| We have audited the accompanying Financial Statements of Samtel India
Limited ("the Company") which comprises the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss and 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 of 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
misstatements, 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 disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of the material misstatement of the financial statements,
whether due to error or fraud. In making those risk assessments, the
auditor considers internal 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 controls system
over financial reporting and the operating effectiveness of such
controls. An audit
also includes evaluating the appropriateness of accounting policies
used and 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 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.
Emphasis of Matter
i) We draw attention to Note 28 of the financial statements stating the
reasons for preparation of financial on -going concern basis. Our
opinion is not qualified in respect of this matter.
ii) We also draw attention to Note 29 of the financial statement
regarding seeking the opinion for necessary actions to be taken under
Sick Industrial Companies (Special Provisions) Act, 1985, ouropinion is
not qualified in respect of this matter.
iii) We further draw attention to Note 33 of the financial statement
stating that pursuant to
schedule II of the Companies Act 2013, depreciation expense for the
year is increased by Rs. 8,000
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 section
143 of the Act, 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 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, 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 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 written representations received from the directors
as on 31 March 2015, and 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.
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 litigation on its
financial position in its financial statements- Refer Note 20 to the
financial statements;
ii) As there is not any material foreseeable losses, on long term
contracts, therefore the Company has not made any provision, required
under the applicable law or accounting standards;
iii) As informed to us there has been no amount required to be transfer
to the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDIT REPORT TO THE SAMTEL INDIA LIMITED
Referred to in paragraph 1 of report on other legal and regulatory
requirement's paragraph of our report on the financial statement of even
date,
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us and according to the information and explanation
provided to us all the fixed assets have been physically verified by
the management with a program of yearly verification. In our opinion,
the frequency of such physical verification is reasonable having regard
to the size of the Company and the nature of fixed assets. We have been
explained that no material discrepancies were noticed on such
verification as compared to book records.
(ii) During the year, the Company has not carried any business of
manufacturing or trading in the goods and therefore no inventories were
held by the Company at any point of time. Accordingly paragraph 3(ii)
(a), (b) and (c) of the Order are not applicable.
(iii) (a) The Company has not given any loan, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
(b) Since there are no such loans, comments on repayment of the
principal amount and interest thereon and overdue amount at the year
end are not required.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems 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. Further, on the basis 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 nor have been
informed of any instance of a continuing failure to correct major
weaknesses in the aforesaid internal control system.
(v) The Company has not accepted any deposit from the public within the
meaning of sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed thereunder with regard to
fixed deposits accepted from public.
(vi) Cost records as specified by the Central Government of India under
section 148(1) of the Companies Act, 2013 has not been maintained
during the year as there is no manufacturing activity.
(vii) (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 irregular in depositing undisputed statutory dues in
respect of provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, value added tax, cess and other material
statutory dues as applicable with the appropriate authorities except
Provident Fund by Rs. 12,85,000 , Service Tax (including cess) by Rs.
14,66,330, Employee State Insurance Scheme by Rs. 5,39,000, Tax -
Deducted at source by Rs. 2,49,260 and interest on statutory dues of Rs.
20,57,380 which are outstanding at the yearend for a period of more than
six months from the date they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income tax, sales tax, custom duty, wealth tax, excise duty, service
tax, value added tax and cess, which have not been deposited on account
of any dispute, are as follows: -
Name of Nature of Amount Amount paid Period to which
the Statute Dues involved under protest amount relates
Sales Tax Sales Tax 290,18,000 181,19,000 1985-86
Laws 1986-87
1988- 89
1989- 90
1990- 91
1991- 92
1992- 93
1993- 94
1995-96
3.12.000 1,05,000 1990-00
2000-01
Central Excise Duty 20,59,000 5,00,000 1989-90
Excise Laws
8.84.000 8,80,000 1997-98
24.04.000 24,01,000 1998-99
Income Tax Income Tax 6,69,030 - 2005-06
Laws
167,49,400 - 2007-08
102,53,240 680 2009-10
Name of Forum where the
the Statute dispute is pending
Sales Tax Additional
Laws Commissioner, Sales
Tax
Appeal has remand
back the file to relevant
assessing officer
Deputy
Commissioner(Appeals),
Jaipur
Central Rajasthan High Court,
Excise Laws Jaipur
CESTAT, Delhi
Commissioner(Appeals),
Jaipur
Income Tax Income Tax Appellate
Laws Tribunal
Income Tax Appellate
Tribunal
Income Tax Appellate
Tribunal
* Amount as per demand order, including interest and penalty wherever
quantified in the order.
(c) As informed to us there has been no amount required to be transfer
to the Investor Education and Protection Fund by the Company.
(viii) The Company does have accumulated losses as at the close of the
financial year amounting Rs. 16.14,20,898 and the accumulated losses
have exceeds its net worth as on 31st March 2015..
The Company has incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not taken any
loan from bank or financial institutions and has not issued debentures
during the year.
(x) As per the information and explanations given to us and on the
basis of our examination of the records, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions.
(xi) As per the information and explanations given to us and on the
basis of our examination of the records, the Company has not taken any
term loans from Bank or financial institution hence this clause is not
applicable.
(xii) 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, 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.
For S. S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Registration No. 000756N
(Neeraj Bansal)
Place: New Delhi Partner
Date: 30-05-2015 Membership No. 095960 | 