Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of VERITAS t INDIA LIMITED (‘the Company’), which comprise the Balance Sheet as on March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with Companies (Indian Accounting Standards ) Rules, 2015, as amended.
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 f*r ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS 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 Ind AS 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 thereunder.
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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected, depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures th§t 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 standalone Ind AS 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 tnd AS financial statements.
In our opinion and to the best of our information and according to the explanations given to us, the standalone Ini AS 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 on March 31, 2018, and its profit (including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.
Our opinion is not modified in respect of these matters.
Other Matters ''
The financial statements of the Company for the year ended March 31, 2017 and March 31, 2016 prepared in accordance with the with the Companies (Accounting Standards) Rules, 2006 were audited by the predecessor auditor who has issued a report dated. June 06, 2017 and June 14,2016 on financial statements of the Company for the year ended March 31,2017 and March 31, 2016 respectively expressed an unmodified opinion, which have been relied upon by us.
We have audited di [Terences in the accounting principles adopted by the Company on transition” to the Ind AS tor the year ended March 31,2017 and March 31,2016.
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 section 143(11) of the Act, we give in the Annexure I a statement on the matters specified in 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 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 (including other comprehensive income), the Statement of changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the attached standalone Ind AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015 as amended;
e) On the basis of the written representations received from’the directors of the Holding Company as on 11 st March, 2018 taken on record by the Board of Directors, none of the directors of the holding company is disqualified as on 31st March, 2018 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 with reference to Financial Statements, of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure II; and
With respect to the other matters to be included in the Auditors’ Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 as amended, 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 standalone Ind AS financial statements - Refer Note 29 to^the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any 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
Annexure I - referred to in paragraph 2 under “Report on Other Legal and Regulatory Requirements” of our report of even date
(i) (a) The Company has maintained proper records showing full particulars, including . quantitative details and situation of Property Plant and Equipment (fixed assets).
(b) The Property Plant and Equipment of the Company, are physically verified by the Management in a phased program of three to five years cycle. In our opinion, the programme is reasonable having regard to the size of the Company and the nature of its assets. In our opinion and as per the information given by the management, the discrepancies observed were not material and have been appropriately accounted in the books of account.
(c) According to the information and explanations given to us and based on verification of records, we report that the title deeds of immovable properties held as Property Plant and Equipment, are held in the name of the Company.
(ii) During the year, the inventories have been physically verified at reasonable intervals by the management. The discrepancies noticed on physical verification, as compared to the book records, were not material having regards to size and nature of operations and have been properly dealt with in the books of account.
(iii) The Company has hot granted loans, secured Or unsecured, to companies, firms, limited liability partnerships of other parties covered in the register maintained under section 189 of the Act. Hence, the question of reporting under sub-clauses (a), (b) & (c) of the clause 3(iii) of the Order does not arise. -
(iv) The Company has not granted any loans or provided any guarantees or security to the parties covered under section 185 of the Act. The Company has complied with the provisions of section 186 of the Act in respect of investments made or loans or guarantee or security provided to the parties covered under section 186 of the Act.
(v) The Company has hot accepted any deposits from the public, within the meaning of sections 73 to 76 of the Act and the rules framed there under. We are informed by theManagement that 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 in this regard:
(vi) As informed to us, the maintenance of cost records has not been specified by the Central Government under sub section (I) of section 148of the Act, in respect of the activities carried out by the Company,
(vii) (a) According to the information and explanations given to us and according to the records of the Company examined by us, in our opinion, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Employees’ State Insurance, Income-tax, Sales Tax, Service Tax, Goods & Service Tax, duty of Custom, duty of_Excise, Value Added Tax, Cess and any other statutory dues, wherever applicable.
According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as on March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the particulars of statutory dues that have not been deposited on account of disputes are as under:
Period to which amount relates
STO- Survey Branch
(viii) According ''to the information and explanations given to us, the Company has hot defaulted in repayment of loans or borrowing to financial institutions, banks, government or dues to debenture holders.
(ix) The Company has not raised money by way of Initial Public Offer or Further Public Offer (including debt instruments). According to the information and explanations given to us and on the basis of the records examined by us, the Company has prima facie applied the term loan for the purpose for which it was obtained.
(x) During the course of our examination of the hooks and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to-the information and explanations given to us,no instances of fraud by the Company “ or on the Company by its officers and employees have Been noticed or reported during the year.
(xi) According to information and explanations given to us managerial remuneration is paid in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act. ”
(xii) The Company, is not a chit fund or a ntdhi company. Hence, the question of reporting under clause 3(xii) of the Order does not arise.
(xiii) According to the information and explanations given to us, all transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013 as applicable and the details of such transactions have been disclosed in the Ind AS Financial Statements as required by the applicable Indian Accounting Standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit.
(xv) The Company has not entered into any non-cash transactions with directors or persons connected with him covered under the provisions of section 192 of the Act.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For M. P Chitale & Co.
Firm Registration No.: 101851W
Membership No. 041037
Dated: June 12,2018