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Cethar Industries Ltd.

BSE: 531473 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
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Cethar Industries Ltd. (CETHARINDS) - Auditors Report

Company auditors report

To the Members of Cethar Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Cethar Industries Limited (the Company) which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Board of Directors of the Company are responsible for the matters stated in Section 134(5) of the Companies Act 2013 ('the act') with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act.

This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; design implementation and maintenance of adequate internal financial controls that are operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable ` assurance about whether the financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. In making those risk assessments the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's management and Board of Directors as well as evaluating the overall presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India

a) in the case of the Balance Sheet of the state of affairs of the Company as at March 312016;

b) in the case of the Statement of Profit and Loss of the Losses for the year ended on that date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on that date.

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 section143 of the Act we give in the Annexure 'A' for statement on the matters Specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act we further report that:

a) we have sought and obtained all the Information and explanations which to the best of 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 the Company so far as appears from our examination of those books;

c) the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d) in our opinion the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act.

e) on the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualified as on March 312016 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure 'B'.

g) In our opinion and to the best of our information and according to the explanations given to us we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014:;

i. The Company does not have any pending litigations which would impact its financial position

ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does nqt arise

iii. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise

For Sivaswamy & Kumar
Chartered Accountants
Place: Tiruchirapalli(Firm Regn. No. 012929S)
Date: August 29 2016S. Kumar
Partner
Membership No.: 121656

ANNEXURE 'A': REPORT ON MATTERS REQUIRED BY CARO 2015:

Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements in our Report of even date to the members of Cethar Industries Limited on the accounts of the company for the year ended 31st March 2016

On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit we report that:

i. The Company does not have any Fixed Assets during the year under audit;

ii. The company had no stocks of finished goods wip raw materials stores & spares as on 31st March 2016 and 2015.

iii. The company has not granted any loans secured or unsecured to/from companies firms or other parties covered in the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. Further on the basis of. our examination of the books and records of the Company and according to the information and explanations given to us no major weakness has not been noticed or reported.

v. The Company has not accepted any deposits from the public covered under Section 73 to 76 of the Companies Act 2013

vi. Maintenance of cost records specified under sub-section (1) of Section 148 of the CompaniesAct 2013 does not apply to the Company.

vii. (a) According to the information and explanations given to us and based on the records of the company examined by us there are no undisputed statutory dues including Provident Fund Employees' State Insurance Income- tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty and other material statutory dues as applicable with the appropriate authorities in India ;

(b) According to the information and explanations given to us and based on the records of the company examined by us there are no dues of Income Tax Wealth Tax Service Tax Sales Tax Customs Duty and Excise Duty which have not been deposited on account of any disputes

(c) There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of reporting delay in transferring such sums does not arise

viii. The accumulated losses of the Company are more than fifty percent of its net worth. No operations were carried out by the Company during the financial year under audit. The Company incurred cash losses during the financial year covered by our audit and also in the preceding financial year.

ix. According to the records of the company examined by us and as per the information and explanations given to us the company has not availed of any loans from any financial institution or banks and has not issued debentures.

x. In our opinion and according to the information and explanations given to us the Company has not given any guarantee for loan taken by others from a bank or financial institution during the year ..

xi. In our opinion and according to the information and explanations given to us the company has not raised any term loans during the year.

xii. Based upon the audit procedures performed and information and explanations given by the management we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For Sivaswamy & Kumar
Chartered Accountants
Place: Tiruchirapalli(Firm Regn. No. 012929S)
Date : August 29 2016S. Kumar
Partner
Membership No : 121656

'Annexure - B' to the Auditor's Report to the members of Cethar Industries Limited

Report on the International Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013:

We have audited the internal financial controls over financial reporting of Cethar Industries Limited (the Company) as of March 312016 in conjunction with our audit of the financial statements of the company for the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR THE INTERNAL FINANCIAL CONTROLS:

The company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility:

Our responsibility is to express an opinion on the company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribed u/s 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. *

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting:

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that:-

1. Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of International Financial controls over Financial Reporting:

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collision or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion:

In our opinion the company has in all material respects an adequate internal financial controls system over financial reporting and such interna! financial controls over financial reporting were operating effectively as at March 312016 based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Sivaswamy & Kumar
Chartered Accountants
Place: Tiruchirapalli(FirmRegn. No. 012929S)
Date : August 29 2016S. Kumar
Partner
Membership No.; 121656