The Members of TARINI INTERNATIONAL LIMITED Report on the Standalone FinancialStatements
We have audited the accompanying standalone financial statements of TARINIINTERNATIONAL LIMITED (the Company) which comprise the Balance sheet as atMarch .11. 2016. the Statement of profit and loss cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.
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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule7of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
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 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 hand 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 but not for the purpose of expressing anopinion Qtf^hdtber-vthe Company has in place an adequate internal
financial controls system over financial reporting and the operating effectiveness ofsuch controls. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.
Basis for qualified opinion
(a) The company has made certain advances amounting to Rs. 100 Lakhs during theprevious year for which documents related to such advances given by the company were notavailable as the documents were impounded by the income tax authorities as mentioned innote no 26 of the financial statements. Further confirmation from the parties as at endof the year was not found on records. In view of non-availability of related documents andother alternate audit evidence to corroborate the management's assessment ofrecoverability of these advances we are unable to comment on the extent to which thesebalances are recoverable.
(b) We draw attention to note 29 to Financial Statement regarding the investmentamounting Rs.6800000 in a subsidiary which has suffered recurring losses and has a netcapital deficiency. The financial statements of that subsidiary have been preparedassuming that the Company will continue as a going concern. These conditions raisesubstantial doubt about its ability to continue as a going concern. The financialstatements do not include any adjustments relating to the recoverability andclassification of asset carrying amounts that might result that the subsidiary be unableto continue as a going concern.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of matter described in Basis for qualified opinionparagraph the standalone financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016;
(b) in the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date and
(c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.
Emphasis of Matters
1. We draw attention to the note 21 of the standalone financial statements in respectof trade receivables and trade payables external confirmations of the balances were notobtained by the Company. Management does not expect any material adjustment in respect ofthese balances. Due to non availability of confirmation of balances we are unable toquantify the impact if any arising from the confirmation of balances.
2. We draw attention to the note 26 of the standalone financial statements regardingthe survey operations conducted u/s 133A of income tax Act 1961 by the Income tax
authorites in the company's premises during the previous year of which outcome is
awaited. However the management is confident about no adverse impact due to suchoutcome.
3. The company has given the collateral guarantee for the loan taken by its associatecompany / directors & loans / advances granted amounting to Rs. 1917.65 Lakhs to groupcompanies / associated companies in which directors are interested; the company is yet tocomply within the provisions of section 186 of the Companies Act 2013.
Our Opinion is not qualified in respect of these matters.
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 a statement on the matters specified in the paragraph3 and 4 of the
2. As required by section 143 (3) of the Act we report that:
a. we have sought and except for the matters described in the Basis for qualifiedopinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.
b. except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph in our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books and properreturns adequate for the purpose of our audit.
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. except for the possible effect of the matters described in the Basis for qualifiedopinion paragraph In our opinion the aforesaid 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 March312016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312016 from being appointed as a director in terms of Section 164 (2) of theAct;
f. with respect to the adequacy of internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport in Annexure B; and
g. in our opinion and to the best of our information and according to the explanationgiven to us we report as under with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the companies (Audit and Auditors) Rules2014:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements. Refer Note 28 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund-by the Company.
|For V C G & CO. |
|Chartered Accountants |
|Finn Registration No.021837N |
|VISHAL CHANDRA GUPTA |
|Membership No. 093908 |
|Place: New Delhi |
|Date: May 30 2016 |