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Chemcrux Enterprises Ltd.

BSE: 540395 Sector: Industrials
NSE: N.A. ISIN Code: INE298W01016
BSE 00:00 | 20 Jun 35.65 0
(0.00%)
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35.70

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35.70

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35.65

NSE 05:30 | 01 Jan Chemcrux Enterprises Ltd
OPEN 35.70
PREVIOUS CLOSE 35.65
VOLUME 12000
52-Week high 52.90
52-Week low 25.10
P/E 7.44
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 35.70
CLOSE 35.65
VOLUME 12000
52-Week high 52.90
52-Week low 25.10
P/E 7.44
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Chemcrux Enterprises Ltd. (CHEMCRUXENTERP) - Auditors Report

Company auditors report

To the Members

Report on the Financial Statements

We have audited the accompanying Financial Statements of CHEMCRUX ENTERPRISES LIMITED("the Company") which comprise the Balance sheet as at 31st March2017 the Statement of Profit & Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies(Account) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's 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 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:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;

b) in the case of the Profit and Loss Account of the Profit for the year ended on thatdate; 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 (Auditors Report) Order 2016 ("the order")issued by the Central Government in terms of section 143 (11) of the Companies Act 2013we enclose in the Annexure-A a statement on the matters specified in paragraph 3 & 4of the said 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 accounts as required by the law have been kept bythe Company so far as appears from our examination of the said books;

c) The Balance Sheet Statement of Profit & Loss and Cash Flow Statement dealt withby this report are in agreement with the books of accounts of the Company;

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 31stMarch 2017 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st March 2017 from being appointed as adirector of the Company in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting and the operating effectiveness of such controls; refer to our separate reportin Annexure - B attached herewith.

g) With respect to the other matters to be included in our Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in Note 23 of Notes forming part of Financial Statements.

(ii) There are no long term contracts for which provision is required.

(iii) There has been no delay in transferring amounts required to be transferred to theInvestor Protection

Fund by the Company.

(iv) The Company has provided requisite disclosures in Note No. 43 to the FinancialStatements as to holdings

as well as dealings in Specified Bank Notes during the period from November 8 2016 toDecember 30 2016 and these are in accordance with the Books of Accounts maintained by theCompany.

FOR Naresh & Co.
Chartered Accountants
(F.R.N. 106928W)
Sd/-
Place : Vadodara ca anil shah
Date : 30/05/2017 Partner
(M. R. N. 35309)

ANNEXURE -A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date for the year ended 31st March 2017 ofChemcrux Enterprises Limited)

(i) (a) The Company has maintained proper records of Fixed Assets purchases. Howeveras informed to us the

Company is in the process of updating its old records and Fixed Assets Register showingfull particulars including quantitative details and the situation of Fixed Assets.

(b) The Company has a regular program of physical verification of its Fixed Assets bywhich the Fixed Assets are verified in phased manner over a period of time. In accordancewith its program certain Fixed Assets were verified during the year and as informed tous no material discrepancies were noticed on such verification. In our opinion theprogram of verification is reasonable having regard to the size of the Company and thenature its Assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the Company.

(ii) In our opinion and to the best of our knowledge the physical verification ofinventories has been conducted at reasonable intervals by the management of the Company.On the basis of our examination of the records of inventory we are of the opinion thatthe discrepancies noticed on verification between the physical stocks and the book recordswere not material and have been properly dealt with in the books of accounts.

(iii) The Company has not granted any loan secured or unsecured to Companies Firmsor Other Parties covered in the register maintained u/s. 189 of the Companies Act 2013during the year under report. Consequently no comments are necessary on Para (iii) (a)(b) & (c) of CARO 2016.

(iv) The Company has not granted any loans or advances or has not given any guaranteeor has not acquired securities of any other body corporate exceeding sixty percent of itspaid up share capital free reserves and securities premium account or one hundred percentof its free reserves and securities premium account whichever is more and hence thequestion of compliance of Section 185 and 186 of Companies Act 2013 doesn't arise.

(v) The Company has not accepted any deposits within the meaning of Section 2(31) ofthe Companies Act 2013 read with the Companies (Acceptance of Deposits) Rules 2014 andhence the compliance to the directives issued by the Reserve Bank of India and theprovisions of Sections 73 to 76 or any other relevant provisions of the Companies Act andthe Rules framed there under are not applicable. No order has been passed by Company LawTribunal or Reserve Bank of India or any court or any other tribunal.

(vi) In terms of the Companies (Cost Records and Audit) Rules 2014 prescribed by theCentral Government U/s. 148 (1) of the Companies Act 2013 the maintenance of costrecords is not applicable to the company for the year under audit.

(vii) (a) According to the records of the Company the Company is regular in depositingwith appropriate authorities undisputed statutory dues including Provident FundEmployees' State Insurance Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty Value Added Tax and other material statutory dues applicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of Income Tax Wealth Tax Sales Tax Service Tax Customs Duty ExciseDuty Value Added Tax Cess and other material statutory dues applicable to the Companywere outstanding as at 31st March 2017 for a period of more than six monthsfrom the date they became payable.

(b) According to the records of the company there are no dues of Sales Tax IncomeTax Service Tax Customs Duty Excise Duty or Value Added Tax which have not beendeposited on account of any dispute except the following :

Central Sales Tax Demand ' 3291032 for FY 2006-07.

(Matter is pending in appeal before the Appellate Tribunal of Sales Tax.)

(viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the company has not defaulted in repayment ofdues to financial institutions or banks. The Company has not issued any debentures.

(ix) During the year the Company made its initial public offer in March 2017. TheCompany was listed on the BSE SME Platform on 28th March 2017 and total IPOproceeds of Rs. 240.48 lacs were received by the Company. As per information andexplanation given to us since the IPO proceeds were received at the fag- end of thefinancial year the utilization of the same was not completed by the end of the year andthe funds were transferred to the common account of the Company pending utilization forthe purposes for which they were raised. The Term Loans raised during the year has beenapplied for the purpose for which it was raised.

(x) During the course of our audit we have not noticed any fraud done by the Companyor any fraud on the Company by its officers or employees.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the

Company the Company has not entered into non-cash transactions with directors orpersons connected with them. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

FOR Naresh & Co.
Chartered Accountants
(F.R.N. 106928W)
Sd/-
ca anil shah
Date :30/05/2017 Partner
Place: Vadodara (M. R. N. 35309)

Annexure - B to the Independent Auditors' Report

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

We have audited the internal financial controls over financial reporting of CHEMCRUXENTERPRISES LIMITED ("the Company") as on 31st March 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Respective Board of Directors of the Company are responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the 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") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets 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 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 have 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 ICAI.

FOR Naresh & Co.
Chartered Accountants
(F.R.N. 106928W)
Sd/-
Place : Vadodara ca anil shah
Date : 30/05/2017 Partner
(M. R. N. 35309)