To the Members of DELTRON LIMITED
We have audited the accompanying financial statements of DELTRON LIMITED whichcomprise the Balance Sheet as at 31st March 2017 the Statement of Profit andLoss the Cash Flow Statement for the year then ended and a summary of the significantaccounting 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 Section 134(5) of the Companies Act 2013 with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent and designimplementation and maintenance of adequate internal financial controls that wereoperating 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 mis-statement whether due to fraudor error.
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 theappropriateness of the 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the afore said 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 of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows 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 (CARO)issued by the Central Government of India in terms of section 143 of the Act we give inthe Annexure-I a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section143 (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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In our opinion the afore said 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 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164(2) of the Act.
f) A report on presence of internal financial controls system and the operatingeffectiveness of such controls as required under clause (i) of sub-section 3 of Section143 of the Companies Act 2013 is given in Annexure-II.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 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 does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts outstanding which were required to be transferred to theInvestor Education and Protection Fund by the Company as on 31st March 2017.
iv. The company has provided requisite disclosures in the financial statements as toholdings as well as dealings in specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the company and as produced to us by the Management - ReferNote.31 of financial statements.
The Annexure referred to in paragraph 1 of Report on Other Legal and RegulatoryRequirements of our Report of even date to the
members of DELTRON LIMITED on the accounts of the Company for the year ended 31* March2017.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course
of our audit we report that:
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed
(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us title deed of immovableproperty is held in the name of the company during the financial year ended on 31stMarch 2017.
2. As explained to us inventories have been physically verified during the year by themanagement and no material discrepancies were noticed. In our opinion the frequency ofverification is reasonable.
3. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clauses (iii)(a) (iii)(b) and (iii)(c) of the CARO are not applicable tothe Company.
4. There were no transactions of the nature as covered under section 185 and 186 of theCompanies Act 2013; hence Clause (iv) of the CARO is not applicable.
5. The Company has not accepted any deposit. Therefore the clause 3(v) of CARO is notapplicable to the Company.
6. Clause 3(vi) of CARO is not applicable as the Company is not engaged in productionof such goods and providing such services as prescribed by Central Government formaintenance of cost records.
7. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account generally
the Company is regular in depositing the undisputed statutory dues including ProvidentFund Employees' State Insurance Income-tax Sales-tax Wealth Tax Service Tax duty ofcustoms duty of excise value added tax cess and any other statutory dues asapplicable with the appropriate authorities. According to the information andexplanations given to us there were no outstanding statutory dues as on 31st of March2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us there is no amountpayable in respect of income tax wealth tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues which have not been depositedon account of any disputes.
8. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto financial institution bank Government or dues to debenture holders during thefinancial year ended on 31st March 2017.
9. Based on our audit procedures and on the information given by the management wereport that the company has not raised any money by way of initial public offer furtherpublic offer or by way of term loans during the year. Therefore the clause 3(ix) of CAROis not applicable to the Company.
10. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year.
11. As per information and explanations given to us by the Company managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013.
12. The Company is not a Nidhi Company; hence clause (xii) of the CARO is notapplicable.
13. Based on the audit procedures performed and the information and explanations givento us all transactions with the related parties are in compliance with Section 177 andSection 188 of Companies Act 2013 and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.
14. The Company has not made any preferential allotment or private placement of sharesduring the financial year ended on 31st March 2017; hence clause (xiv) is notapplicable.
15. According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him
16. Clause (xvi) of the Order is not applicable as the company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.
The Annexure referred to in paragraph 2 of Report on Other Legal and RegulatoryRequirements of our Report of even date to the members of DELTRON LIMITED on the InternalFinancial Controls required under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013.
We have audited the internal financial controls over financial reporting of DELTRONLIMITED as of March 312017 in conjunction with our audit of the standalone financialstatements of the Company for the year ended 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. 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.
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 Reportingand the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. 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 financial reporting includes those policiesand 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 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.
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 31 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 Institute of CharteredAccountants of India.
| ||As per our report of even date attached |
| ||for RAGHU NATH RAI & CO. |
| ||Chartered Accountants |
| || |
Firm Regn. No. 000451N
| ||SAMIR JAIN |
|New Delhi ||Partner |
|26.05.2017 ||Memb. No. 77010 |