TO THE MEMBERS OF SAHYOG MULTIBASE LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SAHYOG MULTIBASE LIMITED(hereinafterreferred to as "the Company") comprisingof the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information(hereinafter referred to as "the financial statements").
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 Act2013 ("the Act") with respect to the preparation ofthese standalone financial statements in terms of the requirements of the Companies Act2013 (hereinafter referred to as "the Act")that give a true and fair view of thefinancial position financial performance in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. The respectiveBoard of Directors of the companyare responsible for maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of thecompanyand for preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls 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 which have been used for the purpose ofpreparation of the financial statements by the Directors of the Company as aforesaid.
Our responsibility is to express an opinion on these financial statements based on ouraudit. While conducting the audit we have taken into account the provisions of the Actthe accounting and auditing standards and matters which are required to be included in theaudit report under the provisions 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 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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing an opinionon whether the Company has an adequate internal financial controls system over financialreporting in place and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Board ofDirectors as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis forour audit opinion on the financial statements.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial controls 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 of recordsthat 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 and to the best of our information and according to the explanationsgiven to us by the management the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of thecompany as at 31st March 2017 Profit/loss for the period and its Cash Flow Statement forthe 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 based on the comments in the auditors' reports of the company incorporated inIndia we give in the Annexure - A' a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section143(3) of the Act we report to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposesof our audit of the aforesaidfinancial statements. b) In our opinion proper books of account as required by lawrelating to preparation of the aforesaid financial statements have been kept so far as itappears from our examination of those books and the reports of the other auditors. c) TheBalance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with bythis Report are in agreement with the relevant books of account maintained for the purposeof preparation of the financial statements. d) In our opinion the aforesaid financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014 e) On the basis of the writtenrepresentations received from the Director of the Company none of the directors of thecompany is disqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act. f) In our opinion considering nature of business size ofoperation and organisational structure of the entity the Company has in all materialrespects an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectively as at 31stMarch 2017 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting read inconjunction with implementation guide on audit of Internal financial controls overfinancial reporting with specific reference to smaller less complex companies issued bythe Institute of Chartered Accountants of India. g) With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditor's) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has no pending litigations as on 31st March2017. ii. The Company doesn't have any material foreseeable losses on long-term contractsincluding derivative contracts. iii. There were no amounts which were required to betransferred to the
Investor Education and Protection Fund by the Company. iv. The Company has providedrequisite disclosures in the financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016. Basedon audit procedures and relying on the management representation we report that thedisclosures are in accordance with books of account maintained by the Company.
For KSMC & ASSOCIATES
CA HARPREET SINGH CHAWLA
Place: New Delhi
Annexure "A" to the Independent Auditors Report on the FinancialStatements of
SAHYOG MULTIBASE LIMITED
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' of our report of even date)
|Particulars ||Auditor's Remarks |
|(i) (a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; ||As per information and explanation given to us and on the basis of examination of books of accounts the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. |
|(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; ||As explained to us the fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification. |
|(c) Whether the title deeds of immovable properties are held in the name of the company. If not provide the details thereof; ||Not Applicable |
|(ii) whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so whether they have been properly dealt with in the books of account; ||As per information and explanation given to us by the management physical verification of inventories is carried out by them at reasonable intervals. Further it has been explained to us that no material discrepancies on such physical verification has been noticed by the management. |
|(iii) Whether the company has granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. If so ||As per information and explanation given to us and on the basis of examination of books of accounts the company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or any other parties covered in the register maintained under Section 189 of the Companies Act 2013: |
|(a) whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest; ||Not Applicable |
|(b) whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; ||Not Applicable |
|(c) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest; ||Not Applicable |
|(iv) In respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide the details thereof. ||According to the information and explanations given to us there was no such transaction related to loans investments guarantees and security entered into by company during the year under consideration hence this clause is not applicable. |
|(v) in case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under where applicable have been complied with If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not ||According to the information and explanations given to us the company has not accepted any deposit from the public. Therefore the clause is not applicable. |
|Whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such ||According to the information and explanations given to us the Central Government has not prescribed maintenance of cost records sub- section (1) of section 148 of the |
|(vi) accounts and records have been so made and maintained. ||Companies Act 2013 for the company. Therefore the clause is not applicable. |
|(vii) (a) whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues to the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated; ||As per the examination of books of accounts of the company the following statutory dues are outstanding as on the last day of financial year and these are outstanding for a period more than six months from the date they became payable. |
| ||Krishi Kalyan Cess Rs. 4020/- |
| ||Service Tax Rs. 224000/- |
| ||Swachh Bharat Cess Rs. 8000/- |
|(b) where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned.. ||As per information and explanation given to us by the management there are outstanding demands under Income tax Act 1961 (Rs. 500 pertaining to |
| ||Assessment year 2006-07 and Rs. 2190 to Assessment year 2014-15) which the company is pursuing with the income tax department. |
|(viii) whether the company has defaulted in repayment of loans or borrowing to a financial institution bank Government or dues to debenture holders If yes the period and the amount of default to be reported (in case of defaults to banks financial institutions and Government lender wise details to be provided). ||The Company has no loans or debts which are repayable to the financial institution or bank or debenture holders. Hence the clause is not applicable. |
|(ix) whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays or default and subsequent rectification if any as may be applicable be reported; ||According to the information and explanations given to us the Company has not raised any money by way of public offer or term loan during the year. Hence this clause is not applicable. |
|(x) whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year; If yes the nature and the amount involved is to be indicated; ||According to the information and explanations given to us by the management there was no fraud reported during the year. |
|(xi) Whether managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act If not state the amount involved and steps taken by the company for securing refund of the same; ||According to the information and explanation given to us by the management the company has complied with the provision of Companies Act in respect of managerial remuneration. |
|(xii) whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability; ||The Company is not a Nidhi Company. Hence this clause is not applicable. |
|(xiii) Whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards; ||According to the information and explanation given to us and based on our examination of the records of the company all the related party transactions undertaken during the year have been duly disclosed. |
|(xiv) Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of section 42 of the Companies Act 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not provide the details in respect of the amount involved and nature of non- compliance; ||During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures. Hence reporting under this clause is not applicable on the Company. |
|(xv) whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether the provisions of section 192 of Companies Act 2013 have been complied with; ||The company has not entered into any non-cash transactions with directors or persons connected with them hence the provisions of section 192 of Companies Act 2013 are not applicable |
|(xvi) Whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 and if so whether the registration has been obtained. ||In our opinion and according to information and explanations provided to us the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. |
For KSMC & ASSOCIATES Chartered Accountants FRN:003565N
CA HARPREET SINGH CHAWLA
Place: New Delhi