cpec ltd share price Auditors report

TO,

THE MEMBERS OF,

CPEC LTD

Report on the Financial Statements

We have audited the accompanying financial statements of CPEC LTD, which comprise the Balance Sheet as at 31 March ,2015 and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and otherexplanatory information.

Management’s Responsibility forthe Financial Statements

The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standards prescribed in Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, Implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give atrue and fairviewand are free from material misstatement, whetherdueto fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 thefinancial statements. The procedures selected depend on the auditor’s 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 Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasisforourauditopinion.

Opinion

In ouropinion 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 subject to Cash Balance confirmation of Rs. 78.34 lacs is 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 31^s March, 2015; and

(b) in the case of the Statement of Profit and Loss, of the loss of the Company for the year ended on that date.

(c) in the case of the Cash Flow Statement, of the cash flows of the Company forthe year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2015 issued by the Central Government in terms of Section 143(11) of the Act, we give in the Annexure a statement on the matters specified in the Order.

2. As required by Section 143(3) of theAct, we report that:

(a) We have 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 ouropinion, proper books of accountas 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 financial statements comply with the prescribed Accounting Standards;

(e) On the basis of the written representations received from the directors as on 31 March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31* March, 2015 from being appointed as a director in terms of Section 164(2) of theAct;

(f) The company has adequate internal financial controls system in place and the same is also operationally effective of such control.

	For D. B. Bhanushali & Co.
	CHARTEREDACCOUNTANTS
	(FIRM REGISTRATION NO 118951W)
	D.B. Bhanushali
Place: Mumbai	Partner
Date : August 12, 2015	33 (Membership No. 42844)

ANNEXURE TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 1 under‘ Report on Other Legal and Regulatory Requirements section of our report of even date)

(I) (a) The company has freehold Land at Bhachau, Gujarat and furniture and fixtures (on rented office premises) as fixed assets and required records of the same are properly maintained,

(b) As explained to us, all the fixed assets have been physicallyverified bythe management.

(c) The company has not disposed offixed assetsduring theyear.

(ii) (a) There is no opening and closing inventoryhence this clause is not applicable.

(iii) (a) As informed to us, the company has granted advances in the nature of Loans to Subsidiary Company. The maximum amount outstanding is Rs.395.12 lakhs and closing outstanding balance is Rs.2.4 lakhs.

(b) There is no stipulation for payment of interest. The other terms and Conditions of such loans are in our opinion, prima facie not prejudicial to the interest of the company

(c) The payment of principal amount is on demand.

(d) There is no stipulation of principal repayment. Hence there is no overdue amount.

(e) As informed to us, the company has taken Loan from a Director. The maximum amount outstanding is Rs.1.37 lakhs and closing outstanding balance is NIL.

(f) There is no stipulation for payment of interest, payment of principal amount is on demand. The other terms and Conditions of such loans are in our opinion, prima facie not prejudicial to the interest of the company.

(g) There is no stipulation of principal repayment. Hence there is no overdue amount.

(iv) In our opinion internal control procedures wont apply to the company since there is no sale of goods and services and purchase of inventory and fixed asset.

(v) According to the information and explanation given to us, the companyhas not accepted deposits within the meaning of the provisions of sections 73 to 76 of the Companies Act and the rules framed there under; therefore the provisions of this clause is notapplicable to the Company.

(vi) As informed to us, maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act.

(vii) (a) The company is regular in depositing undisputed statutory dues including, Income - tax, Sales - tax,, TDS, service tax and any other statutory dues with the appropriate authorities during the year except the following:

Statutory Dues	Amount
1 Income Tax (o/s for more than 6 months) 1. for A.Y. 11-12	3467040
2 Income Tax A.Y 13-14 (O/s for more than 2. 6 months)	870610
3 Service Tax (o/s for more than 6 months) 3. for F.Y. 12-13	3054669
4 Sales Tax for F.Y 05-06 (assessed demand order dated 26-09-2014)	4555982
5 Sales Tax for F.Y 07-08 (assessed demand order. dated)	921862
6. TDS payable (Current Year)	238194

(b) Demand raised by income tax

Demand (A.Y)	Demand Amount	Forum
A.Y. 11-12	Rs. 6.9 cr	CIT- (Appeals) 12
A.Y. 12-13	Rs. 2.64 cr	CIT- (Appeals) 12

(c) According to the information and explanation given to us, there are no amount 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.

(viii) The company has accumulated losses at the end of the financial year and it has incurred cash losses during the financial year covered by our audit and has incurred cash loss in the preceding financial year.

(ix) The company has not defaulted in repayment of dues to financial institutions or bankor debenture holders.

(x) According to the information and explanations given to us the company has not given any guarantee for loans taken by others from bank or financial institution, the term and conditions whereoff are prejudicial to the interest of company.

xii) According to the information and explanation given to us, during the year no term loans were obtained

(xii) Based on the audit procedures applied and information and explanations given to us, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

	For D. B. Bhanushali & Co.
	CHARTERED ACCOUNTANTS
	(FIRM REGISTRATION NO. 118951W)
	D.B. Bhanushali
Place: Mumbai	Partner
Date : August 12, 2015	(Membership No. 42844)