| We have audited the accompanying financial statements of Indtradeco
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 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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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. 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 Statement of Profit and Loss, 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
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, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
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.
Annexure to the Auditors' Report
(Referred to in paragraph 1 under 'Report on the Other Legal and
Regulatory Requirements' section of Our Report of even date)
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets
(b) The fixed assets are physically verified by the management as per
phased programme of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. To the best of our knowledge, no material
discrepancies were reported on such verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not disposed off any substantial part of
the fixed assets during the year.
2. (a) The management has conducted physical verification of inventory
at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
During the year, no material discrepancies were noticed on physical
verification.
3. (a) The Company has granted loans to three parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.154.00 lacs and the year
end balance of such loans was Rs.154.00 lacs
(b) According to information and explanation given to us, the rate of
interest and other terms and conditions of the loans given are not
prima facie prejudicial to the interest of the Company.
(c) The principle amount of loan in respect of loan granted to
associates is repayable on call.
(d) The company has taken loans from one party covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 56.77 lacs and the year end
balance of such loans was Rs.56.77 lacs.
(e) According to information and explanation given to us, the rate of
interest and other terms and conditions of the loans taken are not
prima facie prejudicial to the interest of the Company.
(f) The principle amount of loan in respect of loan taken from
associate companies is repayable on call.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purpose of inventory and fixed assets, and for the
sale of goods and services. In our opinion and according to information
and explanations given to us, there is no continuing failure to correct
major weaknesses in internal control.
5. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
transactions made in pursuance of contracts or arrangements during the
period that needed to be entered in the register required to be
maintained under section 301 of the Act aggregating to Rs. 5,00,000/-
(Rupees Five lacs) or more in respect of any party.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public,
within the meaning of sections 58A and 58AA of the Act and rules framed
there under.
7. In our opinion, the Company has an internal control audit system,
which in our opinion is commensurate with the size and nature of its
business.
8. As informed to us, the maintenance of cost records has not been
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956, in respect of the activities carried on by the
Company.
9. (a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the company is generally regular in depositing undisputed
statutory dues with the appropriate authorities during the year.
(b) According to the books of account and records as produced and
examined by us, there are no dues payable in respect of Sales tax,
Income tax, Excise duty, Custom duty or cess which have not been
deposited on account of any dispute.
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current year and in
the immediately preceding financial year.
11. According to the information and explanations given to us and the
records examined by us, the company has not defaulted in repayment of
dues to financial institution or bank.
12. According to the information and explanations given to us and the
records examined by us, the Company has not granted any loans on the
basis of security by way of pledge of shares, debentures or other
securities.
13. In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company does not
attract any special statute applicable to the chit fund and
nidhi/mutual benefit fund/societies.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in the securities.
15. According to the information and explanations given to us and
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof are prima facie prejudicial to the interest or
the Company.
16. According to information and explanations given to us, the Company
has not taken any term loan during the year.
17. On the basis of overall examination of the Balance Sheet and Cash
flows of the Company and the information and explanation given to us,
we report that the Company has not utilised any funds raised on short
term basis for long term investments.
18. The Company has not made any preferential allotment of shares to
parties or companies covered under section 301 of the Act.
19. According to the explanations given to us and the records examined
by us, the Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For WILLIAM SERRAO
Chartered Accountants
WIILIAM SERRAO
(Proprietor)
Membership No: 14383
Place: Mumbai.
Date : 01/09/2014.
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