We have audited the accompanying standalone financial statements of
Ganesha Ecosphere Limited (the Company), which comprise the Balance
Sheet as at 31st March 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
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 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 of 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.
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 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, 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 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 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, of the state of affairs of the Company as
at 31st March 2015, 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, 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
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 written representations 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.
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 Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to explanations given to us:
i. The Company has disclosed the impact of pending litigations as at
31st March 2015 on its financial position in its financial statements -
Refer Note 38 to the financial statements.
ii. In our opinion and as per the information and explanations
provided to us, the Company has not entered into any long-term
contracts including derivative contracts, requiring provision under
applicable laws or accounting standards, for material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended 31st March 2015.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements of our report of even date to the members
of Ganesha Ecosphere Limited on the standalone financial statements as
of and for the year ended 31st March 2015.
(1) (i) The Company is maintaining proper records showing full
particulars including quantitative details & situation of fixed assets
on the basis of available information.
(ii) As explained to us, the fixed assets are physically verified by
the management, according to a phased programme designed to cover all
the items over a period of three years, which in our opinion is
reasonable, having regard to the size of the Company & nature of its
assets. Pursuant to the programme, a portion of fixed assets has been
physically verified by the management during the year and as informed
to us, no material discrepancies were noticed on such physical
verification.
(2) (i) As explained to us, inventory except for goods in transit has
been physically verified by the management at reasonable intervals
during the year.
(ii) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(iii) On the basis of our examination of inventory records, we are of
the opinion that the Company is maintaining proper records of
inventory. As explained to us, there were no material discrepancies
noticed on physical verification of inventory as compared to the book
records.
(3) (i) According to the information and explanations given to us, the
Company had granted unsecured loan to a Director covered in the register
maintained under section 189 of the Companies Act, 2013 prior to his
appointment as a director in the Company.
(ii) The principal amount as well as interest has, regularly, been
repaid and there is no balance outstanding as on 31st March 2015.
(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, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
(5) According to the information and explanations given to us, the
Company has not accepted any deposit, in terms of the directives issued
by the Reserve Bank of India and the provisions of Sections 73 to 76 or
any other relevant provisions of the Companies Act 2013 and the rules
framed there under. Further, the deposits accepted by the Company
before the commencement of the Companies Act, 2013, had been repaid
during the Year.
(6) In respect of business activities of the company, maintenance of
cost records has not been specified by the Central Government under
sub-section (1) of section 148 of the Companies Act.
(7) (i) According to the records of the Company, undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Service Tax, duty of customs, duty of excise,
Value Added Tax and other material statutory dues have been generally
regularly deposited with the appropriate authorities .There are no
outstanding Statutory dues as at the last day of the financial year
under audit for a period of more than six months from the date they
became payable.
(ii) According to the records of the Company and as per the information
and explanations given to us, the disputed statutory dues as at 31st
March 2015 that have not been deposited on account of matters pending
before appropriate authorities are as under:
Name of the Statute Nature of the Dues Amount (Rs.)
U. P. Trade Tax Act, 1948 Entry Tax 156030*
U. P. Trade Tax Act, 1948 Entry Tax 666061*
U. P. Trade Tax Act, 1948 Entry Tax 571833*
Central Excise Act,1944 Service tax 285007*
& Penalty
Income Tax Act, 1961 Income Tax 2818417
Deducted at
Source
Name of the Statute Forum where dispute is pending
U. P. Trade Tax Act, 1948 Supreme Court
U. P. Trade Tax Act, 1948 Supreme Court
U. P. Trade Tax Act, 1948 Supreme Court
Central Excise Act,1944 Commissioner (Appeals),
Central Excise & Service Tax
Allahabad
Income Tax Act, 1961 Commissioner of Income Tax
(Appeals), Kanpur
* Net of amount deposited under dispute.
(iii) According to the information and explanation given to us, there
is no amount required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules made thereunder.
(8) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the financial year
ended on that date and in the immediately preceding financial year.
(9) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institution, banks and
debenture holders.
(10) In our opinion and according to the information & explanations
given to us, the Company has not given any guarantee for loans taken by
others from Bank or financial institutions. Therefore clause 3(x) of
the Companies (Auditor''s Report) Order 2015 is not applicable to the
Company.
(11) In our opinion, and according to the information and explanations
given to us by the management, the term loans have been applied for the
purposes for which they were obtained.
(12) Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statements and according
to the information and explanations given to us by the management, in
our opinion, no fraud by the Company has been noticed or reported
during the course of our audit but in respect of fraud on the Company
we have been informed that the company imported Pet bottle Scrap (raw
material) from an overseas supplier but later on during Inspection of
sealed Containers jointly with custom authorities, Gravels were found
instead of Pet Bottle Scrap in Containers. Due to this fraud, the
company had suffered a loss to the tune of Rs.26,44,757/- on account of
Cost of material paid to supplier, ocean freight & Custom Duty. The
company had lodged Police Complaint and investigations are in progress.
FOR MEHROTRA RAKESH KUMAR & CO.,
Chartered Accountants
(Registration No. 002978C)
(Deepak Seth)
Place: Kanpur Partner
Dated: 30th May, 2015 Membership No. 073081
