THE MEMBERS OF
CREATIVE PERIPHERALS AND DISTRIBUTION LIMITED.
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of CREATIVE PERIPHERALS ANDDISTRIBUTION LIMITED ("the company") which comprise the Balance Sheet as at 31March 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility forthe Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe 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 read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 undertheprovisions 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 aboutwhetherthe 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 our judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments we considersinternal financial control relevant to the Company's preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany's Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the 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 31-Mar-2017 and its Profit and its cash flow 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 (the Order) issued bythe Central Government in terms of Section 143 (11) of the Act we enclosed in theannexure a statement on matters specified in paragraph 3 & 4 of 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 forthe purposes of our audit.
b) In our opinion proper books of account as required by law relating to preparation ofthe standalone financial statements have been kept by the Company so far as appears fromour 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 maintained forthe purposeof preparation of these standalone financial statements.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 as applicable^)
e) In our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the Company.
f) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
g) Report on the Internal Financial Controls under Clause (1) of Sub-section 3 ofsection 143 of the companies Act 2013 ("the Act")- is enclosed an annexure tothis report.
h) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to ourbest of our information and according to the explanations given to us:
i] As informed to us the Company does not have any pending litigation which wouldimpact on its financial position.
ii] The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii] The Company does not have any amount which requires transfer to the InvestorEducation and Protection Fund.
For S K THANAWALA AND CO.
(Firm Reg No. 110951W)
Membership No. 013722
Date - 3rd August 2017
Place - Mumbai
ANNEXURETOTHE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS
(Referred to in paragraph 2(g) under' Report on Other Legal and RegulatoryRequirements' section of our report of even date Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")
We have audited the internal financial controls over financial reporting of CreativePeripherals and Distribution Limited ('the Company') as of 31-Mar-2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required underthe 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 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 judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.
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 authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 inconditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31-Mar-2017.
For S K THANAWALA AND CO.
(Firm Reg No. 110951W)
S. K. JAIN
Membership No. 013722
Date - 3rd August 2017
Place - Mumbai
ANNEXURETOTHE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under' Report on Other Legal and Regulatory Requirements'section of our report of even date)
Report on Companies (Auditor's Report) Order 2016 ('the Order') issued by the CentralGovernment in terms of Section 143(11) of the Companies Act 2013('the Act') Referred toin of our report of even date
In terms of the information and explanations sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that: -
1) In respect of the Company's fixed assets:
a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) As explained to us all the assets have been physically verified by the managementduring the year in accordance with a regular programme of verification which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such verification.
c) The company does not have any immoveable property.
2) As explained to us the inventory has been physically verified at reasonableintervals during the year by the management. In our opinion the frequency of verificationis reasonable. No material discrepancies were noticed on physical verification.
3) As explained to us the company has not granted any loans secured or unsecured toany companies firms Limited Liability Partnerships or other parties covered in theregister maintained under section 189 of the Act.
4) In our opinion and according to the information and explanation given to us thecompany has complied with the provisions of section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.
5) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits in contravention of Directives issued by ReserveBank of India and the provisions of section 73 to 76 or any other relevant provisions ofthe Act and the rules framed there under where applicable. No order has been passed bythe Company Law Board or National Company Law Tribunal or Reserve Bank of India or anycourt or any other tribunal.
6) It has been explained to us that the maintenance of cost records has not beenprescribed under section 148(1) of the Act.
7) a.) According to the records of the company the company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income tax sales tax wealth tax service tax customduty excise duty Cess and other material statutory dues applicable to it.
b. ) According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax Service Tax sales tax custom duty exciseduty and Cess were in arrears as at 31-Mar-2017 for a period of more than six months fromthe date they became payable.
c. ) According to the information and explanations given to us the dues of sales taxincome tax that have not been deposited with appropriate authorities on account of anydispute and the forum where the disputes are pending are given below
|Name of the Statute ||Forum where dispute is pending ||Period to which amount relates ||Amount (Rs.) |
|MVAT ||Jt. Commissioner of Sales Tax (Appeals) ||2009-10 ||165267 |
|Income Tax ||CIT Appeal Order ||2008-09 ||433110 |
|Income Tax ||Assessing Officer ||2007-08 ||551487 |
|Income Tax ||Assessing Officer ||2010-11 ||2140 |
There were no dues of wealth tax Service Tax custom duty excise duty and Cess whichhave not been deposited as at 31-Mar-2017 on account of dispute.
8) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion the company has not defaulted in repayment of loans orborrowings to a financial institution bank or Government. The Company has not issued anydebentures.
9) The companies initial public offer isopen as on 31st March 2017andthemoney received is used for the purposes for which it was raised. The moneys raised by wayof term loans were applied for the purposes for which those were raised.
10) Based upon the audit procedures performed and according to the information andexplanations 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 course of our audit thatcauses the financial statements to be materially misstated.
11) The company was a private limited company till 28th February 2017 and sothe provisions of section 197 read with Schedule V to the Companies Act regardingManagerial remuneration was not applicable to the company as it is a private limitedcompany. After becoming a limited company the company has complied with section 197 readwith Schedule Vto the Companies Act.
12) The company is not a Nidhi Company hence this clause is not applicable.
13) Based upon the audit procedures performed and according to the information andexplanations given to us all transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the standalone financial statements etc. as required by the applicableaccounting standards.
14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review however the companyhas issued bonus shares during the year under review. The requirement of Section 42 of theCompanies Act 2013 have been complied with and the amount raised have been used for thepurposes for which the funds were raised.
15) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedto its Directors and hence provisions of Section 192 of the Act are not applicable.
16) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For S K THANAWALA AND CO.
(Firm Reg No. 110951W)
Membership No. 013722
Date-3rd August 2017
Place - Mumbai.