THE MEMBERS OF THE CENTRAL PROVINCES RAILWAYS COMPANY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of The Central ProvincesRailways Company Limited ("the Company") which comprise the Balance Sheetas at 31/03/2015 the Statement of Profit and Loss for the year then ended and a summaryof the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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 financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at31/03/2015 and its Loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the companies (Auditors 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 paragraph 3and 4of the order to the extent applicable.
As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our 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 dealt with by thisReport are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on31/03/2015 taken on record by the Board of Directors none of the directors isdisqualified as 31/03/2015 from being appointed as a director in terms of Section 164 (2)of the Act.
(f) With respect to the other matters to be included in the Auditors 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 did not have any pending litigations on its financial position in itsfinancial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. The Company does not required to be transferred fund to the Investor Education and
For S B JAJOO & CO.
Santosh B Jajoo
Membership No: 118622
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)
(1) In Respect of Fixed Assets
(a) No records are available for Fixed Capital Expenditure on Railway Constructionaccount as shown in schedule No. 5 annexed to Balance Sheet which is in possession andcontrol of the Central Railway.
(b) Physical verification could not be conducted by the management of fixed Assestsunder railway construction account since the assets are in possession and control of theCentral Railway and hence discrepancies if any are not presently ascertainable.
(c) In our opinion and according to the information and explanations given to us nofixed asset has been disposed during the year and therefore does not affect the goingconcern assumption.
(2) In Respect of Inventory
(a) As explained to us shares are held as stock in trade which treated as inventorieswhich have been physically verified during the year by the management at reasonableintervals.
(b) In our opinion and according to the information and explanations given to us 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) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.
(3) Loans and advances to parties covered under section 189
In our opinion and according to the information and explanations given to us theCompany has neither granted nor taken any loans secured or unsecured to/ from thecompanies firms or other parties covered in the register maintained under Section 189 ofthe Companies Act 2013;
The company not granted or taken any loans from parties covered in the registermaintained under Section 189 hence clause 3 (a) and 3 (b) is not applicable.
(4) Internal Control in reference to Purchase of Inventory and Fixed Assets andwhether there is continue failure of Internal control
In our opinion and according to the information and explanations given to us there isgenerally an adequate internal control procedure commensurate with the size of the companyand the nature of its business for the purchase of inventories & fixed assets andpayment for expenses & for sale of goods. During the course of our audit no majorinstance of continuing failure to correct any weaknesses in the internal controls has beennoticed
(5) Rules followed while accepting Deposits
No deposits within the meaning of Sections 73 to 76 or any other relevant provision ofthe Act and rules farmed thereunder have been accepted by the Company.
(6) Maintenance of cost records
The Company is not required to maintain cost records pursuant to the Rules made by theCentral Government for the maintenance of cost records under sub-section (l) of section148 of the Companies Act.
(7) According to the information and explanations given to us in respect ofstatutory dues
(a) According to the records of the company undisputed statutory dues includingIncome-tax & other material statutory dues to the extent applicable and any otherstatutory dues have generally been regularly deposited with the appropriate authorities.According to the information and explanations given to us there were no outstandingstatutory dues as on 31st of March 2015 for a period of more than six monthsfrom the date they became payable.
(b) According to the information and explanations given to us there is no amountspayable in respect of income tax & other material statutory dues which have not beendeposited on account of any disputes.
(c) The Company does not required to transfer fund to the Investor Education andProtection Fund.
(8) Company which has been registered for a period less than five years andaccumulated losses are more than 50% of Net worth Reporting of cash Losses TheCompany is a potentially Sick Company under clause (o) of Section 3 of Sick IndustrialCompanies (Special Provisions) Act 1985 since the accumulated losses of the Companyexceed 50% of the Net worth of the Company. Further the company has incurred cash lossesin current year & immediately preceding year.
(9) Default in Repayment of Loans taken from Bank or Financial InstitutionsThe company has not taken any loans from Bank or Financial Institutions
(10) Terms for Loans and Advances from Banks or Financial Institutionsprejudicial to the interest of the company The company has not taken any loans fromBank or Financial Institutions thus this clauses is not applicable.
(11) Application versus purpose of Term Loan.
During the year the Company has not taken any term loans..
(12) Reporting of Fraud During the Year Nature and Amount
According to the information and explanation given to us no fraud on or by the companyhas been noticed or reported during the year.
For S B Jajoo & Co.
Santosh B Jajoo
Membership No: 118622