TO THE MEMBERS OF FINEOTEX CHEMICAL LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of Fineotex Chemical Limited (‘the
Company’), which comprise the balance sheet as at 31st March 2016, 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 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 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.
Our responsibility is to express an opinion on these standalone financial statements based on our
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
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 the 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. An audit also includes 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
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.
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, of
the state of affairs of the Company as at 31st March 2016 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, 2016 (“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”, a statement on the matters specified in the paragraph 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 purposes of our audit.
(b) 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;
(c) the balance sheet, the 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 the written representations received from the directors as on 31st
March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on
31st March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate report in “Annexure
(g) 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 has disclosed the impact of pending litigations on its financial position in its
financial statements - Refer Note 26 to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for
material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and
ANNEXURE - A TO THE AUDITORS’ REPORT
The Annexure referred to in Independent Auditors’ Report to the members of the Company on the
standalone financial statements for the year ended 31st March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed
assets are verified in a phased manner over a period of three years.
(c) According to the information and explanations given to us and on the basis of our examination of
the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. On the basis of our
examination of records of inventory, in our opinion, the Company is maintaining proper records of inventory
and the discrepancies noted on physical verification between the physical stocks and the book records were
(iii) The Company has not granted loans to parties covered in the register maintained under section
189 of the Companies Act, 2013 (‘the Act’). Hence clause (iii) of paragraph 3 of the said order
is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has
complied with the provisions of section 186 of the Act, with respect to investments made. During the year
under consideration the company has not given loans under the provisions of Section 185 and Section 186 of
(v) The Company has not accepted any deposits from the public. Hence clause (v) of paragraph 3 of the
said order is not applicable.
(vi) The Company has prepared and maintained accounts and records for maintenance of cost records as
specified by the Central Government under sub-section (1) of section 148 of the Act.
(vii) (a) According to the information and explanations 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, employees state insurance, income-tax, sales tax, value
added tax, duty of customs, duty of excise, service tax, cess and other material statutory dues have been
regularly deposited during the year by the Company with the appropriate authorities. Accordingly no statutory
dues were in arrears as at 31st March 2016 for a period of more than six months from the date they
(b) According to the information and explanations given to us, there are no material dues of sales tax,
service tax, duty of customs, duty of excise and value added tax which have not been deposited with the
appropriate authorities on account of any dispute except for the following:
Name of the statute
Nature of dues
Amount (in Rs)
Period to which the amount relates
Forum where dispute is pending
Income Tax Act, 1961
CIT(A) - 20
(viii) The Company has not defaulted in repayment of loans or borrowings from any financial
institution, banks, government or debenture holders during the year.
(ix) The Company did not raise any money by way of initial public offer or further public offer
(including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is
(x) According to the information and explanations given to us, no fraud by the Company or on the
Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the
records of the Company, the Company has paid/provided for managerial remuneration in accordance with the
requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not
a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the
records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of
the Act where applicable and details of such transactions have been disclosed in the financial statements as
required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the
records of the Company, the Company has not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has not entered into non-cash transactions with directors or persons
connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India
For UKG & Associates
Firm Regn No : 123393W
Champak K Dedhia
Date: 25th May, 2016
Membership No: 101769