To the Members of Orissa Bengal Carriers limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ORISSA BENGALCARRIER LIMITED("the Company") which comprise the Balance
Sheet as at March 31 2018the Statement of Profit and Loss the Cash Flow Statementfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.
Management's Reposibility for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation ofthese standalone financial statements to 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) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance 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 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 financial statementsbased on our audit.
In conducting our audit we have taken into account the provisions of the Acttheaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and Rules made thereunder and the orderissued under Section 143(11) of the Act..
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India.
Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether thefinancialstatements 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 theauditors' 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 financial statements.
In our opinion and to the best of our information and according to theexplanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and givea true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairsof the Company as at March31 2018 and its loss and its cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:Note 30 to the financial statements which describes the provision of employee retirementbenefit-Gratuity of Rs. 4326560/- is provided for the earlier years.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on March31 2018 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 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 A.Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial control over financialreporting.
(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 ouropinionand to the best of our knowledge and belief and according to the information andexplanations given to us:
i The Company has disclosed the impact if any of pending litigations as at March 312018 on its financial position in its financial statements Refer Note 31;
ii. The Company did not have any long-term contracts including derivative contracts asat March 31 2018;
iii. There wereno amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2018;
2. As required by the Companies (Auditor's Report) Order 2016' issued by the
Central Government of India in terms of sub-section (11) of section 143 of the
Act (hereinafter referred to as the "Order") and on the basis of such checksof the books and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order.
Annexure A to Independent Auditors' Report
Referred to in paragraph 1(f)of the Independent Auditors' Report of even date to themembers of ORISSA BENGAL CARRIER LIMITED on the standalone financial statements forthe year ended March 31 2018.
Report on the Internal Financial Controls Over Financial Reporting under clause
(i) of sub section 3 of Section 143 of the Companies Act2013 ("the Act)
We have audited the internal financial controls over financial reporting of OrissaBengal Carrier Limited ("the Company")as of March 31 2018 in conjunction withour audit of the financial statements of the Company for the yearended 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
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 Auditingdeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of internal financialcontrols and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financialcontrols 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our auditopinion on the Company's internal financial controls system overfinancial 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. Acompany'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 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.
Annexure B to Independent Auditors' Report
Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of Orissa Bengal Carrier Limited on the standalone financial statements as of andfor the year ended March 31 2018.
i. In respect of the Company's Fixed assets
(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The Company has a programme ofverification to cover all the items of fixed assets in a phased manner which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme certain fixed assets were physically verified by theManagement during the year. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification. (c) According to the informationand explanations given to usthe records examined by us and based on the examination ofthe conveyance deeds provided to us we report that the title deeds comprising all theimmovable properties of land and building which are freehold are held in the name ofCompany as at the Balance Sheet date.
ii. The Company is in the business of providing transport services and does not haveany physically inventories. Accordingly reporting under Clause 3(ii) of the Order is notapplicable to the Company.
iii. According to the information and explanations given to us and the records of theCompany examined by us the Company has not granted unsecured loan to any company coveredin the register maintained under Section 189 of the Act. The Company has not granted anysecured/ unsecured loans to firms/ LLPs/ other parties covered in the said registermaintained under Section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us andthe records of the Company examined by us the Company has not granted any loans orprovided any guarantees or security in respect of any loans to any party covered underSection 185 of the Act.
v. The company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed thereunder to the extentnotified. In our opinion and according to the information and explanations given to usthe Company has complied with the provisions of Sections 73 74 75 and 76 or any otherrelevant provisions of the Act and the Rules framed thereunder to the extent notifiedwith regard to the deposits accepted from the public prior to the commencement of the Act.According to the information and explanations given tous no order has been passed by theCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any Courtor any other Tribunal on theCompany in respect of the aforesaid deposits.
vi. The maintenance of cost records has not been specified by the Central
Governemnt under section 148(1) of the Companies Act2013 for the business activitiescarried out by the Company.Thus reporting under clause 3(vi) of the Order is notapplicable to the Company.
vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of service tax and value added tax Goods and ServiceTax though there has been a slight delay in a few cases and is regular in depositingundisputed statutory dues including provident fundemployees' state insurance sales taxincome tax duty of customs duty of excise cess and other materialstatutory dues asapplicable with the appropriate authorities. (b) According to the information andexplanations given to us and the records of the Company examined by us there were noundisputed amounts payable in respect of Provident FundEmployees' StateInsuranceIncomeTaxSalesTaxServiceTaxValue Added TaxGoods and ServiceTaxCustomsDutyExcise Duty Cess and other material statutory dues in arrears as at March312018 for a period of more than six months from the date they become payable.
viii. Based on our audit procedures and according to the information and explanationsgiven to us by themanagement we are of the opinion that the company has not defaulted inrepayment of loans or borrowings to a financial institution or bank.
ix. According to the information and explanation given to us no money has been raisedby way of Initial Public Offer or Further Public Offer (including debt instrument) andterm loans have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the
Company carried out in accordance with the generally accepted auditing practices inIndiaand according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the period nor have we been informed of any suchcase by the management. xi. The Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
xiv. During the year the Company has not made any preferential allotment orprivateplacement of shares or fully or partly paid convertible debentures and hencereporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directorsorpersons connected with him. Accordingly the provisions of Clause 3(xv) of theOrder arenot applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of theReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of theOrderare not applicable to the Company.
| ||For AGRAWAL & PANSARI. |
| ||Chartered Accountants |
| ||Firm Registration no.:- 003350C. |
| ||Sd/- |
|Place: Raipur ||CA SANSKAR AGRAWAL |
|Date: 28/05/2018. ||(Partner) |
| ||Membership No.:429385. |