| We have audited the accompanying financial statements of WESTERN INDIA
SHIPYARD LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, 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
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.
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 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 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 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 31stMarch, 2015, and its profit/loss and its cash flows for the year
ended on that date.
Emphasis of Matter
We draw attention to the following matters in the Notes to the
financial statements
1. Note No-29 (h) to the financial statements which describes the
uncertainty related to the outcome of the lawsuits filed against the
Company.
2. Note No-36 to the financial statements regarding the financial
statements is prepared on a going concern basis notwithstanding the
fact that its net worth is completely eroded. The appropriateness of
the said basis is inter-alia dependent on the Company's ability to
infuse requisite funds for meeting its obligations for payment of debt
and generate more business.
Our opinion is qualified in respect of the above matter.
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 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.
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 31stMarch, 2015 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 Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us, the Company has not
disclosed the impact, if any, pending litigations on its financial
position in its financial statements
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date)
The Annexure referred to in our report to the members of WESTERN INDIA
SHIPYARD LIMITED (the Company') for the year ended on 31st March, 2015.
We report that:
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of
fixed assets;
(b) As explained to us, major fixed assets have been physically
verified by the management in a phased &reasonable manner, which in our
opinion is reasonable, as considered appropriate by the management. We
have been explained that no material discrepancies were noticed on such
verification as compared to book records.
(ii) (a) It has been explained to us that the inventory lying with the
Company has been physically verified by the management at the year end.
(b) The procedure of physical verification of inventory followed by the
Management is in our opinion, reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory. As
per information and explanations given to us, the Company had
undertaken extensive stock verification during the year. Discrepancies
observed during physical verification of inventory have been properly
accounted for.
(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 Companies Act.
(iv) 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 purchase of
inventory and fixed assets and for the sale of goods and services.
(v) The Company has not accepted any deposits from the public thus the
provisions of Paragraph 3(v) of Order are not applicable.
(vi) We have been informed that the Central Government has not
prescribed maintenance of cost records for the Company under
sub-section (1) of section 148 of the Companies Act.
(vii) In respect of Statutory Dues :-
(a) According to the records of the Company, there have been delays in
depositing Provident Fund, Employees State Insurance and other
undisputed statutory dues with the appropriate authorities
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax including VAT, Service Tax, Customs duty, Excise duty, cess and
other statutory dues were outstanding, as at the last day of financial
year for a period of more than six months from the date they became
payable other than mentioned below:-
Nature of dues Name of the Statute Amount Payable
(Rs. in lacs)
TDS The Income Tax Act, 1961 213.52
Value Added Tax The Goa Value Added Tax Act, 2005 228.18
(b) The disputed statutory dues aggregating Rs. 2990.17 lacs that
have not been deposited on account of disputed matters are
given below:-
Nature of dues Name of the Statute Financial
Year
Sales Tax The Goa Sales Tax 1995-96 to
Act 2004-05
Value Added Tax The Goa Value 2005-06 to
(VAT) Added Tax Act, 2005 2007-08
Value Added Tax The Goa Value 2010-11
(VAT) Added Tax Act, 2005
Service Tax The Finance Act, 2001-02 to
1994 2004-05
Income Tax The Income Tax Act, 2005-06
Demand 1961
Custom Duty Customs Act, 1962 2012-13
Nature of dues Amount Forum where dispute is
Payable pending
(Rs. in lacs)
Sales Tax 837.91 Commissioner-(Sales Tax)
Value Added Tax 515.78 Commissioner -VAT
(VAT)
Value Added Tax 39.84 Appeal is still to be filed
(VAT)
Service Tax 712.18 Bombay High Court
Income Tax 15.95 Commissioner of Income
Demand Tax (Appeals)
Custom Duty 868.51 CESTAT
(c) No amount is required to be transferred to investor education and
protection fund and thus, provisions of Paragraph 3(vii)(c) of the
Order are not applicable.
(viii) As per records of the Company, the accumulated losses of the
Company exceed its net worth. The Company has incurred cash losses
amounting to Rs. 2240.71 lacs during the current financial year and Rs.
1375.74 lacs in the immediately preceding financial year.
(ix) As per records of the Company, the Company has not defaulted in
repayment of dues to financial institutions or banks or debenture
holders.
(x) In our opinion 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) In our opinion and according to the information and explanations
given to us, term loans are applied for the purpose for which the loans
were obtained.
(xii) As informed to us, no fraud on or by the Company has been noticed
of reported during the year.
For V. V. Kale & Co.
Chartered Accountants
Firm Regd No- 000897N
Sd/-
Vijay V. Kale
Place : Mumbai Partner
Date : June 30, 2015 M. No- 080821
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