To the Members of EASTERN GASES LIMITED
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of EASTERN GASES
LIMITED ("the Company") which comprise 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.
Management Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the financial
position, financial performance and cash flow of the company in accordance with the
accounting principles generally accepted in India, including the Accounting Standard
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 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 control
that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the Ind AS 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 Ind AS financial statements based
on our audit.
We have taken into account the provisions of the Act, and the Rules made there under
including the accounting and matters which are required to be included in the audit
report.
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards and pronouncement require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the Ind AS financial statements. The procedures selected depend on the
auditors judgment including the assessment of the risk s of material misstatement of the
Ind AS 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 Ind AS financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances but not for the purpose
of expressing an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating effectiveness of such
controls . An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the Companys
Directors ,as well as evaluating the overall presentation n of the Ind AS financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the Ind AS 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 March
31, 2017, and its profit and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 Act, we give in the ‘Annexure A a statement on the matters specified in
paragraph 3 and 4 of the order.
1. As required by section 143(3) of the Act, we report that:
a) We have sought 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 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 and Statement of Profit and 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 Ind AS financial Statement comply with the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the
Companies(Accounts) Rules ,2014.
e) On the basis of written representations received from the directors as on March 31,
2017, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2017, from being appointed as a director in terms of section 164(2) of the
Act.
f) 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; 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) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i) the Company does not have any major pending litigations as at March 31, 2017 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 were required to be transferred to the Investor
Education and Protection Fund by the Company during the year end.
iv) the Company has provided requisite disclosures in its Ind AS Financial statements
as to holdings as well as dealings in Specified Bank Notes during the period from 8
November, 2016 to 30 December, 2016 and these are in accordance with the books of accounts
maintained by the Company. Refer Note 13A to the Ind AS financial statements.
|
For C.B.C. & Associates |
|
Chartered Accountants |
|
F.R. No: 325794E |
|
(Chinmaya Prasad Biswal) |
|
Partner |
| Place: Kolkata |
Membership No. 065753 |
| Date: 30.05.2017 |
|
Annexure to the Auditors Report
The Annexure A referred to in our report to the members of EASTERN GASES LTD. for the
year ended on March 31, 2017. We report that:
(i) (a) The company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b)The fixed assets have been physically verified by the management at reasonable
intervals and in our opinion it is reasonable considering the size of company and nature
of asset no such material discrepancies were noticed on such verification and if so, the
same have been properly dealt with in the books of account;
(c) The title deeds of immovable properties are held in the name of the company.
(ii) (a) Physical verification of inventory including stock with third
parties has been conducted at reasonable intervals by the management and if any material
discrepancies were noticed on physical verification, the same have been properly dealt
with in the books of account;
(b) Debit and Credit balances are subject to confirmation.
(iii) The company has not granted any loans, secured or unsecured to companies, firms,
limited liability partnerships or other parties covered in the register maintained under
section 189 of the Companies Act.
(iv) The company has not given any loans, investments, guarantees and security under
the provisions of section 185 and 186 of the Companies Act.
(v) The company has not accepted deposits, from the public within the meaning of
sections 73 and 74 or any other relevant provisions of the Companies Act and the rules
framed there under.
(vi) Maintenance of cost records has not been specified by the Central Government under
subsection (1) of section 148 of the Companies Act.
(vii) (a) According to our information and explanation given to us and as per the
records of the company, the company has been regular generally regular in depositing the
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 any other statutory dues with the appropriate authorities. There are no arrears of
undisputed statutory dues of material nature outstanding for a period of more than six
months
(b) Dues of income tax or sales tax or service tax or duty of customs or duty of excise
or value added tax or cess have not been deposited on account of any dispute, then the
amounts involved and the forum where dispute is pending have been mentioned below-
| Name of Statute |
Nature of Dues |
Amount Involved (Rs. in Lacs) |
Period to which the amount relates |
Forum where demand is pending |
| Income Tax Act 1961 |
Income Tax |
17.29 |
2005- 06, 2006- 07, 2007- 08, 2010-11, 2011-12& 2013-14 |
Income Tax Assessing Officer |
| West Bengal Value Added Tax Act, 2003 |
Value Added Tax |
304.21 |
2009- 10& 2010- 11 |
WB CT A &R Board |
| The Central Sales Tax Act, 1956 |
Central Sales Tax |
20.73 |
2008-09 & 2010-11 |
WB CT A &R Board |
(A mere representation to the concerned Department is not considered as a dispute).
[viii] According to the information and explanations given to us and as per our
verification of the records of the company there had been delays/default in payment of
installments and interest on term loan/short term loan to the banks during six months
ending 31st March 2017. Repayment of term loan principal remain due and unpaid to the bank
is Rs. 1.59 crs, for period within six months as on year ending 31st March 2017. Repayment
of interest remain due and unpaid to the bank is Rs. 1.89 cr (approx..), for period of six
months as on year ending 31st March 2017. Disputed principle / interest have not been
recognised and would be recognised on settlement of dispute.
(ix) In our opinion, and accordance to the information and explanation given to us, the
company has not moneys raised by way of initial public offer or further public offer
(including debt instruments) and term loans during the year. The term loans have been
applied, on an overall basis for the purpose for which the loans were obtained.
(x) In our opinion, and accordance to the information and explanation given to us, we
have not came across any instance of material fraud by the company or any fraud on the
company by its officers or employees has been noticed or reported during the year, nor
have been informed of any such case by the management.
(xi) In our opinion, managerial remuneration has been paid or provided in accordance
with the requisite approvals mandated by the provisions of section 197 read with schedule
V to the Companies Act.
(xii) In our opinion and the information given by the management, the company is not
the Nidhi Company. The provisions of Companies (Auditors Report) Order, 2016 Para 3
Clause (xii) is not applicable to the company.
(xiii) In our opinion, and the information given by the management, all
transactions with the related parties are in compliance with section 177 and 188 of the
Companies Act wherever applicable if any.
(xiv) According to our information and explanation given to us and as per the
records maintained, the company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under
review. The provisions of Companies (Auditors Report) Order, 2016 Para 3 Clause (xiv) is
not applicable to the company.
(xv) According to our information and explanation given to us, the company has
not entered into any non- cash transactions with directors or persons connected with him.
The provisions of Companies (Auditors Report) Order, 2016 Para 3 Clause (xv) is not
applicable to the company.
(xvi) The company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934. The provisions of Companies (Auditors Report) Order,
2016 Para 3 Clause (xvi) is not applicable to the company.
|
For C.B.C. & Associates |
|
Chartered Accountants |
|
F.R. No: 325794E |
|
(Chinmaya Prasad Biswal) |
| Place: Kolkata |
Partner |
| Date: 30.05.2017 |
Membership No. 065753 |
‘ANNEXURE B TO THE AUDITORS REPORT.
Report on the Internal Financial Controls under Clause (i) 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 EASTERN
GASES LIMITED ("the Company") as of March 31, 2017 in conjunction with our audit
of the Ind AS 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 168 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 Ind AS 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 Ind AS 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 Ind AS
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 Ind AS
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
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 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".
|
For C.B.C. & Associates |
|
Chartered Accountants |
|
F.R. No: 325794E |
| Place: Kolkata |
(Chinmaya Prasad Biswal) |
| Date: 30.05.2017 |
Membership No. 065753 |
|
Partner |
+91-9892691696
