AVTIL Enterprise Ltd.
|BSE: 504390||Sector: Financials|
|NSE: N.A.||ISIN Code: INE292N01018|
|BSE LIVE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 504390||Sector: Financials|
|NSE: N.A.||ISIN Code: INE292N01018|
|BSE LIVE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
TO THE MEMBERS OF ARUN VARUN TRADE & INVESTMENT LIMITED
Report on the Financial Statements:
We have audited the accompanying Financial Statement of ARUN VARUN TRADE &INVESTMENT LIMITED (the "Company") which comprise the Balance Sheet as at 31stMarch 2016 the statement of Profit and Loss for the year ended Cash Flow Statement forthe year ended and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone Financial Statements:
The Company's Board of directors are responsible for the matters in section 134(5) ofthe Companies Act 2013 (the Act") with respect to the preparation of these FinancialStatements that gives a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the Accounting Standardsreferred in Section 133 of the Companies Act 2013 read with rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes the maintenance of the adequateaccounting records in accordance with the provisions of the act for safeguarding theassets of the company and preventing & detecting the frauds and other irregularities;selection and application of appropriate accounting policies; making judgement andestimates that are reasonable & prudent; and design implementation and maintenance ofthe internal financial control that were operating effectively for ensuring the accuracy& completeness of the accounting records relevant to the preparation &presentation of the financial statements that give a true & fair view and are freefrom material misstatements 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& auditing standards and matters which are required to be included in the audit reportunder the provisions of the act and rules made there under.
We conducted our audit is in accordance with the Standards on Auditing specified under143(10) of the Companies Act 2013 issued by the Institute of Chartered Accountants ofIndia. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare 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 auditors'judgment including the assessment of the risks of material misstatement of the financialstatement whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the entity's preparation and fairpresentation of the financial statements 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 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 explanationgiven 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:
a) in the case of Balance Sheet of the state of affairs of the Company as at 31stMarch 2016;
b) in the case of Statement of Profit and Loss profit of the company for the yearended on that date.
c) in the case of cash flow cash flows of the company for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor Report) Order 2016 ("the Order")issued by the Central Government of India in terms of the sub-section (11) of section 143of the Act we give in the "Annexure-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 that: -
a) We have sought and obtained all the information and explanation which to the bestof our 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 appears from our examination of those books;
c) The Balance Sheet and Statement of Profit and Loss and Cash Flow Statements dealtwith by this report are in agreement with the books of account;
d) In our opinion the aforesaid standalone financial statements comply with theaccounting standards specified under section 133 of the Act read with Rule 7 of thecompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors we report that none of theDirectors are disqualified as on 31st March 2016 from being appointed as adirector in terms of sub-section (2) of section 164 of the companies Act 2013;
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";
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. Company does not have any pending litigations which would impact its financialposition;
ii. Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.
Annexure - A to Independent Auditors' Report.
[the annexure referred to in our Independent Auditor's Report of even date to themembers of the company on the standalone financial statements for the year ended 31stMarch 2016 in the paragraph 1 under the heading "Report on other legal ®ulatory requirements" of the ARUN VARUN TRADE & INVESTMENT LIMITED]
i) a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) In our opinion and according to the information and explanation given to us all theassets have been physically verified by the management during the year no materialdiscrepancies were noticed by the management.
c) The Company is not holding any immovable properties.
ii) a) The Stock-in trade i.e. inventories of shares have been physically verifiedduring the year by the Management.
b) In our opinion and according to the information and explanation given to us theprocedure of physical verification of stocks followed by the Management is reasonable andadequate in relation to the size of the company and nature of its business.
c) No discrepancies were noticed between the book records and physical records. On thebasis of our examination Company is maintaining proper records of the inventory.
iii) a) The Company has not granted any loans secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Company's Act 2013.
b) The Company has not granted any loans; hence the question of prima facie prejudicialto the interest of the company does not arise.
c) The Company has not granted any loans; hence the question of regularity in receiptof the principle amount and interest also does not arise.
d) The Company has not granted any loans; hence the question of total amount overduemore than ninety days' recovery thereof does not arise.
iv) In our opinion and according to the information and explanation given to us thecompany has complied with the provisions of section 185 and 186 of the Companies act 2013in respect of loans investments guarantees and security provided by it.
v) The company has not accepted any deposits from the public within the meaning ofsections 73 to 76 of the Act and the rules framed there under to the extent notified.
vi) To the best of our knowledge and according to information given to us during thecourse of audit the Central Government has not prescribed the maintenance of cost recordsunder Section 148 (1) of the Companies Act 2013 for the products of the company.
vii) a) According the information & explanation given to us and records of thecompany examined by us in our opinion the company is generally regular in depositingwith the appropriate authorities undisputed statutory dues including provident fundemployee's state insurance income tax sales tax service tax custom duty cess andother material statutory dues applicable to it. In our opinion and according to theinformation and explanations given to us during the course of audit the provisions ofwealth tax excise duty and employees' state insurance are not applicable to the company.According to the information and explanation given to us during the course of audit noundisputed amounts payable in respect of statutory dues were in arrears as at 31st March2016 for a period of more than six months from the date they became payable.
b) According to the information and explanation given to us during the course of auditthere are no dues of income tax sales tax service tax excise duty custom duty and cesswhich have not deposited on account of any dispute.
viii) In our opinion and according to the information and explanations given to usduring the course of audit the company has not defaulted in repayment of dues to afinancial institution bank or debenture holders.
ix) In our opinion and according to the information and explanations given to us theterm loans have been applied for the purpose for which they were obtained.
x) During the course our examination of the books and records of the company carriedout accordance with the generally accepted auditing practices in India and according toinformation & explanation given to us we have neither come across any instance ofmaterial fraud by the company or on the company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the management.
xi) The company paid for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule C of the Act.
xii) As the company is not a Nidhi Company and the nidhi rules 2014 are not applicableto it the provisions of clause 3 (xii) of the order are not applicable to the company.
xiii) The company has not entered any transactions with related parties so section 177& 188 of the Act is not applicable to the company.
xiv) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3 (xiv) of the order are not applicable to the company.
xv) The company has not entered any non-cash transactions with its directors or personsconnected with him. Accordingly the provisions of clause 3(xv) of the order are notapplicable to the company.
xvi) In our opinion the company is required to obtain registration under the provisionsof section 45-IA of the Reserve Bank of India Act 1934. However according to theinformation and explanations given to us management is of the opinion that the same isnot required to be obtained.
Annexure - B to the Auditor's report
Report on the Internal Financial Controls under (i) of the of seb-section 3 of thesection 143 of the companies Act 2013 ("the act")
We have audited the internal financial controls over financial reporting of the ARUNVARUN TRADE & INVESTMENT LIMITED as of 31st March 2016 in conjunction with our auditof the financial statements of the company for the year ended on that date.
Managements responsibility for Internal Financial Controls
The company's management responsible for establishing and maintaining internalfinancial controls based on the internal control over the financial reporting criteriaestablished by the company considering the essential components of the internal controlstated in the guidance note on audit of internal financial controls over financialreporting issued by the institute of chartered accountants of India ('ICAI'). Theseresponsibilities include the design implementation & 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 prevention & detection of frauds & errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 the financialreporting (the "guidance note") and the standards on auditing issued by ICAIdeemed to be prescribe under section 143 (10) of the companies Act 2013 to the extentapplicable to an audit internal financial controls both applicable to audit internalfinancial controls and both issued by the institute of chartered accountants on India.Those standards and the guidance note require that we comply with ethical requirements andplan and perform the audit to obtain the reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material aspects.
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 understanding of internal financial controls over financial reporting assessingthe risk that a material weakness exists and testing & evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's 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 opinion on the company's financial controls system over financialreporting.
Meaning of Internal Financial Control
A company's internal financial controls 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
a. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transaction and dispositions of the assets of the company;
b. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statement in accordance with generally accepted accountingprinciples and that receipt and expenditures of the company are being made only inaccordance with authorization of management and directors of the company; and
c. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 detectedAlso projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover 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 control systems over financial reporting and such internal controls overfinancial reporting were operating effectively as at 31st March 2016 based onthe internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the guidance note onaudit internal financial controls over financial reporting issued by the institute ofchartered accountants of India.