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Emmsons International Ltd.

BSE: 532038 Sector: Others
NSE: N.A. ISIN Code: INE073C01015
BSE 00:00 | 03 Mar Emmsons International Ltd
NSE 05:30 | 01 Jan Emmsons International Ltd
OPEN 2.03
PREVIOUS CLOSE 2.03
VOLUME 50
52-Week high 5.09
52-Week low 2.03
P/E
Mkt Cap.(Rs cr) 2
Buy Price 2.24
Buy Qty 10.00
Sell Price 2.03
Sell Qty 750.00
OPEN 2.03
CLOSE 2.03
VOLUME 50
52-Week high 5.09
52-Week low 2.03
P/E
Mkt Cap.(Rs cr) 2
Buy Price 2.24
Buy Qty 10.00
Sell Price 2.03
Sell Qty 750.00

Emmsons International Ltd. (EMMSONSINTL) - Auditors Report

Company auditors report

To

The Members of Emmsons International Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of EmmsonsInternational Limited ("the Company") which comprise the Balance Sheet asat March 31 2018 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and a summary of the significant accounting policies and information.

Management's Responsibility for the Standalone 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

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 financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under section 143(11) of the Act.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone Ind AS financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 and its loss total comprehensive income the changes inequity 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 ("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 in the paragraph3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit we report that: a) wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) in our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) the Balance Sheet the Statement of Profitand Loss including Other Comprehensive Income Statement of Changes in Equity and theStatement of Cash Flow dealt with by this Report are in agreement with the books ofaccount. d) in our opinion the aforesaid standalone Ind AS financial statements complywith the Indian Accounting Standards prescribed under section 133 of the Act read withrelevant rules issues thereunder. e) on the basis of the written representations receivedfrom the directors of the Company as on March 31 2018 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2018 from being appointedas a director in terms of Section 164(2) of the Act. f) with respect to the adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B ".

Our report expresses an unmodified opinion on the adequacy and operating effectivenessof the Company's internal financial controls over financial reporting. g) with respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best ofour information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position in its standaloneInd AS financial statements - refer note 42 (b) to the standalone Ind AS financialstatements. ii. There are no material foreseeable losses on long term contracts includingderivative contracts therefore no such provision is required to be made. iii. There hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Akhil Mittal & Co.

FRN: 026177N

Chartered Accountants

Sd/-

(CA Akhil Mittal)

Partner M. No. 517856

Date : 6th June 2018

Place : New Delhi

Annexure – A to the Independent Auditors' Report

Statement on the matters specified in paragraph 3 and 4 of the Companies (Auditor'sReport) Order 2016

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31March 2018 we reportthat:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular program of physical verification of its fixed assets bywhich verified in a phased manner. In accordance with this program certain fixed assetswere verified during the year and no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verificationis reasonablehaving regard to the size of the Company and the nature of its assets.

(c) According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deeds of the immovable properties areheld in the name of the company.

(ii) (a) The management of the Company has conducted the physical verification ofinventory at reasonable intervals during the year.

(b) The procedure of physical verification of inventory followed by the management isadequate in relation to the size of the Company and nature of its business.

(c) The Company has maintained the proper records of inventory and no materialdiscrepancies were noticed on physical verification.

(iii) The Company has not granted any loans to companies firm or other parties coveredin the register maintained under section 189 of the Companies Act 2013 (‘theAct').Accordingly paragraph 3(iii) of the order is not applicable.

(iv) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has duly complied with theprovisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security.

(v) The Company has not accepted any deposits under provisions of sections 73 to 76 orany other relevant provisions of the Companies Act 2013.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the company is generally regular indepositing undisputed statutory dues of provident fund employees' state insuranceincome-tax service tax and GST.

(b) According to the information and explanations given to us below given dues ofincome tax sales tax service taxexcise duty value added tax and cess have not beendeposited with the appropriate authorities on account of disputes:

S. No. Period of Demand Amount Involved Particulars of demand Appeal pending before
(Rs. In Lacs)
1 A.Y. 2004-05 8.60 Income Tax CIT (A)
2 A.Y. 2012-13 465.25 Income Tax CIT (A)
3 A.Y. 2013-14 23.43 Order by CPC-TDS u/s 154 CIT (A)
4 A.Y. 2014-15 2.71 Order by CPC-TDS u/s 154 CIT (A)
5 A.Y. 2013-14 401.58 Income Tax CIT (A)
6 A.Y. 2014-15 579.13 Income Tax CIT (A)

(viii) The company has defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders as given below:

S.No Name of Lender Total Amount of Default (Rs. In Lacs) Period of Default
1 Oriental Bank of Commerce 61933.40 Due between May 2015 to March 2018
2 Indian Overseas Bank 31136.58 Due between March 2015 to March 2018
3 Bank of Baroda 19358.12 Due between May 2015 to March 2018
4 Allahabad Bank 19001.33 Due between July 2015 to March 2018
TOTAL 131429.43

(ix) In our opinion and according to the information and the explanations given to usthe company has not raised any moneys by way of initial public offer or further publicoffer (including debt instruments) and term loans were applied for the purposes for whichthose are raised.

(x) In our opinion no material fraud by the company or on the Company by its officersor employees has been noticed or reported during the course of our audit.

(xi) In our opinion and according to the information and the explanations given to usand based on examination of records of the company the company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

(xii) In our opinion and according to information given to us the company is not anidhi Company. Accordingly paragraph 3(xii) of the order is not applicable.

(xiii) In our opinion and according to the information and the explanations given to usand based on our examination of the records of the company all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereever applicable and the details of such transactions have been disclosed in the StandaloneInd AS Financial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given 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.

(xv) According to the information and the explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him underthe provisions of section 192 of Companies Act 2013.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934

ForAkhil Mittal & Co.
FRN: 026177N
Chartered Accountants
Sd/-
(CA Akhil Mittal)
Partner
M. No. 517856
Date : 6th June 2018
Place : New Delhi

Annexure - B to the Independent Auditor's Report of even date on the Standalone Ind ASfinancial statements of Emmsons International Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of EmmsonsInternational Limited (‘the company') as of March 31 2018 in conjunction withour audit of the standalone financial statements of 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 reporting on"theinternalcontroloverfinancial criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India(‘ICAI'). 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 safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial basedon our audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe 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 Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficientand 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 is a process designed to provide reasonable internal financialcontrol over financial and the preparation of financial statements for external assuranceregarding the reliability of financial purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes 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 in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

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 2018 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.

For Akhil Mittal & Co.

FRN: 026177N

Chartered Accountants

Sd/-

(CA Akhil Mittal)

Partner M. No. 517856

Date : 6th June 2018

Place : New Delhi