To
The Members FE (India) Limited
We have audited the accompanying financial statements of FE (India) Limited
{formerly known as Financial Eyes (India) Limited} ("the
Company"), which comprise the Balance Sheet as at March 31, 2015; Profit and Loss
Account and Cash Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
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 referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated
13th September,2013 of the Ministry of Corporate Affairs in respect of 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 a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor’s 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 misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial 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. 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.
Opinion
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 Companies Act
in the manner so required and give a true and fair view 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 March
31, 2015;
b) in the case of the Profit and Loss Account, of the profit for the year ended on that
date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act 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 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, 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, Statement of Profit & Loss and Cash Flow
Statement comply with the Accounting Standards notified under the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporation of Affairs in respect of section 133 of the Companies Act, 2013;
e) on the basis of written representations received from the directors as on March 31,
2015, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2015, from being appointed as a director in terms of section 274 (1)(g) of
the Companies Act, 1956 read with section 164(2) of the Companies Act, 2013.
|
For L M S C & Co. |
|
Chartered Accountants |
|
FRN: 021763N |
|
Sd/- |
|
Shri Chand |
| Place: New Delhi |
Partner |
| Date: 6th June 2015 |
M. No. : 098635 |
The Annexure referred to in paragraph 1 under head "Report on Other Legal and
Regulatory Requirements" of the Our Report of even date to the members of FE
(India) Limited on the accounts of the company for the year ended March 31, 2015.
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
1. (a) The company is maintaining proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us, the
company has not disposed off substantial part of fixed asset during the year.
2. (a) As explained to us, inventories have been physically verified during the year by
the management at reasonable intervals. The stock has also been verified by independent
auditors appointed by banks during the year and we have also relied upon their reports in
forming our opinion.
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventories followed by the management seems
reasonable in relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the records, we are of the opinion that the
Company should maintain site-wise real time record of stocks for better control. At
present company is maintaining inventory records at head office in accounting software
which are not real time and some desirable information like goods in-out time, vehicle
details etc. are also not available in these records. In our opinion, company need to
improve record keeping with respect to the inventories.
No material discrepancy was noticed on physical verification of stocks by the
management as compared to book records.
3. (a) According to the information and explanations given to us and on the basis of
our examination of the books of account, the Company has granted advances and made
payments on behalf of the companies, firms, directors or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956 read with Section 189 of
the Companies Act 2013 during the year. Total amount advanced during the year to 5 such
parties was Rs. 151.13 lacs and Rs. 56.34 lacs were recoverable as on March 31, 2015 on
this account.
Company has also accepted advance & unsecured loans from related party during the
year from the referred parties. Rs. 2376.23 lacs was payable on March 31, 2015 on this
account.
(b) The advances & loans as referred in (a) above are without interest and
unsecured in nature. Considering tenure of these and also the fact that Company has also
taken similar advances from related parties during the year, no funds of the company seems
to been diverted. So, we are of the opinion that these are not prejudicial to the interest
of the Company.
(c) As explained by the company the advances to related parties in of temporary nature
and are recoverable in short period. Though, we have noticed exceptions in timely recovery
as stated by company.
(d) As these advances are without any defined repayment instalment & time, we
can’t term the outstanding amount as overdue.
4. In our opinion and according to the information and explanations given to us, there
is generally an adequate internal control procedure commensurate with the size of the
company and the nature of its business except as stated at Sr. No. 2(c) above,
for the purchase of inventories & fixed assets and payment for expenses & for sale
of goods. During the course of our audit, no major instance of continuing failure to
correct any weaknesses in the internal controls except as stated at Sr. No.
2(c) above has been noticed.
5. a) Based on the audit procedures applied by us and according to the information and
explanations provided by the management, the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register required to be
maintained under that section.
b) As per information & explanations given to us and in our opinion, the
transaction entered into by the company with parties covered u/s 301 of the transactions
have been made at a price which is reasonable and are not prejudice to the interest of the
company.
6. The Company has not accepted any deposits from the public covered under section 58A
and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the Company has an
internal audit system commensurate with its size and the nature of its business.
8. As per our knowledge and information & explanation given by the management, the
Central Government has not prescribed the maintenance of cost records under Section
209(1)(d) of the Act for any of the product dealt by the company.
9. (a) According to the records of the company, we have noticed delays in payment of
undisputed statutory dues including Employees’ State Insurance, Income-tax,
Sales-tax/VAT, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent
applicable and any other statutory dues as applicable. Following is detail of such dues
outstanding for more 6 months or more on close of books of the company for the year:
| Nature of statute |
Nature of Dues |
Amount |
Period to which the amount relates |
Due date |
Date of payment |
| Finance Act, 1994 |
Service Tax |
0.61 lacs |
F Y 2013-14 |
Various dates upto 31.03.2014 |
Not paid till date of audit report |
| Finance Act, 1994 |
Service Tax |
0.67 lacs |
F Y 2014-15 |
Various dates upto 05.10.2015 |
Not paid till date of audit report |
| Income Tax Act, 1961 |
Income tax in relation to AY 2014-15 |
228.38 lacs |
FY 2013-14 |
30-Sep-14 |
Not paid till date of audit report |
(b) According to the information and explanations given to us, there is no amount
payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and
excise duty which have not been deposited on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred cash loss
during the financial year covered by our audit and in the immediately preceding financial
year.
11. Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of dues
to a financial institution, bank or debenture holders during the year.
12. According to the information and explanations given to us, the Company has not
granted loans and advances on the basis of security by way of pledge of shares, debentures
and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore,
the provision of this clause is not applicable to the Company.
14. On the basis of our examination of the records and documents of the Company, and
according to the information and explanations given to us, we are of the opinion that the
Company is not dealing or trading in shares, securities, debentures & other
investments. Therefore, provision of this clause is not applicable to the Company.
15. According to the information and explanations given to us, the Company has not
given any guarantees for loan taken by others from a bank or financial institution.
16. Based on our audit procedures and on the information given by the management, we
are of the opinion that the Company has not utilised any term loans for other purposes
than for which it was raised.
17. Based on the information and explanations given to us and on an overall examination
of the Balance Sheet of the Company as at March 31, 2015 we report that no funds raised on
short-term basis have been used for long-term investment by the Company.
18. The Company has made preferential allotment of warrants in the year to parties
covered in the register maintained u/s 301 of the Companies Act, 1956. The issue price has
been arrived as per SEBI prescribed formula. The price is not prejudicial to the interest
of the company.
19. The Company has no outstanding debentures during the period under audit.
20. The Company has not raised any money by public issue during the year.
21. Based on the audit procedures performed and the information and explanations given
to us, we report that no fraud on or by the Company has been noticed or reported during
the year, nor have we been informed of such case by the management.
|
For L M S C & Co. |
|
Chartered Accountants |
|
FRN: 021763N |
|
Sd/- |
|
Shri Chand |
| Place: New Delhi |
Partner |
| Date: 6th June 2015 |
M. No. : 098635 |
+91-9892691696
