THE MEMBERS OF
RADIX INDUSTRIES (INDIA) LIMITED CHIVATAM TANUKU.
Report on the Financial Statements:
We have audited the accompanying financial statements of RADIX INDUSTRIES (INDIA)LIMITED ("the Company") which comprise the Balance Sheet as at March 312017 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The Management is responsible for the matters in section 134(5) of the Companies Act2013 ("the Act") with respect to the preparation of these 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 generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement 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 procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial 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 financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: a. in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; b. n the case of the Statement of Profitand Loss of the profit for the year ended on that date; and c. in the case of the CashFlow Statement of the 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 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act 2013 we give in the Annexure a statement on the matters specified in paragraphs3 and 4 of the Order.
2. As required by section 143(3) of the Act we report that:
a. we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; b. in our opinion properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books; c. the Balance Sheet Statement of Profit and Loss andCash Flow Statement dealt with by this Report are in agreement with the books of account;d. In our opinion the Balance Sheet the Statement of Profit and Loss and the Cash FlowStatement comply with the Accounting Standards specified under Section 133 of theCompanies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014. e. On thebasis of written representations received from the directors as on March 31 2017 andtaken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2017 from being appointed as a director in terms of Section 164(2) of theCompanies Act 2013. f. With respect to the adequacy of internal financial control overfinancial reporting of the Company and the operating effectiveness of such control referto our separate report in "Annexure A". g. With respect to the other mattersincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rule 2014 in our opinion and to our best of our information and according tothe explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition as on reporting date.
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 whichrequired to be transferred to the Investor Education and Protection Fund by the Company.iv. The company has provided requisite disclosure in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedure and relying on themanagement representation we report that the disclosures are in accordance with books ofaccounts maintained by the Company and as produced to us by the Management - Refer NotesNo. 28 to the standalone financial statements.
For CHEVUTURI ASSOCIATES
Chartered Accountants Firm Reg. No.000632S
(CA. Srinivasa Rao Cherukuri)
Partner Date: 30th May 2017
Annexure to the Auditor's Report
(i) (a) According to the information and explanations furnished to us the company hasmaintained proper records showing full particulars including quantitative details andsituation of its fixed assets.
(b) According to the information and explanations furnished to us the company hasphysically verified its fixed assets during the period and such intervals which in ouropinion provided for the physical verification of all the Fixed Assets at reasonableinterval having regard to the size of the company and nature of its business. According tothe information and explanation given to us no material discrepancies have been noticedon such verification carried out during the period.
(c) The company doesn't having any immovable properties as on reporting date and hencethe reporting requirement under this clause doesn't arise.
(ii) (a) According to the information and explanations furnished to us the company hasphysically verified its inventories at reasonable intervals during the period underreport. In our opinion and according to information and explanation given to us thediscrepancies if any noticed on verification of inventories between the physical stocksand the book records were not material and have been properly dealt with in the books ofaccount.
(iii) According to the information and explanations furnished to us the company hasnot granted any loans secured or unsecured to companies firms or other parties coveredin register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clauses iii (a) iii (b) and iii (c) of the order are not applicable to theCompany.
(iv) According to the information and explanations furnished to us the company has notgiven any loan made any investment given any guarantee or provided any security coveredunder section 185 and 186 of the Companies Act 2013.
(v) According to the information and explanations given to us the company has notaccepted any deposits covered under the provisions of section 73 to 76 or any otherrelevant provisions of the Act.
Further according to the information furnished to us no order has been passed on thecompany by the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any Court or any other Tribunal for non-compliance with the provisions of Sections 73to 76 of the Companies Act 2013.
(vi) According to the information and explanations given to us the requirement ofSec.148 (1) of the Companies Act 2013 with regard to the maintenance of cost recordsdoesn't apply to this company.
(vii) (a) According to the information and explanations furnished to us and accordingto the books and records produced for our examination in our opinion the company isregular in depositing with the appropriate authorities the undisputed statutory duesincluding Provident Fund Employees' State insurance Income Tax Sales Tax Wealth TaxService Tax Custom Duty Excise duty Value added tax and other material statutory dueswherever applicable to it and further there are no undisputed statutory dues that wereoutstanding as at the date of the Balance Sheet for a period of more than six monthsfrom the date they became payable.
(b) According to the information and explanations furnished to us and according to therecords of the company the company has no disputed dues on account of Income Tax ServiceTax Sales Tax Customs Duty Excise Duty Value added tax or Cess pending remittance asat March 31 2017.
(viii) According to the information and explanations given to us there were nodefaults in repayment of dues to financial institutions banks government or debentureholders at the date of balance sheet.
(ix) According to the information and explanations given to us the company has notraised money by way of initial public offer or further public offer (including debtinstrument) and the term loans from Banks and Financial Institutions. Hence reportingrequirement in terms of Clauses (ix) does not arise during the period under report.
(x) According to the information and explanations furnished to us and based on theaudit procedures generally adopted by us we report that during the period no fraud onthe company by its officers or employees has been notices or reported during the year.
(xi) According to the information and explanations furnished to us the company has notpaid or provided managerial remuneration during the period. Hence reporting requirement interms of Clauses (xi) does not arise during the period under report.
(xii) To the best of our knowledge and according to the information and explanationsfurnished to us the company is not a Nidhi company.
(xiii) According to the information and explanations furnished to us the company hasnot entered in to any transactions with related parties in accordance with the provisionsof sections 177 and 188 of the Companies Act 2013. Hence reporting requirement in termsof Clauses (xiii) does not arise during the period under report.
(xiv) According to the information and explanations furnished to us the company hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.
(xv) According to the information and explanations furnished to us the company has notentered in to any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations furnished to us the company is notrequired to be registered under the section 45-IA of the Reserve Bank of India Act 1934.
For CHEVUTURI ASSOCIATES
Chartered Accountants Firm Reg. No.000632S
Date: 30th May 2017
(CA. Srinivasa Rao Cherukuri)
Partner M.No. 209237