We have audited the accompanying standalone financial statements
CHHATTISGARH INDUSTRIES LIMITED ("the Company"), which comprises the
balance sheet as at 31 March 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 Standalone 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 standalone 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, 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 31 March 2015 and its Loss 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 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 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 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 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 does not have any pending litigations which would impact
its financial position.
ii) The Company did not have any long term contracts, including
derivative contracts for which there were any material foreseeable
losses.
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
1.(a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As per the information and explanations given to us, the fixed
assets have been physically verified by the management during the year
in accordance with the phased programme of verification adopted by the
Company and no material discrepancies were noticed on such
verification.
2. (a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, having
regard to the nature and location of stocks, the frequency of the
physical verification is reasonable;
(b) 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 and the nature of its business;
(c) In our opinion, the Company is maintaining proper records of
inventory and no discrepancies has noticed on physical verification of
inventories followed by the management are reasonable and adequate in
relation to the operations of the Company and the same have been
properly dealt with in the books of account;
3. 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 ('the Act'). Accordingly,
Clause (iii) (a) and (iii) (b) of the order are not applicable for the
year.
4. In our opinion and as explained to us, there are adequate internal
control procedures commensurate with the size of the Company and the
nature of its business with regard to purchase of inventory and fixed
assets and for the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal controls and
there is no continuing failure for the same;
5. In our opinion and as explained to us, the Company has complied with
provisions of Sections 73 to 76 of the Companies Act 2013 read with The
Companies (Acceptance of Deposits) Rules, 2014 and other relevant
provisions of the Companies Act.
As informed 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 related to compliance with above provisions..
6. The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, 2013 for any of the services
rendered by the Company
7. (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees state insurance, income-tax, sales-tax, wealth-tax,
service tax, duty of customs, duty of excise, value added tax, cess and
other statutory dues and there are no undisputed statutory dues
outstanding as at 31st March 2015, for a period of more than six months
from the date they became payable.
(b) According to the records of the Company, there are no dues of
Income Tax, sales tax, wealth tax, service tax, custom duty,
excise-duty, cess which have not been deposited on account of disputes.
(c) According to the information and explanations given to us there are
no amounts which were 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) and rules there
under.
8. The Company has accumulated loss of Rs. 38.86 Lacs (Previous period
loss Rs. 6.59 Lacs) and has incurred a net loss of Rs 32.26 Lacs and
has incurred cash loss of Rs 10.88 Lacs during the reporting period
covered by our audit.
9. Based on the information and explanations given to us, the Company
has not defaulted in repayment of any dues to financial institutions
and banks;
10. 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.
11. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the reporting period.
12. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For U.K.Rathi & Co.
Chartered Accountants
Firm No:326128E
Sd/-
Rahul Bansal
(Partner)
Membership no: 068619
Place: Kolkata
Date: 28th August, 2015
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