Aseem Global Ltd Auditors Report.
TO THE MEMBERS OF ASEEM GLOBAL LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of ASEEM GLOBAL LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and 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
2 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 and presentation 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 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 provision 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
3 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.
4 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 the audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
6 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 31st March, 2015;
(ii) in the case of the Statement of Profit and Loss, of the Loss of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
Emphasis of Matter
7 We draw attention to Note 34 to the financial statement which indicate that the company has defaulted on payment of income tax dues of Rs 74,76,656/- for the assessment year 2014-15.
8 We draw attention to Note 35 to the financial statement which indicate that the company has defaulted on repayment of Public Deposit and interest thereon amounting to Rs 6,54,46,000/- and 52,36,000/- respectively as on 31st March, 2015, which was required to be repaid in pursuance to Section 73 to 76 of The Companies Act, 2013 & Companies (Acceptance of Deposit) Rule, 2014.
9 We draw attention to Note 4 & 36 to the financial statement which indicate that the company has defaulted on repayment of term loans and interest thereon taken from banks, NBFCs and other parties amounting to Rs 37,59,000/- as on 31st March, 2015.
Report on Other Legal and Regulatory Requirements
10 As required by the Companies (Auditors Report) Order, 2015 (Order), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we enclose in the Annexure, a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.
11 As required by Section143 (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 purpose of our audit;
b. in our opinion proper books of accounts as required by the 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 Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors as on 31 March 2015, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March 2015 from being appointed as director in terms of section 164(2) of the Companies Act, 2013; and
f. With respect to the other matters to be included in the Auditors Report in accordance with Rule11 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 has disclosed the impact of pending litigations on its financial position in its financial statements Refer Note 27 to the financial statements;
ii. The Company did not have any long term contracts and had no derivative contracts outstanding as at 31 March 2015; and
iii. The Company did not have any dues on account of Investor Education and Protection Fund
|PLACE: NEW DELHI||FOR K.N. GUTGUTIA &COMPANY|
|DATE: 30th May, 2015||CHARTERED ACCOUNTANTS|
Annexure to The Independent Auditors Report
(Referred to in paragraph 10 of our report of even date to the members of Aseem Global Limited on the financial statements for the year ended 31st March, 2015)
i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, physical verification of fixed assets has been carried out in terms of the phased programme of verification of its fixed assets adopted by the Company and no material discrepancies were noticed on such verification. In our opinion the frequency of verification is reasonable, having regard to the size of the Company and nature of its business.
ii) (a) The inventories have been physically verified during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our opinion, discrepancies noticed on physical verification of stocks were not material in relation to the operations of the Company.
iii) (a) According to the information and explanations given to us, the Company has during the year, not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the companies Act,2013. Accordingly, paragraph 3(iii) of the order is not applicable.
iv) In our opinion and according to the information and explanations given to us, there are internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services.
v) The Company has not complied with the provision of section 73 to 76 of The Companies Act, 2013 & Companies (Acceptance of Deposit) Rule, 2014. (Refer note no 35 of the financial statement).
vi) As information and explanations given to us, the Central Government has not prescribed maintenance of cost accounts for the type of activities of the Company pursuant to the rules made by the Central Government of India for the maintenance of cost records under clause (d) of Sub Section (1) of Section 148 of the Companies Act, 2013
vii) (a) According to the records examined by us, the Company is generally regular in depositing with appropriate authorities 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 other statutory dues wherever applicable. According to the information and explanations given to us, no undisputed arrears of statutory dues except Income tax dues of Rs 74,76,656/- were outstanding as at 31st March, 2015 for a period of more than six months from the date they became payable (Refer note no 34 of the financial statement).
(b) According to the records of the Company, the details of dues in respect of sale tax, income tax, duties of customs, wealth tax, service tax, duty of excise, cess and value added tax, which have not been deposited on account of disputes and the forum where the dispute is pending are as under:
|Name of the||Nature of Dues||Amount (In Rs)||Period to which||Forum where the dispute|
|Statute||it relates||is pending|
|Income Tax Act, 1961||Income tax on account of disallowance of deduction u/s 80 HHC & income on account of disallowance of expenses||9,407||A/y 2002-03||The appeal has been decided in companys favor. Ratification tax is pending.|
|Delhi Value Added Tax||Disallowance of VAT input credit on revised filing of monthly return. Input VAT credit was inadvertently not claimed in the original return||3,13,161||F/y 2008-09||VAT demand under appeal with Addd. Commissioner Special Zone, Deptt. Of Trade & Taxes Delhi|
|Rajasthan Value Added Tax||Imposition of penalty by VAT officers on the ground of incomplete documents with the motor lorry carring the goods||5,36,122||F/y 2009-10||VAT demand under appeal with Rajasthan Tax Board, Ajmer.|
(c) The Company did not have any dues on account of Investor Education and Protection Fund which were required to the transferred, during the year, to the said fund.
vii) There are accumulated losses of Rs 6,34,43,334/- as on 31st March, 2015 which is not more than 50% of its net worth.
The Company has incurred cash losses during the financial year but not in the immediately preceding financial year of the Company.
viii) Based on our audit procedures and the information given by the management, the Company has defaulted in repayment of dues of Rs 37,59,000/- to any financial institution or bank (Refer note no 4 & 36 of the financial statement).
x) According to the information and explanations given to us, Company has not given any guarantee during the year for loans taken by others from banks or financial institution.
xi) In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were obtained.
xii) Based upon the audit procedures performed and to the best of our knowledge and according to the information and explanations given to us by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.
|PLACE: New Delhi||FOR K.N. GUTGUTIA & COMPANY|
|DATE: 30th MAY, 2015||CHARTERED ACCOUNTANTS|