Chamak Holdings Ltd.
|BSE: 539600||Sector: Others|
|NSE: N.A.||ISIN Code: INE049R01013|
|BSE 09:44 | 16 Aug||Chamak Holdings Ltd|
|NSE 05:30 | 01 Jan||Chamak Holdings Ltd|
|BSE: 539600||Sector: Others|
|NSE: N.A.||ISIN Code: INE049R01013|
|BSE 09:44 | 16 Aug||Chamak Holdings Ltd|
|NSE 05:30 | 01 Jan||Chamak Holdings Ltd|
To the members of Chamak Holdings Limited.
1) Report on the Financial Statements
We have audited the accompanying financial statements of Chamak Holdings Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
2) Management's Responsibility for the Financial Statements.
The Company's Board of Directors is responsible for the matters stated in Section 134(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 positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 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 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.
3) Auditor's Responsibility
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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 circumstance. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the 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 at March31 2017 and its profit and its cash flows for the year ended on that date.
5) Report on Other Legal and Regulatory Requirements
a) As required by the Companies (Auditor's Report) Order 2016 ("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' a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
b) As required by section 143 (3) of the Act we report that:
i) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.
ii) 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.
iii) 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.
iv) In our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rule 2014.
v) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164 (2) ofthe Act.
vi) 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'.
vii) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinionand to the best of our information and according to the explanations given to us:
i) The Company does not have any pending litigations.
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv) The Company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016to 30th December2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note no 30 of the financial statements.
ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 5 (a) under the heading 'Report on Other Legal and RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 31 2017]
i) In respect of fixed assets:
(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. According to the informationand explanations given to us no material discrepancies were noticed on such verification.
(c) The Company does not hold any title deeds of immovable properties.
ii) The inventories were physically verified by the management at reasonable intervalsduring the year. The discrepancies noticed on physical verification of inventory ascompared to book records were not material and have been properly dealt with in the booksof account.
iii) The Company has not granted any loans secured or unsecured to the companiesfirms limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Act.
iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provision of section 185 and 186 of the Act in respect ofloans investments guarantees and security.
v) The Company has not accepted any deposits within the meaning of sections 73 to 76 orany other relevant provisions of the Act.
vi) According to the information and explanations given to us the Central Governmenthas notprescribed the maintenance of cost records under sub-section (1) of section 148 ofthe Act in respect of activities carried out by the Company.
vii) a) According to the information and explanations given to us and on the basis ofour
examination of the books of account the Company has been regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance income-tax sale tax service tax value added tax cess and otherstatutory dues with the appropriate authorities and no undisputed amounts payable wereoutstanding as at March 31 2017 for a period of more than six months from the date theybecame payable.
(b) According to the information and explanations given to us there are no dues ofincome tax sales tax excise duty and service tax which have not been deposited onaccount of any dispute.
viii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to Banks. The Company does not have anyloans or borrowings from financial institutions government and debenture holders.
ix) The Company did not raise any money by way of initial public offer or furtherpublic offer but term loans have been obtained during the year.
x) Based upon the audit procedures performed and the information and explanations givenby the management no fraud by the Company or on the Company by its officers or employeeshas been noticed or reported during the course of our audit.
xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the managerial remuneration has beenpaid/provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
xii) In our opinion the Company is not a nidhi company.
xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
xiv) The Company has not made any allotment of shares during the year under review inaccordance with section 42 of the Act.
xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him.
xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
"ANNEXURE B" TO INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section143 of the Act
We have audited the internal financial controls over financial reporting of ChamakHoldings Limited ('the Company') as of March 31 2017 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for laying down and maintaining internalfinancial controls based on 'the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance note on Audit of Internal Financial Controls Over Financial Reporting(Guidance Note) issued by the Institute Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and 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 the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
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 accordance with the Standards of Auditing to the extentapplicable to an audit of internal financial controls and the Guidance Note both issuedby the ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain the reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
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 an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment 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 audit opinion on the internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (ii) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of its 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 to be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover 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 controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.