| We have audited the accompanying financial statements of ANKA INDIA
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31,2014 and the Statement of Profit and Loss and 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
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("theAct") read with the General Circular 15/2013 dated 13th
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 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, 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 March 31,2014;
b) in the case of the Profit and Loss Account, of the loss 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give 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
bb) **The report on the accounts of the branch offices audited under
section 228 by a person other than the company's auditor has been
forwarded to us as required by clause (c) of sub-section (3) of section
228 and have been dealt with in preparing our report in the manner
considered necessary by us.
c) The Balance Sheet, Statement of Profit and Loss, and 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 Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 read with the General Circular 15/2013
dated 13th September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31,2014 and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441Aof the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS REPORT
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT TO THE MEMBERS OF ANKA INDIA
LIMITED ("THE COMPANY") FOR THE YEAR ENDED ON 31st MARCH, 2014
We report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(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 reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(b) clauses iii (b) of the order are not applicable to the Company.
(c) clauses iii(c) of the order are not applicable to the Company.
(d) clauses iii (d) of the orderare not applicable to the Company
(e) The Company has taken loans from one party covered in the register
maintained under section 301 of the Companies Act, 1956 wherein the
balance payable as at the year end is Rs. 2,63,86,575/-. The maximum
amount outstanding during the year was Rs. 2,89,64,575/-.
(f) In our opinion, the rate of interest and other terms and conditions
on which the loans have been taken to the parties listed in the
register maintained under Section 301 of the Act are not, prima facie,
prejudicial to the interest of the Company.
(g) In our opinion and according to the explanations given to us, the
company is regular in paying the principal and interest as stipulated.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, 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) As per information & explanations given to us and in our opinion, no
transaction have been entered into by the company with parties covered
u/s 301 of the Act further it does not exceeds five lacs rupees in a
financial year therefore requirement of reasonableness of transactions
does not arises.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act.
9. (a) According to the records of the Company and the information and
explanations given to us, it has been observed that there have been
delays on some occasions in depositing of TDS with appropriate
authorities. However the same has been deposited along with the
interest as prescribed.
(b) According to the information and explanations given to us, the
details of dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax,
Excise Duty, Service Tax and Cess which have not been deposited on
account of any dispute are given below:-
Name of Nature of Financial year to Amount
Statute Dues which the matter (Rs.)
pertains
Central Excise Act Penalty 1997-98 188319/-
Name of Forum where dispute is pending
Statute
Central Excise Act Customs Excise & Service Tax
Appellate Tribunal
10. The Company has accumulated losses exceeding fifty percent of the
net worth of the Company. The Company has incurred cash loss during the
year covered by our audit.
11. In our opinion and according to the information and explanations
given by the management, we are of the opinion that, the Company has
not defaulted in repayment of dues to a financial institution, bank or
debenture holders, as applicable to the company.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor's Report) Order, is not applicable to the Company.
14. According to information and explanations given to us, the Company
is not dealing or trading in Shares, securities, debentures and other
investments.According the provisions of clause 4(xiv) of the Order is
not applicable to the company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, the company has not taken any term loan during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March,2014 report that no funds raised on short-term basis have been
used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year to
parties and companies covered in the register maintained under section
301 of the Companies Act.
19. The Company has not issued any secured outstanding debentures
during the period.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, we
report that no fraud on or by the Company has been noticed or reported
during the year, nor have we been informed of such case by the
management.
For. H. KUMAR & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Regn. No. 021518N
Sd/-
PLACE : NEW DELHI (H. Kumar)
DATED : 29th May'2014 M. NO. :010431 |