TO THE MEMBERS OF CLASSIC ELECTRICALS LIMITED REPORT ON STANDALONE FINANCIALSTATEMENTS.
We have audited the accompanying standalone financial statements of M/s.ClassicElectricals Limited (the Company') which comprise the balance sheet as at 31 March2017 the statement of profit and 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 matter stated in section 134(5)of the Companies Act2013 (The Act) with respect to the preparation and presentation ofthese Financial statements that give a true and fair view of the financial position andfinancial performance and cash flow of the Company in accordance with the Accountingprinciples generally accepted in India including the accounting standards specifiedu/s.133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the Assets of the company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgments and estimates that are reasonable and prudent anddesign implementation and maintenance of the adequate internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecord relevant to the preparation and presentation of financial statements that give atrue and fair view 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 and the rules made thereunderincluding the accounting and auditing standards and matters which ^re required to beincluded in the Audit report under the provisions of the Act dnd the Rules madethereunder.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act and other applicable authoritative pronouncement issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 and its profit and its cash flow for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
l) As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government of India in terms of sub Section 11 of section 143 of theAct("the Order") and on the basis of such checks of the books and records ofthe company as we considered appropriate and according to information and explanationsgiven to us we give in the
"Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.
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 account as required by law have been kept by theCompany so far as appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and cash flow statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with AccountingStandards specified under section 133 of the Act read with the Rule 7 of the Companies(Accounts) Rules2014.
e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.
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"; and
g) With respect to the other matters to be included in the Auditors report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanation given to us'
l) The Company has disclosed the impact of pending litigation on its
financial position in its financial statements -Refer Note No. 18 to the financialstatements.
2) The Company did not have any long term contracts including
3) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
4) The Company has provided requisite disclosure in its financial
statements as to holdings as well as dealings in Specified Bank Notes (SBN) during theperiod from November 082016 to December 302016 and these are in accordance with books ofaccounts maintained by the Company. (Refer Note No.28)
|./far A. C. MOD I & ASSOCIATES |
|Chartered Accountants |
|Firm's registration nuthber.^. 55W |
|Membership number: 101342 |
|Place: Mumbai |
|Date: 30th May 2017. |
Annexure - A to the Auditors' Report
The Annexure referred to in Independent Auditors' Report to the members of the
Company on the standalone financial statements for the year ended 31 March
2017 we report that:
1. In respect of its fixed assets:
a) The Company has generally maintained proper records showing full particularsincluding quantitative detail and situation of fixed assets on the basis of availableinformation.
b) As explained to us the physical verification of the fixed assets was conducted bythe management during the year which in our opinion is reasonable having regard to thesize of the company and nature of its assets. There was no material discrepancies noticedon such verifications.
2. In respect of its inventories:
The company does not engaged in the business of manufacturing marketing and processingof any goods and articles. Accordingly it does not hold any physical inventories. Thusthe paragraph 3(ii) of the order is not applicable.
3. In respect of loan given:
a) According to the information and explanations given to us the company has grantedunsecured loans to the persons covered under the register maintained u/s.189 of theCompanies Act2013 (The Act). In respect of which:
i. The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the company's interest.
ii. The schedule of repayment and payment of interest if any has not been stipulatedand in the absence of such schedule we are unable to comment on the regularity ofrepayments or receipts of pi'incipal amounts and interest.
iii. There is no overdue amount remaining outstanding at the year end.
4. In our opinion and according to the information and explanations given to us theCompany has not given any loans or made any new investment during the year and hencereporting related to compliance with the provisions of section 185 and 186 of the Act doesnot required.
5. The company has not accepted any deposits from the public within the meaning ofsection 73 to 76 of the Act and the Rules framed thereunder to the extent notified.
6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act.
7. In respect of statutory dues-
a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of state insurance and duty of excise. According to the Information andExplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 2017 for a period of more than six months from the dateof becoming payable.
b) Details of Dues of Income Tax Sales Tax Service Tax Custom Duty Excise Duty andValue Added Tax which have not been deposited as on 31st March 2017 on accountof disputes are given below:
|Name of Statute ||Nature of Dues ||Forum where dispute is pending ||Period to which amount relates ||Amount Unpaid (Rs. In Lacs) |
|Income Tax Act 1961 ||Income Tax ||CIT Appeals Mumbai ||2013-14 ||11.43 |
|Income Tax Act 1961 ||Income Tax ||CIT Appeals Mumbai ||2014-15 ||145.25 |
c) According to the information and explanations given to us there are no any amountrequired to be transferred to investor education and protection fund in accordance withthe relevant provisions of the Companies Act 1956 (1 of 1956) and rules made thereunder.
8. The Company does not have any loans or borrowings from any financial institutionbanks government or issued debenture till the end of the financial year. Accordinglyparagraph 3 (viii) of the Order is not applicable
9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.
10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not paid/provided formanagerial remuneration and Accordingly paragraph 3 (xi) of the Order is not applicable.
12. 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.
13. 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.
14. 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.
15. 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-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
16. The Company is not required to be registered under section 45TA of the Reserve Bankof India Act 1934.
|For A.C.MODI & ASSOCIATES |
|Chartered Accountcmts |
|Firm's registration numhgr: 1J6555W |
|ALPESH C.MODI |
|Membership number: 101342 |
|Place: Mumbai |
Annexure - B to the 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 M/s.ClassicElectricals Limited (the Company') as of 31 March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Management's 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 (ICAT). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 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 and maintained andif such controls operated effectively in all material respects.