The Members of
USG Tech Solutions Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of USG TECH SOLUTIONS LIMITED("the company")which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company 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.
This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and com-pleteness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.
4. 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; a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2016; b) In 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 2015 (the Order) issued bythe Central Government of India in terms of Section 143 of the Companies Act 2013 wegive in the annexure a statement on the matters specified in paragraph 3 & 4 of theorder to the extent applicable.
2. As required by Section 143 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 proper books of account as required by law have been kept by theCompany so far as appears from our exami-nation of those books.
c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt 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 CashFlow Statement comply with Accounting Standards specified under section 133 of the Actread with rule 7 of the companies (Accounts) Rules 2014.
e. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as Director in terms of Sec164(2) of the Act.
f. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the companies (Audit & Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigations as at 31st March 2016on its financial position in its financial statements.
ii. The company does not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
| ||For Udit Aggarwal & Associates |
| ||Chartered Accountants |
| ||Sd/- |
| ||Udit Aggarwal |
| ||Proprietor |
|Place: Delhi ||M.No. 529994 |
|Date: 20/05/2016 ||Firm Regn. No. 026161N |
ANNEXURE TO THE AUDITORS REPORT
The annexure referred to in our Independent Auditors Report to the members of thecompany we report that:
1. In respect of its fixed assets a) The Company has maintained proper records showingfull particulars including quantitative details and situation of the fixed assets on thebasis of available information. b) As explained to us the management has physicallyverified the fixed assets during the year and there is a regular programme of verificationwhich in our opinion is reasonable having regard to the size of the Company and thenature of the assets. No material discrepancies were noticed on such physicalverification.
2. In respect of its Inventory a) The inventories have been physically verified duringthe year by the management though same has not been physically verified by auditor. b) Inour opinion and according to the information and explanations given to us the procedureof physical verification of inventories followed by the management are reasonable andadequate in relation to size of the company and nature of the its business. c) The companyhas maintained proper records of its inventories. As explanation given to us there wereno material discrepancies.
3. In respect of the loans secured or unsecured granted or taken by the company to /from companies firms or Other parties covered under the register maintained under Section189 of the Companies Act 2013 according to the information and explanations given to usa) The Company has not granted any loans secured or unsecured from companies firms orother parties covered under the register maintained under Section 189 of the Companies Act2013. Consequently the provisions of Clause (iii) (a) and (iii) (b) of Companies(Auditor's Report) Order 2015 are not applicable.
b) The Company has not taken any loans secured or unsecured from companies firms orother parties covered under the register maintained under Section 189 of the Companies Act2013. Consequently the provisions of Clause (iii) (a) and (iii) (b) of Companies(Auditor's Report) Order 2015 are not applicable.
4. In our opinion and according to the information and explanations given to us thereare adequate internal control systems commensurate with the size of the Company and thenature of its business for the purchase of fixed assets and for the sale of products andservices. During the course of our audit we have not observed any continuing failure orweakness in internal control system.
5. In our opinion and according to information and explanations given to us theCompany has not accepted any Deposits within the provisions of Sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 from public. Therefore the provisionof Companies (Auditor's Report) Order 2015 is not application to the Company.
6. In our opinion and according to information and explanations given to us theCentral Government has not prescribed the maintenance of cost records under Companies Act2013.
7. In respect of statutory dues
a) According to the information and explanations given to us the particulars ofundisputed statutory dues of provident fund em-ployee's state insurance income tax andservice tax relating to previous year 2015-16 are paid.
b) The Company does not have any disputed dues of sales tax / income tax / customs /wealth tax / excise duty /cess etc. which have not been deposited c) According to theinformation and explanations given to us the amount which were required to be transferredto the investor education and protection fund in accordance with the relevant provisionsof the companies Act 1956 and rules thereunder has been transferred to such fund withintime.
8. The Company does have accumulated losses at the end of the financial year. TheCompany has not incurred any losses during the immediately preceding financial year.
9. According to the information and explanations given to us the Company has no duesto any financial institutions bank or de-benture holders during the year under report.
10. According to the information and explanations given to us the Company has notgranted any loans or advances on the basis of securities by way of pledge of sharesdebentures and other securities.
11. According to the information and explanations given to us the Company has notgiven the guarantee for loans taken by others from banks or financial institutions.
12. According to the information and explanations given to us no material fraud on orby the Company has been Noticed or re-ported during the year under report.
For Udit Aggarwal & Associates
M.No. 529994 Firm Regn. No. 026161N