Home  »  Company  »  Sanco Industries  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Sanco Industries Ltd.

Mar 31, 2015

1) REPORT ON THE STANDALONE FINANCIAL STATEMENTS:

We have audited the accompanying Standalone Financial Statements of SANCO INDUSTRIES 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.

2) 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 Standard specified under section 133 of the Act, read with the 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; selections 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.

3) AUDITOR'S REPONSIBILITY:

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 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 financial statements are free from material misstatement.

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 financial control relevant to the Company's preparation and fair presentation 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 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.

4) 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:

I) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2015;

II) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

III) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

5) REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

I) 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.

II) 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 Statement comply with the Accounting Standards -specified under section 133 of the Act read with rule 7 of the Companies (Accounts) Rules, 2014 except Accounting Standard 15 - 'Employees Benefit Expenses' ( Refer to Note No. 33);

e. On the basis of written representations received from the directors, as on 31st March, 2015 and 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;

III) With respect to other matters to be included in the Auditors' 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 and as confirmed by the management of the company:-

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 20 to the Financial Statements;

ii) The company does not have any long -term contracts including derivative contracts for which there were any material foreseeable losses;

iii) There are no amounts, required to be transferred, to the Investor Education and Protection Fund by the company.

The Annexure referred to in paragraph 5(I) of our Independent Auditors' Report to the members of SANCO INDUSTRIES LIMITED on the standalone Financial Statements for the year ended 31st March, 2015.

Based on test checks and other generally accepted auditing procedures carried on by us and according to the information and explanations given to us, we report that:-

i) In respect of its Fixed Assets:

a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its major fixed assets other than Furniture Fixtures and Office Equipments.

b) All the assets have not been physically verified by the Management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on verification of certain assets done during the year.

ii) In respect of its Inventories:

a) As explained to us, physical verification of inventory has been conducted at reasonable intervals by the management.

b) 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.

c) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) 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").

iv) There are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods which needs more strengthening. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system of the Company.

v) The company has not accepted any deposits from the public, therefore, the provisions the Companies (Auditor's Report ) Order, 2015, are not applicable to the company.

vi) We have broadly reviewed the books of account maintained by the Company, pursuant to the Companies (Cost Records and Audit) Amendment Rules, 2014 made by the Central Government for maintenance of cost records under section 148 of the Companies Act, 2013 and we are of the opinion that prima-facie the prescribed accounts and records have been maintained.

vii) According to the information and explanations given to us, in respect of statutory and other dues:

a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and any other Statutory Dues applicable to it.

According to the information and explanations given to us , no undisputed amounts payable in respect of Provident fund, Employees State Insurance, Income Tax , Sales Tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and other material Statutory Dues were in arrear as at 31st March,2015 for a period more than six months from the date they become payable.

b) There are no dues of Income Tax, Wealth Tax, Service Tax, Custom Duty, Sales Tax, Excise Duty and other material statutory dues which have not been deposited on account of any dispute.

c) According to the information and explanations given to us there are no 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 made there under.

viii) The company does not have accumulated losses at the end of the financial year and has not incurred cash losses during the financial year covered by our audit and during the immediately preceding financial year

ix) In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to banks and there are no debenture holders.

x) The company has not given any guarantee for loans taken by others, from banks or financial institutions.

xi) The Company had not taken any Term Loan during the year.

xii) No material fraud on or by the Company has been noticed or reported during the course of our audit.

For V.P. ADITYA & COMPANY Chartered Accountants (FRN: 000542C)

Sd/- (CA S.B.SINGH) Place: Delhi Partner Dated: 29.05.2015 Membership No. 070859


Mar 31, 2014

1. We have audited the accompanying financial statementsof SANCO INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these 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 Standards notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. 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.

Auditor''s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards onAuditing issued by the Institute of Chartered Accountants of India. 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.

4. 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.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanations given to us, 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 Profit and Loss Account, of the profit/ loss for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Reporton Other Legal and Regulatory Requirements

7. 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 theAct, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

8. As required by section 227(3) of theAct, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposeofour audit;

(b) In our opinion proper books of account as required by law have been kept by the Companys of ar as appears from our examination of those books.

(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

(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)ofsub-section (1)ofsection 274ofthe CompaniesAct, 1956.

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of its FixedAssets.

(b) As per the information and explanations given to us, there is a phased programme of physical verification of fixed assets adopted by the company and no materials discrepancies were noticed on such verification. In our opinion, the frequency of verification is reasonable, having regard to the size of the company and nature of its business.

(c) During the year, the company has not disposed off substantial part offixed assets.

(ii) (a) As per the information furnished, the inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, having regard to the nature and location ofthe stocks, the frequency ofphysical verification is reasonable.

(b) In our opinion and according to the information and explanation given to us, the procedures of the physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the company and nature of business.

(c) The company is maintaining proper records of inventory. In our opinion, the discrepancies noticed on physical verification of stocks were not material in relation to the size of the company and the same have been properly dealt with the books of accounts.

(iii) Inrespect to loans:

(a) According to the information given to us, the company has not granted any loans, secured or unsecured, to companies, firms and other parties covered in the register maintained under section 301 of Companies Act, 1956. Accordingly, paragraph 4(iii)(b), (c) and (d) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company for the current year.

(b) According to information and explanation given to us, the company has not taken Loans from any parties coveredinthe register maintained u/s 301ofthe CompaniesAct, 1956.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of assets and for the sale and purchase of inventory fixed assets and for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal controls.

(v) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that during the year, transactions that needed to be entered into the registered maintained under section 301of the companies Act, 1956, has been duly entered.

(vi) The Company has not accepted any deposits from the public within the meaning of the provision of Section58Aand58AAofthe companiesAct, 1956.

(vii) In our opinion the Company has an internal audit system commensurate with the size of the Company and the natureofits business.

(viii)The maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 are applicable to the co and as per the information provided by the management the prescribed accounts and records have been made and maintained. We have not however, made a detailed examination of these records with a view to determine whether they are accurate or complete.

(ix) (a) In our opinion and according to the information and explanations given to us and records examined by us, the Company is in general regular in depositing, with the appropriate authorities, undisputed statutory dues including income tax, wealth tax, custom duty, cess, and other material statutory dues applicable to it except TDS of Rs. 806678.00, which has not been has not deducted & deposited and due Advance Income Tax.

(b) According tothe information and explanation given tous there is disputed amount payable in respect of income tax, wealth tax, sales tax, custom duty, excise duty and cess for the period of more than six months from the date they become payable, except for Income Tax Demand of Rs.59,160 (A/Y 2009-10), Rs. 38,970 (A/Y 2010-11), and Rs. 72,42,280.00 (For A/Y 2012-13, against which company has deposited Rs. 64,14,172.00 as self assessment tax) for which rectification application has been filed.

(c) According to the information and explanation giventous, there are no un disputed amounts outstanding over six months in respect of income tax, wealth tax, sales tax, custom duty, excise duty and cess for the period of more than six months from the date they become payable except Income tax demandofRs.1,105.00(previous assessment years).

(x) In our opinion, since the company has neither any accumulated loss nor incurred losses in the current financial year and immediately preceding financial year, the clause 4(x) of the Companies (Auditors Report) order 2003isnot applicable.

(xi) In our opinion and according to information and explanations given to us, the company has not defaulted in repayment of dues to any financial institution or bank. The company has not issued any debenture.

(xii) On the Basis of our examination of the records and information and explanation given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii)As per the information and explanations given to us the provisions of any Special Statute applicable to Chit Fund do not apply to the Company. The Company is also not a nidhi / mutual benefit fund /society.

(xiv)In our opinion and according to explanations given to us, the company is not engaged in dealing or trading in shares, securities, debentures and other investments. Accordingly the clause 4(xiv) of the Companies (Auditors Report) order 2003isnot applicable.

(xv) According to explanations given to us, the company has not given guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to information and explanations given to us, (on an overall basis) the term loans have been applied forwhich they were obtained.

(xvii) In our opinion and according to information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that neither any short-term funds have been used for longterm investments.

(xviii)According to information and explanation given to us, the company has not made a preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

(xix)The company has not issued any debenture during the year covered by our audit report.

(xx) The company has raised Rs. 4, 32, 00,000.00 by public issue during the year covered by our audit report. (24,00,000 equity share of Rs.10 each at a premium of Rs.8per share)

(xxi)During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to information and explanations given to us, we have neither come across any instance of fraud on or by the company, noticed or reported during the year, nor have we been informed of any such case by the Management.

For VIJAY MUKESH & CO. Place: Delhi Chartered Accountants Date:19/06/2014 FRN: 014554N

Sd/- CA SUNIL JAIN (Partner) M. No.: 094673

 
Subscribe now to get personal finance updates in your inbox!