TO THE MEMBERS OF ASEEM GLOBAL LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of ASEEM GLOBAL LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2015 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Managements responsibility for the Financial Statements
2 The Companys Board of Directors is responsible for the matters stated insection 134 (5) of the Companies Act 2013 ("the Act) with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provision 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
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 there under. 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.
4 An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessments;the auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design the audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Companys internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and reasonableness of the accountingestimates made by the management as well as evaluating the overall presentation of thefinancial statements.
5 We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
6 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:
(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2015;
(ii) in the case of the Statement of Profit and Loss of the Loss of the Company forthe year ended on that date; and
(iii) in the case of Cash Flow Statement of the cash flows of the Company for the yearended on that date.
Emphasis of Matter
7 We draw attention to Note 34 to the financial statement which indicate that thecompany has defaulted on payment of income tax dues of Rs 7476656/- for the assessmentyear 2014-15.
8 We draw attention to Note 35 to the financial statement which indicate that thecompany has defaulted on repayment of Public Deposit and interest thereon amounting to Rs65446000/- and 5236000/- respectively as on 31st March 2015 which was required tobe repaid in pursuance to Section 73 to 76 of The Companies Act 2013 & Companies(Acceptance of Deposit) Rule 2014.
9 We draw attention to Note 4 & 36 to the financial statement which indicate thatthe company has defaulted on repayment of term loans and interest thereon taken frombanks NBFCs and other parties amounting to Rs 3759000/- as on 31st March 2015.
Report on Other Legal and Regulatory Requirements
10 As required by the Companies (Auditors Report) Order 2015(Order) issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we enclose in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the said Order to the extent applicable.
11 As required by Section143 (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 accounts as required by the 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 BalanceSheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by thisreport comply with the Accounting Standards referred to in section 133 of the CompaniesAct 2013;
e. on the basis of written representations received from the directors as on 31 March2015 and taken on record by the Board of Directors we report that none of the directorsis disqualified as on 31 March 2015 from being appointed as director in terms of section164(2) of the Companies Act 2013; and
f. With respect to the other matters to be included in the Auditors Report inaccordance with Rule11 of the Companies (Audit and Auditors) Rules2014in our opinion andto the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 27 to the financial statements;
ii. The Company did not have any long term contracts and had no derivative contractsoutstanding as at 31 March 2015; and
iii. The Company did not have any dues on account of Investor Education and ProtectionFund
|PLACE: NEW DELHI ||FOR K.N. GUTGUTIA &COMPANY |
|DATE: 30th May 2015 ||CHARTERED ACCOUNTANTS |
| ||FRN 304153E |
| ||Sd/- |
| ||(B.R. GOYAL) |
| ||PARTNER |
| ||M.NO. 12172 |
Annexure to The Independent Auditors Report
(Referred to in paragraph 10 of our report of even date to the members of Aseem GlobalLimited on the financial statements for the year ended 31st March 2015)
i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us physical verification of fixed assets has been carried out interms of the phased programme of verification of its fixed assets adopted by the Companyand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification is reasonable having regard to the size of the Company andnature of its business.
ii) (a) The inventories have been physically verified during the year by the managementat reasonable intervals.
(b) In our opinion and according to the information and explanations given tous the procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature ofits business.
(c) The Company is maintaining proper records of inventory. In our opiniondiscrepancies noticed on physical verification of stocks were not material inrelation to the operations of the Company.
iii) (a) According to the information and explanations given to us the Company hasduring the year not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the companiesAct2013. Accordingly paragraph 3(iii) of the order is not applicable.
iv) In our opinion and according to the information and explanations given to us thereare internal control systems commensurate with the size of the Company and thenature of its business with regard to purchase of inventory fixed assets and for the saleof goods and services.
v) The Company has not complied with the provision of section 73 to 76 of The CompaniesAct 2013 & Companies (Acceptance of Deposit) Rule 2014. (Refer note no 35 ofthe financial statement).
vi) As information and explanations given to us the Central Government has notprescribed maintenance of cost accounts for the type of activities of the Companypursuant to the rules made by the Central Government of India for the maintenance ofcost records under clause (d) of Sub Section (1) of Section 148 of the Companies Act 2013
vii) (a) According to the records examined by us the Company is generally regular indepositing with appropriate authorities undisputed statutory dues includingprovident fund employees state insurance income tax sales tax wealth tax servicetax duty of custom duty of excise value added tax cess and other statutory dueswherever applicable. According to the information and explanations given to us noundisputed arrears of statutory dues except Income tax dues of Rs 7476656/- wereoutstanding as at 31st March 2015 for a period of more than six months from the datethey became payable (Refer note no 34 of the financial statement).
(b) According to the records of the Company the details of dues in respect of saletax income tax duties of customs wealth tax service tax duty of excise cessand value added tax which have not been deposited on account of disputes and theforum where the dispute is pending are as under:
|Name of the ||Nature of Dues ||Amount (In Rs) ||Period to which ||Forum where the dispute |
|Statute || || ||it relates ||is pending |
|Income Tax Act 1961 ||Income tax on account of disallowance of deduction u/s 80 HHC & income on account of disallowance of expenses ||9407 ||A/y 2002-03 ||The appeal has been decided in companys favor. Ratification tax is pending. |
|Delhi Value Added Tax ||Disallowance of VAT input credit on revised filing of monthly return. Input VAT credit was inadvertently not claimed in the original return ||313161 ||F/y 2008-09 ||VAT demand under appeal with Addd. Commissioner Special Zone Deptt. Of Trade & Taxes Delhi |
|Rajasthan Value Added Tax ||Imposition of penalty by VAT officers on the ground of incomplete documents with the motor lorry carring the goods ||536122 ||F/y 2009-10 ||VAT demand under appeal with Rajasthan Tax Board Ajmer. |
(c) The Company did not have any dues on account of Investor Education and ProtectionFund which were required to the transferred during the year to the said fund.
vii) There are accumulated losses of Rs 63443334/- as on 31st March 2015 which isnot more than 50% of its net worth.
The Company has incurred cash losses during the financial year but not in theimmediately preceding financial year of the Company.
viii) Based on our audit procedures and the information given by the management theCompany has defaulted in repayment of dues of Rs 3759000/- to any financialinstitution or bank (Refer note no 4 & 36 of the financial statement).
x) According to the information and explanations given to us Company has not given anyguarantee during the year for loans taken by others from banks or financialinstitution.
xi) In our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which theywere obtained.
xii) Based upon the audit procedures performed and to the best of our knowledge andaccording to the information and explanations given to us by the management wereport that no fraud on or by the Company has been noticed or reported during thecourse of our audit.
|PLACE: New Delhi ||FOR K.N. GUTGUTIA & COMPANY |
|DATE: 30th MAY 2015 ||CHARTERED ACCOUNTANTS |
| ||FRN 304153E |
| ||Sd/- |
| ||(B.R. GOYAL) |
| ||PARTNER |
| ||M.NO. 12172 |