| We have audited the accompanying financial statements of The Cochin
Malabar Estates and Industries Limited ("the Company"), which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of
the 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 ("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
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 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 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 year ended
on that date.
Report on Other Legal and Regulatory Requirements
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 Companies Act, 2013, we enclose
a statement on the matters specified in paragraphs 3 and 4 of the said
Order.
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 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 31st March, 2015 and 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 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 has disclosed the impact of pending litigations on its
financial position in its financial statements [Refer Note No. 2.15 A]
ii. The company did not have any long term contracts including
derivative contracts for which there were any foreseeable losses.
iii. The provisions relating to transferring any amounts to the
Investor Education and Protection Fund is not applicable to the Company
during the year.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of The Cochin Malabar Estates and Industries Limited on the
financial statements for the year ended 31st March, 2015.
1. i) The Company has maintained proper records to show full
particulars including quantitative details and situation of its Fixed
Assets.
(ii) Fixed Assets of the Company were physically verified during the
year by the management, wherever possible. According to the information
and explanations given to us no material discrepancies were noticed on
such verification carried on by the management.
2. No inventories were held by the company at the close of the year
and hence the requirements of sub clauses (a) to (c) of clause (ii) of
the Order are not applicable.
3. As per the information and explanations provided to us, the company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act, 2013 and hence the requirements of sub clauses (a) &
(b) of clause (iii) of the Order are not applicable.
4. On the basis of checks carried out during the course of audit and
as per explanations given to us, in our opinion, there are adequate
internal control procedures commensurate with the size of the Company
and the nature of its business for the 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 in
these respects.
5. The Company has not accepted any deposits from the public during
the year.
6. As the Rubber Wood factory are not under operation, Cost records
and books of accounts prescribed by the Government of India under
sub-section (1) of Section 148 of the Act were not maintained as the
need for maintaining the Cost records did not arise during the year.
7. a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing the undisputed statutory dues including
provident fund, investor education and protection fund,employees' state
insurance, income tax, sales- tax, wealth tax, service tax, customs
duty, excise duty, cess and other statutory dues as applicable with the
appropriate authorities and no such dues were in arrears, 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 and as per the information
and explanations provided to us, the dues (net of advances) outstanding
in respect of Sales Tax, Income tax, Customs Duty, Wealth Tax, Service
Tax, Excise Duty, Cess etc., on account of any dispute,are given below:
Name of the Nature of Amount Period to Forum where
Statute Dues (Rs.) which the dispute
amount pending
relates
Central Sales CST Levy on 2,13,331 1988-89 to Supreme Court
Tax , 1956 Rubber Cess 1992-93 of India
c) According to the records of the company, no amount is required to be
transferred to investor education and protection fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made there under.
8. In our opinion, the accumulated loss of the company is not less
than fifty percent of its net worth and has not incurred cash losses in
the current financial year ended on that date or in the immediately
preceding financial year.
9. The company has not borrowed any amount from financial institutions
and banks, and hence, the requirements of clause (ix) of the above
Order are not applicable to the company.
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. According to the information and explanations given to us by the
management, the Company has not availed any term loans, and hence, the
requirements of clause (xi) of the above Order are not applicable to
the company.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices 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 year, nor
have we been informed of such case by the management.
Forand on behalf of
SINGHI & CO.
Chartered Accountants
Firm Regn. No. 302049E
Pradeep Kumar Singhi
Place : Kolkata Partner
Date : 15th May, 2015 Membership No. 050773
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