The Members of
Lancer Container Lines Limited
Belapur Navi Mumbai
Report on the Financial Statements
We have audited the accompanying financial statement of Lancer Container LinesLimited ("The Company"). which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss for the year ended and a Cash flowstatement for the year ended and a summary of significant accounting policies and otherexplanatory information for the period under reference.
Managements Responsibility for the Financial Statements
The Companys 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 of the company in Accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for Safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccording policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy or 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 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 thereunder.
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 andthe disclosures in the financial statements. The Procedures selected depend on theAuditors judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error.
In making those risk assessments the auditor considers the internal financial controlrelevant to the Companys preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Companys Directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriation 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 March31 2016 and its Profit for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 (the"Order") issued by the Central Government in terms of Section 143(11) of theAct we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
2. As required by the 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 accounts 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 reports are in agreement with the books of account.
(d) In our opinion the aforesaid report 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 March31 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2016 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditors 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 itsfinancial position.
ii. The Company did not have any long term contracts including derivative contractswhich there were any material foreseeable losses.
iii. There were no amounts which were required to the transferred to the InvestorEducation and Protection Fund by the company.
| ||For S M D & Company |
| ||Chartered accountants |
| ||Sd/- |
| ||(S M Dixit) |
|Place: - Mumbai ||Proprietor |
|Date: - 28 th May 2016 ||M. No. 044363 |
ANNEXURE TO THE INDEPENDENT AUDITORSREPORT
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements section of our report of even date)
1. In respect of the Companys Fixed assets;
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a program of verification of fixed assets to cover all the items ina phased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programcertain fixed assets were physically verified by the management during the year. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.
(c) The purchase of Containers during the period under review however not put to usethe same are not subjected to the Depreciation as a prudent approach and AccountingPrinciple at the prescribed Rate of Depreciation applicable thereto.
2. In respect of inventories:
a. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals.
b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c. In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.
3. According to the information and explanations given to us the company has notgranted any loans secured or unsecured loans to a company covered in the registermaintained under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations given to us thereare adequate internal control system commensurate with the size of the company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods. During the course of our audit we have not observed any major weaknesses in suchinternal control system.
5. According to the information and explanations given to us the Company has notaccepted deposits in terms of the provisions of Section 73 and 76 or any other relevantprovisions of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules2014 as amended.
6. To the best of our knowledge and according to the information and explanations givento us the Central Government has not prescribed the maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013 and the Companies (cost recordsand audit) Rules 2014 as amended for any services rendered by the Company.
7. According to the information and explanations given to us in respect of statutorydues: -
(a) The company has been regular in depositing undisputed dues in respect of providentfund income tax profession tax service tax and other material statutory dues applicableto it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of provident fund income taxsales tax wealth tax service tax duty of customs duty of excise value added tax cessand other material statutory dues in arrears as at March 31 2016 for a period of morethan six months from the date they became payable.
(c) The Company was not following a practice of providing for Bonus Gratuity and Leaveencashment in earlier years since inception as was informed by the Management andobserved during the course of the review of the Accounts. However for the year underreference the same has been provided for and the amount of such provision aggregates toRs.1607730/-.
(d) An amount of Rs.1879800/- incurred during the year under reference towards SMEIPO issue expenses has been grouped under other noncurrent assets which shall be taken asan independent item of Preliminary/Pre issue expenses and shall be amortized in line withaccounting standard related thereto prescribed by The Institute of Chartered Accountantsof India.
(e) There are no dues of Income-tax Sales Tax Wealth Tax Service Tax Customs DutyExcise Duty Value Added Tax and Cess which have not been deposited as on March 31 2016on account of disputes.
(f) There are no amounts payable in respect of Investor Education and Protection Fundin accordance with the relevant provisions of the Companies Act 2013 and Rules made thereunder.
8. The company has not incurred cash loss during the financial year covered by ouraudit and in the immediately preceding financial year.
9. In our opinion and according to the information and explanations given to us theCompany has been regular in depositing its instalments and dues. Company has not issuedany debentures and that has not defaulted in repayment of dues to a Bank/ FinancialInstitution / NBFC.
10. In our opinion and According to the information and explanations given to us theCompany has not given guarantees for loans taken by others from banks and financialinstitutions.
11. According to the information and explanations given to us the company the TermLoans taken during the year were applied for the purpose for which the loans wereobtained.
12. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the company and no material fraud on the company hasbeen noticed or reported during the year
| ||For S M D & Company |
| ||Chartered accountants |
|Place: - Mumbai ||Sd/- |
|Date: - 28th May 2016 ||(S M Dixit) |
| ||Proprietor |
| ||M. No. 044363 |