| Report on the Financial Statements
We have audited the accompanying financial statements of ICSA (INDIA)
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 period 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 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 the maintenance of
adequate accounting records in accordance with the provision 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 internal financial control, 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
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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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
accounting policies used and the reasonableness of the accounting
estimates made by the 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 on the financial
statements.
Basis for Qualified Opinion
i) Attention is invited to Note No.7 to Notes on Financial statements
regarding non-provision of interest on working capital loans for an
amount of Rs. 8729.68 lacs. The loss of the company is understated to
an extent of Rs.8729.68 lacs and the liability of the company is
understated to that extent.
ii) Attention is invited to Note No.9 to Notes on Financial statements
regarding non-provision of interest on Term Loans from banks for an
amount of Rs.7,471.83 lacs. The loss of the company is understated to
an extent of Rs.7,471.83 lacs and the liability of the company is
understated to that extent.
iii) Attention is invited to Note No.9 to Notes on Financial statements
regarding non-provision of interest on corporate dividend tax for an
amount of Rs.64.24 lacs which was provided for the financial year
2010-11. The loss of the company is understated to an extent of
Rs.64.24 lacs and the liability of the company is understated to that
extent.
iv) Attention is invited to Note No.25 (a)(iii) to Notes on Financial
statements regarding non-provision of Rs. 6427.58 lacs, towards
differential interest for non acceptance of CDR package by banks. The
loss of the company is understated to an extent of Rs. 6427.58 lacs and
the liability of the company is understated to that extent.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the
aforesaid standalone 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 31st March, 2015, and its
loss and its cash flows for the period ended on that date.
Report on Other Legal and Regulatory Requirements
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) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, 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 Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, the aforesaid
standalone 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 written representations received from the directors
as on 31st March, 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 included in the Auditor's Report
and in accordance with Rule 11 of The Companies (Audit and Auditors)
Rules, 2014 and in our opinion and to the best of our information and
explanations given to us:
i. The Company has disclosed the impact of pending litigations as at
31st March 2015 on its financial position in its financial statements
as referred to in note 25(a) (i) (ii) and (iii) to the financial
statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the period ended 31st March 2015.
The Annexure referred to in the Independent Auditors' Report of even
date on the Financial Statements to the Members of ICSA (India) Limited
for the period ended 31 March 2015. We report that:
i. In respect of the fixed assets of the company:
a) The Company has maintained proper records showing full particular
including quantitative details and situation of fixed assets.
b) As explained to us, fixed assets have been physically verified by
the management in a phased periodical manner, which in our opinion is
reasonable having regard to the size of the company and nature of its
assets. No material discrepancies were noticed on such verification.
c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the period and the going concern status of
the company is not affected.
ii. In respect of its inventories:
(a) As explained to us, inventories have been physically verified
during the period by the management. In our opinion, the frequency of
verification is not 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 not reasonable and adequate in relation
to the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. In our
opinion and according to the information and explanations given to us,
no discrepancies noticed on physical verification as compared to the
book records.
iii. iii. No loans were granted by the Company, to any of the parties
covered in the register maintained under section 189 of the Act. Hence
we have not reported on the related matters of this clause and
sub-clauses (a) and (b).
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 with regard
to purchase of inventory and fixed assets and for sale of goods and
Services. We have not observed any major weakness in the internal
control system during the course of the audit.
v. The Company has not accepted any deposits from the public within the
meaning of sections 73 to 76 or any other relevant provisions of the
Act and rules framed there under.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the rules prescribed by the Central Government of India
under Section 148(1) of the Companies Act 2013 and are of the opinion
that prima facie the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
vii. In respect of statutory dues.
a) The Company is not regular in depositing undisputed statutory dues
with appropriate authorities including provident fund, employees' state
insurance, income tax, sales tax, service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues applicable
to it.
b) There were no undisputed amounts payable in respect of income tax,
sales tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax or cess and other material statutory dues in arrears as
at 31st March 2015 for a period of more than six months from the date
they became payable except the following:
Nature of Due Rs. In Lakhs
Corporate Dividend Tax 142.76
PF Employee Contribution 0.46
PF Employer Contribution 0.54
Professional Tax 0.11
TDS Payable 1258.75
Employees State Insurance 0.55
Sales Tax 43.46
Service Tax 1235.01
c) According to the information and explanations given to us, the dues
of income tax, sales tax, wealth tax, service tax, duty of customs,
duty of excise, value added tax or cess which have not been deposited
on account of any dispute are as follows:
year to which
Name of the Nature of Forum where dispute
the amount
Statute the dues is pending
relates
Income Tax Income Tax The Commissioner of
2009-10
Act,1961 Income Tax(Appeals)
Income Tax Income Tax The Commissioner of
2010-11
Act,1961 Income Tax(Appeals)
Income Tax Income Tax The Commissioner of
Act,1961 2011-12 Income Tax(Appeals)
Name of the Statute Amount. Deposit Unpaid Deposit
(Rs. In Amount Amount
Lakhs) (Rs.in Lakhs) (Rs.in Lakhs)
Income Tax Act, 1961 2188.06 - 2188.06
Income Tax Act, 1961 40,361.92 - 40,361.92
Income Tax Act, 1961 26,270.36 - 26,270.36
Total 68,820.34 - 68,820.34
d) In our opinion, there are no amounts required to be transferred to
the investor education and protection fund by the Company.
e) The Company has accumulated losses exceeding 100% of its net worth
at the end of the financial period and has incurred cash losses during
the financial period covered by the audit and in the immediately
preceding financial year.
f) According to the records of the Company examined by us and the
information and explanations given to us, the company has defaulted in
repayment of dues to financial institution and banks as at the Balance
sheet date.
S.No. Name of the Bank Principal Interest
1 Andhra Bank 3615.62 827.30
2 Oriental Bank of Commerce 9,991.91 2,509.02
3 Bank of India - 1,909.63
4 Punjab National Bank - 2,591.41
5 State Bank of India - 3,956.85
6 Union Bank of India - 1,720.61
7 IDBI Bank Limited - 1,167.33
8 Andhra Bank - 3,159.66
9 Bank of India 3,050.60 -
10 Punjab National Bank 1,845.82 -
11 State Bank of India 3,543.51 -
12 Union Bank of India 2153.18 -
13 IDBI Bank Limited 125.67 -
14 Andhra Bank 1,220.46 -
g) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
h) We have not reported on this clause as no term loans were obtained
by the Company during the period under rev iew.
i) During the course of our examination of the books and records of the
Company, carried out in accordance with the Generally Accepted
Accounting Practice in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company noticed or reported during the period, nor
have we been informed of such case by the management.
For RAMBABU & Co.
Chartered Accountants
Firm Reg No: 002976S
Ravi Rambabu
Place: Hyderabad Partner
Date: 29th May, 2015 M No. : 018541 |