To,
The Members of
USHER AGRO LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of USHER AGRO
LIMITED, ("the Company"), which comprises the Balance Sheet as at March 31,
2017, the Statement of Profit and Loss, the 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 Companys Board of Directors is responsible for the matters in section 134(5) of
the Companies Act, 2013 ("the Act") with respect to the preparation of these
standalone financial statements that give a true and fair view of the financial position,
financial performanceand cash flowsof 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 the maintenance of adequate accounting records in accordance
with the provision of the Act for safeguarding of the assets of the Company and for
preventing and detecting the 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 internal financial control, that
were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone 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 standalone 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act, except with regard to the matters set out below in Basis of
Qualified Opinion, where we have not been able to perform audit in conformity with
relevant auditing standards in the absence of sufficient appropriate evidence. Those
Standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone 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 true and fair view in order to design audit procedures that
are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by Companys Directors, as well as evaluating the overall presentation of
the standalone financial statements.
We believe that the audit evidence we have obtained, except with regard to the matters
set out below in Basis of Qualified Opinion, is sufficient and appropriate to provide a
basis for our qualified audit opinion on the standalone financial statements.
Basis for Qualified Opinion
1. CFSIT Inc, USA has filed Winding-up Petition against the company for recovery of
their outstanding Dues of INR 6,400.63 lakh ($10 Million) with the interest @12% p.a. as
per the advance payment and supply contract. An interest amount comes to INR788.87 lakh ($
1.22 Million) approx. for which the company has not made any provision in the financial
statements. Had the company made such Interest provision in the Statement of Profit and
loss, the loss for the year would have been higher by INR 788.87lakh and the accumulated
loss would have been higher by an equivalent amount.
2. PT Bank Maybank Indonesia Tbk, Mumbai has filed Winding up petition against the
company for recovery of their outstanding Dues of INR1778.18 lakh with the interest @16.4%
p.a. The proceeding is pending before Honble Bombay High Court. An interest amount comes
to INR 37.27 lakh approx. for which the company has not made any provision in the
financial statements.
Had the company made such Interest provision in the Statement of Profit and loss, the
loss for the year would have been higher by
INR37.27 lakh and the accumulated loss would have been higher by an equivalent amount.
3. In view of invocation of Strategic Debt Restructuring (SDR), the company had not
made provision of Interest on Cash credit/Term loan etc. (including penal interest charged
by banks/financial institutions) of INR 9907.44lakhon various loans taken from Bank /
Financial Institutions in the Financial Statements.
Had the company made such Interest provision in the Statement of Profit and loss, the
loss for the year would have been higher by INR 9907.44 lakh and the accumulated loss
would have been higher by an equivalent amount.
4. Axis bank has imposed Penal charges amounting to INR 300.19 lakh. However, such
expenditure has not been expensed out in the statement of profit and loss and the same is
adjusted against short term borrowing from bank. Had the company expensed out such Penal
Charges in the statement of profit and loss, the loss for the year would have been higher
by INR 300.19lakh and accumulated loss would have been higher by an equivalent amount and
short term borrowing would have been higher by an equivalent amount.
5. In the absence of information received from ICICI Bank, Company did not make
provision for mark to Market (MTM) on Derivative contract, so we are unable to quantify
the impact of MTM on companys Loss for the period ended on 31stMarch, 2017
6. The Company has made provision for gratuity and leave encashment for the year on
estimated basis and not as per actuarial valuation. In the absence of actuarial valuation
report, the impact on loss for the year on account of such valuation is not ascertainable
and relevant disclosures have not been given. This is not in compliance with AS-15
"Employee Benefits".
Qualified Opinion
In our opinion and to the best of our information and according to the explanations
given to us, except for the possible effects, which are not quantifiable, of the matters
described in the Basis for Qualified Opinion paragraph, the aforesaid standalone 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 2017and its loss and its
cash flows for the year ended on that date:
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
a. In view of invocation of Strategic Debt Restructuring (SDR), the company has issued
equity share to the Banks and Financial Institutions.
Accordingly company has reduced respective credit facilities (Term Loan/working capital
limits/unsecured loans etc.) of the respective banks and financial Institutions to the
extent of SDR Amount, but we have not received confirmation from few of bank and Financial
Institutions on the treatment of SDR amount
b. As explained in Note no. 46 of the Standalone financial statements which states that
balances of Sundry Debtors, Creditors, Loans & Advances and other parties are subject
to confirmation and consequent adjustments, if required.
c. Company has outstanding CSR provision of INR 106.71 lakh of the earlier years.
However company has not utilized such amount for CSR activity till 31.03.2017. d.
Reference is invited to Note no. 48 to the financial statements that describe that due to
liquidity crunch being faced by the Company, Rice Mill of the company is not utilizing its
optimum production capacity during the year. e. Company Secretary of the company has
resigned from the company from 07.10.2016. Company is in process of appointment of full
time Company Secretary; however same is not yet done.
f. The Only Woman director (nominee of IDBI Bank) of the company has been changed and
replaced by another director vizMr. Ajay Sharma, as a result company does not have any
woman director in Board of Directors of the company.
g. Small Industries Development Bank of India (SIDBI) had serve notice for attachment
of Office no 212 situated at Laxmi Plaza, Laxmi Industrial Estate, Andheri (west), Mumbai
to the company on 13/02/2017 using power given under sub-section (4) of Section 13 of the
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 54 of 2002 (the Act) read with rule 8 of the security interest (Enforcement) Rules,
2002 on this 13th day of February, 2017 for their outstanding dues of INR 564.67 lakh.
h. The financial statement indicates that the company has accumulated losses and its
net worth is fully eroded. The Company has incurred net loss during the current year as
well as previous years and Companys current liabilities exceeded its current assets as at
the balance sheet date. However, the financial statements of the Company have been
prepared on a going concern basis
Our opinion is not modified in respect of these matters.
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 Companies Act, 2013, we give in the Annexure "A" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and, except for the possible effects of the matters described in the
Basis for Qualified Opinion paragraph, obtained all the information and explanations which
to the best of our knowledge and belief were necessary for the purposes of our audit.
b. except for the possible effects of the matters described in the Basis for Qualified
Opinion paragraph, 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 Company does not have any branch; hence clause (c) of sub-section (3) of section
143 is not applicable.
d. The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt
with by this Report are in agreement with the books of account.
e. except for the possible effects of the matters described in the Basis of Qualified
Opinion paragraph, in our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014 (as amended).
f. The matters described under the Basis for Qualified Opinion paragraph, Emphasis of
Matter paragraph read further with para vii b, c and viii of our report in Annexure
"A", attached hereto, in our opinion, may have an adverse effect on the
functioning of the Company.
g. On the basis of 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.
h. The qualification relating to the maintenance of accounts and other matters
connected therewith are as stated in the Basis for Qualified Opinion paragraph above.
i. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, we give our
separate Report in "Annexure B".
j. with respect to the other matters included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit &Auditors) Rules,2014, in our opinion and to our
best of our information and according to the explanations given to us:
j. with respect to the other matters included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit & Auditors) Rules,2014, in our opinion and to
our best of our information and according to the explanations given to us:
i. As detailed in Note No. 34 to the Standalone Financial Statements, the Company has
disclosed the impact of pending litigations on its standalone financial position.
ii. The Company has made provisions as required under the applicable law or accounting
standards for material foreseeable losses if any, on long term contracts including
derivative contracts.
iii. There is a non-deposit of unclaimed Dividend belong to Financial Year 2008-09 of
INR 58,770.75, required to be transferred, to the Investor Education and Protection Fund
by the company.
iv. The company had provided requisite disclosures in its standalone 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 36 to the standalone financial
statements.
|
For Jayesh Sanghrajka & Co. LLP |
|
Chartered Accountants |
|
ICAI Firm Regd. No.: 104184W/W100075 |
|
CA Viraj Savla |
| Place: Mumbai |
Designated Partner |
| Date: 30th May, 2017 |
M. No.: 153525 |
Annexure "A" to the Independent Auditors Report
The Annexure referred to in our report to the members of USHER AGRO LIMITED (‘The
Company) on the standalone financial statements for the year ended 31st March, 2017. We
report that:
i. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b. As explained to us, all the fixed assets have been physically verified by the
management in a phased periodical manner, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. We are informed that no
material discrepancies were noticed on such physical verification.
c. According to the information and explanations given to us and the records examined
by us and based on the examination of the records maintained by company and intimation
received from IDBI Trusteeship Services Limited provided, we report that the title deeds,
comprising all the immovable properties of land and buildings which are freehold, are held
in the name of the Company as at the balance sheet date.
ii. In respect of inventories,
a. According to the information and explanation given to us, the physical verification
of inventory has been conducted at reasonable intervals by the management during the year.
However, we could not observe inventory verification in the absence of intimation from the
management in this regard.
b. As per the information and explanation given to us, no material discrepancies
between physical inventory and book records were noticed on physical verification.
iii. According to information and explanations given to us, the Company has granted
unsecured loans companies covered in the register maintained under Section 189 of the
Companies Act, 2013. In respect of these loans;
a. In our opinion and as per information and explanation given to us, terms and
conditions of grant of such loans are not prejudicial to the companys interest.
b. the terms of repayment of the principal amount and the payment of the interest have
not been stipulated and hence we are unable to comment as to whether receipt of the
principal amount and the interest are regular, and
c. in the absence of stipulated terms and conditions, we are unable to comment as to
whether there is any overdue amount for more than ninety days and whether reasonable steps
have been taken by the Company for recovery of the principal amount and interest
iv. In our opinion and according to the information and explanations given to us, in
respect of loans, investments, guarantees, and security, provisions of section 185 and 186
of the Companies Act, 2013 have been complied with.
v. According to the information and explanations given to us, the Company has not
accepted deposits from the public. Hence provisions of clause (v) of paragraph 3 of the
report are not applicable to the company.
vi. According to the information and explanations given to us, we are of the opinion
that maintenance of cost records has not been specified by the Central Government under
sub section (1) of section 148 of the Act. vii. In respect of statutory dues:
a. According to information and explanations given to us and on the basis of our
examination on test check basis, the company is not regular in depositing 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
material statutory dues to the appropriate authorities.
b. According to the information and explanations given to us, undisputed amounts, which
were outstanding as at March 31, 2017 for a period of more than six months from the date
of becoming payable are as follows:
| Nature |
Amount (INR in Lakhs) |
Due Date |
| TDS |
32.64 |
Various due dates as from May 2016 to September |
|
|
2016 – Annex 1 |
| Sales Tax – Entry Tax |
4.26 |
25th July 2015 |
| Corporate Dividend Tax |
38.74 |
12th October 2015 |
| Self-Assessment Tax – AY 2015-16 |
403.65 |
30th November 2015 |
| Self-Assessment Tax – AY 2013-14 |
328.47 |
28/04/2016 |
| PF |
3.11 |
15th September, 2016 |
| Service tax |
0.55 |
5th July 2016 |
| Service tax |
0.88 |
5th September 2016 |
| Vikas Cess |
0.94 |
Pending since 01/04/2016 |
c. According to the information and explanations given to us, dues that have not been
deposited by the Company on account of disputes are as follows:
| Nature of Dues |
Amount (INR in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
| VAT & CST |
29.17 |
A.Y. 2008-09 |
Appellate Tribunal, Agra |
| VAT & CST |
0.21 |
A.Y. 2009-10 |
Additional Commissioner(Commerce Tax) Grade – II (Appeal), Mathura |
| VAT & CST |
66.42 |
A.Y. 2010-11 |
Assessment Officer, Mathura |
| VAT & CST |
234.99 |
A.Y. 2009-10 |
Appellate Authority, Additional Commissioner Grade-II (Appeal) Mathura |
| VAT & CST |
2756.82 |
A.Y. 2010-11 |
Appellate Authority, Additional Commissioner Grade-II (Appeal) Mathura |
| VAT & CST |
3701.25 |
A.Y. 2012-13 |
Appellate Authority, Additional Commissioner Grade-II (Appeal) Mathura |
| VAT |
0.98 |
A.Y. 2011-12 |
Appellate Authority, Additional Commissioner Grade-II (Appeal) Mathura |
| VAT |
383.28 |
A.Y. 2015-16 |
Appellate Authority, Additional Commissioner Grade-II (Appeal) Mathura |
| VAT |
84.65 |
A.Y.2016-17 |
Appellate Authority, Additional Commissioner Grade-II (Appeal) Mathura |
| MandiShulk& Vikas |
86.03 |
F.Y. 2014-15 |
Secretary, KrishiUtpadanMandiSamiti, Kosi-Kalan, Mathura |
| Cess |
|
|
|
| TDS |
40.00 |
From F.Y. 2007-08 to |
TDS Authority of Income Tax |
|
|
F.Y 2016-17 |
|
viii. In our opinion and according to the information and explanations given to us, the
Company has defaulted in repayment of following dues to the financial institutions and
banks during the year:
| S.no |
Name of Bank/ FI |
Amount (INR in Lakhs) |
Due on |
Paid on |
| 1 |
Rabo Bank International Ltd |
435.28 |
18th December 2015 |
178.54 Lakh paid on 4th January 2016, balance not paid |
|
|
609.39 |
18th June 2016 |
Not paid |
|
|
696.44 |
18th December 2016 |
Not paid |
| 2 |
Axis Bank Ltd. |
244.00 |
31st March 2016 |
07th April 2016 and 24th June 2016 |
|
|
244.00 |
30th June 2016 |
Not paid |
|
|
244.00 |
30th September 2016 |
Not paid |
|
|
244.00 |
31st December 2016 |
Not paid |
|
|
244.00 |
31st March 2017 |
Not paid |
| 3 |
Dena Bank |
100.00 |
31th December 2015 |
Not paid |
|
|
100.00 |
31st March 2016 |
Not paid |
|
|
100.00 |
30th June 2016 |
Not paid |
|
|
100.00 |
30thSeptember 2016 |
Not paid |
|
|
100.00 |
31st December 2016 |
Not paid |
|
|
100.00 |
31st March 2017 |
Not paid |
| 4 |
EXIM Bank |
300.00 |
31th December 2015 |
Not paid |
|
|
300.00 |
31st March 2016 |
Not paid |
|
|
300.00 |
30th June 2016 |
Not paid |
|
|
300.00 |
30th September 2016 |
Not paid |
|
|
300.00 |
31st December 2016 |
Not paid |
|
|
300.00 |
31st March 2017 |
Not paid |
| 5 |
IDBI |
83.33 |
30th September 2016 |
Not paid |
|
|
83.33 |
31st December 2016 |
Not paid |
|
|
83.33 |
31st March 2017 |
Not paid |
| 6 |
IDBI |
138.89 |
31st March 2016 |
Not paid |
|
|
138.89 |
30th June 2016 |
Not paid |
|
|
138.89 |
30th September 2016 |
Not paid |
|
|
138.89 |
31st December 2016 |
Not paid |
|
|
138.89 |
31st March 2017 |
Not paid |
| 7 |
L & T Finance Ltd |
175.00 |
31st December 2015 |
28.50 Lakhs paid on various dates and balance not paid |
|
|
175.00 |
31st March 2016 |
Not paid |
|
|
175.00 |
30th June 2016 |
Not paid |
|
|
175.00 |
30th September 2016 |
Not paid |
|
|
159.49 |
31st December 2016 |
Not paid |
| 8 |
BOM |
62.50 |
31st December 2016 |
Not paid |
|
|
62.50 |
31st March 2017 |
Not paid |
| 9 |
ICICI Bank |
842.31 |
30th June 2016 |
Not paid |
|
|
647.93 |
30th September 2016 |
Not paid |
|
|
931.40 |
31st March 2017 |
Not paid |
| 10 |
BMW |
0.66 |
31st March 2017 |
Not paid |
ix. According to the information and explanation given to us, the company has not
raised monies by way of initial public offer or further public offer (including debt
instrument). In our opinion and according to the information and explanation given to us
and on the basis of our examination on test check basis, we are of the opinion that the
term loans were applied for the purposes for which those were raised.
x. According to the information and explanation given to us, no fraud by the company or
on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanation given to us, Since Company is in a
loss therefore, the company has not paid the managerial remuneration. xii. According to
the information and explanation given to us, the company is not the Nidhi Company.
Therefore, provisions of clause 3(xii) of the order are not applicable to the company.
xiii. According to the information and explanation given to us, transactions entered
into by the company with the related parties are in compliance with sections 177 and 188
of Companies Act, 2013 and the details have been disclosed in the Financial Statements
etc., as required by the applicable accounting standards;
xiv. During the year, the company has issued 3,96,12,472 Equity Shares of INR 10 each
at a premium of INR 1.09 per share to the Members of Joint Lenders Forum as approved by
Shareholders pursuant to Strategic Debt Restructuring Scheme. The company has complied
with the provisions of Sections 42 of the Companies Act 2013. The amounts raised have been
used for purpose for which the funds were raised
xv. According to the information and explanation given to us, the company has not
entered into any non-cash transactions with directors or persons connected with them
during the year.
xvi. According to the information and explanation given to us, the company is not
required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
|
For Jayesh Sanghrajka & Co. LLP |
|
Chartered Accountants |
|
ICAI Firm Regd. No.: 104184W/W100075 |
|
CA Viraj Savla |
| Place: Mumbai |
Designated Partner |
| Date: 30th May, 2017 |
M. No.: 153525 |
Annexure "B" to the Independent Auditors Report
[Referred to under ‘Report on Other Legal and Regulatory Requirements in the
Independent Auditors Report of even date to the members of USHER AGRO LIMITED on
the standalone financial statements for the year ended 31st March 2017]
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of USHER
AGRO LIMITED ("the Company") as of March 31, 2017 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on that
date.
2. Managements Responsibility for 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 (the
"Guidance Note") issued by the Institute of Chartered Accountants of India
("ICAI"). 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.
3. 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, 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 qualified audit opinion on the Companys internal financial
controls system over financial reporting.
4. 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 authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
5. Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion 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. According to the
information and explanations given to us and based on our audit, the following material
weakness has been identified as at March 31, 2017:
a) We would draw attention to matters disclosed in ‘Basis for Qualified Opinion,
and Emphasis of matters Paragraphs of the our independent Auditors Report, indicating that
indicating that the Companys internal financial controls over preparation of financial
statements in compliance with accounting standards and generally accepted accounting
principles were not operating effectively which could potentially result in material
misstatement of the financial statements
A ‘material weakness is a deficiency, or a combination of deficiencies, in
internal financial control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the companys annual or interim financial
statements will not be prevented or detected on a timely basis.
6. Qualified Opinion
In our opinion, except for the effects/possible effects of the material weaknesses
described above on the achievement of the objectives of the control criteria, the company
has maintained, in all material respects, adequate internal financial controls over
financial reporting and such internal financial controls over financial reporting were
operating effectively as of 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.
We have considered the material weaknesses identified and reported above in determining
the nature, timing, and extent of audit tests applied in our audit of the March 31, 2017
standalone financial statements of the Company, and our aforesaid report and opinion on
Internal Financial Control over Financial Reportingshould be read in conjunction with our
report of even date issued on the standalone financial statements of the Company.
|
For Jayesh Sanghrajka & Co. LLP |
|
Chartered Accountants |
|
ICAI Firm Regd. No.: 104184W/W100075 |
|
CA Viraj Savla |
| Place: Mumbai |
Designated Partner |
| Date: 30th May, 2017 |
M. No.: 153525 |
+91-9892691696
