| 1. We have audited the accompanying financial statements of ASEEM
GLOBAL LIMITED ("the Company"), which comprises the Balance Sheet as at
March 31, 2014 and 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 -
2. 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 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
3. 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.
4. 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 entity'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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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 Statement of Profit and Loss, of the Profit of the
Company for the year ended on that date; and .
c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
7. 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 Companies Act 1956 (the Act), we
give in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the Order.
8. 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 purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Compan y, so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit & 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, referred to
in sub section (3C) of Section 211 of the Act; &
e) On the basis of the written representations received from the
Directors as on 31 March, 2014, and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31 March, 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 INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 7 under the heading "Report on Other Legal &
Regulatory Requirements" of the Independent Auditor's report of even
date to the matters of ASEEM GLOBAL LIMITED ("the Company") on the
financial statements for the year ended March 31, 2014.
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As per the information and explanation given to us, physical
verification of fixed assets has been carried out by the Management
during the year and no discrepancy was noticed on such verification.
(c) During the year the Company has not disposed off any substantial/
major part of fixed assets.
ii) (a) As per the information furnished, the inventories have been
physically verified during the year by the
management. In our opinion, having regard to the nature and location of
stock, the frequency of the physical verification is reasonable. -
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, no major discrepancy was noticed on physical verification of
the said stocks.
iii) In The Company has not granted any loans secured or unsecured to
companies, firms or the other parties covered in the register
maintained under section 301 of the Act. Therefore, the provisions of
paragraph 4(iii)(b), (c) & (d) are not applicable.
(b) The Company has taken unsecured loan from two promoters and also
three relatives of promoters covered in the register maintained under
Section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 155.45 lakhs and the year end balance of
loans taken from such party was Rs. 145.07 lakhs. In our opinion,
the rate of interest and other terms and conditions on which loans
have been taken from company, listed in the register maintained
under section 301 of the Companies Act, 1956 are not prima facie,
prejudicial ' to the interest of the Company, further, the company
is regular in repaying the principal amounts as stipulated and
has been regular in the payment of interest.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, investments and fixed assets and for the sale
of goods. During the course of our audit, we have not observed any
major weakness in the aforesaid internal controls systems.
v} (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transaction that needed to be entered into the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) in our opinion and according to the information and explanations
given to us, there was no transaction in pursuance of contracts or
arrangements under section 301 of the Companies Act, 1956 and exceeding
the value of rupees five Lakhs in respect of any party during the year
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant times and wherever
comparatives are available.
vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58-A & 58-AA and other relevant provisions of the Act and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. No order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
court or any other Tribunal, on the Company in respect of deposits
accepted.
vii) In our opinion, the internal audit functions carried out during
the year by an external agency appointed by he Management have been
commensurate with the size and nature of the business of the Company.
viii) The Central Government has not prescribed maintenance of the cost
records under section 209(l)(d) of the Companies Act, 1956 for the type
of business in which the Company is engaged in.
ix) (a) According to the information's and explanations given to us and
records examined by us, the company is generally regular in depositing
with appropriate authorities undisputed statutory dues including income
tax , wealth tax, service tax, cess and other statutory dues wherever applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues were outstanding as at 31st
March, 2014 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company, there were no dues of
income-tax, wealth-tax, service tax, cess which have not been deposited
on account of disputes, except the following for which necessary
details are given hereunder:
Name of the Nature of Dues Amount Period to which
Statute in Rs it Relates
Income Tax Income Tax on account of 9,407 Assessment year
Act, 1961 Disallowance of deduction u/s 2002-03
80 HHC & Income Tax on account
of Disallowance of expenses
Delhi Value Disallowance of VAT Input 3,13,161 Financial year
Added Tax credit on revised filing of 2008-09
monthly return. Input VAT
credit was inadvertently not
claimed in the original return.
Rajasthan Imposition of penalty by VAT 5,36,122 Financial year
Value Added officers on the ground of 2009-10
Tax incomplete documents with
the motor lorry carrying the
goods.
Name of the States Forum where the Dispute is pending
Income Tax Act 1961 The Appeal has been decided in company's
favour. Rectification is pending.
Delhi Value Added Tax Value Added Tax Demand under Appeal with Add.
Comm., Special Zone, Department of Trade &
Taxes, Delhi
Rajasthan Value Added Value Added Tax Demand under Appeal with
Rajasthan Tax Board, Ajmer
x) There are no accumulated losses of the Company as on 31st March
2014. The company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of duestb Bank.
xii} Based on our examination of the records and the information and
explanations given to us, the Company has not granted loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) Clause (xiii) of the Order is not applicable to the Company as
the company is not a Chit Fund Company or Nidhi /mutual benefit fund/
society.
xiv) On the basis of our examination of the Company's records, we are
of opinion that the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, paragraph 4
(xiv) of the Order is not applicable.
xv) According to the information and explanations given to us, Company
has not given any guarantees for loans taken by others from bank or
financial institutions.
xvi) According to the information and explanations given to us and
records examined by us, the term loans have generally been applied for
the purpose for which they were raised.
xvii) According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
xviii) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
xix) According to information and explanations given to us, during the
period covered by our audit report, the company has not issued any
debenture.
xx) The Company has not raised any money by public issues during the
year covered by our report.
xxi) Based upon the audit procedures performed and as per the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year.
PLACE: NEW DELHI For K. N. GUTGUTIA & COMPANY
DATE: May 30, 2014 CHARTERED ACCOUNTANTS
FRN:304153E
Sd/
(B. R. GOYAL)
Partner
M. No: 012172 | 