TO THE MEMBERS OF ATV PROJECTS INDIA LIMITED
We have audited the accompanying standalone financial statements of ATV Projects IndiaLimited ("the Company") which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with the
Accounting Principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule7 of the Companies (Accounts) rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the Act for safeguarding the assets of the Company and for preventing anddetecting 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 that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder 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 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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.
Basis for Qualified Opinion
i. As explained in note 10.1 the company has not made provision against doubtful debtsamounting Rs.562.67 iacs. Had this provision been made the profit would have been reducedto the extent and the current assets would also be reduced to the extent of non provisionof the doubtful debts.
ii. As explained in note 3.1 (g) the company has not provided the interest on SalesTax deferment loan unsecured loan hire purchase/iease finance since the same are undernegotiation/settiement and the amount is unascertained.
In our opinion and to the best of our information and according to the
explanations given to us except for the effects of the matter described in the basisfor qualified opinion paragraph above the afore said standalone financial statements givethe information required by the Act in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of the stateof affairs of the company as at 31st March2017 and its profit and its cashflows 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' issued by the CentralGovernment of India in terms of sub section (11) of section 143 of the Act (hereinafterreferred to as "order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure A statement on the matters specified inparagraph 3 and 4 of the Order.
2) As required by section 143(3) of the Act wereportthat
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
b) Except for the effects of the matter described in the basis for qualified opinionparagraph above in our opinion proper books of accounts as required by law have beenkept by the company so far as it appears from our examination 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) Except for the effects of the matter described in the basis for qualified opinionparagraph above in our opinion the afore said standalone financial statements complywith the Accounting Standards specified under section 133 of the Act read with Rule 7 ofthe Companies(Accounts) Rules 2014.
e) The matter described on the basis for qualified opinion paragraph above in ouropinion may have an adverse effect on the functioning of the company.
f) On the basis of the written representations received from the directors as on 31s'March2017 taken on record by the board of directors none of the directors isdisqualified as on 31" March2017 from being appointed as a director in terms ofsection 164(2) of the Act.
g) The qualification relating to maintenance of accounts and other matters connectedtherewith are as stated in the qualified opinion paragraph above.
h) With respect to the adequacy of the internal financial
controls over financial reporting of the company and operating effectiveness of suchcontrols refer to our separate report in "Annexure B".
i) With respect to the other matters to be included in the Auditor's report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinionand to the best of our information and according to the -
explanations given to us:
1) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements refer to Note 21 to the financial statements.
2) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
3) There were no amounts which were required to be transferred to the investoreducation and protection fund by the company.
4) The Company has provided requisite disclosures in its 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 managementrepresentation we report that disclosure are in accordance with the books of accountsmaintained by the Company and as produced to us by the management.
For N.S. Bhatt and Co.
Firm Registration No:101342W
Membership No. : 010149
Date: 25h May 2017
Annexure A to the Auditor Report (Referred to in paragraph
(1) of our report of even date)
I a) The Company has maintained the fixed assets records
including quantitative details and situation of fixed assets and is in the process ofupdating the same.
b) As explained to us the fixed assets have been physically verified by themanagement at reasonable interval in a phased manner during the year and no materialdiscrepancy has been noticed on such verification and has been properly dealt with in theBooks of Accounts.
c) As per the information and explanations given to us the Title Deeds ofImmovable Properties are held in the name of company.
II The Stock of finished goods stores spare parts and raw material have beenphysically verified by the management at reasonable intervals during the year and as perthe information and explanation given to us and according to the records produced to usno material discrepancies noticed on such physical verification as compared to bookrecords.
III As per the information and explanation given to us the Company has not grantedany loans secured or unsecured to any Companies firms or other parties covered in theregister maintained under section 189 of the Companies Act 2013.
IV As per the information and explanation given to us there are no loansinvestments guarantees and securities as stated in the provisions of section 185 and 186of the Companies Act 2013.
V The Company has not accepted any deposits from public.
VI We have broadly reviewed the books of accounts maintained by the Company asspecified by the Central Government for maintenance of Cost records under section 148(1)of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of the records with a view to determine whether they are accurate.
VII a) As per the information and explanation given oy the
management and according to the records of the company with regard to undisputedstatutory dues including Provident Fund Employees State Insurance. Income Tax Sales TaxWealth Tax Service Tax Custom Duty and Other Statutory dues applicable to it thecompany is generally regular in depositing with appropriate authorities. According to theinformation and explanations given to us there are no undisputed amount payable inrespect of such statutory dues which have remained outstanding as at 31s'March 2017 for a period more than six months.
b) According to the records of the Company the dues of Sales Tax Income TaxCustom Duty Wealth Tax Excise Duty which have not been deposited on account of disputesand from where the disputes is pending with regard to aggregate Sales Tax of Rs. 3.98 lacsfor the year 2008-09 which is disputed before Appellate Authority and on account of demandof interest and damages of Provident Fund of Rs. 263.15 Lacs which is disputed before HighCourt of Allahabad.
VIII The company has taken in earlier years secured / unsecured term loans and non- convertible debentures from Financial Institutions and banks including interest thereonamounting to Rs. 3947.07 lacs (net) Working Capital Loans from Banks (including interest)Rs.
23060.02 lacs .The Company has settled with all the above lenders and have paid infull as per the OTS entered into with them. The loans taken from Non Banking FinancialCompanies of Rs.305.75 lacs Inter Corporate Deposits Rs. 250.00 lacs and Sales Taxdeferment loan Rs. 182.10 lacs are as per the information given to us are undernegotiation/ settlement.
IX The Company has not raised any money by way of Initial Public Offer or FurtherPublic Offer (including debt instruments) and term loans during the year.
X To the best of our knowledge and beliefs and according to the information andexplanation given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the year under review.
XI To the best of our knowledge and beliefs and according to the information andexplanations given to us the managerial remuneration has been paid or provided in
accordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act. 2013.
XII The Company is not a Nidhi Company as per the provisions of section 406 of theCompanies Act 2013.
XIII As per the information and explanation given to us all the transactions withthe related parties are in compliance withsection "an n"8 ofthe Companies Act. 2013 and the details have L..ci disclosed in the noteno.23 on financial statements as required by the applicable accounting sa' wards i
XIV The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
XV As per the information and explanation given to us the company has not enteredinto any non cash transactions with directors or person connected with him.
XVI As per the information and the examination of the financial statements thecompany is not required to be register under section 45-1A of the Reserve Bank of IndiaAct 1934.
FOR N. S. BHATT & CO.
Chartered Accountants Firm Registration no. 101342W
M. No. 10149
Place: Mumbai Dated: 25th May 2017
Annexure - B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 ofthe Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ATVProjects India Limited ("the Company") as of 31 March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Managements Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over Financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAP). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired underthe CompaniesAct 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controis system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control 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 ofrecords that 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 the company'sassets 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 financial
reporting 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For N.S. Bhatt and Co.
Chartered Accountants Firm Registration No: 101342W
Membership No. : 010149
Place: Mumbai Date: 25th May 2017.