The Members of
EMMSONS INTERNATIONAL LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of EmmsonsInternational Limited (the company')which comprise the Balance Sheet as at 31stMarch 2017the Statement of Profit and Lossthe Cash Flow Statement and a summary ofsignificant accounting policies and other explanatory information for the year then ended.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe CompaniesAct 2013 ("theAct") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financialpositionfinancial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including theAccounting Standardsspecified under Section 133 of theActread with Rule 7 of the Companies (Accounts)Rules2014.This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controlthat were operating effectively for ensuring the accuracy andcompleteness of the accounting recordsrelevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatementwhether 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 theAct 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directorsas well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to usthe 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 Indiaof the state of affairs of the Companyas at 31 March2017 and its loss 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) Order2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 oftheActwe give in theAnnexureAa statement on the matters specified in the paragraph 3 and4 of the Order.
2 As required by section 143(3) of theActwe 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 appears from our 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.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of theActread with Rule 7 of theCompanies (Accounts) Rules2014.
e) On the basis of written representations received from the directors as on 31March2017taken on record by the Board of Directorsnone of the directors is disqualifiedas on 31 March2017from being appointed as a director in terms of Section 164(2) oftheAct;
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controlsrefer to ourseparate report in Annexure B" and
g) With respect to the other matters included in the Auditor's Report in accordancewith amended Rule 11 of the Companies (Audit and Auditors) Amendment Rules2017in ouropinion and to the best of our information and according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 34(d) to the financial statements
ii. The Company do not have any long term contract including derivative.
iii. There has been no delay in transferring amountrequired to be transferred to theinvestor education and protection fund by the company.
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 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management.
For Suresh & Associates
(CA Suresh K. Gupta)
Date : 30th May2017
Place :New Delhi
ANNEXURE -ATOTHE INDEPENDENTAUDITORS' 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 3lMarch 2016we 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 fixed assets are verified in a phased manner. In accordance with this programcertain fixed assets were verified during the year and no material discrepancies werenoticed on such verification. In our opinionthis periodicity of physical verification isreasonable having 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 isreasonable and adequate 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 l89 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 l85 and l86 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 Companythere are some delays in depositingundisputed statutory dues of provident fund employees' state insuranceincome-taxservice tax.On the basis of examination of records of the Companywe havenoticed below mentioned arrears of outstanding statutory dues which remain unpaid for morethan six months from the date these become payable as on the last day of the financialyear.
|Month ||ESI ||EPF ||Service Ta x ||Service Tax Reverse Charge ||Total (Rs ) |
|December-2015 || |
|135213 ||135213 |
|January-2016 || |
|16994 ||1088 ||18082 |
|February-2016 || |
|16994 ||15588 ||32582 |
|March-2016 || |
|16994 ||162546 ||179540 |
|April-2016 || |
|16994 ||1088 ||18082 |
|May-2016 || |
|16994 ||11600 ||28594 |
|June-2016 ||10202 ||494034 ||17580 ||9750 ||531566 |
|July-2016 ||10488 ||494902 ||17580 ||3300 ||526270 |
|August-2016 ||10554 ||465441 ||17580 ||106500 ||600075 |
|September-2016 ||10146 ||462347 ||17580 ||41700 ||531773 |
| ||41390 ||1916724 ||155290 ||488373 ||2601777 |
(b) According to the information and explanations given to us below given dues ofincome tax sales tax service taxexcise dutyvalue added tax and cess have not beendeposited with the appropriate authorities on account of disputes:
|Sno ||Period of Demand ||Amount Involved (Rs. In lacs) ||Particulars of demand ||Appeal pending before |
|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) |
(viii) The company has defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders as given below:.
|SN ||Name of Lender ||Total Amo unt of Default (Rs. In lacs) ||Period of Default |
|1 ||Oriental Bank of Commerce ||48902.31 ||Due between May 2015 to March 2017 |
|2 ||Indian Overseas Bank ||22732.31 ||Due between March 2015 to March 2017 |
|3 ||Bank of Baroda ||8660.73 ||Due between May 2015 to March 2017 |
|4 ||Allahabad Bank ||13248.10 ||Due between July 2 015 to March 2017 |
|5 ||ICICI Bank ||1.43 ||Due between February 2 016 to March 2017 |
| ||TOTA L ||93544.87 || |
(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 ScheduleV to the CompaniesAct.
(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 FinancialStatements 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 Act2013.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of IndiaAct 1934
For Suresh & Associates
M. No. 080050
Date: 30th May 2017
Place: New Delhi.
Annexure - B to the Independent Auditor's Report
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 as at 31st March 2017.
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 Act2013.
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 controlsboth 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 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 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 Trial Balance in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company;and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisitionuseor 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 financialreportingincluding the possibility of collusion or improper management override ofcontrolsmaterial misstatements due to error or fraud may occur and not be detected.Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditionsor that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Company hasin all material respectsan adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For Suresh & Associates
(CASuresh K. Gupta)
Date : 30th May 2017
Place : New Delhi.