THE MEMBERS OF
EPSOM PROPERTIES LIMITED
We have audited the accompanying standalone financial statements of Epsom PropertiesLimited ("the Company") which comprises the Balance sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow for the year then ended and asummary of significant 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 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) Rules2014. This responsibility 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; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuing 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have also taking 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 Standards on Auditing specified under Section143(10) of the Act. Those standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedure selected depends on the auditor'sjudgment including the assessment of rules 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 circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate financial controls system overfinancial reporting and the operating effectiveness such controls. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofaccounting estimates made by the company's directors as well as evaluating the overallpresentation of 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 31stMarch 2017 and its profit and loss and for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by Central Government of India in terms of sub-section (11) of Section 143 of theAct we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4of the said order.
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 account 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) The company had provided requisite disclosures in its financial statements asholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by company.
e) 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.
f) On the basis of written representations received from the Directors as on 31stMarch 2017 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2017 from being appointed as a Director in termsof Section 164(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 refer to ourseparate Report in "Annexure B".
h) With respect to other matters to be 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 :
i) There are no litigations pending against the company and hence disclosure on theimpact of pending litigations on its financial position in its financial statements doesnot arise.
ii) The company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) The company is not required to transfer any amount to the Investor Education andProtection Fund.
Annexure A to the Independent Auditors' Report (Referred to in our report of even date)
i) In respect of its Fixed Assets:
a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
b. As explained to us the fixed assets of the company have been physically verified bythe management during the year in a phased periodical manner which in our opinion isreasonable having regard to the size of the company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.
c. In our opinion the company has not disposed of substantial part of its fixed assetsduring the year and going concern status of the company is not affected.
ii) According to the information and explanations furnished to us there are noinventories available with the company; the question of physical verification of the samedoes not arise.
iii) According to the information and explanations given to us the company has notgranted any loans secured or unsecured to or from companies firms or other partiescovered in the register required to be maintained under Section 189 of the Act.
iv) In our opinion and according to the information and explanations given to ussection 185 and I86 of the Companies Act 2013 is not applicable.
v) The company has not accepted any deposits from public in accordance with theprovisions of Section 73 to 76 of the Act and the rules framed there under.
vi) The Central Government has not prescribed maintenance of cost records for any ofthe activities of the company under Section 148 of the Act.
vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company the company has not carried out anycommercial activities during the financial year and the question depositing the undisputedstatutory dues including Income Tax Sales Tax Wealth Tax Service Tax Duty of CustomsDuty of excise Value Added Tax Cess and any other statutory dues applicable to it doesnot apply.
(b) According to the information and explanations given to us there were no undisputedstatutory dues in arrears as at 31st March 2017 for a period of more than sixmonths from the date they became payable.
(c) According to the information and explanations given to us there are no dues onaccount of disputes.
viii) According to the information and explanations given to us the company has notdefaulted in repayment of loans and borrowings to a financial institution bankgovernment or dues to debenture holder.
ix) Initial public offer is not applicable to public company and company has not raisedany term loans during the year and application of loan funds does not apply.
x) According to the information and explanation given to us there is no fraud made bythe company and on the company by its officers or employees been noticed or reportedduring the year
xi) The company has not paid managerial remuneration
xii) Nidhi rules are not applicable to this company.
xiii) According to the information and explanation given to us the company has paidprofessional charges to the Director to the extent of Rs 311440/-and rent to the extentof Rs 40000/- .
xiv) Preferential allotment and Private placement as per Section 42 and 62 of CompaniesAct 2013 is not applicable.
xv) The company has not entered into any non-cash transaction with Directors or personsconnected with them Section 188 of Companies Act 2013 is not applicable.
xvi) The Company is not required to get registered u/s 45-IA of the Reserve Bank IndiaAct 1934.
"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of Epsom Properties Limited.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013
We have audited the internal financial controls over financial reporting of EpsomProperties Limited. as of March 312017 in conjunction with our audit of the FinancialStatements 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 controls systemover financial 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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) 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 (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.
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 312017 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 S VISHNU & CO
FRN No. 005179S
(K P VASANTHAKUMAR)
Membership No. 024563
Place : Chennai
Date : 26.05.2017