| We have audited the accompanying financial statements of Acrow India
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
1. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
2. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
3. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the 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 best of 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 the Company 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 Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements - Refer Note no.28 to
the financial statements;
ii. The Company did not have any foreseeable losses on long-term
contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN THE AUDITOR'S REPORT TO THE MEMBERS OF ACROW
INDIA LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH
2015
1.
a. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. As explained to us, the fixed assets have been physically verified
by the management at year end, which in our opinion is reasonable,
having regard to the size of the Company and nature of its assets. No
material discrepancies were noticed on such physical verification
2.
a. As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification as
compared to the record of inventories.
3. The company has granted unsecured interest-bearing loan to One
Company covered in the register maintained under section 189 of the
Companies Act, 2013.The amount outstanding at the year end is Rs. 530
lacs. According to information and explanation given to us, principal
is repayable on demand. During the year, the said loan has been
renewed. Interest has been received as per terms of loan. There are no
overdues as on March 31,2015.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fixed assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system.
5. The Company has not accepted any deposits from the public during
the year.
6. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of the Cost records under Section 148(1) of the Act and we
are of the opinion that prima-facie, the prescribed accounts and
records have been made and maintained.
7.
a. According to the records maintained by the company, the company is
generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees' state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and other statutory dues where applicable.
According to the information and explanations given to us, no
undisputed amounts in respect of the aforesaid statutory dues were in
arrears, as at 31st March, 2015, for a period of more than six months
from the date they became payable.
b. According to the information and explanations given to us, the
following disputed statutory dues on account of Wealth Tax, Employee
State Insurance Fund and Service Tax have not been deposited with the
appropriate authorities:
Nature of dues Amount not Period to which Forum where dispute
deposited the amount is pending
in relates
(Rs.In lacs)
Wealth Tax 15.43 1999-2000 Commissioner of
Wealth Tax
(Appeals), Mumbai
Employee State 5.08 1986-1988 Divisional
Insurance Fund Industrial Court,
Mumbai
Service Tax 0.98 Aug'12 to Appellate Commission
Mar'14 er, Nagpur
c. According to the information and explanations given to us and the
records of the company, there are no amounts which are required to be
transferred to investor education and protection fund.
8. The Company does not have accumulated losses at the end of the
financial year. The company has not incurred cash loss during the
financial year and has incurred cash loss of Rs 38.70 lacs in the
immediately preceding financial year.
9. On the basis of verification of records and according to the
information and explanations given to us, the Company has not defaulted
in repayment of dues to Banks. The company has not taken any loan from
any financial institution or by way of issue of debentures.
10. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institution.
11. The Company has not raised any term loans from banks and financial
institutions during the year.
12. According to the information and explanations given to us and
based on audit procedures performed and representations obtained from
the management, we report that no fraud on or by the company, has been
noticed or reported during the year under audit.
For V. SANKAR AIYAR & CO
Chartered Accountants
(Firm's Regn No. 109208W)
Place: Mumbai
Date: 29th May, 2015
(Arvind Mohan)
Partner
Membership No. 124082
|