We have audited the accompanying financial statements of ERGON POWER
CORPORATION LIMITED, ("the Company"), which comprise the Balance sheet
as at 31st March, 2015, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information. '
Management's Responsibility for the Financial Statements
The Company's 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 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 the
Companies (Accounts ) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the zz~z\z of the Company and
for preventing and detecting frauds and othe; 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 and
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 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
there under.
We have 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 the 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 the 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 the internal financial control
relevant to the Company's preparation of the financial statements that
gives a true and fair view in order to design audit procedures that are
appropriate in the circumstances. 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 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(b) in the case of the Statement of Profit and Loss, of the Loss 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, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereafter referred to the "order") and on the
basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order
2. 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 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 for as it appears from our examination of
those 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 maintained.
(d) In our opinion, the aforesaid financial statements 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 the written representations received from the
directors as on 31st March, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) 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 litigations which would
impact its financial positions in its financial statements.
(ii) The Company has not entered into any long-term contracts including
derivatives contracts requiring provision under applicable laws or
accounting standards, for material foreseeable losses and
(iii) There has been no delay in transferring amounts, required to be
transferred if any, to the Investor Education and Protection Fund by
the Company in accordance with the relevant provisions of the Companies
Act, 2013.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 of Report on Other Legal and Regulatory
Requirements, of our report of even date)
1. According to the information and explanation given to us, the
company do not hold any fixed assets during the financial year, hence
maintenance and physical verification of fixed assets do not arise.
2. The company has not carried any manufacturing activity.
Accordingly, the provisions of paragraph 3 Clause (ii) of the Companies
(Auditor's Report) Order, 2015 are not applicable to this company.
3. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. Accordingly, the sub-clauses
(a) and (b) are not applicable to the company.
4. In our opinion and according to information and explanations given
to us, there is adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
5. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits in terms of
directives issued by Reserve Bank of India and the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under are applicable.
6. The maintenance of cost records has not been prescribed by the
Central Government under subsection (1) of the section 148 of the
Companies Act.
7. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
as applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2015 for a period of more than six months
from the date they became payable except the remittance of TDS
amounting to Rs.1,66,040/-
b) According to the information and explanations given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
(c) According to information and explanations given to us, there were
no amounts which were required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act.
8. The company has accumulated losses as on 31.03.2015 of Rs.1033.05
lakhs and has incurred cash losses of Rs.2.61 lakhs during the
financial year ended on that date and Rs.2.40 lakhs in the immediately
preceding financial year.
9. According to the information and explanation given to us, the
company has not obtained any term loans from financial institution or
banks thereby default in repayment of dues to any financial institution
or banks does not arise.
10. According to the information and explanation given to us, the
company has not given any guarantees for the loans taken by others from
banks or financial institutions.
11. In our opinion and according to the information and explanations
given to us and on an overall examination, the company has not availed
any term loan during the year.
12. To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the course of our audit.
for RAMANA REDDY & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Regn. No. 003246S
Sd /-
(CA. RAMANA REDDY A.V.)
PARTNER
Membership No.024329
PLACE: HYDERABAD
DATE : 31-08-2015 .
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