TO THE MEMBERS OF CAPROLACTAM CHEMICALS LIMITED
Report on the Financial Statements
I have audited the accompanying Financial Statements of Caprolactam Chemicals Limited("the Company") which comprise the Balance Sheet as at 31st March2015 the Statement of Profit and Loss and Cash Flow Statement for the year ended on thatdate and a summary 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 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 Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design
Implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
My responsibility is to express an opinion on these financial statements based on myaudit. I have conducted my audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India and as per the section 143(10) of the Act.Those Standards require that I comply with the ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom 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 statements whether due to fraud or error. In making those risk assessments theauditor considers the internal control relevant to the Company'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 by theManagement as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Standalone Financial Statements.
In my opinion and to the best of my information and according to the explanations givento me the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2015.
(b) in the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date and
(c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies [Auditors report] Order 2015 ("the Order")issued by the Centeal Government of India in terms of sub section (11) of section 143 ofthe Act I give in the Annexure a statement on the matters specified in the paragraph 3and 4 of the said Order to the extent applicable.
2. As required by Section 143(3) of the Act I report that:
a] I have obtained all the information and explanations which to the best of myknowledge and belief were necessary for the purpose of my audit ;
b] In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books.
c] The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account.
d] In my opinion the Balance Sheet Statement of Profit & Loss and Cash FlowStatement comply with the Accounting Standards referred to in Section 133 of the Act readwith Rule 7 of the Companies(Accounts)Rules 2014.
e] On the basis of written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of section164(2) of the Act and
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 opinionand to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.
(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
|Place: Mahad ||JATIN SHAH |
| ||CHARTERED ACCOUNTANT |
|Date: 30th April 2015 ||MEMBERSHIP NO. 103858 |
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31st March' 2015 Ireport that :
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) As explained to me these fixed assets have been physically verified by themanagement on a sample basis during the year. In my opinion the frequency of verificationis reasonable certain fixed asset were verified & No material discrepancies werenoticed on such physical verification.
(ii) (a) As explained to me inventories has been physically verified by management atreasonable intervals during the year. In my opinion the frequency of such verification isreasonable.
(b) In my opinion and according to the information and explanations given to me theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company has maintained proper records of inventory and material discrepanciesif any noticed on physical verification as compared to the book records have been properlydealt with in the books of accounts.
(iii) (a) According to the information and explanation given to me the Company has notgranted any loans secured or unsecured to company firms and other parties covered in theregister maintained under section 189 of the Act. Accordingly paragraph (iii) (a) (b)(c) are not applicable.
(iv) There is an adequate internal control procedure commensurate with the size of theCompany and the nature of its business for the purchase of the inventory and fixed assetsand for the sale of goods & services. During the course of my audit I have notobserved any continuing failure to correct major weaknesses in the internal controlsystem.
(v) According to the information and explanations given to me the Company has notaccepted any deposits from the public.
(vi) I have broadly reviewed the books of account relating to material labour andother items of cost maintained by the company prescribed by the Central Government for themaintenance of cost records under section 148(1) of the Act and are the opinion of primafacie the prescribed accounts & records have been made and maintained. However wehave not made any detailed examination of the records.
(vii) (a) According to the information & explanation given to me and the records ofthe company examined by me In my opinion the company is generally regular in depositingundisputed statutory dues including Provident fund Employee State Insurance Income TaxSales Tax Wealth Tax Service Tax Custom Duty Excise Duty Cess & other statutorydues as applicable with appropriate authorities. According to the information &explanation given to me no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 2015 for a period of more than six months from the datethey becoming payable.
(b) According to the information & explanation given to me there are no disputedamount of statutory dues towards Income Tax Sales Tax Wealth Tax Service Tax CustomDuty Cess that have not been paid to concerned authorities however following exciseduty dues have not been deposited by company on account of disputes :
|Name of the Statute || |
Nature of dues
Amount (in Rs.)
Period to which amount relates
Forum where dispute is pending
|Central Excise Act 1944 || |
Excise Duty and penalty
(c) According to the information & explanations given to me there are no amountsrequired to be transferred to the investor education & protection fund in accordancewith the relevant provision of the Companies Act 2013 and rules there under.
(viii) According to information & explanation given to me the Company does nothave any accumulated losses at the end of the financial year and has incurred cashlosses in the financial year and immediately preceding financial year.
(ix) The company did not have any outstanding dues to financial institutions banks ordebentures holders during the year.
(x) According to information & explanation given to me the Company has not givenany guarantees for loan taken by others from banks or financial institutions.
(xi) The Company did not have any term loans outstanding during the year.
(xii) During the course of my examination of the books of the accounts and records ofthe company and according to the information & explanation given to me no materialfraud on or by the Company has been noticed or reported during the year.
|Place : Mahad ||JATIN SHAH |
| ||CHARTERED ACCOUNTANT |
|Date : 30th April 2015 ||MEMBERSHIP NO. 103858 |