| We have audited the accompanying financial statements of Inditalia
Refcon Limited which comprise the Balance sheet as at 30th September,
2014, the statement of Profit and Loss and the Cash Flow Statement for
the year then ended and a summary of significant account policies and
other explanatory information.
Management's responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position
and financial performance of the Company in accordance with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 (the Act). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatements, 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 conducted our audit in accordance
with the Standard on Auditing issued by the Institute of Chartered
Accountants of India. 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amount and 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 control relevant to the Company's
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used the reasonableness of the accounting estimates made by
management, 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.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
company as at September 30, 2014;
(b) In the case of the Statement of Profit and Loss of the loss for
the year ended on September 30, 2014.
(c) In the case of the Cash Flow Statements, of the cash flows of the
Company for the year ended on September 30, 2014
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
order") issued by the Central Government in terms of Section 227
(4A) of the Act. We give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required under provisions of section 227(3) of the Act, we
report that:
a. We have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examinations 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standard referred to in
subsection 211(3C) of Act
e. On the basis of written representations received from the directors
as on 30th September, 2014 taken on record by the Board of Directors,
none of the directors are disqualified as on 30th September, 2014,
from being appointed as a director in terms of Section 274(1)(g) of
the Act
Annexure to Auditors Report:
(Referred to in paragraph 1 under 'Report on Other Legal and
Regulatory Requirement section of our report of even date.]
i. Having regard to the fact that the company has not commenced
commercial activities and has in fact abandoned its project for
manufacture of refrigerated containers, it has no business operations.
Accordingly clauses (viii], (xiii] and (xiv] of paragraph 4 of the
Order are not applicable to the Company.
ii. The Company has no Fixed Assets.
iii. The company has not commenced commercial activity and has no
inventories.
iv. In respect of loans taken from Directors, Companies firms and
other parties listed in the Register maintained under Section 301 of
the Companies Act, 1956, the rate of interest and other terms &
conditions of the loan are not prima facie prejudicial to the
interests of the Company.
v. The company has not given any loans to employees and / or others.
vi. In our opinion, there are adequate internal control procedures
commensurate with, the size of the company and the nature of its
business.
vii. In our opinion and according to the information and explanation
given to us, the company has not entered into any of contracts or
agreements which are required to be entered into in the Register
maintained under Section 301 of the companies Act, 1956.
viii. The Company has not accepted any deposits from the public during
the period, hence the provision of clause (vi] of the Order is not
applicable to the company.
ix. The company is yet to introduce an internal audit system,
commensurate with its size and nature of business since there is no
activity or business carried on so far.
x. According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities.
(b) There was no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears
as at 30th September 2014 for a period of more than six months from
the date they became payable.
(c) There were outstanding demand for Interest and Penalties for
delayed payment of Income Tax dues relating to FY 94-95 to 97-98 (4
years). The amounts consisting of interest u/s 234 and 220(2] amounted
to Rs.32,00,000/- (approx). The company has disputed the claim for
interest and has sought waiver of the interest from the Chief
Commissioner of Income Tax (V). The matter is pending before the CCIT.
xii. The accumulated losses of the Company at the end of the financial
year exceed its net worth. The Company has incurred cash losses during
the immediately precending financial year. However, the Company is not
a Sick Industrial Company within the meaning of the Section 3 (1] (0]
of the Sick Industrial Companies (Special Provision] Act 1985, as it
does not meet the eligibility criteria for BIFR assistance in other
respects.
xiii. The company has no liabilities for loans to Banks or Financial
Institutions.
xiv. The company has not given any guarantee for loans taken by others
from Banks or financial Institutions.
xv. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xvi. According to the information and explanations given to us, the
Company has not issued any debentures during the year.
xvii. Based on information and explanations given to us by the
management,
(a) term loans were applied for the purpose for which the loans were
obtained. And
(b) that the funds raised on short term basis have not been used for
long term investments or vice versa.
xviii. The company has not raised any money through or by preferential
allotment public issue during the year.
xix. According to the information and explanations given to us by the
management, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
xx. The matters contained in paragraphs 4 & 5 of the said order have
been commented upon only to the extent applicable as the Company has
not commenced commercial production during the year till date as
stated in para (i) above.
For V.S.PATANGIA AND CO.
Chartered Accountants
(Firm Registration No. 107626W)
Sd/-
PLACE: Mumbai (Vimal S.Patangia)
DATED: 29.11.2014 (Proprietor)
(Membership No. 38271) |