The Members of VIKAS ECOTECH LIMITED Report on the financial statements
We have audited the attached Financial Statements of M/s VIKAS ECOTECHLIMITED("the Company) which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss for the year then ended and the Cash FlowStatement for the year then ended and a summary of significant accounting policies andother explanatory information (hereinafter referred to as "the financialstatements).
Management's 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 preparation ofthese financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror which have been used for the purpose of preparation of the financial statements bythe Directors of the Company as aforesaid.
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 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 the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Board ofDirectors 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 audit opinion on the financial statements.
Except for the possible effects due to anything otherwise stated in accounting policiesand notes to financial statements and due to matters stated in emphasis of matters in ouropinion and to the best of our information and according to the explanations given to usthe aforesaid financial statements give the information required by the Act in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2018; its profit and cash flows for the year ended on that date.
Emphasis of Matters
Certain balances as on year end such as Closing Stock Fixed Assets and Cash in Handare certified by the management and relied upon by us. Balances of Loans and Advancesincluding advance from customers and advance paid to suppliers (domestic and overseasboth) Creditors and Debtors (domestic and overseas both) are subject toconfirmation/reconciliation and consequential adjustments if any.
The Board of Directors of the Company in its meeting held on May 29th 2017had approved the 'Scheme of Arrangement' for the Demerger of High Volume 'RecycledCompounds and Trading Division' of Vikas EcoTech Limited (Demerged Undertaking) (havingnet assets of approx. book value of ' 29.57 Crores as on 1st April 2017) into VikasMulticorp Limited (Resulting Company). An application was moved before the Hon'ble NCLTprincipal bench New Delhi for obtaining necessary orders under Section 230-232 of theCompanies Act 2013 with a view of vesting of demerged undertaking the appointed dateunder the Scheme for demerger is 1st April 2017. As on date the said application ispending for approval before Hon'ble NCLT and the scheme shall be effective only after thefinal order of Hon'ble NCLT Principle Bench Delhi. NCLT has set 1stAugust 2018 as thefinal hearing date for the scheme. In view of this the financial statements are herebyprepared without considering the effect of scheme of Demerger and treating the saiddivision proposed to be demerged as continuing operations. The financial statements aresubject to amendment to give effect to the scheme once the same becomes effective afterfinal order of Hon'ble NCLT.
Our opinion on the financial statements and our report on Other Legal and RegulatoryRequirements below is not modified in respect of the above matters with respect to ourreliance on financial statements / financial information certified by the Management.
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 based on the comments in the auditors' reports of the Company we give in theAnnexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.
2. As required by section 143(3) of the Act we report to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose 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 company is not having any branch office which has been audited under sub-section (8) by a other person and hence clause of section 143(3) of the Companies Act2013 is not applicable.
d) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
e) 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 except as otherwise stated in accounting policies and notes tofinancial statements.
f) We have no observations or comments on financial transactions or matters which haveany material adverse effect on the functioning of the Company.
g) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;
h) We have no qualification reservation or adverse remark relating to the maintenanceof accounts and other matters connected therewith.
i) With respect to the adequacy of internal financial controls over the financialreporting of the company and operating effectiveness of such control refer to ourseparate report in 'Annexure B' ; and
j) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) 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 of pending litigations on its financialposition in its financial position of the company (Refer Note No 32) to financialstatements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses. (Refer Note No 45) to financialstatements.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For KSMC & ASSOCIATES |
| ||Chartered Accountants |
| ||Firm Regn. No. 003565N |
| ||CA SACHIN SINGHAL |
| ||Partner |
| ||Membership No.: 505732 |
|Place: New Delhi || |
|Date : 31.05.2018 || |