The Members of CITIZEN INFOLINE LIMITED
Report on the Financial Statements
We have audited the accompanying Standalone financial statements of Citizen InfolineLimited ("the Company")which comprises of Balance Sheet as at 31March 2016 Profit and Loss Statement and Cash Flow Statement for the year ended and asummary of significant accounting policies and other explanatory information.
Managements 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 Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 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 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of 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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting.Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31 stMarch 2016 taj<en on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2016 from being appointed as a director in terms ofSection 164 (2) of the Act.
(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 A".
(g) 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 no pending litigations on its financial position in its financialstatements.
ii. The Company did not have any long-term contracts including derivative contractsforwhich there were anumaterial foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred totha^^^^^tSja^on and Protection Fund by the Company.
| ||(B. K. BAHETI) |
|PLACE: AHMEDABAD ||PARTNER |
|DATE: 28/05/2016 ||Firm Reg. No.100865W |
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 5 of our report of even date)
I. hxea Assets: -
(a) The Company has maintained proper records to show full particulars includingquantitative details and situation of fixed assets.
(b) The management has physically verified all the fixed assets at the year-end. Nomaterial discrepancies have been noticed on such verification.
(a) The stocks of finished goods stores and spares have been physically verifiedduring the year by the management. In our opinion the frequency of verification isreasonable.
(b) The procedure of physical verification of stocks followed by the management isreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) No material discrepancies have been noticed on physical verification of stocks ascompared to book records.
According the information and explanation given to us the company has granted loanssecured or unsecured to companies firms or their parties covered in the registermaintained under section 189 of the companies Act 2013.
(a) In our opinion the Company has not granted loan to related party in violation ofprovisions of Section 189 of Companies Act 2013 during the current financial year. Theclosing amount outstanding is NIL.
|Nos of Parties ||Nil |
|Loan Given during the year ||0 |
|Received back During the year ||0 |
|Maximum Outstanding in Year ||0 |
|Closing Balance ||0 |
(b) According to information and explanations given to us the Company has not takenloans from any parties covered in the register maintained under section 189 of theCompanies Act 2013.
(c) In our opinion the rate of interest and other terms and conditions on which loanshave been taken from the parties listed in the register maintained under section 189 ofthe Companies Act 2015 are not prima facie prejudicial to the interest of theCompany.
IV. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchases of stores raw materials includingcomponents plant & machinery equipment other goods assets and job work and withregard to the sales of goods assets and job work. To the best of our knowledge no majorweaknesses in internal control were either reported or noticed by us during the course ofour audit.
V. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit during the current financial year.
VI. The Central Government has not prescribed for the maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013.
VII. (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees state insurance income tax sales tax wealth taxservice tax duty of customs duty of excise value added tax cess and any otherstatutory dues with a appropriate authorities.
(b) According to the information and explanation given to us there were no undisputedamounts payable in respect of Income-Tax Wealth-Tax Sales Tax Customs Duty and ExciseDuty which have remained outstanding as at 3151 March 2016 for a period ofmore than six months from the date they became payable.
(c) The company is not required to transfer any amount to investor educational andprotection fund in accordance with provisions of Companies Act 1956 or rules made thereunder.
VIII. The Company has not incurred cash losses during the year. The Company has noaccumulated losses more than 50% of its net worth.
IX. On the basis of the verification of records and information and explanations givento us the Company has not defaulted in repayment of dues to financial institutions orbanks.
X. The Company has not given any guarantees for loans taken by others from banks andfinancial institutions during the year.
XI. Based on verification of records of the company the terms loan were applied forthe purpose for which loans were obtained.
XII. Based on the Audit procedure performed and the representation obtained from themanagement we report that no case of fraud on or by the Company has been noticed orreported during the year under Audit. _
|PLACE: AHMEDABAD ||FOR BAHETI BHADADA & ASSOCIATES |
|DATE: 28/05/2016 ||CHARTERED ACCOUNTANTS |
| ||(B. K. BAHETI) |
| ||PARTNER |
| ||Firm Reg. No.100865W |
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 overfinancial reporting of CitizenInfoline Limited ("the Company ) as of March 312016 in conjunction with ouraudit of the 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to companys policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys 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 overfinancial reporting and their operatingeffectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement 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 my /our audit opinion on the Company's internal financial controlssystem overfinancial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.
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 312016 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. ^
|PLACE: AHMEDABAD ||(B. K. BAHETI) |
|DATE: 28/05/2016 ||PARTNER |
| ||Firm Reg. No.100865W |