Independent Auditors Report
To
The Members of Tolani Shipping Company Limited
We have audited the accompanying financial statements of Tolani Shipping Company
Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014,
and 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.
Managements Responsibility for the Financial Statements
Management of Tolani Shipping Company Limited is responsible for 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
Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956
("the Act"). 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.
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
disclosures in the financial statements. The procedures selected depend on the auditors
judgement, 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 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 companys internal control. 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 said 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:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2014;
(ii) in the case of the Statement of Profit and Loss, of the loss for the year ended on
that date; and
(iii) 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
As required by the Companies (Auditors Report) Order, 2003 ("the Order"),
issued by the Central Government of India in terms of Section 227(4A) of the Companies
Act, 1956, we give in the Annexure, a statement on matters specified in paragraphs 4 and 5
of the said Order.
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 purposes 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 and Loss, and Cash Flow
Statement comply with the Accounting Standards referred to in sub-section (3C) of Section
211 of the Companies Act, 1956; and
(e) On the basis of written representations received from the Directors as on March 31,
2014 and taken on record by the Board of Directors, none of the Directors are disqualified
as on March 31, 2014 from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
For and on behalf of CHANDABHOY & JASSOOBHOY
Chartered Accountants
Firms Registration No. 101647W
Bhupendra T Nagda Partner
Membership No. F 102580
Mumbai, Dated : 25th July, 2014.
Annexure to Auditors Report for the year ended 31st March, 2014
i) a. The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b. We have been informed that physical verification of fixed assets was conducted by
the management during the year and no discrepancies were noticed on such verification. In
our opinion, the frequency of physical verification of fixed assets is reasonable having
regard to the size of the Company and the nature of its assets.
c. The Company has not disposed off any substantial part of its fixed assets during the
year.
ii) a. The stock of fuel oil and lubricants has been physically verified by the
management at reasonable intervals.
b. The procedures followed by the management for such physical verification is, in our
opinion, reasonable and adequate in relation to the size of the Company and the nature of
its business.
c. The Company is maintaining proper records of inventory and we are informed that no
material discrepancies have been noticed on physical verification of stocks of fuel oils
and lubricants as compared to the book records.
iii) According to the information and explanations given to us, the Company has neither
granted nor taken any loan secured or unsecured to/from companies, firms or other parties
covered in the register maintained under Section 301 of the Companies Act, 1956. Hence,
the provisions of clause 4(iii) (b), (c), (d), (f), and (g) of the Order are not
applicable to the Company.
iv) In our opinion and according to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of the Company and the
nature of its business, for purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, no major weakness has been noticed in
the internal control systems.
v) a. According to the information and explanations given to us, the particulars of
contracts or arrangements referred to in Section 301 of the Act have been entered in the
register maintained under that section.
b. In our opinion, transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
vi) In our opinion and according to the information and explanations given to us, the
Company has complied with the directives issued by the Reserve Bank of India and the
provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act,
1956 and the rules framed thereunder, with regard to the deposits accepted from the
public.
vii) The Company has an internal audit system commensurate with the size of the Company
and the nature of its business.
viii) According to the information and explanations given to us, the Central Government
has not prescribed maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956.
ix) a. According to the information and explanations given to us and the records of the
Company examined by us, the statutory dues applicable to the Company for the year under
report are provident fund, profession tax, income tax, wealth tax, service tax and customs
duty. The Company is generally regular in depositing the statutory dues with the
appropriate authorities.
b. According to the information and explanations given to us, no undisputed dues
payable in respect of income tax, sales tax, wealth tax, service tax, customs duty and
cess were outstanding as at 31st March, 2014 for a period of more than six
months from the date they became payable.
c. According to the information and explanations given to us, there are no statutory
dues outstanding on account of any dispute as at 31st March, 2014, other than
those stated in note no. 30 of Notes on accountsaggregating to Rs.174.43 millions.
x) The financial statements of the Company as on 31st March, 2014 do not
show accumulated losses. The Company has not incurred any cash losses during the Financial
Year covered by our report and in the immediately preceding Financial Year.
xi) According to the information and explanations given to us and based on the records
examined by us, the Company has not defaulted in repayment of dues to financial
institutions or banks.
xii) According to the information and explanations given to us and the records of the
Company examined by us, the Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore clause 4(xiii) of the Order is not applicable to the Company.
xiv) In our opinion, the Company is not an investment company dealing or trading in
shares, securities, debentures and other investments. Clause 4(xiv) of the Order is, in
our opinion, not applicable to the Company for the year under report. The investments made
by the Company are held in its own name except to the extent of the exemption under
Section 49 of the Companies Act, 1956.
xv) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from banks or financial institutions.
xvi) According to the information and explanations given to us and based on the records
examined by us, term loans availed during the year has been utilized for the purpose for
which the loans were obtained.
xvii) On the basis of the records of the Company examined by us and according to the
information and explanations given to us, in our opinion, the Company has not utilized
short term funds for long term investments.
xviii) According to the information and explanations given to us and based on the
records examined by us, the Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any money by way of public issue during the year.
xxi) Based on audit procedures performed and the information and explanations given by
the management, we report that no fraud on or by the Company has been noticed or reported
during the year.
For and on behalf of CHANDABHOY & JASSOOBHOY
Chartered Accountants Firms
Registration No. 101647W
Bhupendra T Nagda Partner
Membership No. F 102580
Mumbai, Dated : 25th July, 2014.
+91-9892691696
