To the Members of Cethar Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Cethar Industries Limited
("the Company"), which comprise the Balance Sheet as at March 31,2017, 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 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.
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 judgments 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.
Auditors 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 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 financial control relevant to the Companys 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 accounting policies used and the reasonableness
of the accounting estimates made by the Companys 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 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
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March
31,2017;
b) in the case of the Statement of Profit and Loss, of the Losses for the year ended on
that date; and
c) 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 (Auditors Report) Order, 2016 ("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 for statement on the matters Specified in paragraphs
3 and 4 of the Order.
2. 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.
e) on the basis of written representations received from the directors as on March
31,2017, and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31,2017, from being appointed as a director in terms of Section
164(2) of the Act. However, the company does not have adequate independent directors.
Hence, the audit committee of the company is not validly constituted as per the provisions
of Section 177 of the Companies Act, 2013 read with Rule 6 and 7 of Companies (Meetings of
Board and its Powers) Rules, 2014.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in Annexure B.
g) 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
Auditors 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. Hence, ttje question
of delay in transferring such sums does not arise
iv. The Company has provided requisite disclosures in its financial statements as to
holdings as well as dealings in Specified Bank Notes during the period from 8th November,
2016 to 30th December, 2016 and these are in accordance with the books of accounts
maintained by the Company. Refer Note 18 to the Financial Statement.
|
For Sivaswamy & Kumar |
|
Chartered Accountants |
|
(Firm Regn. No. 012929S) |
|
S. Kumar |
| Place: Tiruchirappalli |
Partner |
| Date: August 28,2017 |
Membership No : 121656 |
ANNEXURE ‘A‘: REPORT ON MATTERS REQUIRED BY CARO, 2016:
Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements in
our Report of even date to the members of Cethar Industries Limited on the accounts of the
company for the year ended 31st March, 2017
On the basis of such checks as we considered appropriate and according to the
information and explanations given to us during the course of our audit, we report that:
i. The Company does not have fixed assets and hence reporting under clause (i) of
Paragraph 3 of the Order is not applicable.
ii. The Company does not have inventories and hence reporting under clause (ii) of
Paragraph 3 of the Order is not applicable.
iii. The Company has not granted loans, secured or unsecured to companies, firms.
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Companies Act and hence reporting under clause (iii) of Paragraph 3 of
the Order is not applicable.
iv. According to the information and explanation given to us and books and records
examined by us, there are no transactions made in respect of loans, investments,
guarantees and security as specified in provisions of section 185 and 186 of the Companies
Act, 2013 and hence reporting under clause (iv) of Paragraph 3 of the Order is not
applicable.
v. The Company has not accepted any deposits to which the directives issued by the
Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant
provisions of the Act and the rules framed there under are applicable.
vi. There are no operation carried out during the year and no cost records as
prescribed in section 148(1) of the Companies Act, 2013 is maintained.
vii. (a) According to the information and explanations given to us and the records
examined by us, the company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees state insurance,
income-tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess
and other statutory dues.
(b) According to the information and explanations given to us and based on the records
of the company examined by us, there are no dues of income Tax, sales tax, service tax,
customs duty, excise duty and value added tax which have not been deposited on account of
any dispute.
viii. In our opinion and according to the information and explanation given to us and
books and records examined by us, there are no borrowings from banks, financial
institutions and Government. The company has not issued any debentures.
ix. The Company has not raised any money by way of initial public offer or further
public offer during the year and there are no term loan borrowings and hence reporting
under clause (ix) of Paragraph 3 of the Order is not applicable.
x. According to the information furnished and explanation given to us, no fraud on or
by the company has been noticed or reported during the year.
xi. No managerial remuneration has been paid during the year and hence reporting under
clause (xi) of Paragraph 3 of the order is not applicable.
xii. The company is not a Nidhi Company and hence reporting under clause (xii) of
Paragraph 3 of the order is not applicable.
xiii. According to the information and explanation given to us and books and records
examined by us, there are no related party transaction made during the year and hence
reporting under clause (xiii) of Paragraph 3 of the order is not applicable.
xiv. The company has not made preferential allotment or private placement of shares or
fully or partly convertible debentures during the year under review and hence reporting
under clause (xiv) of Paragraph 3 of the Order is not applicable.
xv. The company has not entered into any non-cash transactions with directors or
persons connected with him and hence reporting under clause (xv) of Paragraph 3 of the
Order is not applicable.
xvi. In our opinion, the company is not required to be registered under section 45-IA
of the Reserve Bank of India Act. 1934.
|
- For Sivaswamy & Kumar |
|
Chartered Accountants |
| Place: Tiruchirappalli |
(Firm Regn. No. 012929S) |
| Date: August 28,2017 |
S. Kumar |
|
Partner |
|
Membership No.: 121656 |
Annexure - B to the Auditors Report to the members of Cethar Industries Limited
Report on the Internal Financial Controls under Clause (I) of Sub-section 3 of Section
143 of the Companies Act, 2013:
We have audited the internal financial controls over financial reporting of Cethar
Industries Limited ("the Company"), as of March 31,2017 in conjunction with our
audit of the financial statements of the company for the year ended on that date.
MANAGEMENTS RESPONSIBILITY FOR THE INTERNAL FINANCIAL CONTROLS:
The companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors Responsibility:
Our responsibility is to express an opinion on the companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed u/s 143(10) of the Companies Act, 2013, to the extent applicable to an
audit of internal financial controls, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. ‘
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting:
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that:-
1. Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
2. Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of International Financial controls over Financial Reporting:
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collision or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion:
In our opinion, the company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31,2017, based on the
internal control over financial reporting criteria established by the company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For Sivaswamy & Kumar |
|
Chartered Accountants |
| Place: Tiruchirappalli |
(Firm Regn. Np. 012929S) |
| Date: August28,2017 |
S. Kumar |
|
Partner |
|
Membership No.: 121656 |
+91-9892691696
