The Shareholders of NUTECH GLOBAL LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of NUTECH GLOBAL LIMITED ("theCompany") which comprise the Balance Sheet as at March 31 2018 the Statement ofProfit and Loss (including other comprehensive income) Statement of Cash Flow and theStatement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory Information (hereinafter referred to as"Ind AS Financial Statements").
Management's Responsibility for the Financial Statements
The Companys Board of directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) referred to in section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting* policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance withthe 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 standalone Ind AS financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditors judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal control relevant to theCompanys preparation of the standalone Ind AS financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by CompanysDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs of the Company as at 31st March 2018 and its profit (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.
The comparative financial information of the Company for the year ended 31st March2017 and the transition date opening balance sheet as at 1st April 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 (as amended) which were audited by us whose report for the year ended 31stMarch 2017 and 31st March 2016 dated 30th May 2017 and 30th May 2016 respectivelyexpressed an unmodified opinion on those standalone financial statements as
AS which have been audited by us.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.
(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. as it appearsfrom our examination of those books;
(c) the balance sheet the statement of profit and loss(including other comprehensiveincome) the cash flow statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;
Accounting Standards specified under Section 133 of the Act;
(e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act; and
Company and the operating effectiveness of such controls refer to our separate reportin "Annexure B"; and
(g) with respect to the other matters to be included in the Auditors 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 if any of pending litigations on itsstandalone Ind AS financial position in its standalone Ind AS financial statements
(ii) as per the information provided to us by the management the company has notentered in to long term contract including derivative contracts for which provisioning isrequired;
(iii) As the Company has not declared any dividend in the past years & there is nounpaid dividend so there is no requirement of transfer of amount in Investor Education& Protection fund (IEPF).
For: O. P. DAD & CO. Chartered Accountants
Firm Rea. No. 0023300
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements"
of our report of even date)
On the basis of such checks as we considered appropriate and according to theinformation & explanation given to us during the course of our audit we report that:
(a) The company has generally maintained proper records showing full particularsincluding quantitative details and situation of its fixed assets on the basis of availableinformation.
(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.
(c) According to the information and explanations 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.
ii. As explained to us physical verification of inventory has been conducted atreasonable intervals by the management and the discrepancies noticed on verificationbetween the physical stocks and the book records were not material having regard to thesize of the Company and the same have been properly dealt with in the books of account.
iii. According to the information & explanations given to us and on the basis ofour examination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013. Hence clause (iii) (a) (b) & (c) is notapplicable to the company as the company has not granted any such loans.
iv. According to the information & explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loan to directors.
v. The Company has not accepted any loans/deposits from public. In our opinion andaccording to the information and explanation given to us the provisions of Section 73 and76 of the Companies Act 2013 and the Rules framed there under wherever applicable arebeing complied with. No order has been passed by company law board against the company.
vi. The Central Government has prescribed maintenance of the cost records under 148(1)of the
Companies Act 2013 in respect to the company's products. We have broadly reviewed thebooks of accounts and records maintained by the company in this connection and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of the records with a view todetermine whether they are accurate or complete
a. According to the records of the Company undisputed statutory dues includingProvident Fund Employees State Insurance Income Tax Custom Duty GST Sales Tax ExciseDuty VAT Cess and other statutory dues have been regularly deposited with theappropriate authorities. According to the information and explanation given to us noundisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2018 for a period of more than six months from the date they have become payable.
b. According to the information & explanations given to us and the records examinedby us there is no amount which have not been deposited on account of any disputed amountpayable in respect of income tax service tax GST sales tax customs duty and exciseduty VAT and cess. - except the disputed statutory dues aggregating to Rs. 171530 thathave not been deposited on account of
matters pending before appropriate authorities are as under:
|Name of the Statute ||Financial year to which the matter pertains ||Nature of the dues ||Forum where dispute is pending ||Amount (Rs. in Lac) |
|Income Tax Act 1961 ||2014-15 ||Income Tax ||CIT Ajmer ||1.72 |
viii. Based on our audit procedures and on the information & explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institutions banks or debenture holders.
ix. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments) and term loansduring the year. Accordingly paragraph 3(ix) of the Order is not applicable.
x. In our opinion and according to the information & explanations given to us wereport that no material fraud on or by the company has been noticed or reported during theyear nor have we been informed of such case by the management.
xi. According to the information and explanations give to us and based on ourexamination 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 give to us theCompany is not a Chit Fund / Nidhi / Mutual Benefit Fund / Society. Therefore theprovision of clause 3(xii) of the Companies (Auditor's Report) Order 2017 is notapplicable to the Company.
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting 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 explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. The Company is not required to be registered under sec. 45-IA of the Reserve Bankof India Act 1934.
|For: 0. P. DAD & CO. |
|Chartered Accountants |
|(Firm Reg. No. 002330C) |
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF NUTECH GLOBAL 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 NUTECHGLOBAL LIMITED ("the Company") as of March 31 2018 in conjunction with ouraudit 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.
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 controls both 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
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 standalone Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standaloneInd AS financial statements 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 reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standaloneInd AS 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 our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For: 0. P. DAD & CO.
(Firm Reg. No. 002330C)
M. No. 035373