AXTEL INDUSTRIES LIMITED
Report on the Standaione Financial Statements
1. We have audited the accompanying standalone financial statements of AXTEL INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at 31 st March2015 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
2. 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 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.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
4. 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.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 an opinionon whether the Company has in place an adequate internal financial controls system overfinancial 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.
7. 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 read together with the Notesthere on give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31st March 2015 and its Loss and itscash fIows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms sub-section (11) of section 143 of theAct and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure a statement on the matters Specified in paragraphs 3 and 4 of theorder.
10. As required by Section 143(3) of the Act we report that:
We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes 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 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 the written representations received from the directors as on March31 2015 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 Section 164 (2) ofthe Act.
f. 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 opinion and to the best of our information andaccording to the explanations given to us:
I. The Company has disclosed the impact of pending litigations as at 31 st March 2015on its financial position in the financial statements.
II. The Company has made provision at 31st March 2015 as required under the applicablelaw or accounting standards for material foreseeable losses if any. There are no longterm contracts
III. There are no funds required to be transferred to the investor Education andProtection Fund Hence the question of delay does not arise. ..
| ||For V. K. SHASTRI & CO. |
| ||Chartered Accountants |
| ||FRN: 113325W |
| ||CA. V. K. SHASTRI |
|Place: Vadodara ||(Sole- Proprietor) |
|Date: 29/05/2015 ' ||Membership No. : 042774 |
ANNEXTURE TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of AXTEL INDUSTRIES LIMITED on the standalone financial statement as of and forthe year ended 31 st March 2015.
1. (a) The company is maintaining proper records showing full particulars Includingquantitative details and situation of its fixed assets. ;
(b) The Fixed assets are physically verified by the management according in phasedmanner every year at reasonable intervals; no material discrepancies were noticed on suchverification.
2. (a) The inventory has been physically verified by the Management during the year. Inour opinion the frequency of the verification is reasonable.
(b) In our opinion the procedures of physical verification of inventory followed bythe management are reasonable and adequate in relation to the size of the company and thenature of its business.
(c) On the basis of our examination of the inventory records in our opinion thecompany is generally maintaining proper record of inventory. The discrepancies noticed onphysical verification of inventory as compared to book records were not material.
3. The company has not granted any loans secured or unsecured to any companies firms orother parties covered in the register maintained under Section 189 of the Act consequentlythere is no question of repayment of principle and interest or any overdues.
4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system 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. Further on the basis of our examination of the books and records ofthe company and according to the information and explanation given to us we have neithercome across nor have been informed of any continuing failure to correct major weaknessesin the afore said internal control system.
5. The Company has not accepted any deposits from the public within the meaning ofSection 73 and 74 of the Act and the rules framed there under to the extent notified.
6. As per information & explanation given by the management maintenance of costrecords has been prescribed by the Central Government under- sub-section (1) of Section148 of the Act and we are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have however not made a detailed examinationof the cost records.
7. (a) According to the information and explanations given to us and the records of thecompany examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax wealth tax service tax duty of customs duty of excise value added taxand other material statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of Fringe benefit tax as at 31st March2015 which have not been deposited on account of a dispute is as follows:
|Name of Statue ||Name of Dues ||Amount (Rs.) ||Period to which amount relates ||Forum where dispute is pending |
|Income Tax Act1961 ||Fringe Benefit Tax ||193150/- ||P.Y. 05-06 A.y. 06-07 ||Income Tax Appellate Tribunal Ahmedabad |
Accord According to information and explanations given to us and the records of theCompany examined by us there are no dues of Sales Tax Value Added Tax Customs orExcise income-tax wealth-tax and service tax which have been deposited on account of anydispute.
(c) There are no amounts required to be transferred to investor Education andProtection Fund in accordance with the provision of the Companies Act 1956 and rules madethereunder.
8. The Company has no accumulated losses as at the end of financial year March 2015.However it has incurred a CASH LOSS of Rs. 36533537/- in the financial year ended onthat date but has no cash loss in the immediately preceding financial year.
9. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues to anyfinancial institution or bank as at the balance sheet date.
10. In our opinion and according to the According to the information and explanationsgiven to us the Company has not given any guarantees for loan taken by others from a bankor financial institution.
11. In our opinion and according to the information and explanation given to us thereare no new term loans obtained by the Company. The existing term loan has been applied onan overall basis for the purposes for which it was obtained.
12. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the Management.
| ||For V. K SHASTRI & CO. |
| ||Chartered Accountants |
| ||FRN: 113325W |
| ||CA. V. K. SHASTRI |
|Place: Vadodara ||(Sole- Proprietor) |
|Date: 29/05/2015 ||Membership No. : 042774 |