We have audited the accompanying standalone financial statements of
Emmsons International Limited (the company), which comprise the Balance
Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash
Flow Statement and a summary of significant accounting policies and
other explanatory information for the year then ended.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters 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 the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the company and
for preventing and detecting the 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 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.
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 requirement and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedure 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 true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by 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 financial
In our opinion and to the best of our information and accounting 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 March 31, 2015 and its profit and loss 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 the paragraph 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
purposes of our audit.
b) In our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of those
c) The balance sheet, the statement of Profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
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 representation received from the directors
as on 31 March, 2015 taken on record by the Board of Directors, none of
the directors is disqualified as on 31 March, 2015 from being appointed
as a director in terms of Section 164(2) of the Act: and
f) With respect to the other matters 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:
1. The company has disclosed the impact of pending litigation on its
financial position in its financial statements- Refer Note 34(e)(f) and
35 to the financial statements.
2. The company do not have any long term contract including
3. There has been no delay in transferring amounts, required to be
transferred to the Investor Education and Protection Fund by the
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
The Annexure referred to in our Independent Auditors'' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March, 2015 we report that:
i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The Company has a regular program of physical verification of its
fixed assets by which fixed assets are verified in a phased manner. In
accordance with this program, certain fixed assets were verified during
the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the company and the nature
of its assets.
ii) (a) the management of the Company has conducted the physical
verification of inventory at reasonable intervals during the year.
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size o the
company and nature of its business.
(c) The company has maintained the proper records of inventory and no
material discrepancies were noticed on physical verification.
iii) (a) The company has not granted any loans to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act, 2013 (the Act).
(b) The Company has not granted any loans 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) (b) of
the Order is not applicable to the Company.
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 sale of goods. We have not observed any
major weakness in the internal control system during the course of the
v) The Company has not accepted any deposits from the public.
vi) The central Government has not prescribed the maintenance of cost
records under section 148(1) 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, income tax sales tax, wealth
tax, service tax, duty of customs, Value Added Tax, Cess and other
material statutory dues 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 Provident Fund, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Duty of Customs , Value Added 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, below
given dues of income tax, sales tax, wealth tax, service tax, value
added tax and cess have not been deposited with the appropriate
authorities on account of dispute.
Name of the Nature of dues Amount Period to
which Forum where
Statute (in Rs) the amount
relates dispute is
Income Tax Act Income Tax 8.60
Lacs A.Y 2004-05 CIT(A)
Income Tax Act Order by CPC-
TDS u/s 154 23.43
Lacs A.Y 2013-14 CIT(A)
Income Tax Act Order by CPC-
TDS u/s 154 2.71
Lacs A.Y 2014-15 CIT(A)
(c) According to the information and explanations given to us the
amounts which were 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 has been
transferred to such fund within time.
viii) The Company does not have any accumulated losses at the end of
the financial year and has incurred cash losses in the financial year
and not in the immediately preceding financial year.
xi) The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
x) In our opinion and according to the information and the explanations
given to us, the company has given guarantee for loans taken by others
from banks or financial institutions.
xi) The Company has applied term loans for the purpose for which the
loans were obtained.
xii) 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 SURESH & ASSOCIATES
(CA SURESH K. GUPTA)
M. No. 080050
Date : 28.05.2015
Place : New Delhi