| We have audited the accompanying financial statements of M/s NATIONAL
GENERAL INDUSTRIES LTD. which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss and 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 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)
Rule, 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 issued by the
Institute of Chartered Accountants of India. 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 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 control relevant to the
Company's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the profit 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 ("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.
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 Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) 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 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.
f) On the basis of information and explanation provided to us, in our
opinion, Company has adequate internal financial controls system in
place which is commensurate with the size of the Company and the
nature of its business and is operating effectively.
3. 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:
a) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
b) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
c) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in our Report of even
date)
In terms of the information and explanations given to us and the books
and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state as under:
I. The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on
the basis of available information. As explained to us all the fixed
assets were physically verified by the management at reasonable
interval during the year. We have been informed that no material
discrepancies were noticed on such physical verification.
II. The Inventory has been physically verified during the year by the
management at reasonable intervals except stock lying with third
parties. The Company in most of the cases has obtained confirmation of
such stocks with third parties. In our opinion and according to the
information and explanations given to us, the procedures of physical
verification of inventory followed by the management are reasonable
and adequate in relation to the size of the Company &nature of its
business. The Company is maintaining proper records of inventory. As
explain to us the discrepancies noticed on physical verification of
stocks as compared to book records were not material, however, the
same have been properly dealt with the books of account.
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, 2013.
IV. In our opinion and according to the 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 also for the sale of goods
and services. In our opinion, there is no continuing failure to
correct major weaknesses in internal control.
V. The Company has not accepted deposits from the public. In our
opinion, the directives issued by the Reserve Bank of India and the
provisions of section 73 to 76 or any other relevant provisions of the
Companies Act and the rules framed there under, were not applicable to
the Company.
VI. In our opinion, Company is not required to maintain cost records
under section148(1) of the Companies Act,2013 read with rule 4 of the
Companies (Cost Records and Audit) Amendment Rules, 2014.
VII.
(a) In our opinion and according to the record of Company, the Company
is regular in depositing undisputed statutory dues including Provident
Fund, Employees' State Insurance, Income-Tax, Sales Tax, Wealth Tax,
Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and
any other statutory dues with appropriate authorities applicable to it
and further there is no such arrear of outstanding statutory dues as
at 31st March, 2015, for a period of more than six months from the
date they became payable.
(b) In our opinion and according to the record of Company, there are
no dues including Provident Fund, Employees' State Insurance,
Income-Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Custom, Duty
of Excise, Value Added Tax, Cess and any other statutory dues with
appropriate authorities, which have not been deposited on account of
any dispute.
(c) In our opinion and according to the record of the Company, no
amount was required to be transferred to Investor Education and
Protection Fund in accordance with relevant provisions of the
Companies Act, 1956 and rules made thereunder.
VIII. The Company does not have accumulated losses at the end of
financial year. The Company has not incurred cash loss during the
financial year covered by the audit and in the immediately preceding
financial year.
IX. According to the information and explanations given to us, we are
of the opinion that Company has not defaulted in repayment of dues to
financial institutions or banks and debenture holders.
X. In our opinion, and according to the explanations given to us, the
Company has not given any guarantee for loans taken by others from
bank, financial institutions, which is prejudicial to the interest
of the Company.
XI. In our opinion, and according to the explanations given to us, the
term loans were applied by the Company for the purpose for which the
loans were obtained.
XII. Based upon the audit procedures 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 course of our
audit for the period under report.
For R.KGOVIL&Co.
Chartered Accountants FRN -000748C
Sd/-
Place: New Delhi Rajesh Kumar Govil
Dated: 28.05.2015 Partner
Membership No.013632 |