To the Members of Innovators Facade Systems Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Innovators FacadeSystems Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
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 financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
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 standalone financial statements.
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 2018 and its profit and its cash flows forthe 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" statement on the matters specified in theparagraphs 3 and 4 of the Order.
2. As required by Section 143(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 aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer ourseparate report in Annexure "B";
(g) With respect to the other matters to be included in the Auditor's 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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer NoteNo.30(ii) to the standalone financialstatements;
(ii) As informed to us by the management the Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For SGCO & Co. LLP
Firm's Registration No. 112081W/W100184
Mem. No. 44739
Date: 25th August 2018
Annexure "A" to the Independent Auditors Report
The Annexure referred to in Paragraph 1 under the heading "Report on Other Legaland Regulatory Requirements "in our Independent Auditor's Report to the members ofthe Company for the year ended 31 st March 2018.
As required by the Companies (Auditors Report) Order 2016 and according to theinformation and explanations given to us during the course of the audit and on the basisof such checks of the books and records as were considered appropriate we report that:
(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Fixed Assets have been physically verified by the management in accordance witha phased programme of verification which in our opinion is reasonable considering thesize and the nature of its assets. Pursuant to the program certain fixed assets has beenverified during the year. The frequency of verification is reasonable and no materialdiscrepancies have been noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the title deeds of immovable properties are held inthe name of the Company.
(ii) The inventories have been physically verified by the management during the year atreasonable intervals. The procedures of physical verification of the inventories followedby the management are reasonable and adequate in relation to the size of the Company andthe nature of its business. No material discrepancies were noticed on physicalverification as compared to book records which have been properly dealt with in the booksof accounts.
(iii) During the year the Company has not granted any loans to the parties covered inthe register maintained under Section 189 of the Act. Hence paragraph 3 (iii) (a) (b) and(c) of the said Order are not applicable to the Company.
(iv) a) In our opinion and according to the information and explanation given to ussince the Company has not granted any loan the provisions of Section 185 of the CompaniesAct 2013 are not applicable.
b) With regards to investments in Securities made by the company the company hascomplied with the provisions of Section 186 of the Companies Act 2013. Further thecompany has not granted any loan or given any guarantee or provided any security to anyother body corporate under Section 186 of the Act.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has prescribed the maintenance of cost record under Section148(1) of the Act. We have not reviewed the cost records maintained by the Company butbased on the information submitted by the Company we are of the view that such accountsand records have been made and duly maintained.
(vii) a) Accordingly to the records of the Company the undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxGoods and services tax duty of Customs duty of Excise Value Added Tax Cess and otherstatutory dues wherever applicable have regularly been deposited with the appropriateauthorities. According to the information and explanations given to us there are noundisputed amounts payable except Service tax amounting to Rs.1234990/- and VATamounting to Rs.333831/- which have remained outstanding as at 31st March 2018 for aperiod more than six months from the date they became payable.
b) According to the records of the Company Income Tax Sales Tax Service Tax Goodsand services tax. Duty of Customs Duty of Excise and Value Added Tax which have not beendeposited on account of any dispute with the relevant authorities are given below:
|Name of Statute ||Amount (Rs. in lakhs ||Period to which amount relates ||Forum where dispute is pending |
|Sales Tax ||972591/- ||F.Y.2011-12 ||Sr. Joint Commissioner (West Bengal Sales Tax) |
(viii) As per the information and explanations given by the management the Company hasnot defaulted in repayment of its dues to banks and financial institutions and has notissued debentures.
(ix) The company did not raise money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the order is not applicable.
(x) According to the information & explanations given to us no fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.
(xi) According to the information and explanations given to us and based on ourexaminations of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable.
(xiii) According to the information and explanation given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with provisions of section 177 and 188 of the Act where applicable. Thedetails of such related party transactions have been disclosed in the financial statementsas required under Accounting Standard (AS) 18 Related Party Disclosures specified undersection 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules2014.
(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company during the year the Company has made privateplacement of equity shares in compliance with section 42 of the Companies Act and rulesframed thereunder and also the amount raised have been used for the purposes for whichthe funds were raised. The company however has not made any preferential allotment orprivate placement of fully or partly convertible debentures during the year.
(xv) According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with the directors or persons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.
(xvi) In our opinion and according to the information and explanation given to us theCompany is not required to be registered under section 45-1A of the Reserve Bank of IndiaAct 1934.
For SGCO & Co. LLP
Firm's Registration No. 112081W/W100184
Mem. No. 44739
Date: 25th August 2018