Eastern Gases Ltd.
|BSE: 540790||Sector: Others|
|NSE: N.A.||ISIN Code: INE846C01014|
|BSE 00:00 | 06 Sep||Eastern Gases Ltd|
|NSE 05:30 | 01 Jan||Eastern Gases Ltd|
|BSE: 540790||Sector: Others|
|NSE: N.A.||ISIN Code: INE846C01014|
|BSE 00:00 | 06 Sep||Eastern Gases Ltd|
|NSE 05:30 | 01 Jan||Eastern Gases Ltd|
To the Members of EASTERN GASES LIMITED
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of EASTERN GASESLIMITED ("the Company") which comprise the Balance Sheet as at March 312017 the Statement of Profit and Loss the Cash Flow statement for the year then endedand a summary of significant accounting policies and other explanatory information.
Management Responsibility for the Ind AS 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 preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance and cash flow of the company in accordance with theaccounting principles generally accepted in India including the Accounting StandardSpecified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the company andfor preventing and detecting frauds and other irregularities selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financial controlthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.
We have taken into account the provisions of the Act and the Rules made there underincluding the accounting and matters which are required to be included in the auditreport.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards and pronouncement require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditors judgment including the assessment of the risk s of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols . An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation n of the Ind AS financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe 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 March31 2017 and its profit and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 Act we give in the Annexure A' a statement on the matters specified inparagraph 3 and 4 of the order.
1. As required by section 143(3) of the Act we report that:
a) We have sought obtained all the information and explanations which to the best ofour 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 and 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 aforesaid Ind AS financial Statement comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March 312017 and 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 explanations given to us:
i) the Company does not have any major pending litigations as at March 31 2017 whichwould impact its financial position.
ii) the Company did not have any long - term contracts including derivative contractsfor which there were any material foreseeable losses.
iii) there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year end.
iv) the Company has provided requisite disclosures in its Ind AS Financial statementsas to holdings as well as dealings in Specified Bank Notes during the period from 8November 2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 13A to the Ind AS financial statements.
Annexure to the Auditors' Report
The 'Annexure A' referred to in our report to the members of EASTERN GASES LTD. for theyear ended on March 31 2017. We report that:
(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b)The fixed assets have been physically verified by the management at reasonableintervals and in our opinion it is reasonable considering the size of company and natureof asset no such material discrepancies were noticed on such verification and if so thesame have been properly dealt with in the books of account;
(c) The title deeds of immovable properties are held in the name of the company.
(ii) (a) Physical verification of inventory including stock with thirdparties has been conducted at reasonable intervals by the management and if any materialdiscrepancies were noticed on physical verification the same have been properly dealtwith in the books of account;
(b) Debit and Credit balances are subject to confirmation.
(iii) The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act.
(iv) The company has not given any loans investments guarantees and security underthe provisions of section 185 and 186 of the Companies Act.
(v) The company has not accepted deposits from the public within the meaning ofsections 73 and 74 or any other relevant provisions of the Companies Act and the rulesframed there under.
(vi) Maintenance of cost records has not been specified by the Central Government undersubsection (1) of section 148 of the Companies Act.
(vii) (a) According to our information and explanation given to us and as per therecords of the company the company has been regular generally regular in depositing theundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand any other statutory dues with the appropriate authorities. There are no arrears ofundisputed statutory dues of material nature outstanding for a period of more than sixmonths
(b) Dues of income tax or sales tax or service tax or duty of customs or duty of exciseor value added tax or cess have not been deposited on account of any dispute then theamounts involved and the forum where dispute is pending have been mentioned below-
(A mere representation to the concerned Department is not considered as a dispute).
[viii] According to the information and explanations given to us and as per ourverification of the records of the company there had been delays/default in payment ofinstallments and interest on term loan/short term loan to the banks during six monthsending 31st March 2017. Repayment of term loan principal remain due and unpaid to the bankis Rs. 1.59 crs for period within six months as on year ending 31st March 2017. Repaymentof interest remain due and unpaid to the bank is Rs. 1.89 cr (approx..) for period of sixmonths as on year ending 31st March 2017. Disputed principle / interest have not beenrecognised and would be recognised on settlement of dispute.
(ix) In our opinion and accordance to the information and explanation given to us thecompany has not moneys raised by way of initial public offer or further public offer(including debt instruments) and term loans during the year. The term loans have beenapplied on an overall basis for the purpose for which the loans were obtained.
(x) In our opinion and accordance to the information and explanation given to us wehave not came across any instance of material fraud by the company or any fraud on thecompany by its officers or employees has been noticed or reported during the year norhave been informed of any such case by the management.
(xi) In our opinion managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with scheduleV to the Companies Act.
(xii) In our opinion and the information given by the management the company is notthe Nidhi Company. The provisions of Companies (Auditors' Report) Order 2016 Para 3Clause (xii) is not applicable to the company.
(xiii)In our opinion and the information given by the management alltransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act wherever applicable if any.
(xiv)According to our information and explanation given to us and as per therecords maintained the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. The provisions of Companies (Auditors' Report) Order 2016 Para 3 Clause (xiv) isnot applicable to the company.
(xv)According to our information and explanation given to us the company hasnot entered into any non- cash transactions with directors or persons connected with him.The provisions of Companies (Auditors' Report) Order 2016 Para 3 Clause (xv) is notapplicable to the company.
(xvi)The company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934. The provisions of Companies (Auditors' Report) Order2016 Para 3 Clause (xvi) is not applicable to the company.
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 EASTERNGASES LIMITED ("the Company") as of March 31 2017 in conjunction with our auditof the Ind AS financial statements 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 168 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 judgement including the assessment of the risks ofmaterial misstatement of the Ind AS 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial 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"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".