TO THE MEMBERS OF NITCO LIMITED
Report on the Standalone Financial Statement
1. We have audited the accompanying standalone financial statements of NITCO Limited(the Company) which comprise the Balance Sheet as at March 312017 theStatement of Profit and Loss the Cash Flow Statement For the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. 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 to give a true and Fair view of the financialposition financial performance and cash Rows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadeguate accounting records in accordance with the provisions of the Act For safeguardingof the 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 adeguate 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.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.
5. We conducted our audit in accordance with the Standards on Auditing specifiedunderSection 143(10) of the Act and other applicable authoritative pronouncements issuedby the Institute of Chartered Accountants of India. Those Standards and pronouncementsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are Free From materialmisstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 fairview 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.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
8. In our opinion and to the best of our information and according to the explanationsgiven to us except for the matters illustrated and described in the Basis for QualifiedOpinion herein below the financial statements give the information reguired by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
i. in the case of the balance sheet of the state of affairs of the Company as at March312017;
ii. in the case of the statementof profit and loss of the Loss for theyear ended onthat date; and
iii. in the case of the cash Row statement of the cash Rows for theyear ended on thatdate.
Basis for Qualified Opinion
9. The Company has not provided for interest on financing facilities amount to '22632.61 Lacs (previous year ' 19694.75 Lacs) for the year ended March 31 2017. Had thesame been provided the loss for the year ended March 31 2017 would have increased by '22632.61 Lacs (previous year ' 19694.75 Lacs) and corresponding bank liabilities wouldhave increased by ' 22632.61 Lacs (previous year ' 19694.75 Lacs) as at March 31 2017and net worth of the Company would have been lower by ' 22632.61 Lacs (previous year '19694.75 Lacs)
Emphasis of Matter
10. a) Financial Statements has been prepared on a going concern basis. The Company hasincurred a net loss of ' 3232.36 Lacs
(previous year ' 6276.64 Lacs) during the year ended March 312017 and the Company'snet worth has been fully eroded as
at the balance sheet date. The appropriateness of the going concern basis is inter aliadependent on the Company's ability to turnaround the operations of the Company and abilityof infusing requisite funds for meeting its obligations and rescheduling of debts.
b) Note no. 38 to the financial statements relating to status of Corporate DebtRestructuring (CDR).
c) The dues to banks / lenders are subject to reconciliation.
Report on other Legal and Regulatory Requirements
11. As reguired 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 (hereinafter referred to as the Order) and on the basisof such checks of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us we give in the Annexure A astatement on the matters specified in paragraphs 3 and 4 of the Order.
12. 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 the Cash Flow Statementdealtwith by this Report are in agreement with the books of account;
d) In our opinion the aforesaid standalone financial statements except for nonprovision of interest (refer point 9 above) comply with the Accounting Standards specifiedunderSection 133 of the Act.;
e) On the basis of the written representations received from the directors as on March312017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms of Section 164 (2) of theAct.;
f) With respect to the adeguacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B;
(g) 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 knowledge and belief and according to the information andexplanations given to us:
(i) The Company has disclosed the impact of pending litigations as at March 312017 onits financial position in its standalone statements - Refer Note 37.
(ii) The Company has made provisions as at March 312017 as required under theapplicable law or accounting standards for foreseeable losses if any on long-termcontracts including derivative contracts.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March312017.
(iv) The Company has provided reguisite disclosures in the standalone financialstatements as to holding as well as dealings in Specified Bank Notes during period fromNovember 8 2016 to December 30 2016 as on basis of the information available with theCompany. Based on the audit procedures performed and relying on management'srepresentation we report that disclosures are in accordance with the books of accountsmaintained by the Company and as produced to us by the management. - Refer Note 36.
|For A. Husein Noumanali & Co. |
|Chartered Accountants |
|Firm Registration No. 107173W |
|(A. Husein Noumanali) |
|Membership No. 14757 |
|Mumbai May 30 2017 |