To The Members of
INDO EURO INDCHEM LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of INDO EUROINDCHEM LIMITED (the "Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearended and a summary of significant accounting policies and other explanatory information.
MANAGEMENT S RESPONSIBILITY FOR THE STANDALONE FINANCIAL
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) Rules2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the company and for preventing and detecting frauds and other irregularitiesselection and application of appropriate accounting policies making judgments andestimates that are reasonable and prudent and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
AUDITOR S RESPONSIBILITY
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 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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on the auditors 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 but not for the purpose of expressing anopinion on whether the company has in place an adequate Internal Financial Controls SystemOver Financial Reporting and the operating effectiveness of such controls of the entity sInternal Control. 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 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 standalone financial statements.
BASIS FOR QUALIFIED REPORT a) The Company hold old stock which may have less valueno appropriate provisions are made in Accounts.
b) The Company has given Advances where no interest are charged on Debtors include oldDebtors. No timely recoveries are made nor any interests charged on them.
c) Fixed Assets register not updated thus physical assets verification not possible
In our opinion and to the best of our information and according to the explanationsgiven to us the 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 India of the state of affairs of the Companyas at 31st March 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 2017 ("the Order )issued by the
Central Government of India in exercise of powers conferred by sub-section 11 ofsection 143 of the Act we give in the "Annexure A" attached hereto our commentson the matters specified in the paragraphs 3 and 4 of the said Order.
2) As required by sub-section 3 of Section 143 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 reasonable books of account as required by law have been kept bythe Company 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 aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Account) Rules 2014.
(e) On the basis of the 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 terms section164 (2) of the Companies Act 2013.
(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 matters to be included in the Auditor s Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:
1) The Company has disclosed to us no pending litigations are there which effect on itsFinancial Position in its Financial Statements.
2) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
For V. S. LALPURIA & COMPANY.
(Firm No. 105581W)
(V. S. LALPURIA)
Membership No. 15926
Annexure A to the Independent Auditor s Report
THE ANNEXURE A REFERRED TO IN INDEPENDENT AUDITORS REPORT TO THE
MEMBERS OF THE COMPANY ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31MARCH 2017 WE REPORT THAT:
1) a) The Company trying to upto date their records showing full particulars includingquantitative details and situation of fixed assets. b) As explained to us the Company hasphased programs for physical verification of the fixed assets of the company. In ouropinion the frequency of verification is reasonable considering the size of the Company.No material discrepancies are informed on such verification carried on during the year ascompared with the available records.
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 immovable properties areheld in the name of the company.
2) The inventory of Trading Goods has been physically verified by the management atproper intervals which we consider to be reasonable. As informed to us no materialdiscrepancies were noticed on physical verification of inventories as compared to bookrecords.
3) According to the information and explanation given to us the Company s has grantedunsecured loans to companies firms Limited Liability Partnerships or other partieslisted in the register maintained under section 189 of the Companies Act 2013 a) The termand conditions of the grant of such loans are prima facie not prejudicial to the company sinterest. b) In the case of the loans granted the terms of arrangements do notstipulate any repayment schedule and the loans are repayable on demand where the paymentof interest has been stipulated and the receipts thereof are regular. c) There areoverdue amounts for more than ninety days in respect of the loans granted
4) According to the information and explanation given to us In respect of loansinvestments guarantees and security the provisions of section 185 and 186 of theCompanies Act 2013 have been complied with.
5) The company has not accepted any deposits from the public in accordance with theprovisions of sections 73 to 76 of the Act and the Rules framed there under.
6) We have broadly reviewed the books of account maintained by the company pursuant tothe Rules made by the Central Government of India no maintenance of cost records has beenprescribed under sub section (1) of section 148 of the Companies Act 2013.
7) Based on our audit procedures and on the basis of information and explanations givenby the management there is no dues payable to Financial Institution Banks Governmentsor Debenture Holder. The company did not have any outstanding dues to debenture holdersduring the year.
8) In our opinion and according to the information and explanations given to us noterm loan has been taken by the company. The company has not raised any money by way ofInitial public offer or further public offer (Including debt instrument) during the year.
9) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company its officers or employees noticed or reportedduring the year nor have we been informed of such case by the management.
10) According to the information and explanation given to us and based on ourexamination of the books and records of the Company we are of the opinion no managerialremuneration has been paid or provided thus no approval of section 197 read with ScheduleV to the Companies Act is necessary.
11) According to the information and explanation given to us the provisions of anySpecial Statute applicable to Nidhi Companies are not applicable to the Company.
12) According to the information and explanation given to us and based on ourexamination of the records all the transactions with related parties are in compliancewith section 177 and 188 of the Companies Act 2013 and all the details have beendisclosed in the financial statements as per Accounting Standard-18.
13) According to the information and explanation given to us and based on ourexamination of the records of the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review.
14) According to the information and explanation given to us and based on ourexamination of the records of the Company has not entered into any non-cash transactionsduring the year with directors or persons connected with him.
15) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For V. S. LALPURIA & COMPANY CHARTERED ACCOUNTANTS (Firm No. 105581W)
(V. S. LALPURIA) Proprietor
Membership No. 15926
Annexure B to the Independent Auditor s Report
ANNEXURE B TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE ON THE
STANDALONE FINANCIAL STATEMENTS OF INDO EURO INDCHEM LIMITED (FORMARLY KNOWN AS RINKUPOLYCHEM LIMITED).
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 INDO EUROINDCHEM
LIMITED ("the Company") as of March 31 2017 in conjunction with our audit ofthe standalone 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 ("ICAI") Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company s policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 ofrecords that in reasonable detail accurately and fairly reflect the 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 the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 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 year are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has no adequate internal financial controls system overfinancial reporting as there is slow moving stock slow paying debtors no returns oninvestments and no returns on investment in leasehold land and factory building as atMarch 31 2017 as stated in the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting issued by the
Institute of Chartered Accountants of India".
For V. S. LALPURIA & COMPANY. CHARTERED ACCOUNTANTS (Firm No. 105581W)
Sd/- (V. S. LALPURIA) Proprietor
Membership No. 15926