| We have audited the accompanying financial statements of Alfa Ica
(India) Limited (the "Company"), which comprise the Balance Sheet as at
March 31,2015 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.
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
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 notified 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 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
there under.
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 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 internal financial 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 control 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 and
its profit 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, 2015 ("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
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
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
purpose of our audit;
(b) In our opinion, proper books of account as required by law relating
to preparation of the aforesaid financial statements have been kept so
far 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
relevant books of account;
(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 of the Company as on 31st March, 2015 taken on record by the
Board of Directors of the Company, 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 has disclosed the impact of pending litigations on its
financial position in its financial statement - Refer Note 27 to the
financial statements.
ii. The Company did not have any material foreseeable losses on
long-term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
The Annexure referred to in our report to the members of Alfa Ica
(India) Ltd. ("the Company") for the year ended on 31st March, 2015.
We report that:
i. in respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, these fixed assets have been physically verified
by the management, in accordance with a phased program of verification,
which in our opinion, is reasonable, considering the size of the
Company and nature of its assets. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
ii. in respect of inventories:
a) The Physical verification of inventory has been conducted at
reasonable intervals by the management.
b) In our opinion the procedures for physical verification of inventory
followed by the management are 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 no
discrepancies were noticed on physical verification
iii. 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 Act. Consequently, requirement of clauses
(iii) of paragraph 3 of the order is not applicable.
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 the purchase of inventory, fixed assets and also for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
v. The Company has not accepted fixed deposits from the public during
the year under section 73 and 76 of the Companies Act. Consequently,
clause v of paragraph 3 of the order is not applicable.
vi. According to the information and explanations given to us, in our
opinion, the Company has, prima facie, made and maintained the
prescribed cost records as specified by the Central Government under
sub-section (1) of section 148 of the Companies Act, 2013, wherever
applicable. However, we have not made detailed examination of the cost
records with a view to determine whether they are accurate or complete.
vii. According to the information & explanations given to us in
respect of statutory and other dues:
a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Income Tax, Wealth
Tax, Service Tax, cess and other material statutory dues applicable to
it. According to the information and explanations given to us, no
undisputed amounts payable in respect of outstanding statutory dues
were in arrears as at March 31, 2015 for a period of more than six
months from the date they became payable.
b) According to the information and explanations given to us, the dues
outstanding of Provident Fund, Income Tax, Wealth Tax, Service Tax,
Sales Tax or Cess on account of any dispute as at the end of the
financial year, are as follow:
Financial year to Nature of dues Amount Forum where
which amount relates dispute is
pending
2005-2006 Income Tax 904,509 Gujarat High
Court
c) According to the information and explanations given to us, no amount
to be transferred to the investor education and protection fund in
accordance with the relevant provisions of the Companies Act,1956 (1 of
1956) and rules made there under.
viii. The Company neither has any accumulated losses nor has incurred
any cash losses during the financial year covered by our audit and the
immediately preceding financial year.
ix. According to the information and explanation given to us, the
Company has not defaulted in repayment of dues to a financial
institution or a bank.
x. To the best of our knowledge and belief and according to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from bank or financial
institutions.
xi. According to the information and explanations given to us and
records examined by us, the term loans have been applied for the
purpose for which they were obtained.
xii. Based on the audit procedure performed and 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, O.P.Bhandari & Co.
Chartered Accountants
Firm Regd. No. 112633W
O. P .Bhandari
Place : Ahmedabad (Partner)
Date : 26th May, 2015 Membership No. 34409
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