INDEPENDENT AUDITORS
To the Members of
Air Control& Chemical EngineeringCompany Limited
Report on the Financial Statements
We have audited the accompanying financial statements of AIR CONTROL & CHEMICAL
ENGINEERING COMPANY LIMITED ("theCompany"), which comprise the Balance Sheet
as at 31st March 2014,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.
Managements Responsibilityfor the FinancialStatements
The Companys management is responsible for 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 Standards referred to in
Section 211(3C) of the Companies Act, 1956 ("the Act") read with GeneralCircular
15/2013 dated 13th September2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act 2013and in accordance with the accounting principles
generally accepted in India. 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.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of CharteredAccountants 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 freefrom material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements.The proceduresselecteddepend on the auditors
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 Companys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Companysinternal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentationof the financial statements.
We believethat the audit evidence we have obtained is sufficientand appropriate to
providea basis for ouraudit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanationsgiven 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
accountingprinciplesgenerallyacceptedin India:
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at
31sMarch, 2014;
(b) In the case of the Statementof Profit and Loss,of the profitfor the year ended on
thatdate; and
(C) In the caseof the Cash Flow Statement, of the cashflows for the year ended on that
date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("theOrder")
issued by the Central Government of India 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 by 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 ouraudit.
b. In our opinion, proper books of account as required by the law have been kept by the
Company sofar as 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 accounts.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement comply with the Accounting Standards referred to in Section 211(3C)of the
Act read with General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the CompaniesAct,2013.
e. On the basis of the written representations received from the directors as on March
31 st, 2014, taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2014from being appointed as a director in terms of Section
274(1)(g)of the Act.
|
for and on behalf of |
|
RLMUNDHRA&CO |
|
Chartered Accountants |
|
Firm Regn. No: 307051E |
|
R K MUNDHRA |
| Ahmedabad |
Partner |
| the 28th day of June, 2014 |
Membershi p No: 16658 |
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph (I) under Report on Other Legal and Regulatory
Requirements section of our report on even date)
(Matters specified in clauses vi, xii, xiii, xiv, xix, xx of paragraph 4 of the CARO
2003 do not apply to the Company)
(I) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) The fixed assets of the Company have been physically verified by the Management in
accordance with a regular programme of verification which, in our opinion, provides for
physical verification of all the fixed assets at reasonable intervals. According to the
information and explanation given to us, no material discrepancies were noticed on such
verification.
(c) In our opinion and according to the information and explanation given to us, no
substantial part of FixedAsset has been disposed off by the Company during the year.
(ii) In respect of its inventories:
(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) On the basis of our examination of the inventory records, in our opinion the
Company is maintaining proper records of its inventories and no material discrepancies
were noticed on physical verification.
(iii) According to the information and explanation given to us, in respect of loans,
secured or unsecured, the Company has not granted to companies, firms or other parties
covered in the register maintained under Section 301oftheAct.
In respect of loans, secured or unsecured, taken by the Company from Companies, firms
or other parties covered in the register maintained under section 301 of the Companies
Act,1956 according to the information and explanation given to us:
(a) The Company has taken loans aggregating Rs 12,928.447- thousand from (One Party)
during the year .At the year-end, the outstanding balances of such loans taken aggregated
Rs 10,264.407- thousands (Two Parties) and the maximum amount involved during the year was
Rs 10,264.10/- thousands (Two Parties).
(b) The rate of interest and other terms and conditions of such loans are, in our
opinion, prima facie not prejudicial to the interest of the Company
(c) The payments of principal amounts and interest in respect of such loans are
regular/as per stipulations.
(iv) In our opinion and according to the information and explanations given to us,
there is an adequate internal control system commensurate with the size of the Company and
the nature of its business for the purchase of inventory and fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the books and records
of the Company, and according to the information and explanation given to us, we have
neither come across, nor have been informed of, any continuing failure to correct major
weaknesses in the aforesaid internal control system.
(v) To the best of our knowledge and belief and according to the information and
explanations given to us, in respect of the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956;
(a) The particulars of contracts or arrangements referred to in Section 301 that needed
to be entered in the Register maintained under the said Section have been so entered.
(b) Where each of such transaction is in excess of Rs 5 lakhs in respect of any party,
the transactions have been made at prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time, other than certain purchases which
are of a special nature for which comparable quotations are not available and in
respect of which we are, therefore, unable to comment.
(vii) In our opinion, the internal audit functions carried out during the year by firm
of Chartered Accountants appointed by the Management have been commensurate with the size
of the Company andwith the nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by company in respect
of products where, pursuant to the rules made by the Central Government on India, the
maintenance of cost records has been prescribed under clause (d) of sub-section (1) of
section 209 of the Act,and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not,however, made a detailed
examination of the records with a view to determine whether they are accurate or complete.
(ix) According to the information and explanations given to us, in respect of statutory
dues:
(a) The Company is 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) According to the information and explanations given to us and the books and records
examined by us, no undisputed amount in respect of Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Customs duty, Excise Duty, Cess and any other material
statutory dues were in arrear for a period of more than six months from the date they
became payable.
(x) The Company has no accumulated losses at the end of the financial year, and it has
neither incurred any cash loss during the financial year ended on that date nor in the
immediately preceding financial year.
(xi) According to the records of the Company examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of dues to any
financial institution or banks as at the Balance Sheet date.
(xv) In our opinion and according to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from banks or financial
institutions during theyear.
(xvi) In our opinion and according to information and explanations given to us, the
term loans have been availed and applied bythe company for the purposes for which they
were obtained during the year, other than temporary deployment pending application.
(xvii) In our opinion and according to the information and explanations given to us,
and on an overall examination of the Balance Sheet of the Company, we report that nofunds
raised onshort-term basis have been used for long-term investments.
(xviii) According to the information and explanation given to us, the company has not
made preferential allotment of shares to the parties and companies covered in the Register
maintained under Section 301 of the CompaniesAct, 1956 during the year.
(xxi) During the course of our examination of the books and records of the company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud on or by the Company, noticed or reported during the year, nor
we have been informed of such case by the Management.
|
forRLMUNDHRA&CO |
|
Chartered Accountants |
|
Firm Regn. No: 307051E |
|
RKMUNDHRA |
| Ahmedabad |
Partner |
| the 28th day of June, 2014 |
Membership No: 16658 |
+91-9892691696
