| We have audited the accompanying Financial Statements of M/s. INDIA
INFRASPACE LIMITED, (the "Company"), which comprise the Balance Sheet
as at 31st March 2015, the Statement of Profit & 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 Financial Statements :
The Company's Board of Directors is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flow 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 provision 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 the
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.
Auditors' 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 disclosures
in the financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risk of material
misstatement of the financial statement, whether due to fraud or error.
In making those risk assessments, the auditor considers internal
financial controls 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. An audit
also includes evaluating the appropriateness of accounting polices 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.
Emphasis of Matter :
We draw the attention to Point No. 3 in Note No. 16(II) to the
accompanying financial statements regarding non charging of Interest on
Loans & Advances to Related Parties and other parties u/s. 186 of the
Companies Act, 2013
Opinion :
In our opinion and to the best of our information and according to the
explanations given to us, the accompanying 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.
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March 2015
ii) In the case of Statement of Profit & Loss, of the Loss for the year
ended on that date; and
iii) In the case of 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, issued
by the Central Government of India in terms of sub-section (11) of
Section 143 of the Act (hereinafter referred to the "Order"), and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, 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
purpose of our audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far it appears from our examination of
those books.
c) The Balance Sheet and Statement of Profit & Loss 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 prescribed under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of 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.
ii) In our opinion and as per the information and explanations provides
to us, the company has not entered into any long-term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses, and
iii) There are no outstanding amount which is required to be
transferred to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date.
1. According to the information and explanations given to us, the
Company has not any Fixed Assets. accordingly, the sub-clauses (a) and
(b) are not applicable to the Company.
2.1 The Inventories has been physically verified at reasonable
intervals by the management. In our opinion, the frequency of such
verification is reasonable.
2.2 In our opinion and according to information and explanations given
to us, the procedures for 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.
2.3 On the basis of our examination of the inventory records, in our
opinion the company has maintained proper records of inventory and
according to the records of the company, the discrepancies noticed on
physical verification of inventory as compared to book records were not
material and have been properly dealt within the books of account.
3. According to the information and explanations given to us, the
company has granted Interest free unsecured loans to parties covered in
the Register maintained under Section 189 of the Companies Act.
3.1 In respect of the aforesaid loans, the parties are repaying the
principal amounts, as stipulated.
3.2 In our opinion and according to the information and explanation
given to us, there are no overdue amounts in respect of the
transactions listed in Para 3 above.
4. In our opinion and according to the information and explanation
given 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 for the sale of
goods and services. During the course of audit, we have not observed
any continuing failure to correct major weaknesses in internal
controls.
5. According to the information and explanation given to us, the
Company has not accepted any deposits in terms of directives issued by
Reserve Bank of India and the provisions of Section 73 to 76 or any
other relevant provisions of the Companies Act and rules framed there
under.
6. The Company is not a manufacturing company and hence maintenance of
cost records under sub-section (1) of section 148 of the Companies Act,
2013 is not applicable.
7. The company is generally regular in depositing 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 any other statutory dues with the appropriate
authorities and we have been informed that there are no arrears of
outstanding statutory dues as at the last day of the financial year
under audit for a period of more than six months from the date they
became payable.
7.1 According to the information and explanation given to us, there are
no undisputed amounts payable in respect of Income-Tax, Sales-Tax,
Wealth Tax, Service Tax, Custom duty, excise duty, Value Added Tax and
cess were in arrears, as on 31st March, 2015 for a period of more than
six months from the date they became payable.
7.2 According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, VAT, wealth tax,
custom duty, service tax, excise duty, cess were in arrears, as at 31st
March, 2015 for a period of more than six months from the date they
become payable except outstanding demand of Income Tax of Rs.
9,97,318/- for A.Y. 1996-97 & Rs. 88,594/- for 2002-03 and Income Tax
Penalty of Rs. 2,58,783/- for A.Y. 2002-03.
7.3 According to the information and explanation given to us, there are
no outstanding amounts that are required to be transferred to investor
Education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 and Rules made thereunder.
8. The Company has accumulated losses of Rs. 166.91 lacs at the end of
the financial year under audit. The company has incurred cash losses
of Rs. 4.35 lacs during the financial year covered under audit, and
also incurred cash loss of Rs. 2.96 lacs during immediately preceding
financial year.
9. Since the company has not availed any financial assistance from
Bank and / or financial institution and also not issued any debentures,
this clause is not applicable.
10. In our opinion, and according to information and explanations given
to us, the Company has not given guarantee for loans taken by others
from banks or financial institutions.
11. According to the information and explanations given to us, no term
loans were obtained during the year under audit.
12. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the 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 PANKAJ K. SHAH ASSOCIATES
Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
Place : Ahmedabad PROPRIETOR
Date : 30.05.2015 M. No. 34603
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