TO THE MEMBERS OF KEMISTAR CORPORATION LIMITED AHMEDABAD
Report on the Standalone Financial Statements
I have audited the accompanying standalone financial statements of KEMISTARCORPORATION LIMITED("The Company") which comprise the Balance Sheet as atMarch 31 2018 and the Statement of Profit and Loss Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as standalone financial statements').
Managements' Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matter stated in section 134(5)of The Companies Act 2013 ("The Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprinciple generally accepted in india including the Indian Accounting Standards Specifiedunder section 133 of the Act read with relevant rules issued there under. Thisresponsibility also includes maintenance of adequate accounting records in accordance withprovision of the act for safeguarding of assets of the company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimate that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and free from material misstatement weather dueto fraud or error.
My responsibility is to express an opinion on these standalone financial statementsbased on my audit. I have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. I have conducted my audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.Those standards require that I comply with the ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the standalone financial statementsare free from material misstatement. An audit involves performing procedures to obtainaudit evidence about the amounts and disclosures in the standalone financial statements.The procedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error. In making those risk assessments the auditor considers internal controlrelevant to the Company's preparation and fair presentation of the standalone financialstatements in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Company has in place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the standalone financialstatements. I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion on the standalone financialstatements.
In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India a) in the case of the Balance Sheet ofthe state of affairs of the Company as at March 31 2018; and b) in the case of theStatement of Profit and Loss Account of the Profit 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")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act I give in the Annexure "1" a statement onthe matter specified in paragraph 3 and 4 of the order.
2. As required by section 143(3) of the Act I report that:
a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purpose of my audit;
b) In my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books;
c) The Balance Sheet and Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
d) In my 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 written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of section 164(2) of theAct.
f) With respect to adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to myseparate report in
g) As required by the rule 11 of the companies (Audit and Auditors) Rules 2014 and inour opinion and to the best of our information and according to the explanation given tome:
i). The company is not having any pending litigation and hence there is no furthercomments required.
ii). The company has not incurred any material foreseeable losses on long termcontracts including derivative contracts hence no provision for such losses required.iii). There were no amounts which were required to be transferred to the investoreducation and protection fund by the company hence no further comment is required in thismatter.
|PLACE : AHMEDABAD ||For GAURAV N. ZINZUWADIYA |
|DATE : 30th May2018 ||CHARTERED ACCOUNTANTS |
| ||Sd/- |
| ||(CA Gaurav Zinzuwadiya) |
| ||PROPRIETOR |
ANNEXURE "1" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph 1 Report On Other Legal and Regulatory Requirements of MyReport of even date on the Accounts for the year ended on 31st March 2018 ofKEMISTAR CORPORATION LIMITED.)
1. In respect of its fixed assets:-
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The fixed assets have beenphysically verified by the management at reasonable intervals. According to informationand explanation given to me no material discrepancies were noticed on such physicalverification. (c) The company is holding title deed in its name for the immovableproperty. There is no such assets for which the company is not holding a title deed.
2. 2. In respect of its inventories:-
(a) Inventories have been physically verified by the management at reasonably regularintervals during the year. (b) In my opinion and according to the information andexplanation given to me the procedures of physical verification of inventories followedby the management are reasonable and adequate in relation to the size of the Company andthe nature of its business. (c) The Company has maintained proper records of inventories.As explained to me there were no material discrepancies noticed on physical verificationof inventory as compared to the book records.
3. The Company has not granted any secured or unsecured loans to Companies Firms orother parties covered in the register maintained under Section 189 of the Companies Act2013. Therefore no further comments are required to be made.
4. As per information and explanation provided to me and as per my opinion the companyhas complied with the provisions of the section 185 and 186 of the Companies Act 2013.Hence no further comments are required in respect of loans investment guarantees andsecurity.
5. 5. The Company has not accepted any deposits from public. Consequently thedirectives issued by the Reserve bank of India read with the provisions of Section 73 to76 or any other relevant provisions of the Companies Act 2013 and theCompanies(Acceptance of Deposit) Rules 2015 with regard to the deposit accepted from thepublic are not applicable.
6. I have been informed that the Central Government has not prescribed maintenance ofCost records under Section 148(1) of the Companies Act 2013 . Therefore no comments arerequired to be made.
7. 7. In respect of statutory dues:-
(a) According to the records of the Company undisputed statutory dues includingProvident Fund Employees' State Insurance Contribution Income tax Excise Duty CustomsDuty Sales tax and other dues as may be relevant have been generally regularly depositedwith the appropriate authorities.
(b) As informed to me there are no disputed statutory dues which have not beendeposited on account of matters pending before appropriate authorities.
8. The Company had no dues to financial institution bank or debenture holders duringthe year under Audit. Therefore no comments are required about repayment of dues thereon.
9. In my opinion and according to the information and explanations given by themanagement the company has not raised moneys by way of initial public offer or furtherpublic offer including debt instruments and term Loans. Accordingly the provisions ofclause 3 (ix) of the Order are not applicable to the Company and hence not commented upon
10. In my opinion and according to the information and explanations given to me Nofraud on or by the Company by it officers or employees has been noticed or reported duringthe year.
11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
12. In my opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.
13. In my opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
14. As per information and explanation provided to me during the year under review TheCompany has made preferential allotment. The company has complied with requirement ofsection 42 of The Companies Act 2013. Further The Company has utilized the funds for thepurpose for which it has been raised.
15. In my opinion and as per information and explanation provided to me by themanagement the company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of clause 3 (xv) of the Order arenot applicable to the Company and hence not commented upon.
16. In my opinion and as per information and explanation provided to me by themanagement the Company is not required to be registered under section 45 IA of theReserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of theOrder are not applicable to the Company and hence not commented upon.
|PLACE : AHMEDABAD ||For GAURAV N. ZINZUWADIYA |
|DATE : 30th May2018 ||CHARTERED ACCOUNTANTS |
| ||Sd/- |
| ||(CA Gaurav Zinzuwadiya) |
| ||PROPRIETOR |
Annexure" 2" to the Independent Auditor's Report of even date on theStandalone Financial Statements of KEMISTAR CORPORATION LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
I have audited the internal financial controls over financial reporting of KEMISTARCORPORATION LIMITED ("the Company") as of March 31 2018 in conjunction with myaudit of the standalone financial statements of the 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 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that I comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that couldhave 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 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 My opinion to the best of my information and explanation given to us the Companyhas in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2018 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India.
| ||For GAURAV N. ZINZUWADIYA |
| ||CHARTERED ACCOUNTANTS |
| ||Sd/- |
| ||CA Gaurav Zinzuwadiya |
|PLACE: AHMEDABAD ||PROPRIETOR |
|DATE : 30th May2018 ||M.No 150295 |