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NESCO Ltd.

BSE: 505355 Sector: Others
NSE: NESCO ISIN Code: INE317F01027
BSE LIVE 15:40 | 18 Aug 2383.65 22.25
(0.94%)
OPEN

2355.00

HIGH

2401.85

LOW

2355.00

NSE 15:31 | 18 Aug 2384.10 8.70
(0.37%)
OPEN

2351.95

HIGH

2400.00

LOW

2342.05

OPEN 2355.00
PREVIOUS CLOSE 2361.40
VOLUME 354
52-Week high 2722.00
52-Week low 1613.05
P/E 18.70
Mkt Cap.(Rs cr) 3,359
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2355.00
CLOSE 2361.40
VOLUME 354
52-Week high 2722.00
52-Week low 1613.05
P/E 18.70
Mkt Cap.(Rs cr) 3,359
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NESCO Ltd. (NESCO) - Auditors Report

Company auditors report

TO THE MEMBERS OF NESCO LIMITED

Report on the Standalone Financial Statement

We have audited the accompanying standalone financialstatements of Nesco 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 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement 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 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 inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial to the Company’spreparation of the financial statements design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

In our opinion and to the best of our information and according 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 31 March 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act and on the basis of such checks of the books and records of theCompany as we consider appropriate an according to the information and explanations givento us. We give in the Annexure ‘A’ a statement on the matters specified in theparagraph 3 and 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 ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) the Balance Sheet the statement ofProfit and Loss and the cash flow statement dealt with by this Report are in agreementwith the books of account; (d) in our opinion the aforesaid standalone financialstatements comply with the Accounting Standards specifiedunder Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014; (e) on the basis of the writtenrepresentations received from the directors as on 31 March 2016 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2016 from beingappointed as a director in terms of Section 164(2) of the Act.

(f) 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

(g) with respect to the other matters to be included in the Auditor’s 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statement Refer Note 32(b)(c)(d) and (e) to the financial statements; ii. TheCompany did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses. iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany. For Manubhai & Shah LLP

Chartered Accountants

FRN : 106041W/W100136

Laxminarayan P Yekkali

Partner

Membership No. 114753

Mumbai 30 May 2016

ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 1 under "Report on other Legal and RegulatoryRequirements Section" of our report of even date:

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Company has regular programme of physical verification of its fixed assets bywhich all the assets are verifiedin a phased manner over a period of 3 years. In ouropinion this periodicity of physical verification is reasonable and the nature of itsassets. We are informed that no material discrepancies were noticed in respect of theassets physically verified during the year.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of the immovable properties areheld in the name of company unless otherwise stated (refer note 10 of Fixed Asset)

ii. The physical verification of inventory has been conducted at reasonable intervalsby the management during the year and the discrepancies noticed on physical verificationof inventory as compared to book records were not material and have been appropriatelydealt with in the books of accounts.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies firms Limited LiabilityPartnerships (LLP) or other parties covered in the register maintained under Section 189of the Companies Act 2013. Accordingly the provisions stated in paragraph 3 (iii) (a) to(c) of the order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013with respect to the loans and Investments made and guarantees and security provided by it.

v. The Company has not accepted any deposits from public in accordance with theprovisions of Section 73 to 76 of the Companies Act 2013 and Rules framed there under tothe extent notified.

vi. Pursuant to the Rules made by the Central Government of India the Company isrequired to maintain cost records as specified under the provisions of sub-section (1) ofSection 148 of the Act in respect of its products. We have broadly reviewed the same andare of the opinion that the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of the records with a view todetermine whether they are accurate and complete.

vii. a) According to the records of the Company and as per the information andexplanations given to us the Company has been generally regular in depositing withappropriate authorities undisputed statutory dues including provident fundemployees’ state insurance income-tax sales-tax wealth tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues applicable toit.

According to the information and explanation given to us no undisputed amounts arepayable in respect of Provident fund employees’ state insurance income-taxsales-tax wealth tax service tax duty of customs duty of excise value added tax cessand any other statutory dues which were applicable to it were in arrears as at 31stMarch 2016 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us the following dues havenot been deposited by the Company on account of disputes with appropriate authorities

Name of the Statute Nature of the Dues Financial Year Amount (Rs. in lakhs) Forum where dispute is pending
The Income Tax Act 1961 Assessment Dues 2006-07 14.65 Dy. Commissioner of Income Tax
2007-08 7.07 ITAT
2010-11 113.08 ITO
2011-12 13.15 ITO
2012-13 0.18 ITO

viii. The Company does not have any loans or borrowings from any financial institutionbanks government dues to debenture holders during the year. Accordingly paragraph3(viii) of the Order is not applicable. ix. The Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments) and term loansduring the year. Accordingly paragraph 3 (ix) of the Order is not applicable. x.According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year nor have been informed of any such case by the management. xi. According to theinformation and explanation given to us and based on our examination of the records of theCompany the Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Sections 197 read with Schedule V of theCompanies Act 2013. xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of theOrder is not applicable. xiii. According to the information and explanations given to usand based on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards. xiv. According to the information and explanationsgiven to us and based on our examination of the records of the Company the Company hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly the provisions of clause3 (xiv) of the Order are not applicable to the Company. xv. According to the informationand explanations given to us and based on our examination of the records of the Companythe Company has not entered into any non-cash transactions with its directors or personsconnected with them. Hence provisions of Section 192 of the act is not applicable. xvi.In our opinion the Company is not required to be registered under section 45 IA of theReserve Bank of India Act 1934. For Manubhai & Shah LLP

Chartered Accountants

FRN : 106041W/W100136

Laxminarayan P Yekkali

Partner

Membership No. 114753

Mumbai 30 May 2016

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITORS’ REPORT

Report to in paragraph 2 (f) under "Report on Other Legal and RegulatoryRequirements" Section of our report of even date)

Report on the Internal Financial Controls over financial reporting under clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013 ("the Act")overfinancial Wehaveaudited the internal financial as on 31 March 2016 in conjunctionwith our audit of the Standalone financial statements of Company for the year ended onthat 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI’).These responsibilities include design implementation and maintenance of adequate internalfinancial that were operating effectively for ensuring the orderly and efficient conductof its business including adherance to the Company’s policies the safeguarding ofits assets the prevention and detection of fraud and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors 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 deemed tobe prescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountant of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancialcontrols over financialreporting was established and maintained and if suchcontrols operated effectively in all material respects

Our audit involves performing procedure to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financialcontrols over financialreporting includedobtaining an understanding of internal financial controls over financialreportingassessing 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 judgments including the assessment of the risk ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect 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 statement

Inherent limitation of Internal Financials Controls over Financial Reporting

Because of the inherent limitations of internal financial controls possibility ofcollusion or improper management override of control material misstatement due to erroror fraud may recur and not detected. Also projections of any evaluation of the internalfinancial controls over financial reporting to future periods are subject to the riskfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting over financial reporting were operating effectively as on 31 March 2016 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over financial Reporting issued by the Institute ofChartered Accountants of India.

For Manubhai & Shah LLP

Chartered Accountants

FRN : 106041W/W100136

Laxminarayan P Yekkali

Partner

Membership No. 114753

Mumbai 30 May 2016