The Members of CROWN LIFTERS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of CROWN LIFTERS LIMITED (the'Company') which comprise the Balance Sheet as at 31 st March 2017 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant 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 standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility' also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 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 arc appropnate in the circumstances but not for the purpose of expressing an opinionon whether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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.
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 conformin' 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 31st March
(b) in the case of the Statement of Profit and Loss of the Profit of the Company forthe year ended on that date; and
(c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear 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 by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in the paragraph 3 and 4 of the 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 purposes of our audit
(b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;
(c) The Balance Sheet the Statement of Profit and Loss and tire Cash Flow Statementdealt w ith by this Report are in agreement with the books of account.
(d) In our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow' Statement comply w ith the Accounting Standards referred to under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules. 2014;
(e) On the basis of w ritten representations received from the directors as on 31 stMarch 2017 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31 st March 2017 from being appointed as a director interms in terms of Section 164 (2) of the Act. and
(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'. Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance w'ith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
(i) The Company docs not have any pending litigations which would impact its financialposition _
(ii) The Company did not have any long-term contracts including derivative contracts;as such the question of commenting on any material foreseeable losses thereon does notarise.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
(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 8 November.2016 to 30 December. 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 37 to the financial statements
FOR DEEPAL RANA AND CO. CHARTERED ACCOUNTANTS
Registration N0 24681W
DEEPAL M.RANA PROPRIETOR
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
Re. CROWN LIFTERS LIMITED
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the Financial Statements for the vear ended 31 st March 2017. we report that
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets
(b) The Company has a regular programme of physical venfication of its fixed assets bywhich fixed assets are verified in a phased manner over a penod of three years. Inaccordance with tliis programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets
(c) Company is not having any immovable properties .
(ii) The Company is pnmanly rendering services and accordingly it does not hold anyphysical inventories. However consumable spares have been physically verified dunng theyear by the management The discrepancies noticed on physical verification of the stores ascompared to books records which has been properly dealt with in the books of account werenot material.
(iii) The Company has not granted any loans secured or unsecured to companies firms.Limited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (C) of theOrder are not applicable to the Company and hence not commented upon
(iv) Company has not granted any loans investments guarantees and security withinthe meaning of provisions of section 185 and 186 of the Companies Act. 2013
(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public arc not applicable
(vi) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.
(vii) (a)According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including provident fund income tax sales taxwealth tax. service tax duty of customs value added tax. cess and any other statutorydues with the appropriate authoritics. There was marginal delay in depositing the Taxdeducted at source According to the information and explanations given to us noundisputed amounts payable in respect of the above were in arrears as at 31 st March 2017for a period of more than six months from the date on when they become payable .
(b)Aaccording to information and explanations given to us. die following dues of incometax have not been deposited by the Company on account of disputes:
|Name of statute ||Nature of Dues ||Amount of dues in lakhs ||period to which amount relates ||Forum where dispute pending |
|Income Tax Act 1961 ||Income tax ||49.64 A Y 12-13 CIT (appeal) Mumbai |
(viii) In our opinion and according to the information and explanations given to us.die Company has not defaulted in the repayment of dues to banks The Company has not takenany loan eidier from financial institutions or from the government and has not issued anydebentures
(ix) In our opinion and according to the information and explanations given to uscompany has raised money by way of initial public offer The term loans were applied forthe purposes for which those are raised
(x) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read w ith Schedule V to the CompaniesAct.
(xii) In our opinion the Company is not a Nidhi Company Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company
(xiii) In our opinion all transactions with the related parties arc in compliance withsection 177 and 188 of Companies Act. 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards / ] U
(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewAccordingly the provisions of clause 3 (xiv) of the Order are not applicable to theCompany and hence not commented upon
(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.
(xvi) In our opinion the company is not required to be registered under section 45 1Aof the Reserve Bank of India Act. 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.
ANNEXURE B' TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1(0 under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act. 2013 (the Act')
We have audited the internal financial controls over financial reporting of CROWNLIFTERS LIMITED ( the Company') as of 31 st March 2017 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended and as on that date.
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 (the Guidance Note ).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding 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 Act.
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 Standards on Auditing prescribed under Section 143(10) of the Act and theGuidance Note to the extent applicable to an audit of internal financial controls. ThoseStandards and die Guidance Note require that we comply with the ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material
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 nsk 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 auditors' 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 ofrecords that in reasonable detail accurately and fairly reflect die 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 die 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 Reportjnfl
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management ovemde 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 arc subject to the risk that the internal financial controlsover 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 to the best of our information and according to the explanations 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 31-03-2017 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note
CHARTERED ACCOUNTANTS Registration No.124681W
DEEPAL M.RANA PROPRIETOR