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Darjeeling Ropeway Company Ltd.

BSE: 539770 Sector: Financials
NSE: N.A. ISIN Code: INE830S01014
BSE LIVE 10:57 | 06 Feb Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 13.12
PREVIOUS CLOSE 12.50
VOLUME 5
52-Week high 13.12
52-Week low 13.12
P/E 23.02
Mkt Cap.(Rs cr) 4.00
Buy Price 13.12
Buy Qty 30.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.12
CLOSE 12.50
VOLUME 5
52-Week high 13.12
52-Week low 13.12
P/E 23.02
Mkt Cap.(Rs cr) 4.00
Buy Price 13.12
Buy Qty 30.00
Sell Price 0.00
Sell Qty 0.00

Darjeeling Ropeway Company Ltd. (DARJEELINGROPEW) - Auditors Report

Company auditors report

To the Members of DARJEELING ROPEWAY CO LIMITED

Report on the Financial Statements for the F.Y. 2015-16

We have audited the accompanying financial statements of Darjeeling Ropeway Co Limited( "the Company") which comprise the Balance Sheet as at March 31 2016 Profitand Loss Account and the Cash Flow Statement for the year the ended and a summary of thesignificant accounting policies and other explanatory information.

Management’s 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 preparationand presentation 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 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.

Auditor’s Responsibility

Our responsibility is to express a reasonable opinion on these standalone financialstatements based on our audit.

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 issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company’spreparation and fair presentation of the standalone financial statements in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by management as well as evaluating the overall presentation ofthe standalone 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 and its statement of profit & loss and cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by Companies ( Auditors Report) Order 2016 ( ’the order’)issuedby Central Government of India in terms of subsection ( 11) of section 143 of theAct we enclose in the "Annexure 1" a statement on the matters specified inparagraphs 3 & 4 of the said order to extent applicable.

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

a) We have obtained all the information and explanations which to the best of ourknowledge 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 statement of Cash Flow dealtwith by this Report 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) In our opinion there are no observations or comments on the financial which mayhave an adverse effect on the functioning of the company.

f) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the director isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

g) With respect to the adequacy of the Internal Financial Controls over financialreporting of the Company and the operating effectiveness of such controls we give ourseparate Report in "Annexure2" h) With respect to the other matters to beincluded in the Auditor’s Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us:

I. The Company does not have any pending litigations which would impact its financialposition.

II. The Company does not have any long-term contracts including derivative contractsfor which 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.

"ANNEXURE 1" TO THE INDEPENDENT AUDITOR’S REPORT

In terms of the information and explanations sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that: -

a) Based on our scrutiny of the Company’s Book of Account and other records andaccording to (i) the information and explanations received by us from the management weare of the opinion that the question of commenting on maintenance of proper records offixed assets and physical verification of fixed assets does not arise since the companyhad no fixed assets as on 31st March 2016 nor at any time during the financial year endedon 31st March 2016.

b) According to the information and explanations received by us as the company owns noimmovable properties the requirement on reporting whether title deeds is held in the nameof the company or not is not applicable.

(ii) As the company has not purchased/sold goods during the year nor are there anyopening stocks requirement of reporting on Physical verification of inventory ormaintenance of inventory records in our opinion does not arise

(iii) The Company has not granted loans secured or unsecured to any companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Hence the reporting requirement under clause (iii)of the said order does not arise.

(iv) Based on our scrutiny of the Company’s records and according to theinformation and explanations received by us from the management we are of the opinionthat in respect of loans and guarantees given investments made and securities purchasedby the company the provisions of section 185 and 186 of the Companies Act 2013 have beencomplied with.

(v) In our opinion and according to information and explanations given to us theCompany has not accepted any deposits from the public and hence the reporting requirementunder clause (v) of the said order does not arise.

(vi) According to the information and explanations provided by the management thecompany is not engaged in production of any such goods or provision of any such servicesfor which maintenance of cost records has been prescribed by the Central Government undersection 148(1). Hence the reporting requirement under clause (iv) of the said order doesnot arise.

(vii) a) Based on our scrutiny of the Company’s Book of Account and other recordsand according to the information and explanations received by us from the management weare of the opinion that the company is regular in depositing with appropriate authoritiesundisputed statutory dues applicable to it and no undisputed amounts payable in respect ofany statutory dues were outstanding as at 31st March 2016 for a period of more than sixmonths from the date they became payable.

b) According to the records of the company and the information and explanationsreceived by us from the management there are no disputed statutory dues outstanding inthe name of the company.

(viii) According to the records of the company the Company has neither borrowed anyamount from any financial institution bank or government nor issued any debentures till31st March 2016. Hence in our opinion the reporting requirement under clause (viii) ofthe said order does not arise.

(ix) According to the records of the company the company has neither raised any moneysby way of Initial Public Offer or Further Public Offer (including debt instrument) nor hasthe company raised any term loans. Hence in our opinion the reporting requirement underclause (ix) of the said order does not arise.

(x) Based upon the audit procedures performed and information and explanations given bythe management neither any fraud on the company by its officers or employees nor anyfraud by the company has been noticed or reported during the course of our audit. Hencein our opinion the reporting requirement under clause (x) of the said order does notarise.

(xi) According to the records of the company no Managerial remuneration has been paidor provided during the year under audit. Hence in our opinion the reporting requirementunder clause (xi) of the said order does not arise.

(xii) In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company is not aNidhi Company. Hence in our opinion the reporting requirement under clause (xii) of thesaid order does not arise.

(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 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) Based on our scrutiny of the Company’s Book of Account and other records andaccording to the information and explanations received by us from the management we areof the opinion that the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Hence the reporting requirement under clause (xiv) of the said order does notarise.

(xv) Based on our scrutiny of the Company’s Book of Account and other records andaccording to the information and explanations received by us from the management we areof the opinion that the company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Hence the reporting requirement under clause(xv) of the said order does not arise.

(xvi) In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Hence the reporting requirement under clause (xvi) of the said order does not arise.

"ANNEXURE 2" TO THE INDEPENDENT AUDITOR’S 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 DarjeelingRopeway Co Limited the Company as of 31st March 2016 in conjunction with ouraudit of the financial statement of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Board of Director’s is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting ( the "Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the respective company’s policies the safeguarding of its assets theprevention 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.

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 judgement 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 controlssystem over 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-Mar-2016 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.

For Gupta Saharia & Co
Chartered Accountants
FRN: - 103446W
Sd/-
Pawan Gupta
Place: Kolkata Partner
Date: 25/05/2016 Membership no. 071471