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Cethar Industries Ltd.

BSE: 531473 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Cethar Industries Ltd
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Cethar Industries Ltd. (CETHARINDS) - Auditors Report

Company auditors report

To the Members of Cethar Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Cethar Industries Limited("the Company") which comprise the Balance Sheet as at March 312017 theStatement 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 FINANCIAL STATEMENTS

The Board of Directors of the Company are responsible for the matters stated in Section134(5) of the 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.

This responsibility includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting 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.

Auditor's Responsibility

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 there under

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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's management and Board of Directors aswell 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 for our audit opinion on the financial statements.

OPINION

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 state of affairs of the Company as at March312017;

b) in the case of the Statement of Profit and Loss of the Losses for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 we give in the Annexure 'A' for statement on the matters Specified in paragraphs3 and 4 of the Order.

2. As required by section 143(3) of the Act we further 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 applicableAccounting Standards specified under Section 133 of the Act.

e) on the basis of written representations received from the directors as on March312017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312017 from being appointed as a director in terms of Section164(2) of the Act. However the company does not have adequate independent directors.Hence the audit committee of the company is not validly constituted as per the provisionsof Section 177 of the Companies Act 2013 read with Rule 6 and 7 of Companies (Meetings ofBoard and its Powers) Rules 2014.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure 'B'.

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:;

i. The Company does not have any pending litigations which would impact its financialposition

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise

iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. Hence ttje questionof delay in transferring such sums does not arise

iv. 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 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 18 to the Financial Statement.

For Sivaswamy & Kumar
Chartered Accountants
(Firm Regn. No. 012929S)
S. Kumar
Place: Tiruchirappalli Partner
Date: August 282017 Membership No : 121656

ANNEXURE ‘A‘: REPORT ON MATTERS REQUIRED BY CARO 2016:

Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements inour Report of even date to the members of Cethar Industries Limited on the accounts of thecompany for the year ended 31st March 2017

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

i. The Company does not have fixed assets and hence reporting under clause (i) ofParagraph 3 of the Order is not applicable.

ii. The Company does not have inventories and hence reporting under clause (ii) ofParagraph 3 of the Order is not applicable.

iii. The Company has not granted loans secured or unsecured to companies firms.Limited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act and hence reporting under clause (iii) of Paragraph 3 ofthe Order is not applicable.

iv. According to the information and explanation given to us and books and recordsexamined by us there are no transactions made in respect of loans investmentsguarantees and security as specified in provisions of section 185 and 186 of the CompaniesAct 2013 and hence reporting under clause (iv) of Paragraph 3 of the Order is notapplicable.

v. The Company has not accepted any deposits to which the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Act and the rules framed there under are applicable.

vi. There are no operation carried out during the year and no cost records asprescribed in section 148(1) of the Companies Act 2013 is maintained.

vii. (a) According to the information and explanations given to us and the recordsexamined by us the company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales tax service tax duty of customs duty of excise value added tax cessand other statutory dues.

(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of income Tax sales tax service taxcustoms duty excise duty and value added tax which have not been deposited on account ofany dispute.

viii. In our opinion and according to the information and explanation given to us andbooks and records examined by us there are no borrowings from banks financialinstitutions and Government. The company has not issued any debentures.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer during the year and there are no term loan borrowings and hence reportingunder clause (ix) of Paragraph 3 of the Order is not applicable. '

x. According to the information furnished and explanation given to us no fraud on orby the company has been noticed or reported during the year.

xi. No managerial remuneration has been paid during the year and hence reporting underclause (xi) of Paragraph 3 of the order is not applicable.

xii. The company is not a Nidhi Company and hence reporting under clause (xii) ofParagraph 3 of the order is not applicable.

xiii. According to the information and explanation given to us and books and recordsexamined by us there are no related party transaction made during the year and hencereporting under clause (xiii) of Paragraph 3 of the order is not applicable.

xiv. The company has not made preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review and hence reportingunder clause (xiv) of Paragraph 3 of the Order is not applicable.

xv. The company has not entered into any non-cash transactions with directors orpersons connected with him and hence reporting under clause (xv) of Paragraph 3 of theOrder is not applicable.

xvi. In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act. 1934.

- For Sivaswamy & Kumar
Chartered Accountants
Place: Tiruchirappalli (Firm Regn. No. 012929S)
Date: August 282017 S. Kumar
Partner
Membership No.: 121656

'Annexure - B' to the Auditor's Report to the members of Cethar Industries Limited

Report on the Internal Financial Controls under Clause (I) of Sub-section 3 of Section143 of the Companies Act 2013:

We have audited the internal financial controls over financial reporting of CetharIndustries Limited ("the Company") as of March 312017 in conjunction with ouraudit of the financial statements of the company for the year ended on that date.

MANAGEMENTS RESPONSIBILITY FOR THE 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility:

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 u/s 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 controls 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 judgement 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of International Financial controls over Financial Reporting:

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collision 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.

Opinion:

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 March 312017 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 Sivaswamy & Kumar
Chartered Accountants
Place: Tiruchirappalli (Firm Regn. Np. 012929S)
Date: August282017 S. Kumar
Partner
Membership No.: 121656