To The Members of Samtel India Limited Report On the Financial Statements
We have audited the accompanying Financial Statements of Samtel India Limited("the Company") which comprises the Balance Sheet as at 31st March2015 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
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 Act 2013("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatements whether due to fraudor 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 the material misstatement of thefinancial statements whether due to error or fraud. In making those risk assessments theauditor considers internal control relevant to the Company's preparation of the financialstatements that give a true and fair 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 controls system over financialreporting and the operating effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 and its loss and its cash flows for the year ended on that date.
Emphasis of Matter
i) We draw attention to Note 28 of the financial statements stating the reasons forpreparation of financial on -going concern basis. Our opinion is not qualified in respectof this matter.
ii) We also draw attention to Note 29 of the financial statement regarding seeking theopinion for necessary actions to be taken under Sick Industrial Companies (SpecialProvisions) Act 1985 ouropinion is not qualified in respect of this matter.
iii) We further draw attention to Note 33 of the financial statement stating thatpursuant to schedule II of the Companies Act 2013 depreciation expense for the year isincreased by Rs. 8000
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ('the Order') issued bythe Central Government of India in terms of section 143 of the Act we give in theAnnexure a statement on the matters specified 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 and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on 31 March2015 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.
f. 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) The Company has disclosed the impact of pending litigation on its
financial position in its financial statements- Refer Note 20 to the financialstatements;
ii) As there is not any material foreseeable losses on long term contracts thereforethe Company has not made any provision required under the applicable law or accountingstandards;
iii) As informed to us there has been no amount required to be transfer to the InvestorEducation and Protection Fund by the Company.
| ||For S.S.KOTHARI MEHTA & CO. |
| ||Chartered Accountants |
| ||Firm Registration No. 000756N |
| ||(Nee raj Bansal) |
|Place: New Delhi ||Partner |
|Date: 30-05-2015 ||Membership No. 095960 |
ANNEXURE TO THE AUDIT REPORT TO THE SAMTEL INDIA LIMITED
Referred to in paragraph 1 of report on other legal and regulatory requirement'sparagraph of our report on the financial statement of even date
(i) (a) The Company has maintained proper records showing full particulars includingquantitative
details and situation of fixed assets.
(b) As explained to us and according to the information and explanation provided to usall the fixed assets have been physically verified by the management with a program ofyearly verification. In our opinion the frequency of such physical verification isreasonable having regard to the size of the Company and the nature of fixed assets. Wehave been explained that no material discrepancies were noticed on such verification ascompared to book records.
(ii) During the year the Company has not carried any business of manufacturing ortrading in the goods and therefore no inventories were held by the Company at any point oftime. Accordingly paragraph 3(ii) (a) (b) and (c) of the Order are not applicable.
(iii) (a) The Company has not given any loan secured or unsecured to Companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013.
(b) Since there are no such loans comments on repayment of the principal amount andinterest thereon and overdue amount at the yearend are not required.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control systems commensurate with the size of the Company andthe nature of its business for the purchase of inventory and fixed assets and for the saleof goods and services. Further on the basis of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross nor have been informed of any instance of a continuing failure to correct majorweaknesses in the aforesaid internal control system.
(v) The Company has not accepted any deposit from the public within the meaning ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed thereunder with regard to fixed deposits accepted from public.
(vi) Cost records as specified by the Central Government of India under section 148(1)of the Companies Act 2013 has not been maintained during the year as there is nomanufacturing activity.
(vii) (a) according to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally irregular indepositing undisputed statutory dues in respect of provident fund investor education andprotection fund employees' state insurance income tax sales tax wealth tax servicetax customs duty excise duty value added tax cess and other material statutory dues asapplicable with the appropriate authorities except Provident Fund by Rs. 1285000 Service Tax (including cess) by Rs. 1466330 Employee State Insurance Scheme by Rs.539000 Tax Deducted at source by Rs. 249260 and interest on statutory dues of Rs.2057380 which are outstanding at the yearend for a period of more than six months fromthe date they become payable.
(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of income tax sales tax custom dutywealth tax excise duty service tax value added tax and cess which have not beendeposited on account of any dispute are as follows: -
|Name of the Statute ||Nature of Dues ||Amount involved ||Amount paid under protest ||Period to which amount relates ||Forum where the dispute is pending |
|Sales Tax ||Sales Tax ||29018000 ||18119000 ||1985-86 ||Additional |
|Laws || || || ||1986-87 ||Commissioner Sales Tax |
| || || || ||1988- 89 |
|Appeal has remand back the file to relevant assessing officer |
| || || || ||1990-91 || |
| || || || ||1991-92 || |
| || || || ||1992-93 || |
| || || || ||1993-94 || |
| || || || ||1995-96 || |
| || ||312000 ||105000 ||1990-00 ||Deputy |
| || || || ||2000-01 ||Commissioner(Appeals) Jaipur |
|Central Excise Laws ||Excise Duty ||2059000 ||500000 ||1989-90 ||Rajasthan High Court Jaipur |
| || ||884000 ||880000 ||1997-98 ||CESTAT Delhi |
| || ||2404000 ||2401000 ||1998-99 ||Commissioner(Appeals) Jaipur |
|Income Tax Laws ||Income Tax ||669030 ||- ||2005-06 ||Income Tax Appellate Tribunal |
| || ||16749400 ||- ||2007-08 ||Income Tax Appellate Tribunal |
| || ||10253240 ||680 ||2009-10 ||Income Tax Appellate Tribunal |
* Amount as per demand order including interest and penalty wherever quantified in theorder.
(c) As informed to us there has been no amount required to be transfer to the InvestorEducation and Protection Fund by the Company.
(viii) The Company does have accumulated losses as at the close of the financial yearamounting Rs. 16.1420898 and the accumulated losses have exceeds its net worth as on 31stMarch 2015.. The Company has incurred cash losses during the financial year covered by ouraudit and in the immediately preceding financial year.
(ix) According to the records of the Company examined by us and the information andexplanations given to us the Company has not taken any loan from bank or financialinstitutions and has not issued debentures during the year.
(x) As per the information and explanations given to us and on the basis of ourexamination of the records the Company has not given any guarantee for loans taken byothers from banks or financial institutions.
(xi) As per the information and explanations given to us and on the basis of ourexamination of the records the Company has not taken any term loans from Bank orfinancial institution hence this clause is not applicable.
(xii) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe year nor have we been informed of such case by the management.
| ||For S. S. KOTHARI MEHTA & CO. |
| ||Chartered Accountants |
| ||Firm Registration No. 000756N |
| ||(Neeraj Bansal) |
|Place: New Delhi ||Partner |
|Date: 30-05-2015 ||ijyiembership No. 095960 |