To
The Members of ABG Shipyard Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ABG Shipyard
Limited ("the Company"), which comprise the Balance Sheet as at March 31st,
2016, and 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 Standalone 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
standalone 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 in
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 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 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 there under.
We have 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 and fair
presentation of the financial statements that give a 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 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 qualified audit opinion.
Basis for Qualified Opinion
1. Note No. 11 to the financial statements. Due to prolonged suspension of construction
activities of some of the Plant Assets in Dahej Shipyard facilities, expenses incurred and
capitalized so far on those assets, related advances given to suppliers and contractors,
the physical condition of these assets under construction require technical evaluation to
determine impairments or write off, if any. However, in the view of the management, the
suspension of construction activities of these assets is temporary in nature and assets
under construction are not obsolete, and the company will be able to resume construction
activities in the near future and hence no provision is required to be made. Management
has informed us that the recoverable amount of Assets within the meaning of Accounting
Standard 28 is more than their carrying value and as such no amount needs to be recognized
in the financial statements for impairment loss. We have not been able to validate this
assertion in the absence of internal exercise or external valuation report of an
independent agency and the uncertainty of resumption of future operations/results of
operations thereafter. Further, in absence of physical verification of Fixed Assets and
capital work in progress at Dahej Shipyard, we are unable to comment on the carrying value
of Plant Assets at Dahej Shipyard.
2. Note No. 17 (c) to the financial statements which details various loans, advances
and receivables from related parties. In respect of these loans, advances and receivables
the deliverables and receipts are outstanding for a long time. Absence of recoveries from
these parties since several years indicates the existence of material uncertainty that may
cast doubts on the recoverability of the loans and advances. However, in the view of the
management no provision is required considering that these entities are related parties
and as such the balances are considered good and recoverable by the management. As such
loans are interest free, and there is no stipulation of repayment date we consider that,
prima facie, the terms and conditions of such loans are prejudicial to the interest of the
Company. We are unable to comment on the recoverability of loans and advances and
ascertain the impact, if any, on the financial statements.
3. Note No.18 to the financial statements, regarding subsidy receivable. The Company
had recognised for subsidy under Ship Building Subsidy Scheme in earlier years, out of
which subsidy of Rs. 49,964.89 Lacs is still receivable as on 31st March, 2016. The
receipt of aforesaid Subsidy is dependent upon completion of vessels and compliance with
other terms and conditions of the Ship Building Subsidy Scheme of the Government of India.
In view of the uncertainty involved with respect to availability of working capital as
required for completion of vessels and continuing default in CDR terms as well as low key
operations at Surat and no operation at Dahej, there is a material uncertainty of
completion of vessels and realization of the subsidy. The Company has not made provision
for the possible impact of the irrecoverability of the same.
4. Note No. 39 to the financial statements. The Financial statements have been prepared
assuming that the company will continue as a going concern. The Company has defaulted in
repayment of loans and covenants of the CDR scheme of lenders. There has been suspension
of operations at Dahej unit and low key operation at Surat unit. Further, there are civil
and criminal proceedings pending before Judicial Authorities seeking compensations,
liquidation of the Company and punishment to Directors/ Officers of the company. The
company has suffered recurring losses and its net worth has eroded. All these conditions
indicate a significant doubt about the going concern. The Financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects of the matter described in the Basis for Qualified
Opinion paragraph above, 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 31st March, 2016, and its loss and its cash flows for the year ended on that date.
Emphasis of matters
We draw attention to:
1. Note No. 12(d) to the financial statements. The Company has investments in
subsidiaries and related parties amounting to Rs. 22,012.51 Lacs as on the balance sheet
date. In absence of availability of the audited financial statements of the investee
companies, we are unable to ascertain or quantify whether any provision is required to be
made for the impairment of these investments. In the view of the management the
investments are long term in nature and there is no permanent diminution in the value of
investments requiring adjustment to the financial statements.
2. i) Note No. 14(b) to the financial statements. The company follows accounting
practice of recognizing revenue under Accounting Standard 7 on the basis of estimated
cost, cost so far incurred and estimated profit or loss out of shipbuilding contracts. The
cost estimates are done by company and we have relied on the same. A technical evaluation
was carried out by the Company, of the inventory of Ships and Rigs under construction and
the valuation of Work in progress recognized as per AS 7 as well as for the future
foreseeable losses in the current economic scenario. The technical evaluation has been
done in phases and is not completed for rigs and certain ships. Hence, we are unable to
comment on further impairment, if any, which may pertain to the values of rigs and certain
ships as appearing in books of Accounts as Work in Progress. In the view of the
management, adequate provision for estimated future foreseeable losses is provided in the
books of accounts.
ii) Note No. 14(c) to the financial statements. The Company has concluded Rig building
contract with respect to two rigs. The Company is in the process of negotiating the final
settlement with these customers. Pending settlement, company continues to show a sum of Rs
175,221.86 Lacs as inventory of rigs under the head Work in Progress and as advance
received under Progress Money from customers. The impact of this, on the net current asset
is Nil.
3. Note No. 17 (d) to the financial statements which details various advances to
certain parties that are outstanding for a long time. In respect of these advances, no
materials or services have been received by the company. Reduction of companys activity,
aged outstandings, and absence of balance confirmation of outstandings from these parties,
indicates the existence of material uncertainty that may cast doubts on the recoverability
of these advances or deliverables against the same. However, in the view of the
management, no provision is required to be done as such balances are considered good and
recoverable.
4. Note No. 40(2) to the financial statements. The Company has not provided Managerial
Remuneration for the managing director after October 2015 as it would then exceed the
provision of section 197 read with Schedule V to the Companies Act, 2013.
5. The company has defaulted in repayment of loans and covenants of CDR schemes of
lenders. As regards contingency related to "compensation payable in lieu of Bank
Sacrifice" the outcome is materially uncertain and cannot be determined in terms of
its monetary impact on the financial statements. The Companys Management is of the view
that the company is an operative Company and such contingency may not arise
6. Loan statements pertaining to certain Loans from some banks and financial
institutions representing book balances of Rs 89,198.57 Lacs, have not been received and
reconciled. Further, due to pending clarification and confirmation from some banks for
certain current/cash credit accounts, entries have not been reconciled. Hence the effect,
if any, of such pending reconciliations, on financial statements remains unascertained.
7. Some customers, creditors as well as Statutory Authorities have initiated legal
proceedings against the company, which may result in compensation, interest and penalties.
The possible impact of the same on financial result cannot be ascertained, pending such
outcome.
Our opinion is not qualified 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 section143(3) of the Act, we report that:
a) Except for the matters described in the basis for qualified opinion paragraph above,
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) Except for the effects of the matter described in the basis for qualified opinion
paragraph above, 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) Except for the effects of the matter described in the Basis for Qualified Opinion
paragraph above, 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.
e) The matters described in the Basis for Qualified Opinion and the Emphasis of Matter
paragraph above, in our opinion, may have an adverse effect on the functioning of the
Company.
f) On the basis of written representations received from the directors, except one
director, as on March 31,2016 and taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2016, from being appointed as a director in
terms of section 164 (2) of the Act. We are unable to comment on the eligibility of the
one director from whom the written representation has not been received.
g) 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.
h) 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 has disclosed the impact of pending litigations on its financial
position in its financial statements as referred to in Note No. 28 to the Financial
Statements.
ii) Subject to our comment in Emphasis of Matter paragraph, point no. 2 the Company has
made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long- term contracts including derivative contracts.
iii) There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
|
For Nisar & Kumar |
|
Chartered Accountants |
|
Firm No. 107117W |
|
M.N.Ahmed |
|
Partner |
|
M. No. 18380 |
| Place: Mumbai |
|
| Date: 30th May, 2016 |
|
Annexure A to the Independent Auditors Report
Annexure referred to in paragraph 1 Our Report of even date to the members of ABG
Shipyard Limited on the financial statement of the Company for the year ended 31st March,
2016
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. (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Fixed Assets;
(b) The Fixed Assets of the company are substantially located in two Shipyards i.e.,
Surat and Dahej. Fixed Assets situated at Surat, have been physically verified in a phased
manner by the management during the year as per the program of verification. As informed
to us, no material discrepancies were noticed between book records and physical
verification at Surat. In our opinion, the verification at Surat was reasonable having
regard to the size of the Company and nature of its Asset. However we were informed that
no physical verification of Fixed Assets has been carried out at Dahej. Such Assets at
Dahej constitutes approx 84% of the Total Gross Block of fixed assets, hence we are unable
to comment whether there exists any material discrepancies between the physical balance
and book balance.
(c) The title deeds of immovable properties are held in the name of the Company, except
for certain freehold lands at Dahej having gross block value of Rs 72.93 Lacs and net book
value of Rs 72.93 Lacs is yet pending registration with concerned authorities. We have not
been provided with information regarding status of pending registration of immovable
properties at Surat & Kolkata, hence we are unable to comment on same.
ii. According to the information and explanations given to us, the inventory has been
physically verified during the year by the management at its Surat Shipyard. The frequency
of verification is reasonable and adequate in relation to the size of the Company and the
nature of its business and on the basis of the records of inventory. However as the
physical verification had not been carried out during the year under reporting at Dahej
Shipyard and inventories lying with Customs Authorities/ Bonded Warehouse, we are unable
to make any comment on the same as to whether any discrepancy exists between book balance
and physical balance of those inventories.
iii. The Company has not updated register under section 189 of the Companies Act, 2013
hence we cannot rely on the same. The company has given interest free loans to various
group companies and attention is drawn to note no. 17 of the Financial Statements.
As such loans are interest free, and there is no stipulation of repayment date, we
consider that prima facie the terms and conditions of such loans are prejudicial to the
interest of the Company.
As there is no stipulation as to repayment date of principal amount, hence clause (iii)
(b) & (c) of the order are not commented on.
iv. According to the information and explanations given to us, the Company has not
given loans covered under section 185. The Company had loans to certain parties covered
under section 186 of the Companies Act, 2013, in respect of which no interest has been
charged, which is not in compliance with section 186 of the Companies Act, 2013.
v. In our opinion and according to the information and explanations given to us, there
are no deposits accepted from the public, hence paragraph 3(v) of the Order is not
applicable.
vi. We could not review the cost records maintained by the Company pursuant to the
Section 148(1) of the Companies Act, 2013 due to non availability of such records for our
review, and hence we are unable to give our opinion as to prima facie, whether the
prescribed cost records have been maintained.
vii. (a) According to the records of the Company, there has been instances of
inordinate delays and defaults during the financial year in depositing with appropriate
authorities, the undisputed statutory dues including Provident Fund, Income-tax, Tax
Deducted at Source, Sales-tax, Wealth-tax, Service tax, Profession Tax, Custom duty,
Excise duty, Cess and other statutory dues applicable to it.
The following undisputed statutory dues are outstanding for a period of more than six
months as on March 31, 2016, from the date they became payable:
| Name of the Statue |
Nature of Dues |
Financial Year |
Amount in Rs. lacs |
| The Income Tax Act, 1961 |
Income Tax |
2003-04 to 2009-10 (Assessment by Settlement Commission), 2011-12 &
2012-13 |
4,466.29 |
| The Income Tax Act, 1961 |
Tax Deducted at Source, Tax Collected at Source, interest thereon. |
2013-14, 2014-15 & 2015-16 |
460.03 |
| The Finance Act, 1994 |
Service Tax |
2015-16 |
18.73 |
| Gujarat Vat Act, 2003 |
Gujarat VAT |
2013-14 & 2015-16 |
543.13 |
| Employees Provident Funds & Miscellaneous Provisions Act, 1952 |
Provident Fund |
2015-16 |
298.66 |
| Profession Tax Act, 1975 |
Profession Tax |
2012-13, 2013-14, 2014-15 & 2015-16 |
39.23 |
(b) According to information and explanation given to us, the following dues have not
been deposited by the Company on account of disputes:
| Name of the Statute |
Nature of Dues |
Financial Year |
Amount in Rs. Lacs |
Forum where dispute is pending |
| The Finance Act, 1994 |
Service Tax |
2004-05 to 2010-11 |
1,350.18 |
CESTAT |
| Income Tax Act, 1961 |
Income Tax |
2010-11 |
271.58 |
CIT (Appeal) |
| Employees Provident Funds & Miscellaneous Provisions Act, 1952 |
Provident Fund |
2014-15 |
415.51 |
Assistant Provident Fund Commissioner & Recovery Officer |
viii. According to the information and explanation given to us and as per the books of
account, the Company has defaulted in respect of dues to financial institutions, bank,
Government or debenture holders during the financial year. The period and the amount of
defaults are as under:
| Particulars |
Amount of defaults as at the balance sheet date (in Lacs) |
Period of defaults (days) |
| i) Name of the lenders |
|
|
| Banks: |
|
|
| Andhra Bank |
472.99 |
1-367 |
| Bank of Baroda |
1,889.34 |
1-337 |
| Bank of India |
3,020.31 |
337 |
| Canara Bank |
239.65 |
1-519 |
| Central Bank of India |
140.05 |
1-184 |
| Dena Bank |
1,866.25 |
1-214 |
| Deutsche Bank |
9,184.59 |
1-1078 |
| Development Credit Bank |
4,318.49 |
1070 |
| Exim Bank |
1,814.08 |
1-122 |
| ICICI Bank |
15,392.7 |
1-367 |
| IDBI Bank |
656.11 |
1-61 |
| Indian Bank |
358.51 |
1-944 |
| Indian Overseas Bank |
2875.77 |
1-337 |
| Lakshmi Vilas Bank |
143.04 |
1-184 |
| Oriental Bank of Commerce |
1,336.86 |
1-123 |
| Punjab and Sind Bank |
547.47 |
1-721 |
| Punjab National Bank |
2,749.72 |
1-337 |
| Royal Bank of Scotland |
3,744.92 |
710 |
| South Indian Bank |
701.24 |
1-426 |
| State Bank of Patiala |
448.33 |
1-732 |
| State Bank of Travancore |
93.39 |
1-184 |
| Standard Chartered Bank |
1,416.34 |
847 |
| Syndicate Bank |
2,334.37 |
1-245 |
| Yes Bank |
40.80 |
1 |
| Financial Institution : |
|
|
| Industrial Finance Corporation Of India Limited |
1,551.08 |
1-244 |
| SICOM Limited |
14,654.04 |
1-822 |
| ii) Debentures |
|
|
| Life Insurance Corporation of India |
6,633.18 |
1-853 |
No independent specific confirmation from lenders of above defaults has been provided
to us the management. ix. The Company has not raised money by way of initial public offer,
further public offer or debt instruments during the year. Due to invocation of certain
bank guarantees, the loans and overdrafts from banks have been increased which were
utilized for meeting commitments under such guarantees.
x. In our opinion and on the basis of information and explanations provided by the
Management, we report that no fraud on or by the Company has been noticed or reported
during the course of our audit. However some creditors have issued notices and commenced
legal proceedings against the Company alleging fraud for hypothecation of inventory with
lenders, without clear title due to non clearance of their dues. Further, Directorate of
Revenue Intelligence, Mumbai has also alleged fraud by the Companys employees pertaining
to certain imports and issued a showcase as to why penalty should not be levied on the
Company. The management is of the view that no fraud has been noticed by the Company or
has been done on the Company.
xi. The Company has paid/provided for managerial remuneration in accordance with
requisite approvals mandated by the provisions of section 197 read with Schedule V to the
Companies Act, 2013.
xii. In our opinion and according to the information and explanation given to us, the
Company is not a Nidhi Company, hence paragraph 3(xii) of the Order is not applicable
xiii. In our opinion and according to the information and explanation given to us, as
the register under section 189 has not been updated, we are unable to comment on
compliance by the company with section 177 and Section 188 of the Companies Act, 2013 with
respect to transactions with the related parties. Details of related party transaction
have, however, been disclosed in the Financial Statements as required by the Accounting
Standard 18.
xiv. The Company has made preferential allotment or private placement of shares during
the year under audit as per the Corporate Debt Restructuring agreement by converting
funded interest term loan, and no fresh amounts were raised. The requirements of section
42 of the Companies Act 2013 have been complied with in respect of such allotments.
xv. In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with directors or persons connected
with them.
xvi. According to the information and explanations given to us, the Company is not
required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
|
For Nisar & Kumar |
|
Chartered Accountants |
|
Firm No. 107117W |
|
M.N.Ahmed |
|
Partner |
|
M. No. 18380 |
| Place: Mumbai |
|
| Date: 30th May, 2016 |
|
Annexure B to the Independent Auditors Report to the members of ABG Shipyard Limited
Report on the Internal Financial Controls under Clause (f) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ABG
Shipyard Limited ("the Company") as of March 31, 2016 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on that
date.
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
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 under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, 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 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.
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.
Opinion
According to the information and explanation given to us and based on our audit the
following material weakness has been identified as the adequacy and operative
effectiveness of the Companys internal financial controls over financial reporting as at
31st March 2016.
1. The Companys internal controls on with regard to timeliness and in consolidating
the information from remote location and reconciliation of accounts were not operating
effectively.
2. The Company had no internal audit department which could carry on internal audit and
risk assessment functions.
3. The Company lacks trained personal for their secretarial and legal compliance which
could potentially result in failure to comply with laws and regulations in a timely
manner.
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.
In our opinion, except for the 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 control over financial
reporting and such internal financial control over financial reporting were operating
effectively as of 31st March, 2016, 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 report above in determining
the nature, timing, and extent of audit test applied in our audit of the 31st
March, 2016 standalone financial statements of the Company and this material weaknesses do
not affect our opinion on the standalone financial statements of the Company.
|
For Nisar & Kumar |
|
Chartered Accountants |
|
Firm No. 107117W |
|
M.N.Ahmed |
|
Partner |
|
M. No. 18380 |
| Place: Mumbai |
|
| Date: 30th May, 2016 |
|
+91-9892691696
