INDEPENDENT AUDITORS
The Members of
ARRAYCOM (INDIA) LIMITED
Gandhinagar, Gujarat
1. Report on the Financial Statements
We have audited the accompanying financial statements of ARRAYCOM (INDIA) LIMITED ("the
Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement
of Profit and Loss for the year then ended (herein after referred to as financial
statements), and a summary of significant accounting policies and other explanatory
information.
2. Managements 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, 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") read with the General Circular 15/2013 dated
13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. 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
misstatement, whether due to fraud or error.
3. 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 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 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 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
entitys internal 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 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.
4. 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:
i In the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2014; and
ii In the case of the Statement of Profit and Loss, of the profit for the year ended on
that date;
5. Report on Other Legal and Regulatory Requirements
i. As required by the Companies (Auditors Report) Order, 2003 ("the Order")
issued by the Central Government of India in terms of sub-section (4A) of section 227 of
the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and
5 of the Order.
ii. 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 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 and Statement of Profit and Loss dealt with by this Report are in
agreement with the books of account.
d) In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the
Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act,
1956 read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors as on March 31,
2014, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
|
For, J. T. Shah & Co. |
|
Chartered Accountants, |
|
[FR No. 109616W] |
|
[J. J. Shah] |
| Place: Ahmedabad |
Partner |
| Date : 25.08.2014 |
[M. No.45669] |
ANNEXURE TO THE AUDITORS REPORT
Referred to in Para 5 (i) of our Report on Other Legal and Regulatory Requirements of
even date for the year ended 31st March 2014.
1 In respect of Fixed Assets:
a. The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets, on the basis of available information.
b. As per the information and explanations given to us, the management at reasonable
intervals during the year in accordance with a program of physical verification physically
verified the fixed assets and no material discrepancies were noticed on such verification
as compared to the available records.
c. In our opinion, the Company has not disposed off any major / substantial part of the
fixed assets during the year and the going concern status of the Company is not affected.
2 In respect of its Inventories:
a. As explained to us, the inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is reasonable.
b. In our opinion, and according to the information and explanation 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 explanation given to us,
Company is maintaining proper records of inventory. The discrepancies noticed on
verification between the physical stocks and books records were not material.
3 In respect of loans, secured or unsecured, granted or taken by the company
to/from companies, firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956.
a. During the year under audit, the Company has granted loans to one such party covered
in the register maintained under section 301 of the Companies Act, 1956 and maximum
balance involved during the year under audit is Rs. 1.25 lacs and closing balance at the
year end was Rs. 1.25 lacs.
b. The Company has granted interest free loans hence we are not able to give comment on
Para 4 (iii) (b) of the Companies (Auditors Report) Order, 2003.
c. There are no stipulated terms of repayment and other terms of loans given to the
companies/firms/ parties listed in the register maintained under section 301 of the
Companies Act, 1956. Hence we are not able to give comment on Para 4 (iii) (c) & (d)
of the Companies (Auditors Report) Order, 2003.
d. During the year under audit, the Company has taken loan from one party covered in
the register maintained under section 301 of the Companies Act, 1956.The maximum amount
involved during the year was Rs.209.84 lacs and closing balance at the year end was
Rs.124.69 lacs.
e. The Company has taken interest bearing unsecured loan. The terms and conditions, in
our opinion and according to the information and explanation given to us, are prima facie
not prejudicial to the interests of Company.
f. There are no stipulated terms of repayment and other terms of loan taken by the
companies/firms/ parties listed in the register maintained under section 301 of the
Companies Act, 1956. Hence we are not able to give comment on Para 4 (iii) (g) of the
Companies (Auditors Report) Order, 2003.
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 with regard to purchases of inventory, fixed assets and
with regard to the sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5 In respect of contracts or arrangements covered under Section 301 of the
Companies Act, 1956:
a. Based on the audit procedures applied by us and according to the information and
explanations provided by the management, we are of the opinion that the contracts or
arrangements that need to be entered into the register maintained under section 301 have
been so entered.
b. In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in the register
maintained under section 301 in respect of any party during the year have been made at
prices which are reasonable having regard to prevailing market prices at the relevant
time.
6 In our opinion, and according to the information and explanations given to us,
the Company has not accepted any deposits from the public to which the directives issued
by the Reserve Bank of India and the provisions of Sections 58A and 58AA and any other
relevant provisions of the Companies Act, 1956 and the rules framed there under are
applicable.
7 In our opinion, the Company has an internal audit system commensurate with the
size and nature of its business.
8 As informed to us, the maintenance of cost records are not prescribed by the
Central Government under section 209 (1) (d) of the Companies Act, 1956 for the year under
review.
9 In respect of Statutory Dues:
a. According to the information and explanations given to us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory dues including
income tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory
dues applicable to it with the appropriate authorities except there was delay in few cases
towards payment of TDS, VAT & CST, PF, professional tax and service tax.
b. According to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, wealth tax, sales tax, service tax, custom duty and
excise duty were outstanding, as at 31st March, 2014 for a period of more than six months
from the date they became payable.
c. According to the records of the Company, there are no dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty, cess which have not been deposited on
account of any disputes other than income tax dues of Rs. 5.66 lacs
pertaining to the A.Y. 2012-13 for which rectification application u/s 154 of the Income
Tax Act, 1961 has been filed with the Office of ACIT, Mumbai.
10 The Company does not have the accumulated losses at the end of the financial
year. The Company has not incurred any cash losses in the financial year covered by audit
and in the immediately preceding financial year.
11 Based on our audit procedure and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to its Bankers except
temporary delays of 25 days in repayment of term loan installment of Rs. 85 lacs
and 14 days delay in discharge of suppliers credit dues under LC aggregating to Rs.
404.31 lacs which have been paid since.
12 Based on our examination of documents and records and 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.
13 The provisions of any special statute applicable to chit fund, nidhi or mutual
benefit fund / societies are not applicable to the Company.
14 The Company is not dealing or trading in shares, securities, debentures and
other investments and hence clause 4(xiv) of Companies (Auditors Report) Order, 2003 is
not applicable to the Company.
15 In our opinion, and according to the information and explanations given to
us, the Company has given guarantee for loans taken by other body corporate from financial
institution. In view of the present financial standing of the other party who has
borrowed, in our opinion the terms and conditions on which the guarantee is given are
prima facie prejudicial to the interest of the Company.
16 The Company has utilized the term Loan for the purpose for which it was
obtained.
17 On the basis of an overall examination of the Balance Sheet and Cash Flow
Statement of the Company, in our opinion and according to the information and explanations
given to us, no funds raised on a short term basis have been used for long term purposes.
18 In our opinion, and according to the information and explanations given to us,
the Company has not made any preferential allotment of shares to parties and companies
covered in the register maintained under section 301 of the Companies Act, 1956.
19 The Company has not issued any debentures and therefore the question of creating
the securities in respect thereof does not arise.
20 During the year, the Company has not raised any money by way of public issue.
21 Based upon the audit procedures performed and information and explanations given
by the management, no fraud on or by the Company has been noticed or reported during the
course of our audit.
|
For, J. T. Shah & Co. |
|
Chartered Accountants, |
|
[FR No. 109616W] |
|
[S. J. Shah] |
| Place: Ahmedabad |
Partner |
| Date : 25.08.2014 |
[M. No.45669] |
+91-9892691696
