1. We have audited the accompanying financial statements of Druckgrafen India Limited
which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit &
Loss and the Cash Flow Statement for the year ended and a summary of significant
accounting policies and other explanatory information..
2. The Companys Board of Director is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 with respect to the preparation and pressentation 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
pricnciples generally accepted in India, including the Accounting Standards specified
under Section 133 of the Act. This responsibility also includes maintenance of adequate
records in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventging and detecting frauds and other irregularities; selection and
application of appropriate accoundting policies; making judgement and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that ware 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 thereunder.
4. We conducted our audit in accordance with the Standards on Audition 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 masterial misstatement.
5. 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 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
management, 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.
6. Attention is invited to note 4.8 ; regarding non-appointment of Company Secretary
under Section 203 and Internal Auditor, as required under Sector 138 of the Companies Act,
2013.
7. Net worth of the Company has completely eroded; the management is of the opinion
that the Company shall carry on its business as usual, hence the financial statements of
the Company have been prepared on a going concern basis; the appropriateness of the said
basis is inter-alia dependent upon future performance and profitability and presently we
are unable to express an apinion on the same.
8. Subject to paragraph 6 and 7 above, in our opinion and to the best of our
information and according to the explanations given to us, the aforsaid financial
statements give, the information required by the Act in the manner so required and give a
true and fair view inconformity with the accounting principles generally accepts in India,
of the state of affairs of the Company as at 31st March 2017 and its profit and its cash
flows for the year ended of that date.
9. As required by the Companies (Auditors Report) Order, 2016, issued by the Central
Government of India in terms of Sub-section (II) of Section 143 of the Act, we give in the
Annexure "A" a statement on the matters specified in paragraph 3 and 4 of the
Order.
10. 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 ware necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have kept by the Company
so far as it appears from our examination of those books;
c) the Balance Sheet, the Statement of Profit & Loss and the Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid financial statement compy with the Accounting
Standards, specified under Section 133 of the Act;
e) 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 disqualified
as on 31st March, 2017 from being appointed as a director in terms of Section 164(2) of
the Act; and.
f) with respect to the adequacy of internal financial controls over financial reporting
of the Company and the operating effectiveness of such controls, refer to our separate
report in "Annexure B," and
g) with respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rule, 2014, as amended, in
our opinion and to the best of our informa -tion 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 ware required to be transferred, to the Investor
Education and Protection Fund by the Company.
iv.) the Company has provided requisite disclosures, in its financial statements, as
regards its holdings and dealings in Specified Bank Notes, as defined in the Notification
S.O. 3407(E) dated 08th November, 2016 of the Ministry of Finance, during the period from
08th November, 2016 to 30th December,-2016, and these are in accordance with the books of
account maintained by the Company (Refer note 4.19)
"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT -
(Referred to in paragraph 9 of our report of even date on accounts of Druckgrafen India
Limited for the year ended 31st March 2017)
i a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
b) The Company has a programme for phased physical verification of all its fixed assets
which, in our opinion, is reasonable having regard to the size of the Company and the
nature of its assets. As informed no material discrepancies were noticed on such
verification.
c) According to the information and explanations given by the management & on the
basis of examination of the records of the Company, the title deeds of immovable property
are held in the name of Company.
ii) According to the information and explanations given to us, the Company has not
granted any loan, secured or unsecured, to Companies, Firms Limited Liability Partnerships
or other parties covered in the register maintained under Section 189 of the companies Act
2013, Accordingly, the provision of clauses 3 (iii) (a) (b), and (c) of the Order are not
applicable to the Compnay and hence not commented upon.
iii) According to the information and explanations given to us, the Company has neither
granted loans or provided guarantees or securities nor made investments or provided
guarantees or securities to the parties covered under Sections 185 & 186 of the
Companies Act, 2013. Accordingly, the provisions of clause 3(iv) of the Order are not
applicable to the Company.
iv) The Company has not accepted any deposits from the public.
v) a) According to the information & explanation given to us and on the basis of
our examination of the records of the Company, amounts deducted/ accrued in the books of
account in respect of undisputed statutory dues including Income Tax, Sales Tax , Value
Added Tax, Cess and other material statutory dues, to the extent applicable, have
generally been regularly deposited, during the year, by the Company with the appropriate
authorities.
According to the information and explanation given to us, no undisputed amounts
payable, in respect of Income Tax, Sales Tax, Value Added Tax, Cess and other material
statutory dues, were in arrears as at 31st March 2017 for a period of moe than six months
from the date they became payable, b) According to the information and explanations given
to us, there are no dues of Income tax, Sales Tax, Value Added Tax and Cess which have not
been deposited with appropriate authorities on account of any dispute.
vi) According to the information & explanations given to us the Company, does not
have any loans or borrowings from banks/financial institutions or government and has not
issued any debentures.
vii) According to the information & explanations given to us, no material fraud by
the Company or on the Company by its officers or employees has been noticed or reported
during the course of our audit .
viii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the
Order is not applicable.
ix) According to the information and explanations given to us, and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with Section 177 and 188 of the Act, Where applicable, and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
x) According to the information and explanations given to us, during the year, the
Company has not entered into any non-cash transaction with its Directors or persons
connected to its Directors and hence provisions of Section 192 of the Companies Act, 2013
are not applicable. Accordingly, the provisions of Clause 3(xv) of the Order are not
applicale to the Company.
xi) The Company in not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934
xii. The provisions of clause no (ii), (vi), (ix), (xi) & (xiv) of the Order are
either not applicable or not relevant to the Company and hence not commented upon.
For VASUDEVA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 022239N
Sd/-
(PRATEEK PURI)
PARTNER
Membership no 524431
Dated : 27th May, 2017
Place : Chandigarh
"ANNEXURE B" TO THE INDEPENDENT AUDITORS REPORT ,
(Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section
143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of Druckgrafen
India Limited as of 31st March 2017 in conjunction with our audit of the 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 (ICAI). These responsibilities
include the design, implemention 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. Wr conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
and the Standards on Auditing, issued by ICAI and deemed to be prescrbed 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
effectivencess. 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
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 fincancial 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 statement for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that (I) pertain to the maintenance of
records that, in reasonable details, 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 dirctors of the Company; (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 reportng may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion the Company has, in all material respects, an adequate internal
financial controls systems over financial reporting ans such internal financial controls
over financial reporting were operating effectively as at 31st March 2017, based on the
interal control control over financial reporting criteria established by the Company
considering the essential components of interal control stated in the guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
For VASUDEVA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 022239N
Sd/-
(PRATEEK PURI)
PARTNER
Membership no 524431
Dated : 27th May, 2017
Place : Chandigarh
+91-9892691696
