The Members of
North Eastern Carrying Corporation Limited
Report on the Financial Statements
We have audited the accompanying standalone financial statements of NORTH EASTERNCARRYING CORPORATION LIMITED ("the Company") which comprise the BalanceSheet as at March 31 2017 the Statement of Profit and Loss Cash Flow Statement for theyear then ended and a summary of 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 of these standalone financial statementsthat give a true and fair view of the financial position financial performance and cashflows of the Company in accordance with the accounting principles generallyac -cepted inIndia including the Accounting Standards specified under Section 133 of the Act readwith Rule 7-nies (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.
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 view in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation 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 standalone financial statements
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 March 31
2017 and its Profit and its Cash Flow 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 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act we report that: a) we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b) in our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) the Balance Sheet the Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the books of accountd) in our opinion the aforesaid standalone 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 written representations received fromthe directors as on March 31 2017 taken on record by the
Board of Directors none of the directors is disqualified as on March 31 2017 frombeing appointed as a director in terms of Section 164 (2) of the Act. f) With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in"Annexure B". g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes (SBNs) during the period from 8thNovember 2016 to 30th December 2016 and these disclosures are in accordance with thebooks of account maintained by the company.
For and on behalf of Sanghi & Co. Chartered Accountants Firm's Registration Number:012619N
Ram Kishan Sanghi
M. No. 091534
NORTH EASTERN CARRYING CORPORATION LIMITED
Annexure A to the Independent Auditors' Report
Referred to in paragraph 1 under the heading Report on Other Legal RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 31 2017:
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we further state as under:
1. (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) All the fixed assets have been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
2. The company is not dealing in any physical inventory and therefore there is noquestion of physical verification of inventory.
3. (a) The company has not granted any loans secured or unsecured to the companiesfirms or other parties covered in the register U/s. 189 of the Companies Act 2013.
(b) As the company has not granted any loans the terms and conditions of the grant ofsuch loans being prejudicial does not arise.
(c) As the company has not granted any loans no schedule of repayment of principal andinterest has been stipulated.
(d) As the company has not granted any loans there are no overdue amounts.
4. 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 2013in respect of loans investments guarantees and security.
5. The Company has not accepted any deposits from the public. Therefore the directiveissued by the Reserve Bank of India and the provision of section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under does notarise.
6. As informed to us maintenance of cost records has not been prescribed by theCentral Government U/s. 148(1) of the Companies Act 2013.
7. (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the company is regular indepositing undisputed statutory dues within in the prescribed time to the appropriateauthorities and there are no arrears of outstanding statutory dues as on the last day ofthe financial year for a period of more than six months from the date they became payable.(b) According to the information and explanation given to us following statutory dues arenot been deposited on account of any dispute.
|Nature of the Dues ||Tax Amount under Contest (approx.) ||Period to which the amount relates ||Forum where the dis- pute is pending |
|Income tax ||212030/- ||FY 2012-13 ||CIT(Appeals) |
8. According to the information and explanations given to us the company has notdefaulted in repayment of dues to any financial institution or banks.
9. According to the information and explanation given to us the moneys raised duringthe year by way of term-loans/ IPOs were applied for the purpose for which those wereraised.
10. Based on the audit procedures performed and the information and explanations givenby the management we report that no fraud by the company and nor any fraud on the companyby its officers or employees has been noticed or reported during the year.
11. Based on the audit procedures performed and the information and explanations givenby the management Managerial Remuneration has been paid or provided in accordance withprovisions of Companies Act 2013.
12. In our opinion the company is not a Nidhi company within the meaning of relevantlaw.
13. Based on the audit procedures performed and the information and explanations givenby the management all transactions with related parties are in compliance with section188 of the Companies Act 2013 and requisite details have been disclosed in the financialstatements as required by the applicable accounting standards.
14. Based on the audit procedures performed and the information and explanations givenby the management the company has not made any preferential allotment or privateplacement of shares or partly convertible debentures u/s
42 of the Companies Act 2013 during the year.
15. Based on the audit procedures performed and the information and explanations givenby the management the company has not entered in to any non-cash transaction withdirectors or others in contravention of section 192 of the Companies Act 2013.
16. In our opinion the company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.
For and on behalf of Sanghi & Co. Chartered Accountants Firm's Registration number:012619N
Ram Kishan Sanghi
M. No. 091534
NORTH EASTERN CARRYING CORPORATION LIMITED
Annexure B to the Independent Auditor's Report of even date on the FinancialStatements of North Eastern Carrying Corporation 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 internal financial controls over financial reporting of NorthEastern Carrying Corporation Limited ("the
Company") as of March 31 2017 in conjunction with our audit of the standalonefinancial 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 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its 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.
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 audit of Internal Financial Controls andboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controls ifsuch 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 judgement 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 inprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial 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 March 31 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 and on behalf of |
|Sanghi & Co. |
|Chartered Accountants |
|Firm's Registration Number: 012619N |
|Ram Kishan Sanghi |
|M. No. 091534 |
|Place: Delhi |
|Date: 30.05.2017 |