We have audited the accompanying financial statements of Crestchem
Limited ('the Company'), which comprise the Balance sheet as at March
31,2015, the Statement of profit and loss , the 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 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 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
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 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 financial
statements.
Opinion
In our opinion and to the best 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 March 31,2015, and its profits and its cash flows for the year ended
on that date.
Emphasis of Matters:
During the year, the company has sold/ disposed off all fixed assets
like Land, Factory Building and a significant portion of its Plant &
Machinery. This condition indicates the existence of a material
uncertainty that may cast significant doubt about the Company's ability
to continue as a going concern. However, Financial Statements of the
Company have been prepared on a going concern basis. Our opinion is
not modified in respect of these matters.
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 the paragraph 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
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 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;
(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 March 31,2015 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 164 (2) of the
Act; and
(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 Auditors)
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 statements.
(ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT :
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date.)
i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets on the basis of available information.
b) As explained to us, a major portion of the fixed assets has been
physically verified by the management during the year in accordance
with a phased program of verification adopted by the Company. In our
opinion, the frequency of verification is reasonable having regard to
the size of the company and nature of its assets. As informed to us, no
material discrepancies were noticed on such physical verification.
ii) In respect of its inventories:
a) As explained to us, inventories were physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of the verification is reasonable.
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 are reasonable and adequate in relation to
the size of the company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventories.
As explained to us, there was no material discrepancies noticed on
Physical Verification of Inventories as compared with the book records.
iii) In respect of Loans, Secured or Unsecured granted by the company
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013: According to the
information and explanations given to us and on the basis of the
records produced before us, the company has not granted any Loan,
Secured or Unsecured to the companies or firms or other parties covered
in the register maintained under section 189 of the Companies Act 2013
and hence sub-clause (a) & (b) of paragraph 3 of the Companies
Auditor's Report Order 2015 are not applicable to the Company
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchases of inventory, fixed assets and for the sales of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls
system.
v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit and hence the
provisions of Section 73 to 76 or any other relevant provisions of the
Companies Act and the Companies (Acceptance of Deposits) Rules, 2014
with regard to the deposits accepted are not applicable to the Company.
Therefore, the provisions of Clause (v) of paragraph 3 of the Companies
Auditor's Report Order 2015 are not applicable to the Company.
According to the information and explanations given to us, no order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
vi) In our opinion and according to the information and explanation
given to us, the Central Government of India has not prescribed the
maintenance of Cost Accounting Records under sub Section (1) of Section
148 of the Companies Act, 2013 and hence this clause is not applicable
to the company.
vii) a) In respect of the Statutory dues:The company is regular in
depositing other statutory dues applicable to it. According to the
information and explanations given to us and on the basis of records
produced before us FBT of Rs. 42,540/- is outstanding for more than six
months. Except above there are no undisputable amount payable in
respect of Income Tax, Wealth Tax, Sales Tax, custom duty, excise duty
and cess were outstanding as at 31st March, 2015 for a period of more
than six months from the date they become payable.
b) According to the records of the company, there are no dues of Sales
Tax, Income Tax, Excise Duty and Cess which have not been deposited on
account of any dispute.
c) According to the information and explanations given to us there is
no amount which is required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956(1 of 1956).
viii) On the basis of information and explanations given to us and on
the basis of records produced before us, the company's accumulated
losses at the end of the financial year are more than fifty percent of
its net worth. The company has not incurred cash loss during the
financial year covered by our audit and in the immediately preceding
previous year.
ix) On the basis of the information and explanation given to us and on
the basis of records produced before us, the company has not defaulted
in repayment of dues to a Bank.
x) On the basis of the information and explanation given to us and on
the basis of records produced before us,the company has not given any
guarantee for loans taken by others from bank or financial institution
hence the provision of this clause is not applicable to the company.
xi) According to the information & explanations given to us, the
Company has not raised any term loan during the year under audit.
xii) In our opinion and according to the information and explanations
given to us and based on management representation, no material fraud
on or by the company has been noticed or reported during the financial
year covered by the audit.
For TALATI & TALATI
Chartered Accountants
(Firm Reg. No 110758W)
AHMEDABAD (UMESH H.TALATI)
DATE: 30th May, 2015 PARTNER
M.NO. 34834
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