| 1. I have audited the accompanying financial statements of NEPTUNE
EXPORTS LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31,2014, and the Statement of Profit and Loss for the year then
ended, and a summary of significant accounting policies and other
explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"), which continue to be applicable in
respect of Section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dared 13th September 2013 of Ministry of Corporate
Affairs. This responsibility includes the design, implementation and
maintenance of internal control 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.
2. My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
3. 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 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 control relevant to the
Company's preparation and fair presentation of the financial statements
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 management, as well as evaluating the overall
presentation of the financial statements.
4. I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
5. In my opinion and to the best of my information and according to
the explanations given to me, the 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 March 31,2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date ;
c) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
Subject to the following observations :
(a) The Company has filed suit against one of its Ex-Director for
recovery of sums, which include cash in hand of Rs. 46,173.87.
(b) No provision has been made in the accounts in respect of advances
amounting to Rs 389,179.00 and Security Deposit of Rs 12,000.00, which
in my opinion are doubtful of recovery.
The cumulative effect of (a) & (b) may adversely effect the profit for
the year as well as year end net assets to the extent of Rs 447,352.87.
6. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, I give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
7. As required by section 227(3) of the Act, we report that:
a) I have 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 my 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 and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account;
d) In my opinion, the Balance Sheet and Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act, which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dared 13th September 2013 of Ministry of Corporate Affairs.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in paragraph 7 of our report of even date to
the shareholders of NEPTUNE EXPORTS LIMITED on the accounts of the
company for the year ended March 31,2014
On the basis of such checks as I considered appropriate and according
to the information and explanation given to me during the course of the
audit, I report that
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets. The fixed assets have been physically verified by
the management at reasonable intervals. Material discrepancy was not
noticed on such verification. In my opinion the frequency of
verification is reasonable.
b) None of the fixed assets have not been revalued during the year.
c) The company has not disposed off substantial part of its fixed
assets.
2. The company did not have any inventory during the year under
review.
3. The company has neither granted nor taken any loan secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act,
1956.Consequently the provisions of sub-clauses b, c, d, f, g of the
order are not applicable to the company.
4. The internal control procedure for the purchase of Fixed Assets and
Income earned is adequate and commensurate with the size of the company
and nature of its business. I have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedure.
5. a) There are no transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956.
b) There is no transaction made in pursuance of a contract or
arrangement entered in the register in pursuance of Section 301 of the
Companies Act, 1956.
6. The Company has not accepted deposits from the public as per
provisions of Section 58A and 58AA of the Companies Act, 1956.
7. The Company has an internal audit system commensurate with its size
and nature of its business.
8. I have been informed that maintenance of cost records has not been
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956 in respect of the company's activities.
9. a) The Company is regular in depositing the undisputed statutory
dues. There are no undisputed amounts payable in respect of Statutory
Dues in arrears on 31.03.2014 for a period of more than six months from
the date they became payable.
b) The Company has not deposited following dues on account of dispute
with appropriate authority:-
Name of Nature of Amount Period to which Forum where
Statute Dues Rs the amount dispute is
relates pending
Income Tax Income Tax 927,052/- 2001-02 ITAT
Act, 1961 1,736,488/- 2002-03 ITAT
307,736/- 2006-07 CIT (A)
10. The Company has no accumulated losses as on 31st March, 2014 and
it has not incurred cash loss during the financial year under review
and also in the immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
12. The Company has not granted any loan or advances on the basis of
security by way of pledge of any of shares, debentures and other
security.
13. The provisions of any special statute applicable to chit
fund/mutual benefit fund/societies are not applicable to the company.
14. In my opinion the company is not a dealer or trader in share,
securities, debenture and other securities.
15. The Company has not given any guarantee for loans taken by others
from banks or financial institution.
16. The Company has not obtained any term loan.
17. The Company has not raised any short term funds.
18. The Company has not made any allotment of shares during the year.
19. The Company has not issued any debenture during the year.
20. The Company has not raised any money by public issues during the
year.
21. I have neither come across any instance of material fraud on or by
the company, noticed or reported during the year nor have I been
informed of such case by the management.
For L.B. JHA & CO., CALCUTTA
Chartered Accountants
FRN 301086E
Amitava Sarkar
Place: Kolkata Proprietor
Date :29th May, 2014 Membership No: 050290 |