| We have audited the accompanying financial statements of ATN
INTERNATIONAL LTD ( the "Company") which comprises the Balance Sheet as
at 31st March 2014, 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
The Company's 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 flow of the Company in
accordance with the Accounting Standard notified under the Companies
Act,1956 (the Act) read with the General Circular 15/2013 dared 13th
September,2013 of the Ministry of Corporate Affair in respect of
Section 133 of the Companies Act,2013 and in accordance with the
accounting principles generally accepted in India.. 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.
Auditors' 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 Company'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 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:
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. Emphasis of Matter
I. STATEMENT OF PROFIT AND LOSS:
During the year, the Company has not provided
a) Interest Rs 94.50 Lakhs payable to Rural Electrification Corporation
Ltd (Refer Note No 4.A.2)
b) Diminutioninvalue ofInvestments Rs 461.43 Lakhs (ReferNote 11.1)
c) Deferred Tax assets not provided for the year.
d) Loss in value of inoperative Wind Power Project the amount ofloss
not quantified by managements as per AS-28 And consequently the loss of
the Company for the current year is understated & Reserve & Surplus is
overstated by the above amount & has its resultant effect in
overstatement of Investments, Loans & Advances and understatement of
Current Liabilities.
II. BALANCE SHEET
a) The Company is accounting interest payment on cash basis, which has
resulted in accumulated interest liability of Rs 1636.08 Lakhs to Rural Electrification Corporation Ltd., As a resultant effect, Secured/
Unsecured Loans/Liabilities are understated to that extent.
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 ofIndia 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, the Statement ofProfit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, subject to Note No- 11.1 regarding valuation of
investment, Note No-4.A.2 regarding non- provision of interest & Note
no- 25 for non- provision ofloss in value in wind power project, the
Balance Sheet, the Statement ofProfit and Loss, and Cash Flow Statement
comply with the Accounting Standards notified under the Act, read with
the General Circular 15/2013 dated 13 th September,2013 of the Ministry
of Corporate Affair in respect of Section 133 of the Companies
Act,2013.
e) On the basis of the 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 Section 274 (1)(g) of
the Act.
Annexure to the Auditor's Report (Referred to in our Report of even
date on the Accounts of ATN International Ltd as on 31.03.2014)
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, all the Fixed Assets have been physically
verified by the management in the phased periodical manner, which in
our opinion is reasonable having regard to the size of the Company and
the nature of its fixed assets. No material discrepancies were noticed
on such physical verification.
c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year, and the going concern status of
the company is not affected.
2) The Company does not have any inventory. Hence, clause (ii) ofPara 4
of the Order is not applicable to the Company.
3) The company has not granted nor taken loans, secured or unsecured,
granted or taken by the Company to / from companies, firms or other
parties covered in the register maintained under Section 301of the
Companies Act, 1956. Accordingly, sub clauses (b), (c) and (d) are not
applicable.
4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
5) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956:
(a) Based on audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion that the transactions that needed to
be entered into the register maintained under Section 301 have been so
entered,
(b) In our opinion and According to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lakh has been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6) In view of matured outstanding deposits having been deposited in a
separate account as per order of Company Law Board, the Company has
complied with the provisions of Section 58A of the Companies Act 1956
read along with the rules framed under the Non-Banking Financial
Companies (Reserve Bank) Directions, 1998 as regards to the deposits
accepted from public.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under clause (d) of
sub-section (1) of Section 209 of the Companies Act, 1956 for the
products of the Company.
9) According to the records of the Company and information and
explanations given to us, the company has been regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues
with the appropriate authorities during the year
10) The Company has accumulated losses exceeding fifty percent of its
net worth at the end of the year. The Company has incurred cash losses
during the financial year covered by our audit and also in the
immediately preceding financial year.
11) Based on our audit procedures and on the basis ofinformation and
explanations given by the management, we are of the opinion that the
Company has not made payment against dues to financial institutions
amounting to '9,35,00,000/- and interest thereon , except' 2,00,00,000/
paid as per court directive, as the matter is sub-judice.
12) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/ mutual benefit
fund/societies.
14) a) Based on the records examined by us and according to the
information and explanations given
to us, we are of the opinion thatEthe Company is maintaining proper
records of the transactions and contracts of dealing in shares,
securities, debentures, and other investments and that timely entries
have been made in these records.
b) Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
the shares and securities have been held by the Company in its own
name.
15) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
16) To the best of our knowledge and belief and according to the
information and explanations given to us, terms loans availed by the
Company were, prima facie, applied by the Company during the year for
the purpose for which the loans were obtained.
17) We have been informed by the management that no funds have been
raised during the year and hence clause (xvii) is not applicable.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
19) The Company has outstanding debentures amounting to Rs 18.29 Lakhs
for which amount has been deposited in a separate bank fixed deposit.
20) The Company has not raised any money through a public issue during
the year.
21) Based on information and explanations furnished by the management,
which have been relied upon by us, there were no frauds on or by the
Company noticed or reported during the year.
For SHAMBHU KEDIA & Co.
Chartered Accountants
Form Regd.No.319011E
Place: Kolkata. S.K.KEDIA
Date:30.05.2014 Proprietor
Membership No-054042 | 