| We have audited the accompanying financial statements of INDO GULF
INDUSTRIES LIMITED, which comprise the Balance Sheet as at March 31,
2015, and the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
The Board of Directors of the company are 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
Companies (Accounts) Rules, 2014. This responsibility 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
judgements and estimates that are reasonable and prudent; design,
implementation and maintenance of adequate internal financial
controls, that are 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 there under. 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 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 and fair presentation 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 accounting policies
used and the reasonableness of the accounting estimates made by
Company's management and Board of 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.
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 of the state of affairs of the Company as
at 31st March 2015, its profit and its cash flows for the year ended
on that date
Emphasis Matter
We draw attention to the following matter in the note to the financial
statements:
Note 16(3b) in the financial statements which indicates that the
Company has accumulated losses and its net worth has been
substantially eroded, the Company has incurred a net loss/net cash
loss during the current and previous year(s) and, the Company's
current liabilities exceeded its current assets as at the balance
sheet date. This condition indicates the existence of a material
uncertainty that may cast significant doubt about the Company's
ability to continue as a going concern. However, the financial
statements of the Company have been prepared on a going concern basis
for the reasons stated in the said Note Our opinion is not modified in
respect of the aforesaid matter.
Report on Other Legal and Regulatory Requirements
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 section143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order.
As required by section 143(3) of the Act, we further 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
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 appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and 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
applicable Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules 2014
e. on the basis of written representations received from the directors
as on March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act
f. In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:;
i. The Company does not have any pending litigations which would
impact its financial position
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise
The Annexure referred to in our Independent Auditors Report to the
members of INDO GULF INDUSTRIES LIMITED on the accounts of the company
for the year ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of
our audit, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification. However, in respect of the fixed assets
of the explosive units, could not be physically verified due to
seizure of the plants.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company does
not have inventory during the year and as on 31.03.2015. Consequently,
the paragraph 3(ii) of the order is not applicable to the Company.
3. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act, 2013. Consequently, the paragraph 3(iii) of the
order is not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods and services. During the course of
our audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
5. The Company has not accepted any deposits from the public covered
under section 73 to 76 of the Companies Act, 2013.
6. As per information & explanation given by the management,
maintenance of cost records has not been prescribed by the Central
Government under sub-section (1) of section 148 of the Companies Act,
2013.
7. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Employees' State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess to the extent applicable and any other
statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2015 for a period of more than six months from the date they
became payable. However, due to non availability of records on account
of seizure of explosive units, we are unable to comment whether in
respect of earlier years any undisputed statutory dues were
outstanding at the year end.
(b) According to the information and explanations given to us, there
is no amounts payable in respect of income tax, wealth tax, service
tax, sales tax, customs duty and excise duty which have not been
deposited on account of any disputes.
(c) There has not been an occasion in case of the company during the
year under report to transfer any sums to the Investors Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
8. The accumulated losses are Rs.3,21,63,639.91 against the
shareholders' fund of Rs. 95,67,270.00, which exceeds its net worth.
Further, it has incurred cash loss of Rs. 469966.99 during the year
under consideration.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
10. 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 institutions.
11. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
12. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or
reported during the year that causes the financial statements
materially misstated..
For VIPIN AGGARWAL & ASSOCIATES
Chartered Accountants
FRN NO. 014454N
Sd/-
(VIPIN AGGARWAL)
Place : New Delhi Partner
Date : 21st May, 2015 Membership No. : 016544 |