We have audited the accompanying standalone financial statements of AAR
COMMERCIAL COMPANY LIMITED ("the Company"), which comprises the Balance
Sheet as at 31st March, 2015, 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 Standalone 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 and presentation 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
judgements and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control,
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 standalone
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 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 judgement, 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 and 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 the Company's Directors, 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 on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31st March, 2015;
b) in the case of the Statement of Profit and Loss, 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, 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,
to the extent applicable.
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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) 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) Rules, 2014;
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 164 (2) of the Act; and
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
Auditor's) 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 has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditors' Report to the
members of the AAR COMMERCIAL COMPANY LIMITED on the standalone
financial statements for the year ended 31st March 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. The company did not have any fixed assets at any time during the
year hence paragraph 3{i) of the Companies (Auditor's Report) Order,
2015 is not applicable.
2. (a) The inventories have been physically verified during the year
by the management at reasonable intervals.
(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 are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The Company has maintained proper record of its inventories. No
material discrepancies were noticed on physical verification of stocks
by the management as compared to book records.
3. According to the information and explanation given to us & in our
opinion, 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 ('the Act'). Accordingly
paragraph 3(iii) of the Companies (Auditor's Report) Order, 2015 is 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, with
regard to purchase of fixed assets, payment for expenses and for sale
of goods. During the course of our audit, no major instance of
continuing failure to correct any weaknesses in the internal controls
has been noticed.
5. The Company has not accepted any deposits from the public within
the meaning of Section 73 to 76 or any other relevant provisions of the
Act and the rules framed there under.
6. The provisions of the Companies Act for the maintenance of cost
records under Section 148(1) of the Act, are not applicable to the
Company.
7. (a) According to the-jnformation and explanations given to us and
the books and records examined by us, the company is regular in
depositing with the appropriate authorities the undisputed statutory
dues relating to Provident Fund, Employees State Insurance, Income tax,
Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and other statutory dues as applicable to it have
been regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Income tax, Service Tax, Cess
and other material statutory dues were in arrears as at 31 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, there is
no amounts 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.
(c)According to the information and explanations given to us, there are
no such amounts which are required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 {1 of 1956) and rules there under
8. The Company does not have any accumulated losses as at 31st March
2015 and has not incurred cash losses in the financial year and in the
immediately preceding financial year.
9. The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
10. In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
11. In our opinion and according to the information and explanation
given to us, the Company has applied the term loans for the purpose for
which the loans have been obtained.
12. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For Agrawal S Kumar & Associates
Chartered Accountants
Firm Regn No. 322324E
Hitesh Lilha
(Partner)
M. No.069536
Place: Kolkata
Date: 30th Day of May 2015
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