TO THE MEMBERS OF NEIL INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of NEIL INDUSTRIES LIMITED("the company")which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss and the Cash Flow Statement 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 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 the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control 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.
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 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 proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by 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;
(a) In case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016
(b) In case of the Statement of Profit and Loss of the Profit for the year ended onthat date; and
(c) In case of the Cash Flow Statement for the year ended on that date.
Emphasis of Matters
Our opinion is not modified in respect of these 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 sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters Specified in paragraphs 3 and4 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 account 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 Cash Flow Statement 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 transactionswhich may have an adverse effect on the functioning of the Company.
f) On the basis of written representations received from the directors as on 31 March2016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.
g) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")- is enclosed as annexure tothis report.
h) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i) The Company does not have any litigations which would impact its financial position.
ii) The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii) There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.
| ||For RANJIT JAIN & CO. |
| ||Chartered Accountants |
| ||(FRN : 322505E) |
|Place : Kolkata ||CA ALOK JAIN (Partner) |
|Date :30.05.2016 ||Memb No. 062283 |
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF NEIL INDUSTRIES LIMITED.
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 the internal financial controls over financial reporting of M/sNEIL INDUSTRIES LIMITED" as of 31.03.2016 in conjunction with our audit of thestandalone financial statements 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. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the 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 168 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence I/we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 31st March 2016
| ||For RANJIT JAIN & CO. |
| ||Chartered Accountants |
| ||(FRN : 322505E) |
|Place : Kolkata ||CA ALOK JAIN (Partner) |
|Date : 30.05.2016 ||Memb No. 062283 |
ANNEXURE TO THE AUDITOR'S REPORT
COMPANIES (AUDITOR'S REPORT) ORDER 2016 for NEIL INDUSTRIES LIMITED
On the basis of such checks as we considered appropriate and according to theinformation and Explanations given to us during the course of our audit we report that:
(i) In respect of fixed assets & immovable properties:
(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) The fixed assets have been physically verified by the management at reasonableintervals; and no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
(ii) In respect of Inventory:
(a) The physical verification of inventory has been conducted at reasonable intervalsby the management and no material discrepancies were noticed.
(iii) In respect of loans secured or unsecured granted to the parties covered inregister maintained under section 189 of the Companies Act 2013:
(a) The company has not granted any loans secured or unsecured to companies firmsLLPs or other parties covered in the register maintained under section 189 of theCompanies Act
(iv) In respect of loans investments guarantees and security the provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with..
(v) The company has not accepted deposits during the relevant year.
(vi) The maintenance of cost records specified by the Central Government undersub-section (1) of section 148 of the Companies Act is not required by the company.
(vii) In respect of Statutory Dues:
(a) The Company is regular in depositing undisputed statutory dues including ProvidentFund employees state insurance (ESI) Investor Education and Protection Fund Income-taxTax deducted at sources Tax collected at source Professional Tax Sales Tax value addedtax (VAT) Service Tax Custom Duty Excise Duty Cess and any other statutory dues to theappropriate authorities.
(b) No dues of Income-tax or sales tax or Wealth Tax or service tax or Duty of Customor duty of Excise Duty or Value added Tax not been deposited on account of any disputesince there is no dispute pending with the Department.
(viii) The company has not defaulted in repayment of Loans & Borrowings to afinancial institution. Bank government or dues to debenture holders
(ix) No money has been raised by the way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.
(x) No fraud by the company or any fraud on the company by its officers/employees hasbeen noticed or reported during the year.
(xi) The managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct 2013.
(xii) The provisions regarding the Nidhi company is not applicable to the reportingcompany.
(xiii) The transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 and the details have been disclosed in the financial Statementsetc. as required by the applicable accounting standards.
(xiv) The company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year under review.
(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him.
(xvi) The company is already registered under Section 45-IA of the Reserve Bank ofIndia Act 1934 and the certificate of registration has already been granted by theReserve Bank of India on 14.09.2001. The Registration No. is B - 05.04372
| ||For RANJIT JAIN &CO. |
| ||Chartered Accountants |
| ||FRN : 322505E |
|Date : 30.05.2016 ||CA ALOK IAIN |
|Place : Kolkata ||Memb No. 062283 |