TO THE MEMBERS OF
LINEAR INDUSTRIES LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of LINEAR INDUSTRIES LIMITED,
which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss
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
The Company’s Board of Director of is responsible for the matters stated in
Section 134(5) of the Companies Act, 2013("the Act") with respect to the
preparation 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 principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with rule 7 of Companies (Accounts) Rules,
2014. This responsibility 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
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.
AUDITORS’ RESPONSIBILITY
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.
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.
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 of the
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 Company’s Directors, 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 standalone financial statements.
OPINION
In our opinion 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 in conformity with the accounting
principles generally accepted in India of the state of affairs of the Company as at 31st
March, 2016, and its Loss and its 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, 2016 (the Order) issued
by the Central Government of India in terms of Section 143 of the Act, we give in the
Annexure-‘A’ statement on the matters specified in paragraphs 3 of the Order.
2. As required by Section 143 (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 the books.
c. The Balance Sheet , the 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 financial statements comply with Accounting Standards
specified under section 133 of the Act, read with Rule 7of the Companies(Accounts)Rules
2014.
e. On the basis of the written representations received from the directors as on March
31, 2016, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2016, 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 financilal
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in the Annexure ‘B’ and
g. With respect to the other matters 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 pending litigation which
would impact its financial position.
ii. The Company did-not have any long-term contracts including derivative contracts for
which provisions are required for any material foreseeable losses.
iii. There were no funds required to be transferred to Investor Education and
Protection Fund by the Company
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For and on behalf of |
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M/S. JAIN BAFNA AND CO..(Reg.No. 127905W) |
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Chartered Accountants |
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Sd/- |
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P.K. BAFNA(M.NO.070039) |
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PARTNER. |
| MUMBAI |
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| DATED: 30.05.2016 |
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The Annexure ‘A’ referred to in our report to the members of LINEAR
INDUSTRIES LIMITED for the year ended 31 March 2016. We report that :
1. The Company has no fixed assets, hence provisions of Clause No. (i) of Para 3 of the
order do not apply.
2. During the year the Company neither purchases, sold, manufactured any article or
goods nor there were any inventoires. Therefore, provisions of Clause No. (ii) of Para 3
of the order do-not apply.
3. During the year, the Company has not granted any loans secured or unsecured to
parties mentioned under Section 189 of the Companies Act, 2013,therefore, provisions of
Clauses (iii) of para 3 of the order do not apply to that extent.
4. In our opinion, the company has not made any loans or advances referred in section
185 of the Companies Act, 2013 or investments referred in section 186 of the Companies
Act, 2013, therefore, provisions of Clauses (iv) of para 3 of the order do not apply.
5. The Company has not accepted any deposits from public and therefore provisions of
section 73 to 76 of the Companies Act, 2013 or any other relevent provisions of the
companies Act 2013 or rules framed thereunder are not applicable. There is no order passed
by Company law Board or National Compay law Tribunal or Reserve Bank of India or any court
or any other tribunal against the company.
6. The Central Government has not prescribed for maintaining any cost records,
therefore provisions of Clause (vi) of para 3 of the order do-not apply.
7. The Company is regular in depositing undisputed statuory dues referred in clause
(vii) of para 3 of the order wherever is applicable. There is no outstandings as at the
end of the year, of any such dues for more than six months.
8. The Company has not borrowed from bank or any other financial institutions or govt.
or debentureholders, and therefore question of default in repayment of loans does-not
arise.
9. During the year or year earlier the company has not raised any capital by way of
public offer or borrowed as term loans, therefore provisions of Clause (ix) of para 3 of
the order do-not apply.
10. To the best of our knowledge and belief and according to the information and
explanations given to us no fraud was noticed or reported on or by the Company during the
year.
11. During the year company has not paid manegerial remuneration, therefore provisions
of Clause (xi) of para 3 of the order do-not apply.
12. The company is not a nidhi company and therefore provisions of Clause (xii) of para
3 of the order do-not apply.
13. Provsions of section 177 and 188 of the Companies Act, 2013 are not applicable to
the company, being there is no transaction with related parties details of related parties
are disclosed in the financial statefments as required by the applicable accounting
standards.
14. During the year the company has not made preferefntial allotment or private
placement of shares or convertible debentures, therefore provisions of Clause (xiv) of
para 3 of the order do-not apply. 15. During the year the company has not entered in-to
non cash transactions with directors or persons coneected with them, therefore provisions
of Clause (xiv) of para 3 of the order do-not apply. 16. The company is not required to be
registered u/s 45IA OF The Reserve Bank of India Act, 1934.
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For and on behalf of |
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M/S. JAIN BAFNA AND CO..(Reg.No. 127905W) |
|
Chartered Accountants |
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Sd/- |
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P.K. BAFNA(M.NO.070039) |
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PARTNER. |
| MUMBAI |
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| DATED: 30.05.2016 |
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The Annexure ‘B’ referred to in our report to the members :
Report on the Internal Financual Contro;s 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 Linear Industries Limited (the Company) as of 31 March 2016 in
conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date
Management’s Responsibility for Internal Financial Controls
The Company’s 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, 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 company’s 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 Company’s 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 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 auditor’s judgment, including the assessment of the risks of
material 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 Company’s internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s 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 statements for external purposes in accordance with
generally accepted accounting principles. A company’s 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 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
company’s 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 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 31 March 2016, 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.
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For and on behalf of |
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M/S. JAIN BAFNA AND CO..(Reg.No. 127905W) |
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Chartered Accountants |
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Sd/- |
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P.K. BAFNA(M.NO.070039) |
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PARTNER. |
| MUMBAI |
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| DATED: 30.05.2016 |
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+91-9892691696
