The Members of
M/s EMMSONS INTERNATIONAL LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of EmmsonsInternational Limited (the company) which comprise the Balance Sheet as at 31 March 2015the Statement of Profit and Loss the Cash Flow Statement and a summary of significantaccounting policies and other explanatory information for the year then ended.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013(the Act) with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the company and forpreventing and detecting the frauds and other irregularities selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent and design implementation and maintenance of internal financial control that wereoperating effectively for ensuring the accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement 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 in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirement and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedure 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by company's Directors as well as evaluating the overall presentation ofthe 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 accounting 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 March 31 2015 and its profit and loss and its cash flows for the year ended on thatdate.
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 section 143 ofthe Act we give in the Annexure a statement on the matters specified in the paragraph 3and 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 purposes of our audit.
b) In our opinion proper books of accounts as required by law have been kept by theCompany so far as appears from our examination of those books:
c) The balance sheet the statement of Profit and loss and cash flow statement dealtwith 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 written representation received from the directors as on 31 March2015 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct: and
f) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:
1. The company has disclosed the impact of pending litigation on its financial positionin its financial statements-Refer Note 34(e)(f) and 35 to the financial statements.
2. The company do not have any long term contract including derivative.
3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
For SURESH & ASSOCIATES
(CA. SURESH K GUPTA)
Partner M. No. 080050
Date : 28.05.2015 Place : New Delhi
ANNEXURETOTHE INDEPENDENTAUDITOR'S REPORT
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2015 we reportthat:
i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner. In accordance with this programcertain fixed assets were verified during the year and no material discrepancies werenoticed on such verification. In our opinion this periodicity of physical verification isreasonable having regard to the size of the company and the nature of its assets.
ii) (a) the management of the Company has conducted the physical verification ofinventory at reasonable intervals during the year.
(b) The procedure of physical verification of inventory followed by the management isreasonable and adequate in relation to the size o the company and nature of its business.
(c) The company has maintained the proper records of inventory and no materialdiscrepancies were noticed on physical verification.
iii) (a) The company has not granted any loans to companies firms or other partiescovered in the register maintained under section 189 of the Companies Act 2013 ("theAct").
(b) The Company has not granted any loans to companies firms or other parties coveredin the register maintained under section 189 of the Companies Act 2013 ("theAct") Accordingly paragraph 3 (iii) (b) of the Order is not applicable to theCompany.
iv) in our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business with regard to purchase of fixed assets and sale of goods. We havenot observed any major weakness in the internal control system during the course of theaudit.
v) The Company has not accepted any deposits from the public.
vi) The central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act. vii) (a) According to the information and explanations given tous and on the basis of our examination of the records of the company amountsdeducted/accrued in the books of account in respect of undisputed statutory dues includingprovident fund income tax sales tax wealth tax service tax duty of customs ValueAdded Tax Cess and other material statutory dues have been regularly deposited during theyear by the company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Sales Tax Wealth Tax Service Tax Dutyof Customs Value Added Tax cess and other material statutory dues were in arrears as at31 March 2015 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us below given dues ofincome tax sales tax wealth tax service tax value added tax and cess have not beendeposited with the appropriate authorities on account of dispute.
|Name of the Statute ||Nature of dues ||Amount (in Rs) ||Period to which the amount relates ||Forum where dispute is pending |
|IncomeTax Act ||IncomeTax ||8.60 Lacs ||A.Y 2004-05 ||CIT(A) |
|IncomeTax Act ||Order by CPC-TDS u/s 154 ||23.43 Lacs ||A.Y 2013-14 ||CIT(A) |
|IncomeTax Act ||Order by CPC-TDS u/s 154 ||2.71 Lacs ||A.Y 2014-15 ||CIT(A) |
(c) According to the information and explanations given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules there underhas been transferred to such fund within time.
viii) The Company does not have any accumulated losses at the end of the financial yearand has incurred cash losses in the financial year and not in the immediately precedingfinancial year.
xi) The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.
x) In our opinion and according to the information and the explanations given to usthe company has given guarantee for loans taken by others from banks or financialinstitutions.
xi) The Company has applied term loans for the purpose for which the loans wereobtained.
xii) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.
For SURESH & ASSOCIATES
FRN: 003316N Chartered Accountants
(CA SURESH K. GUPTA)
Partner M. No. 080050
Date : 28.05.2015 Place : New Delhi