arrangementsentered in the registers maintained under section 301 and aggregating during the year inrespect of each party so this provision is not applicable.
(vi) In our opinion and according to the information and explanations given to ussince the company has not accepted any deposits from the public the compliance with theprovisions of sections 73 or any other relevant provisions of the Act and the rules framethere under with regard to the deposits accepted from the public are not applicable to thecompany. No order has been passed by the applicable authorities.
(vii) In respect of Statutory Dues:
a) According to the information and explanation given to us the company is generallyregular in depositing with the appropriate authorities undisputed statutory duesincluding Provident Fund ESIC Income Tax Sales Tax Excise Duty Cess and any othermaterial statutory dues applicable to it.
b) According to the information and explanations given to us no disputed amountspayable in respect of income tax wealth tax sales tax custom duty excise duty and cesswere outstanding as at 31st March 2015 for a period of more than six monthsfrom the date they become payable.
(viii) The company have accumulated losses of Rs. 21462961/- during the yearcompany has not incurred any cash losses.
(ix) According to the information and explanations given to us the company has notgranted loans and advances on the basis of securities by way of pledge of sharesdebentures and other securities. Therefore the provisions of clause 4(xii) of theCompanies (Auditors Report) order 2015 are not applicable to the company
(x) In our opinion the company is not a Chit Fund or a NIDHI Mutual BenefitFund/Society. Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) order 2015 are not applicable to the company.
(xi) In our opinion the company is dealing in or trading in shares securitiesdebentures and other investments. Accordingly the provisions of the clause 4 (xiv) ofCARO 2015 are applicable to the company as regards dealing in or trading in sharessecurities and other investments. No records available for verification purpose.
(xii) As informed to us the company has not given guarantees for loans taken by othersfrom banks or financial institutions.
(xiii) In our opinion on the basis of information & explanations given to us theterm loans were not applied for the purpose for which they were raised.
(xiv) In our opinion on the basis of information and explanations given to us fundsraised on Short term basis have not been used for Long-term investment.
(xv) The company has not made any preferential allotment of shares to parties andcompanies covered in the register maintained under section 189 of the Act.
(xvi) The company has not issued any debentures during the period covered by our auditreport.
(xvii) The company has not made any public issue of shares during the period covered byour audit report.
(xviii) According to the information and explanations given to us no fraud on or bythe company has been noticed or reported during the year.
For Vishves A. Shah & Co.
(Vishves A. Shah)
M. No. 109944
Date: May 29 2015