| We have audited the accompanying financial statements of FE (India)
Limited {formerly known as Financial Eyes (India) Limited} ("the
Company"), which comprise the Balance Sheet as at March 31,2015; Profit
and Loss Account 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance 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") read with the General Circular 15/2013
dated 13th September,2013 of the Ministry of Corporate Affairs 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.
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 misstatements.
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. 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 Companies 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, 2015;
b) in the case of the Profit and Loss Account, of the profit 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 & Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Act read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporation of Affairs in respect of section
133 of the Companies Act, 2013;
e) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 274 (1)(g) of the Companies
Act, 1956 read with section 164(2) of the Companies Act, 2013.
The Annexure referred to in paragraph 1 under head "Report on Other
Legal and Regulatory Requirements" of the Our Report of even date to
the members of FE (India) Limited on the accounts of the company for
the year ended March 31, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the company has not disposed off substantial part of fixed
asset during the year.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals. The stock
has also been verified by independent auditors appointed by banks
during the year and we have also relied upon their reports in forming
our opinion.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management seems reasonable in relation to the size of
the company and the nature of its business.
(c) On the basis of our examination of the records, we are of the
opinion that the Company should maintain site-wise real time record of
stocks for better control. At present company is maintaining inventory
records at head office in accounting software which are not real time
and some desirable information like goods in-out time, vehicle details
etc. are also not available in these records. In our opinion, company
need to improve record keeping with respect to the inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
granted advances and made payments on behalf of the companies, firms,
directors or other parties listed in the register maintained under
Section 301 of the Companies Act, 1956 read with Section 189 of the
Companies Act 2013 during the year. Total amount advanced during the
year to 5 such parties was Rs. 151.13 lacs and Rs. 56.34 lacs were
recoverable as on March 31,2015 on this account.
Company has also accepted advance & unsecured loans from related party
during the year from the referred parties. Rs. 2376.23 lacs was payable
on March 31, 2015 on this account.
(b) The advances & loans as referred in (a) above are without interest
and unsecured in nature. Considering tenure of these and also the fact
that Company has also taken similar advances from related parties
during the year, no funds of the company seems to been diverted. So, we
are of the opinion that these are not prejudicial to the interest of
the Company.
(c) As explained by the company the advances to related parties in of
temporary nature and are recoverable in short period. Though, we have
noticed exceptions in timely recovery as stated by company.
(d) As these advances are without any defined repayment instalment &
time, we can't term the outstanding amount as overdue.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business except as stated at Sr. No. 2(c) above, for the purchase of
inventories & fixed assets and payment for expenses & for sale of
goods. During the course of our audit, no major instance of continuing
failure to correct any weaknesses in the internal controls except as
stated at Sr. No. 2(c) above has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the transactions have been made at a price which is reasonable
and are not prejudice to the interest of the company.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per our knowledge and information & explanation given by the
management, the Central Government has not prescribed the maintenance
of cost records under Section 209(1)(d) of the Act for any of the
product dealt by the company.
9. (a) According to the records of the company, we have noticed delays
in payment of undisputed statutory dues including Employees' State
Insurance, Income-tax, Sales-tax/VAT, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, cess to the extent applicable and any other
statutory dues as applicable. Following is detail of such dues
outstanding for more 6 months or more on close of books of the company
for the year:
Nature of Nature of Dues Amount Period to which
statute the amount
relates
Finance Act, Service Tax 0.61 lacs F Y 2013-14
1994
Finance Act, Service Tax 0.67 lacs F Y 2014-15
1994
Income Tax Income tax in 228.38 lacs FY 2013-14
Act, 1961 relation to AY
2014-15
Nature of Due date Date of payment
statute
Finance Act, Various dates Not paid till
1994 upto date of audit
31.03.2014 report
Finance Act, Various dates Not paid till
1994 upto date of audit
05.10.2015 report
Income Tax 30-Sep-14 Not paid till
Act, 1961 date of audit
report
(b) According to the information and explanations given to us, there is
no amount payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders during the year.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause is not applicable
to the Company.
14. On the basis of our examination of the records and documents of the
Company, and according to the information and explanations given to us,
we are of the opinion that the Company is not dealing or trading in
shares, securities, debentures & other investments. Therefore,
provision of this clause is not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we are of the opinion that the Company has not utilised any
term loans for other purposes than for which it was raised.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at March 31,
2015 we report that no funds raised on short-term basis have been used
for long-term investment by the Company.
18. The Company has made preferential allotment of warrants in the
year to parties covered in the register maintained u/s 301 of the
Companies Act, 1956. The issue price has been arrived as per SEBI
prescribed formula. The price is not prejudicial to the interest of the
company.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For L M S C & Co.
Chartered Accountants
FRN: 021763N
Sd/-
Shri Chand
Place: New Delhi Partner
Date: 6th June 2015 M. No. : 098635
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