| We have audited the accompanying financial statements of Fairfield
Atlas Limited ('the Company'), which comprise the Balance Sheet as at
31 March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year ended on that date, and a summary of significant
accounting policies and other explanatory information.
Management's responsibility for the financial statements
Management is responsible for 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 Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/ 2013 dated 13 September 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control 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 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 judgement, 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, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. 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 31 March 2014.
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ('the
Order'), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we enclose in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by Section 227 (3) of the Act, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013; and
(e) on the basis of written representations received from the directors
of the Company as of 31 March 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
Annexure to the Independent Auditors' Report - 31 March 2014
(Referred to in our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
(ii) (a) The inventory, except goods-in-transit and stocks lying with
third parties, has been physically verified by the management during
the year. In our opinion, the frequency of such verification is
reasonable. For stocks lying with third parties at the year-end,
written confirmations have been obtained.
(b) The procedures for the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, except for pending updation of inventory records of work in
progress, the Company is maintaining proper records of inventory.
Closing balance of work in progress has been valued based on physical
verification at year end. Accordingly, the closing balance of work in
progress as per books cannot be ascertained. The discrepancies noticed
on verification of inventory (except for work in progress) between the
physical stocks and the book records were not material.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under Section 301 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories and fixed assets are for the Company's
specialised requirements and similarly sale of certain goods and
services are for the buyers' specialised requirements and suitable
alternative sources are not available to obtain comparable quotations,
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 inventories and fixed assets and for sale of goods and services. In
our opinion and according to the information and explanations given to
us, except for pending updation of inventory records of work in
progress, there is no continuing failure to correct major weakness in
the internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs 5
lakh with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time except for purchases of certain items of inventories and
sale of certain goods which are for the Company's specialised
requirements for which suitable alternative sources are not available
to obtain comparable quotations. However, on the basis of information
and explanations provided, the same appear reasonable.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209(1 )(d) of the Act, in
respect of products and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained except
for pending updation of inventory records of work in progress.
However, we have not made a detailed examination of the records.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Income-tax, Wealth tax,
Sales-tax / Value added tax, Service tax, Customs duty, Excise duty and
other material statutory dues have been generally regularly deposited
during the year by the Company with the appropriate authorities. As
explained to us, the Company did not have any dues on account of
Investor Education and Protection Fund and Employee's State Insurance.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees'
State Insurance, Income-tax, Sales tax / Value added tax, Wealth tax,
Customs duty, Excise duty, Cess and other material statutory dues were
in arrears as at 31 March 2014 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Excise duty, Wealth tax and Cess which have
not been deposited with the appropriate authorities on account of any
dispute.
Name of the Nature of the Amount (Rs)
Statute Dues
Central Excise Service tax 348,726
Bombay Sales Tax Act, Levy of 1,523,773*
1959 Purchase Tax
Bombay Sales Tax Act, Levy of 2,386,772*
1959 Purchase Tax
Name of the Period to which Forum where
Statute the amount relates dispute is pending
Central Excise 2012-13 Deputy Commissioner
of Excise and
Service tax
Bombay Sales Tax Act, 1998-1999 Appellate Tribunal
1959 Sales Tax
Bombay Sales Tax Act, 1999-2000 Appellate Tribunal
1959 Sales Tax
* represents net of amount deposited under dispute
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any financial
institutions or debenture-holders during the year.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/mutual benefit
fund/society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company has not taken / utilised any term loans during
the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
(xviii) In our opinion and according to the information and
explanations given to us, the Company has not made any preferential
allotment of shares to companies/firms/parties covered in the register
maintained under Section 301 of the Act.
(xix) In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding debentures during
the year.
(xx) In our opinion and according to the information and explanations
given to us, the Company has not raised any money by public issues
during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For BSR & Associates LLP
Chartered Accountants
Firm's Registration No: 116231W
Shabbir Readymadewala
Mumbai Partner
11 June, 2014 Membership No: 100060 |