To the Members of Vikas Proppant & Granite Limited (Formerly known as VikasGranaries Limited)
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of VikasProppant & Granite Limited (Formerly known as Vikas Granaries Limited) ("theCompany") which comprise the balance sheet as at March 312018 the statement ofprofit and loss(including Other Comprehensive Income) the statement of cash flows and thestatement of Changes in Equity for the year then ended and a summary of the significantaccounting policies and other explanatory information(hereinafter referred to as "IndAS Financial Statements").
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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance cash flows and changes in equity of the Companyin accordance with accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act.
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 the design implementation and maintenance of adequateinternal financial control 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 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 thereunder.
We conducted audit of standalone financial statements in accordance with the Standardson Auditing issued by the Institute of Chartered Accountants of India as 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 Standalone Ind AS financial statements are free from 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 auditor's judgment including the assessment of the risks of the materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and 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 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 audit opinion on the standalone 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 of the state of affairs of theCompany as at March 312018 its loss its cash flows and changes in equity for the yearended on that date.
The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 012016 included in thesestandaloneInd AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies
(Accounting Standards) Rules 2006 audited by the predecessor auditor whose report forthe year ended March 312017 and March 312016 expressed unmodified opinion respectivelyon those standalone financial statements as adjusted for the differences in theaccounting principles adopted by the Company on transition to the Ind-AS which have beenaudited by us.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's report) Order 2016 (the Order') issuedby the Central Government of India in terms of sub-section 143(11) of the Act we give inthe Annexure "A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order;
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 purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c. The balance sheet statement of profit and loss(including Other ComprehensiveIncome) the statement of cash flow and the statement of changes in equity dealt with bythis Report are in agreement with the books of account;
d. In our opinion the aforesaid standalone IND AS financial statements comply with theAccounting Standards specified under Section 133of the Act;
e. On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directorsnone 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- B" to this report; and
g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit andAuditors) 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 standalone Ind AS financial statements.
ii. As explained to us the company did not have any long-term contracts therefore theCompany was not required to make including derivative contracts for which there were anyprovision for material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by The Company.
For M/s Yogesh Mahipal & Associates
Firm Registration No.:030845N
CA Yogesh Mahipal Proprietor
Membership No.: 530620
Place: Sri Ganganagar Date: 29 May 2018
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of VikasProppant & Granite Limited (Formerly known as Vikas Granaries Limited) on thefinancial statements for the year ended March 312018
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) During the year fixed assets have been physically verified by the management asper the regular programme of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. As informed no materialdiscrepancies were noticed on such verification.
(c) The title deeds of immovable properties recorded as fixed assets in the books ofaccount of the Company are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. As informed no materialdiscrepancies were noticed on physical verification carried out during the year.
(iii) As informed the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Act. Accordingly paragraph 3 (iii)(a) 3 (iii)(b) and3 (iii)(c) of the Order are not applicable to the Company.
(iv) Based on information and explanation given to us the Company has not granted anyloans or made any investments in or provided any guarantees or security to partiescovered under section 185 and section 186 of the Act.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of Sections 73to 76 of the Act and the rules framed there under.
(vi) The Central Government has not prescribed the maintenance of cost records for anyof the products of the Company under sub-section (1) of Section 148 of the Act and therules framed there under.
(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory
dues including provident fund employee's state insurance income tax Goods &Services tax sales tax service tax value added tax customs duty excise duty cess andany other material statutory dues as applicable to it however there have been slightdelay in few cases.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax Goods &Services tax sales tax service tax value added tax customs duty excise duty cess andany other material statutory dues as applicable to it were outstanding at the year endfor a period of more than six months from the date they became payable.
|Name of the statute ||Nature of the dues ||Amount (Rs.) ||Period to which the amount relates ||Due Date ||Date of Payment |
|Income Tax Act 1961 ||TDS ||36719.00 ||F.Y. 2016-17 ||Between Apr- Mar 2017 ||Not paid |
| || ||49957.00 ||F.Y. 2017-18 ||Between Apr- Sep 2017 ||Not paid |
|The Employees Provident Fund and Miscellaneous Provisions Act 1952 ||Provident fund ||18440.00 ||F.Y. 2017-18 ||Between Apr- Sep 2017 ||Not paid |
(c) According to the information and explanation given to us there are no dues withrespect to income tax Goods & Services tax sales tax service tax value added taxcustoms duty excise duty which have not been deposited on account of any dispute.
(viii) According to the information and explanations given to us the Company hasneither taken any loans or borrowings from financial institution(s) bank(s) or governmentnor has issued any debentures as at the balance sheet date. Therefore paragraph 3(viii)of the Order is not applicable to the Company.
(ix) During the year the Company has neither raised money by way of public issue offernor has obtained any term loans. Therefore paragraph 3(ix) of the Order is not applicableto the Company.
(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.
(xi) According to the information and explanations given to us no managerialremuneration has been paid by the Company during the year.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore paragraph 3(xii) of the Order is not applicableto the Company.
(xiii) According to the information and explanation given to us all transactionsentered into by the Company with the related parties are in compliance with Sections 177and 188 of Act where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Therefore paragraph 3(xiv) of the Order is notapplicable to the Company.
(xv) According to the information and explanations given to us the Company has notentered into any noncash transactions with directors or persons connected with him duringthe year.
(xvi) According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.
For M/s Yogesh Mahipal & Associates
Firm Registration No. 030845N
CA Yogesh Mahipal
Membership No.: 530620
Date: 29 May 2018