Lancer Container Lines Limited
26/27 Arenja Towers CHS Plot No. 49/50/51 Sector 11 CBD Belapur Navi Mumbai 400614
Report on the Financial Statements: -
We have audited the accompanying Financial Statements of Lancer Container LinesLimited ("The Company") which comprise of the Balance Sheet at 31st March2017 the Statement of Profit & Loss Account for the year ended on that date and aCash Flow Statement for the year ended on that date and a summary of SignificantAccounting Policies and other explanatory information for the period under reference.
Management responsibility for the 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 preparationof these standalone Financial Statements that give a true and Fair view of the Financialposition Financial performance of the activity 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 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 are operating effectively for ensuing the accuracy orcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial statements that give a True and Fair view and are free from materialmismanagement whether due to fraud and / or error.
Auditor's responsibility: -
Our responsibility is to express an opinion on these Financial Statements based on ouraudit. 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 of Auditing specified under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial mismanagement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Financial Statements. The procedures selected depend upon theAuditor's judgment including the assessment of material mismanagement of the FinancialStatements whether due to fraud and / or error. In making those risk assessments; theauditor considers the internal 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 but not for the purpose of expressing an opinion on whether theCompany has in place an adequate internal financial control system over financialreporting and the operating effectiveness of such controls. An audit also includesevaluating the appropriateness of the Accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis of our audit opinion on theFinancial Statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information as required by theAct 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 on March 31st 2017 and its Profit for the year ended on that date.
Report and the other Legal and Regulatory Requirements: -
1. As required by the Companies (Auditor's Report) Order 2015 (the"Order") issued by The
Central Government in terms of Section 143(1) of the Act we give in the Annexure astatement on the matters specified in paragraph 3 and 4 of the Order.
2. As required by Section 143(1) of the Act we report that: -
We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purpose of our audit.
In our opinion proper Books of accounts as required by law have been kept bythe Company so far as it appears from our examination of those books.
The balance Sheet the Statement of Profit & Loss and the Cash FlowStatement dealt with by this report are in agreement with the books of accounts.
In our opinion the aforesaid reported financial statements comply with theaccounting Standards specified under section 133 of the Act read with rule 7 of TheCompanies (Accounts) Rules 2014.
On the basis of written representations received from the Directors as on March31st 2017 and taken on record by the Board of Directors none of theDirectors is disqualified as on March 31st 2017 from being appointed asDirector in terms of Section 164(2) of the Act.
With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of Companies (Audit and Auditors) Rules 2014 in our opinion andto the best of our information and according to the explanations given to us: -
1. The Company does not have any pending litigations which would impact its Financialposition.
2. The Company did not have any long term contracts inclusive derivative contractstowards which there were any material foreseeable losses.
3. There were no amounts which were required to be transferred to the InvestorEducation and Protective Fund by the management.
| ||For SMD and Company. |
| ||Chartered Accountants |
| ||Sd/- |
|Place Mumbai ||(S M Dixit) |
|Date: - 3rd May 2017 ||Proprietor |
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT.
(Referred to in Para 1 under "Report and the Other Legal and regulatoryrequirements" of our report of even date.)
1. In respect of the Company's Fixed Assets
The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
The Company has a program of verification of Fixed Assets to cover all theitems in a phased manner over a period of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the program certain Assets were physically verified by the management during the yearunder reference. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.
The purchase of Containers during the period under review however not put touse the same are not subjected to the Depreciation at the prescribed rate ofDepreciation applicable thereto as the case may be as a prudent approach and in linewith Accounting Principles. The disposal/ sale of Fixed assets is accounted accordinglyin respect of Profit/ Loss on such disposal/ Sale as the case may be.
2. In respect of Inventories: -
As explained to us the Inventories were physically verified by the managementduring the year at reasonable intervals.
In our opinion and according to the information and explanations given to usthe procedures of verification of Inventories followed by the management were reasonableand adequate in relation to the size of the Company and nature of its business.
In our opinion and according to the information and explanations given to usthe company has maintained proper records of its Inventories and no material discrepancieswere noticed on physical verification.
3. According to information and explanations given to us the Company has notgranted any loans secured and/ or unsecured to a Company covered in the Registermaintained under Section 189 of the Companies Act 2013.
4. In our opinion according to the information and explanations given to us there areadequate internal control systems commensurate with the size of the Company and thenature of its business for purchase of Fixed Assets and inventories and for the sale ofservices and goods. During the course of our audit we have not observed any majorweaknesses in such internal control system.
5. According to information and explanations given to us the Company has notaccepted any deposits in terms of Provisions of Section 73 and 76 or any other relevantprovisions of the Companies Act 2013 and the Companies (Acceptance of deposits) Rules2014 as amended from time to time.
6. To the best of our knowledge and according to the information and explanations givento us the Central Government has not prescribed the maintenance of Cost Records under SubSection (1) of section 148 of the Companies Act 2013 and the Companies (Cost Records andAudit) Rules 2014 as amended for any services rendered by the Company.
7. According to the information and explanations given to us in respect of Statutorydues:
The Company has been regular in depositing undisputed dues in respect ofProvident Fund Income Tax Professional Tax Service Tax and other material Statutorydues applicable to it with the appropriate authorities.
There were no undisputed amounts payable in respect of Provident Fund IncomeTax Professional Tax Service Tax duty of Customs duty of Excise Value added Tax Cessand other material Statutory dues as on March 31st 2017 for a period morethan Six months from the date they became payable.
The Company ever since its inception has not followed the practice of providingfor Bonus Gratuity and Leave encashment as was informed by the management. It is furtherinformed by the management that since inception the Company is following a practice ofpermitting its employees to avail Earned Leave/ Privilege Leave there is no balance leftto the credit of any of the employees as on March 31st 2017 and as such noprovision in respect thereof is warranted.
In respect of Gratuity the Company has initiated the Scheme "Death CumRetirement Gratuity with Life Insurance Corporation of India and the same is expected tobe activated in the next Financial year 2017/2018. and accordingly the Gratuity Liabilityof Rs. 586460/- is provided in the Accounts under reference.
There are no Income Tax Sales tax Wealth Tax Service Tax Value added TaxCess and other statutory dues as applicable which have not been deposited as on March 31st2017 on account of disputes.
There are no amounts payable in respect of Investor Education and ProtectionFund in accordance with the relevant provisions of the Companies Act amendments and rulesmade there under.
8. The Company has not incurred Cash Loss during the Financial year under reviewcovered by our audit and in the immediately preceding Financial Year.
9. In our opinion and according to the information and explanations given to usthe Company has been regular in depositing its installments and dues. The Company has notissued any Debentures and it has not defaulted in repayment of dues to Banks / FinancialInstitutions/ NBFC.
10. The Company has issued on preferential basis warrants entitling the holder toequity shares in the year in accordance with the in principal approval to that effect fromBSE Limited wide its approval Letter No. DCS/PREF/SD/PRE/1524/2016-17 dt.09December2016 for issue of 570000 warrants of Rs. 10/- each at a Price not less than Rs.30.50 per share to Promoters and Non Promoters with a condition that those shall beconverted into Equity Shares within a time period of 18 months from the date of allotment.As at March 31st 2017 a Company has received a sum of Rs. 8610625/- towardsissue of Warrants as partial payment which has been treated as Share Application Moneyin the Accounts under review.
11. In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for Loans taken by others from bank/ FinancialInstitutions / NBFC.
12. According to the information and explanations given to us the Term loans / Buyer'sCredit taken by the Company were applied for the purpose for which the said loans weregranted and obtained.
13. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on the Company and / or no material fraud on theCompany has been noticed and/ or reported during the year under review.
| ||For SMD and Company. |
| ||Chartered Accountants |
| ||Sd/- |
| ||(S M Dixit) |
| ||Proprietor |
|Place- Mumbai ||M No. 044363 |
|Date: - 3rd May 2017 ||FRN- 129582W |