To,
The Members of,
Natco Economicals Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Natco Economicals Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2017, the
Statement of Profit and Loss and Cash Flow for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is 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 the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of 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; and design, implementation and maintenance of adequate internal
financial controls, that were 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
the 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 the accounting policies used and the
reasonableness of the accounting estimates made by the Companys 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 of the state of affairs of the Company as at March
31, 2017 and its Profit and its 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 statement on the matters specified in paragraphs 3 and
4 of the Order.
2. As required by section 143(3) of the Act, we 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 purposes 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 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 Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014;
e. On the basis of the written representations received from the directors as on 31st
March, 2017 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2017 from being appointed as a director in terms of Section
164 (2) of the Act;
f. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors)Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
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 for
which there were any material foreseeable losses.
III. There were no amounts which were required to be transferred, to the Investor
Education and Protection Fund by the Company.
Annexure to Auditors Report
The Annexure referred to in the Auditors Report to the Member of Natco Economicals
Limited on the accounts for the year ended 31st March, 2017, we report that:
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 is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) These Fixed Assets have been physically verified by the management at reasonable
intervals, No material discrepancies were noticed on such verification and the same have
been properly dealt with in the books of account.
2. The company does not have any inventory during the year. Accordingly, the provision
of Clause (ii) (a), (b), and (c) of the Order is not applicable to the company.
3. The Company has not granted any loan, secured or unsecured to companies, firms or
other parties covered in the register maintained under Section 189 of the Companies Act,
2013.
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, for the purchase of inventories & fixed assets and for sale of
goods & services. During the course of our audit, we have not observed any major
weaknesses in the internal controls.
5. The Company has not accepted any deposits from the public covered under section 73
to 76 or any other relevant provisions of the Companies Act, 2013 and rules made there
under.
6. We have been informed that the Central Government has not prescribed for the
maintenance of cost records under section 148(l) 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, Duty of Custom, Duty of Excise, Value Added Tax, Cess and any other statutory dues to
the extent applicable have been regularly deposited with the appropriate authorities.
According to the information and explanations given to us no undisputed amount payable in
respect of aforesaid dues were outstanding as at 31st of March, 2017 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of
Sales Tax, income tax, wealth tax, service tax, Duty of customs and Duty of excise which
have not been deposited on account of any disputes.
(c) There were no amounts which were required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the Companies Act, 2013
and rules made there under.
8. The Company does not have any accumulated loss. The company has not incurred cash
loss during the financial year covered by our audit as well as in the immediately
preceding financial year.
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 taken any loan from a
financial institution, bank and also not issued any debenture.
10. According to the information and explanations given to us, the Company has not
given any guarantees for loan taken by others from a bank or financial institution.
11. Based on the information explanation given to us by the management, we report that
the company has not raised any term loans during the year.
12. According to the information and explanations given to us, we report that no fraud
on or by the Company has been noticed or reported during the year.
|
For Jayesh B. Patel & Co. |
|
Chartered Accountants |
|
CA Jayesh Patel |
| Place: Ahmedabad |
Proprietor |
| Date: 26th May, 2017 |
Membership No: 34745 |
+91-9892691696
