You are here » Home » Companies » Company Overview » N K Industries Ltd

N K Industries Ltd.

BSE: 519494 Sector: Industrials
NSE: NKIND ISIN Code: INE542C01019
BSE 00:00 | 25 May 49.15 1.20
(2.50%)
OPEN

49.00

HIGH

49.15

LOW

49.00

NSE 00:00 | 25 May 47.45 3.40
(7.72%)
OPEN

45.00

HIGH

47.45

LOW

43.05

OPEN 49.00
PREVIOUS CLOSE 47.95
VOLUME 505
52-Week high 82.40
52-Week low 30.35
P/E
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 49.00
CLOSE 47.95
VOLUME 505
52-Week high 82.40
52-Week low 30.35
P/E
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

N K Industries Ltd. (NKIND) - Auditors Report

Company auditors report

TO THE MEMBERS OF N.K INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of M/s N.K INDUSTRIESLIMITED (“the Company”) which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 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 an opinion on these Standalone Financial Statementsbased 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 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 theauditor's judgment including the assessment of the risks of material misstatement of theFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Financial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the Standalone Financial Statements.

Basis of Qualified Opinion

1. The Company had entered into financial arrangement with National Spot Exchange Ltd(NSEL) through Trading and Clearing Member N.K.Proteins Private Ltd (erstwhileN.K.Proteins Limited (NKPL)( Group Company) by way of purchase and sales of various goodsup to financial year 2012-13. The trade payables and trade receivables arising out of thetransactions through National Spot Exchange Limited (NSEL) from the concerns other thanthe group concerns are subject to confirmations by the respective parties andreconciliations/adjustments if any. Further NSEL has suspended the trading on 31.07.2013and has initiated recovery proceedings against the group Company NKPL and also against theCompany and the said proceedings are pending as on date. Further the Home departmentGovernment of Maharashtra has issued a notification under the Maharashtra Protection ofInterest of Depositors (in financial establishments)-Act 1999 (MPID Act) attaching theLand Building & Plant & Machinery of the Company located at Kadi Gujarat. TheCompany had challenged the notification issued by Home department Government ofMaharashtra before the Hon'ble High Court of Gujarat. The Hon'ble Gujarat High Court haddisposed off the application of the Company vide its order dated 29th March 2017. TheCompany had preferred a Special Leave Petition before the Hon'ble Supreme Court of India.The Hon'ble Supreme Court of India had disposed off the Special Leave Petition on 17thApril2017 with a observation to file an application before Hon'ble Bombay High CourtMumbai and as informed by the managementthe Company is in the process of filing the saidapplication. In view of the fact that the matter is subjudice we are unable to quantifythe final liability and its impact if any on the loss of the Company for the year underreview. (Refer Note no 32 of Standalone Financial Statements).

2. The Directorate of Enforcement Government of India has initiated proceedingsagainst the Company under section 5(1) of the Prevention of Money Laundering Act 2002along with group Company NKPL and by virtue of the provisional attachment order dated10/03/2015 attached the assets of the Company comprising of Land building plant andmachinery situated at Survey Nos.719 720 721 732/1 732/2 733 741 743 744 745Kadi Thol Road Village Kadi Kasba taluka- Kadi District Mehsana-382715 Gujarat. Asexplained to us The Company has preferred an appeal before the Hon'ble Appellate Tribunalunder the Prevention of Money laundering Act 2002.However matter is subjudice we areunable to quantify the liability and its impact if any on the loss of the Company for theyear under review. (Refer Note no 33 of Standalone Financial Statements).

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion paragraph the aforesaid Standalone Financial Statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its loss and its cash flows for theyear ended on that date.

Emphasis of Matters

1. We draw attention to Note 29 to the Standalone Financial Statements and according tothe same the Company is having accumulated losses of ` 326.25 Crores as at 31.3.2017 andthe net worth of the Company is negative However as informed by the management theCompany is making sincere efforts for the revival of the Business & the management isconfident to recover the losses through improved profitability in foreseeable future.Therefore provision for the impairment has not been made in the books of the Company andaccounts for the year have been prepared on “ Going concern basis.”

2. Attention is invited to note 34 of the Standalone Financial Statements which statesthat the Income Tax Department had carried out survey u/s 133 of the Income tax Act 1961( the IT Act) on the Company along with other group companies during FY 2013-14 andhad ordered a special audit of the books of the Company u/s 142 (2A) of the IT Act 1961for AY 2010-11 A.Y 2011-12 A.Y 2012-13 & A.Y 2013-14. The department had raised ademand of ` 132 Crores ( Rs 6.63 Crores for A.Y 10-11 Rs57.07 crores for A.Y 11-12 `60.33 Crores for A.Y 12-13 &

` 7.97 Crores for A.Y 2013-14 ) on the Company for the aforesaid assessment years andthe said demand has been disputed by the Company and the Company has initiated appellateproceedings before appropriate authorities. The said amount has been shown as contingentliability under Note No. 24 of the notes forming part of accounts. Further Income taxdepartment has passed an attachment order on 22.04.2015 & 14.08.15 by which it hasattached properties of the Company in pursuant to a demand the details of the propertiesattached which are in the name of Company is as under:

• 803 Manas Complex Opp Star Bazaar Nr Jodhpur Cross road SatelliteAhmedabad 380015.

• 603 Manas Complex Opp Star Bazaar Nr Jodhpur Cross road SatelliteAhmedabad 380015.

• Land situated at Survey Nos.719 720 721 732/1 732/2 733 741 743 744745 kadi Thol Road Village Kadi Kasba taluka- Kadi District Mehsana-382715.

• Factory Building Situated at survey No 745 Kadi Thol Road Village Kadi Kasba taluka- Kadi District Mehsana-382715

3. Attention is invited to note 26 of the Standalone Financial Statements and accordingto which a Search & Seizure action U/S 132 of the Income Tax Act took place on24.2.99. The Income Tax department had raised demand of ` 33.12 Crores vide the blockassessment Order dt. 30.4.2001. In case of Company the Income Tax Appellate Tribunal(ITAT) Ahmedabad has subsequently given partial relief to the extent of ` 28.84 Crores.The Company had preferred as appeal before the Hon'ble High Court of Gujarat against theorder of Hon'ble ITAT Ahmedabad. Hon'ble Gujarat High Court vide its order dated 20thJune 2016 had given partial relief on some of the grounds and had also dismissed some ofthe grounds of the Company. Against the grounds dismissed by Hon'ble High Court ofGujarat the Company had further preferred an appeal before Hon'ble Supreme Court ofIndia and the Hon'ble Supreme Court of India vide order dated 16th January2017 haddismissed the appeal of the Company. The Company had provided an amount of `2.88 Croreagainst the grounds dismissed by Hon'ble ITAT during F.Y 2002-03 as well as `1.27 Croreswas provided in the books of accounts for the Assessment year in question for the interestpayable upto 31-03-2005 during F.Y 2004-05 However in view of the management and on thebasis of the Judgment of the Hon'ble Gujarat High Court the amount provided/paid by theCompany towards total demand shall result in refund to the Company. Pending effect ofOrder by the Income Tax Department no effect has been given by the Company in the booksof accounts for the year under review. In view of non availability of appeal effect orderfrom the Income Tax Department we are unable to opine on the same.

4. Attention is invited to note 36 of the Standalone Financial Statements which statesthat Sales Tax Department has completed the assessment for various assessment years andraised demand of ` 5554.43 lacs for the earlier years. The Company has not made anyprovision for the above demand raised by the sales tax authority in view of the fact thatthe Company has preferred an appeal before the Appellate Authority. The said amount hasbeen shown as contingent liability under Note No. 24 of the notes forming part of accounts

5. Attention is also invited to note 25 of the Standalone Financial Statements whichstates the Company was declared sick by Hon'ble Board for Industrial & FinancialReconstruction (BIFR) and had submitted rehabilitation scheme for consideration to theOperating Agency (OA). However since SICA Act has been repealed with effect from01.12.2016 as per the provisions of the SICA Repeal Act the Company had to submit itsapplication to National Company Law Tribunal (NCLT) within 6 months from the date of SICArepeal Act. Till date the Company is yet to submit its Scheme to Hon'ble NCLT In view ofnon-submission of scheme to Hon'ble NCLT by the Company the impact of the debt resolutioncould not be ascertained.

6. Attention is invited to Note 41 of the Standalone Financial Statements which statesthat the balance confirmation from the suppliers customers as well as to various loans oradvances given have been called for but the same are awaited till the date of thisreport. In view of the non-availibity of the same the balances of receivables tradepayables as well as loans and advances have been taken as per the books of accountssubmitted by the Company and are subject to confirmation from the respective parties.

Our opinion is not qualified on the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure-“A” a statement on the matters specified in paragraphs 3 and 4of the Order.

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

(a) We have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

(b) Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by law havebeen kept by the Company 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) The matter described under the Emphasis of Matters paragraph above in ouropinion may have an adverse effect on the functioning of the Company (e) In ouropinion the aforesaid Standalone 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 the 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 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 refer to ourseparate report in “Annexure B” and (h) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its Standalone Financial Statements as referredto in Note no.24 to the Standalone Financial Statements. ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses. iii. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company. iv. the Company has providedrequisite disclosures in its Standalone Financial Statements as to holdings as well asdealings in Specified Bank Notes during the period from 8 November 2016 to 30 December2016 and these are in accordance with the books of accounts maintained by the Company.Refer Note 43 to the Standalone Financial Statements

For Parikh & Majmudar
Chartered Accountants
FR No. 107525W
[C.A (Dr) Hiten M. Parikh]
PARTNER
Membership No. 40230
Place : Ahmedabad
Date : 08/05/2017

ANNEXURE A - ANNEXURE TO INDEPENDENT AUDITOR‘S REPORT

The Annexure referred to in Independent Auditor‘s Report to the members of theCompany on the financial statements for the year ended 31 March 2017 we report that: i)(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets with effect from 1st April 2008onwards.

(b) According to the information and explanations given to us the fixed assets areverified by the management during the year in a phased periodical manner which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.No material discrepancies were noticed on such verification.

(c) According to the information and explanation given to us and the records examinedby us and based on the examination of the conveyance deeds provided to us we report thatthe title deeds comprising of the immovable properties of land and building which arefreehold are held in the name of the Company as at the Balance Sheet date except thefollowing properties whose titles have not been still conveyed in the name of the Companyhaving total carrying value of ` 18.86 lacs as at 31 March 2017.

`
Description of the property Status of ownership Carrying value
1. Premises located at Thirthjal Complex Ahmedabad Title of the property is in the name of the director and yet not conveyed in the name of the Company. As the cooperative society in which the property is held does not allow the Company to hold the assets in its name. 5.38
2. Land situated at Sr. No. 719 Vil Kadi Taluka Kadi Dist. Mehsana in the State of Gujarat In the subject land Registered power of attorney of the land in question is in the name of Shri Ashwin Patel CFO on behalf of the Company and necessary stamp duty has been fully paid yet titles are to be conveyed in the name of the Company. 5.49
3. Land situated at Sr. No. 720 Vil Kadi. Taluka Kadi Dist. Mehsana in the State of Gujarat Unregistered Agreement to sale in the name of the Company. Competent authority has ordered for payment of premium which is yet to be paid. Titles are not conveyed in the name of the Company. 1.85
4. Land situated at Sr. No. 721 Vil Kadi. Taluka Kadi Dist. Mehsana in the State of Gujarat In the subject land Registered power of attorney of the land in question is in the name of Shri Ashwin PatelCFO on behalf of the Company and necessary stamp duty has been fully paid yet titles are to be conveyed in the name of the Company. 3.19
5. Land situated at Sr. No. 741 Vil Kadi. Taluka Kadi Dist. Mehsana in the State of Gujarat In the subject land no agreement entered with the Company. However unregistered power of attorney is in the name of Mr Kamlesh Patel on behalf of the Company. The titles have not been conveyed in the name of the Company. 2.93
6. Land situated at Sr. No. 742 Vil Kadi. Taluka Kadi Dist. Mehsana in the State of Gujarat In the subject land no agreement entered with the Company. However unregistered power of attorney is in the name of Mr Kamlesh Patel on behalf of the Company. The titles have not been conveyed in the name of the Company.

ii) As explained to us the inventories have been physically verified by the managementat reasonable intervals during the year. The discrepancies noticed on verification betweenphysical stocks and the books of accounts are not material. iii) During the year theCompany has not granted any loans secured or unsecured to Companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. ( the Act). a) The loans granted during the earlierfinancial years to the parties covered in the register maintained u/s 189 of the CompaniesAct 2013 (the Act) are interest free. The terms of arrangements do not stipulate anyrepayment schedule and the loan is repayable on demand. Accordingly paragraph 3(iii)(b)of the Order is not applicable to the Company in respect of repayment of the principalamount. b) In respect of the said loans there are no overdue amounts iv) On the basis ofinformation and explanations give to us and also in view of the legal opinion obtainedfrom an expert the Company has broadly complied with the provisions of Section 185 and186 with respect to the investment made & Loans Given.(Please refer the note no.27b ofthe notes forming parts of the financial statements). v) The Company has not accepted anydeposits from the public. vi) We have broadly reviewed the books of accounts maintained bythe Company in respect of products where pursuance to the rules made by the CentralGovernment of India the maintenance of Cost records has been prescribed under sub section(1) of section 148 of Companies Act 2013 and we are of the opinion that prima facie theprescribed accounts & records have been maintained. We have however not made adetailed examination of the records. vii) (a) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including provident fund ESIC income-tax sales tax value added taxduty of customs duty of excise service tax cess and other material statutory dues havebeen generally regularly deposited during the year by the Company with the appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund ESIC income tax sales tax value added tax dutyof customs duty of excise service tax cess and other material statutory dues were inarrears as at 31 March 2017 for a period of more than six months from the date they becamepayable. b) According to the information and explanations given to us there are nomaterial due of duty of excise service tax and duty of customs which have not beendeposited with the appropriate authorities on account of any dispute. Howeveraccording tothe information and explanations given to us the following dues of income tax sales tax& value added tax have not been deposited by the Company on account of disputes.

Name of the statue Nature of Dues Amount (`) (Net of payment) Financial year to which the amount relates From where the dispute is pending
Income Tax Act1961 Corporate Tax 663.83 Lacs FY 2009-10 Commissioner of Income Tax(Appeals) -IX
Income Tax Act1961 Corporate Tax 5543 Lacs FY 2010-11 Income Tax Appellate Tribunal Ahmedabad
Income Tax Act1961 Corporate Tax 6033 lacs FY 2011-12 Commissioner of Income Tax(Appeals) -IX
Income Tax Act1961 Corporate Tax 797.60 lacs FY 2012-13 Commissioner of Income Tax(Appeals) -IX
Income Tax Act1961 Corporate Tax 41.66 lacs FY 2005-06 Commissioner of Income Tax(Appeals) -IX
Guj. Sales Tax Sales Tax 130.88 Lacs F.Y. 2008-09 Joint. Commissioner of Commercial Tax Appeal-I
Guj. Sales Tax Sales Tax 5423.55 Lacs (Net of payments) F.Y. 1989-90 1990-91 1997-98 to 2001-02 & 2006-07 Sales Tax Tribunal / Commercial Tax Officer

viii) According to information & explanations given to us the Company does nothave any borrowings from Banks Financial institutions Government or debenture holdersduring the year Accordingly paragraph 3 (viii) of the Order is not applicable. ix) TheCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3 (ix)of the Order is not applicable. x) According to the information and explanations given tous no fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit. xi) According to the information andexplanations give to us and based on our examination of the records of the Company theCompany has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act. xii)In our opinion and according to the information and explanations given to us the Companyis not a nidhi Company. Accordingly paragraph 3(xii) of the Order is not applicable.

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) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. xv) According to the information and explanations given to usand based on our examination of the records of the Company the Company has not enteredinto non-cash transactions with directors or persons connected with him. Accordinglyparagraph 3(xv) of the Order is not applicable. xvi) The Company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

For Parikh & Majmudar
Chartered Accountants
FR No. 107525W
[C.A (Dr) Hiten M. Parikh]
PARTNER
Membership No. 40230
Place : Ahmedabad
Date : 08/05/2017

Annexure B to the 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 M/s N.KINDUSTRIES LIMITED (“the Company”) as of 31 March 2017 in conjunction withour audit 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 isresponsible for establishing and maintaining internal financial controls 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 (‘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 company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor's 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 judgment 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.

Opinion

In our opinion to the best of our information & according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2017 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 Parikh & Majmudar
Chartered Accountants
FR No. 107525W
[C.A (Dr) Hiten M. Parikh]
PARTNER
Membership No. 40230
Place : Ahmedabad
Date : 08/05/2017