| We have audited the accompanying financial statements of ARI
Consolidated Investments Limited, ('the Company'), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and 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 matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone 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 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 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 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 material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial 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 financial
controls system over financial reporting and the operating
effectiveness of such controls. 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, of the state of affairs of the Company as at March 31, 2015 and
its Profit and its 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 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) 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
accounts;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement 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 the written representations received from the
directors, as on March 31, 2015, and taken on record by the Board of
Directors, none of the directors of the Company is disqualified as on
March 31, 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 does not have any pending litigations which would
impact its financial position;
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 1 under the heading 'Report on Other Legal
and Regulatory Requirements' of our Report of even date on the
financial statements for the year ended on March 31, 2015 of ARI
Consolidated Investments Limited.)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and in our opinion the frequency of verification is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such physical
verification.
(ii) In absence of the inventory, this clause is not applicable.
(iii) As informed, the Company has not granted .any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013. Accordingly,
sub-clause (a) and (b) of clause (iii) of the Order are not applicable.
(iv) 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, with
regard to purchase of fixed assets and with regard to the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in the internal control
system.
(v) The Company has not accepted any deposits from the public to which
the provisions of section 73to 76 or any other relevant provisions of
the Companies Act, 2013or the Companies (Acceptance of Deposit) Rules
2014or the directives issued by the Reserve Bank of India apply.
(vi) We have been informed that the Company is not required to maintain
cost records under Section 148 (1) of the Companies Act, 2013
(vii) (a) According to the records of the Company, the Company is
generally regular in depositing Investor Education & Protection fund,
Income tax, Service tax, and other material statutory dues applicable to
it during the year with the appropriate authorities. Based on our audit
procedures and according to the information and explanations given to
us, there are no arrears of undisputed statutory dues which remained
outstanding as at 31st March 2015, for a period of more than six months
from the date they became payable.
(b) According to the records of the Company, there are no dues of
Income tax, Service Tax which have not been deposited on account of any
dispute.
(viii) The Company does not have accumulated losses at the end of the
financial year. The company has not incurred cash loss during the
financial year covered by our audit. The Company does not have any cash
losses in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, we are of the opinion that the Company has not defaulted
in repayment of dues to any financial institution and banks. The
company does not have any outstanding debentures.
(x) The company has given a corporate guarantee for loan taken by its
subsidiary from the bank. However, the terms and conditions thereof
are not prejudicial to the interest of the company.
(xi) The term loan has been applied for the purpose for which they were
raised.
(xii) According to the 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 K.S. Aiyar & Co,
Chartered Accountants
ICAI Firm Registration No. 100186W
Satish Kelkar.
Place: Mumbai Partner
Date: 01st July, 2015 Membership No.: 38934.
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