| We have audited the accompanying standalone financial statements of
Nakoda Limited ('the company'), which comprise the balance sheet as at
31st March 2015, the statement of profit and loss and the cash flow
statement for the period of Fifteen month (i.e 01-01-2014 to the year
ended on 31st March 2015) (15 Months), and a summary if significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The company's Board of Directors is responsible for the maters stated
in Section 134(5) of the Companies Act 2013('the Act') with respect to
the preparation and presentation of these standalone 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 principles generally accepted in India, including the
Accounting Standards specified under section 133 of the Act read with
Rule 7 of the Campanies(Accounts) Rule, 2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provision 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 misstatements, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on theses 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 there under.
We conducted our audit in accordance with the Standard on Auditing
specified under 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 the disclosuresS in the financial statements. The
procedure selected depends on auditor's judgment, Including the
assessment of the risk of material misstatement of the financial
statements whether due to fraud or error. In making those risk
assessments, the auditor considers interna! financial control relevant
to the company's preparation of the financial statements that give 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 include evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
Opinion
in our opinion and to the best of our information and accounting to the
explanation given to us, the aforesaid standalone financial statement
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 31 St March 2015 and its profit and its cash flows for the year
ended on that date except the company has not provided depreciation
provision on fixed assets in accordance with the rates specified in
schedule 11 of Companies Act 2013 but calculated on straight line
method at fate prescribed in Schedule XIV of Companies Act, 1956 and
hence the loss may be understated or overstated to that extent in the
financial statements.
Report on other Legal and Regulatory Requirements:-
As required by the Companies(Auditor's Report) order ,2015 ('the
order') issued by the Centra! 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 the paragraph 3 and 4 of the
order, to the extent possible.
As required by section 143(3) of the Act, we report that:
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.
In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books; we have received the print of all the statements and ledgers for
verification however access of accounting software was not done by us.
The balance sheet, the statement of profit and loss and the cash flow
statement dealt, with by this report are in agreement with the print of
the Books of account produced before us.
In our opinion , the aforesaid standalone financial statements comply
with the Accounting Standards specified under section 133 of the Act,
read with rule 7 of the Companies (Accounts) Rule 204;
On the basis of the written representation received from the directors
as on 31st March 2015 taken on record by the Board of Directors none of
the directors is disqualified as on 31st March 2015 from being
appointed as a director in terms of Section 164(2) of the Act; and
With respect to the other matters to be included in the Auditor's
Report in accordance with the Rule 11 of the Companies (Audit and
Auditors) Rule ,2014, in our opinion and to the best of our information
and according to the explanation given to us:
The company has disclosed the impact of pending litigation on its
financial position in its financial statements- Refer Note 2 of Notes
of Accounts.
The company has made provision, as required under the applicable law or
accounting standards, fdr material foreseeable losses, if any on long
term contracts including derivatives contract.
There has been delay in transferring amounts required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
15 month period ended 31st March 2015, we report that:
(a) The records of fixed assets showing particulars of quantitative
detail and situation thereof were not available for our verification.
(b) As per explanation given to us the company does not carry out the
physical verification of the fixed assets at regular intervals.
(c) on the basis of our verification of the record of the inventory we
are of the opinion that the company is maintaining proper records of
inventory other than the traded items. The management has conducted the
physical verification in respect of finished goods, stores and spares
and raw materials at reasonable intervals.
(d) The procedure of the physical verification of stock followed by the
management is reasonable and adequate to the size of the company and
the nature of its business.
(e) The material discrepancies noticed on physical verification of the
inventories have been properly deait with in the books of accounts.
(f) The company has granted interest free loans/advances without any
stipulation of repayment thereof to Eleven bodies corporate listed in
the register maintained U/s 189 of the Companies Act, 2013 ('the Act)
In our opinion and according to the information and explanation given
to us, there is adequate internal control procedure commensurate with
the size of the Company and the nature of its business with regard to
the purchase of fixed assets, inventory and sale of goods. During the
course of our audit we have not observed any continuing failure to
correct the major weaknesses in internal controts.
The company has not accepted any deposit from public.
We have broadly review the books of accounts maintained by the company
pursuant to Rules made by the central government for maintainece of
cost records under section 148 (1) of the Companies Act 2013, and are
of the opinion that prima fade prescribed accounts have been made and
maintained.
(a) According to the information and explanation given to us and on the
basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, income tax, sales tax, wealth
tax, service tax, custom duty value added tax, cess and other materia!
statutory dues have been deposited during the period by the company
with appropriate authorities,
According to the information and explanation given to us , no
undisputed amounts payable in respect of provident fund , sales tax,
income tax, wealth tax, service tax, custom duty, or other material
statutory dues were arrears as at 31st March 2015 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, the
following dues of income tax, excise, and sales tax have not been
deposited by the Company on account of disputes:
Name of Statute Nature of dues Amount(Rs)
Income Tax. Penalty 271(1)(c) 2864146
Income tax 143(1)(a) 8046440
SalesTax Sales tax 144722786
Sales tax SalesTax 2189434
Excise Excise duty and 37317779
penalty
Name of Statute Period Forum where dispute pending
Income Tax. 2007-2008(A.Y.) ITAT Ahmedabad
Income tax 2013-2014 (A.Y) ACIT 1(1)(2) Surat
SalesTax 2009-2010 Joint Commissioner (Commercial
Taxes) Vadodara
Sales tax 2010-2011 Dy, Commissioner of Commercial
Tax Surat
Excise Various Years Appeal CESTAT, Surat
According the explanation and information given to. us there is a delay
in transfer of amount of unclaimed dividend to the Investor Education
and Protection Fund in accordance with the relevant provisions of
Companies Act 1956(1 of 1956) and rules there under.
The accumulated losses of the company have exceeded the fifty percent
of its net worth at the end of the financial year. The company has
incurred cash losses of Rs. 40077.80 Lacs in current financial year.
In arriving the accumulated losses and the net worth as above, we have
considered the qualifications which are quantifiable in the audit
reports of the year to which this loss is pertains.
The company has defaulted in repayment of principle amount and interest
accrued thereupon amounting to Rs 1784.11 Crores in respect of the loan
amount borrowed from
Canara Bank
Axis Bank
State bank of Patilala
Bank of India
Laxmi Vilas Bank
Corporation Bank
Central Bank of India
Syndicate Bank
Indian Overseas Bank
IFCI Venture Capital Fund UCO bank
Karuru Vaysaya Bank Union Bank of India
Andhra Bank
The defaults occur during the year were not cleared until the 31st
March 2015 and was, thus due for more than six months as on that date.
The company has given guarantee in connection with loans taken by
others from financial institution, in our opinion, the terms and
conditions of the guarantee given in connection with loan taken by
Koncept Infotement Pvt Ltd from Reliance Capital since guarantee given
to the institution the power to attach the assets of the company.
According to the records of the company, the company has not obtained
any term loans during the financial years. And hence, comments under
the clause are not called for.
According to the information and explanation given to us, no material
fraud on or by the Company has been noticed or reported during the
course of our audit.
Date: 25.05.2015 For N. M. Singapuri & Co.
Place: Surat Chartered Accountants
(N. M. Singapuri)
Partner
Membership No.11601
Firm Reg. No 110264W
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