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CHL Ltd.

BSE: 532992 Sector: Services
NSE: N.A. ISIN Code: INE790D01020
BSE LIVE 12:39 | 02 Dec 18.00 -0.05
(-0.28%)
OPEN

18.30

HIGH

18.30

LOW

18.00

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 18.30
PREVIOUS CLOSE 18.05
VOLUME 3500
52-Week high 22.15
52-Week low 11.00
P/E
Mkt Cap.(Rs cr) 98.64
Buy Price 17.85
Buy Qty 100.00
Sell Price 18.00
Sell Qty 600.00
OPEN 18.30
CLOSE 18.05
VOLUME 3500
52-Week high 22.15
52-Week low 11.00
P/E
Mkt Cap.(Rs cr) 98.64
Buy Price 17.85
Buy Qty 100.00
Sell Price 18.00
Sell Qty 600.00

CHL Ltd. (CHL) - Auditors Report

Company auditors report

THE SHAREHOLDERS

CHL LIMITED NEW DELHI

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of CHL Limited ("theCompany") which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (‘the act’) with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting'records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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 theauditor’s 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 Company’spreparation of the financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by the Company’s managementand Board of Directors as well as evaluating the overall presentation of the financialstatements.

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.

Opinion

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 31stMarch 2016 its profit/loss and its 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 2016 ("theOrder") issued by the Central Government of India in terms of sub -section (11 ) ofsection 143 of the Act we give in the Annexure A a statement on the matters Specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. 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 purpose of our audit;

b. 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;

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 our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014

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 disqualifiedas on March 312016 from being appointed as a director in terms of Section164(2) of theAct

f. 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"; and

g. with respect to 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 does not have any pending litigations which would impact its financialposition.

ii) The Company did not have any long - term contracts including derivative contractsfor which there were any material foreseeable losses.

iii) There has been no delay in transferring the amounts required to be transferredto the Investor Education and Protection Fund.

For G.RAI & Co.
CHARTERED ACCOUNTANTS
(Registration No. 001479N)
GULSHAN RAI
Place: New Delhi PARTNER
Date: 27th May 2016 Membership No.3921

Annexure-A to the Auditors' Report

The Annexure referred to in Independent Auditors’ Report of even date to themembers of CHL 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 theinformation and explanation s given to us during the course of our audit we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atthe year end and no material discrepancies were noticed on such verification; In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) (a) In our opinion and accordance to the information and explanations given to usthe company is maintaining proper records of its inventories showing full particulars.

(b) As informed to us the inventory has been physically verified at the yearend by themanagement and no material discrepancies were noticed on such verification. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its business.

(iii) As explained to us the company has not granted any loans secured or unsecuredto corporate firms LLP or other entities covered in the register maintained undersection 189 of the Act 2013.

(iv) In our opinion and according to the information and explanations given to us thecompany has complies with the provision of section 185 and 186 of the Act with respect tothe loans and investments made; and the company has not given any guarantee or providedany security in connection with a loan to any other body corporate or person.

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

(vi) The provisions of section 148(1) of the Act regarding maintenance of Cost Recordsare not applicable to the company.

(vii) (a)The company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income tax VAT Wealth taxService Tax Custom Duty Excise Duty and qjher material statutory dues with theappropriate authorities and we have been informed that there are no arrears of outstandingstatutory dues as at the last day of the financial year under audit for a period of morethan 6 months from the date they became payable.

(b) According to information and explanation given to us by the company and its taxadvisor / consultant following dues of income tax have not been deposited by the companyon account of disputes:-

S. No. Name of the Statue Nature of Dues Amount (Rs.) Period to which the amount relate Forum where dispute is pending
1 Income-tax Act 1961 Income tax 3381982 AY 1999-00 ITAT
2 Income-tax Act 1961 Income tax 5176278 AY 2000-01 ITAT
3 Income-tax Act 1961 Income tax 5205310 AY 2008-09 CIT (Appeal)
4 Income-tax Act 1961 Income Tax 716786 AY 2009-10 CIT (Appeal)
5 Income-tax Act 1961 Income Tax 432959 AY 2010-11 Rectification Pending u/s 154
6 Income-tax Act 1961 Income Tax 11125610 AY 2011-12 CIT (Appeal)
7 Income-tax Act 1961 Income Tax 4564190 AY 2012-13 CIT (Appeal)
8 Income-tax Act 1961 Income Tax 6053880 AY 2013-14 CIT (Appeal)

(c) In our opinion and according to the information and explanation given to usamounts required to be transferred to the Investor Education and Protection Funds inaccordance with the relevant provisions of the Companies Act 1956 and Rules there underhave been transferred to such fund within time.

(viii) According to information and explanation given to us the company has notdefaulted in repayment of dues to any financial institution bank or Government

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable.

(x) In our opinion and according to the information and explanation given to us nomaterial fraud by the company or on the Company by its officer or employees has beennoticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the record of the Company the Company has provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 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) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For G.RAI & Co.
CHARTERED ACCOUNTANTS
(Registration No. 0014791^)
GULSHAN RAI
Place: New Delhi PARTNER
Date: 27th May 2016 Membership No.3921

Annexure-B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of CHL Limited("the Company") as of 31 March 2016 in conjunction with our audit of thestandalone financial 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 establishing 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 Reportingissued by the Institute of 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 safeguardingof its 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 Companies Act 2013.

Auditors’ Responsibility

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 accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) 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 the 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 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.

Opinion

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 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For G. RAI & CO.
Chartered Accountants
(Registration NO.001479N)
GULSHAN RAI
Place : New Delhi Partner
Date : 27th May 2016 Membership No.3921

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