Mar 31, 2016
TO THE MEMBERS OF SARUP INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SARUP INDUSTRIES LIMITED ("the company"), which comprises the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the 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 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these 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 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 statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, 2016;
b)In the case of the Statement of Profit and Loss, of the profit 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. Report on Companies (Auditors Report) Order, 2015
As required by the Companies(Auditors Report) Order,2015 issued by the Central Government in terms of Sub-section (11) of section 143 of the Companies Act2013. We hereby enclose annexure, statement(s)on the matters specified in paragraphs 3 and 4.
Report on other Legal and Regulatory Requirements
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 appears from our examination of those books.
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 account.
d)In our opinion, the aforesaid 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)There is nothing to disclose which is having adverse effect on the functioning of the company.
f)On the basis of written representations received from the directors as on 31 March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
g) With respect to the other matters included in the Auditor''s Report and to our best of our information and according to the explanations given to us:
I. The Company does not have any pending litigations which would impact its financial position]
II. The Company did not have any long-term contracts including derivatives 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 TO THE AUDITORS'' REPORT
The Annexure referred to in our report to the members of SARUP INDUSTRIESLTD for the year ended 31s* March, 2016.
On the basis of the information and explanation given to us during the course of our audit, we report that:
1.(a) The company has maintained proper records showing fuii particulars including quantitative details and situation of its fixed assets.
(b) These fixed assets have been physically verified by the management at reasonable intervals there was no Material discrepancies were noticed on such verification.
(c) Total Assets of company includes Immovable property also and the title deeds of immovable properties are held in the name of the company.
2. Physical verification of inventory has been conducted at reasonable intervals by the management and there is no material discrepancies were noticed
3. The company has not granted any loan secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
4. In respect of loans, investments, guarantees, and security all mandatory provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.
5. The company has not accepted any deposits
6. Maintenance of cost records has not been specified by the Central Government under subsection (1) of section 148 of the Companies Act, 2013.
7 (a) The company is regular in depositing undisputed statutory dues including provident fund, Employee''s state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities.
(b) Dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have been deposited on time there is no dispute is pending on the part of company.
8. The company hasn''t made any default in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
9.The company doesn''t raise any money by way of initial public offer or further public offer (including debt instruments)
10.Neither company has done any fraud nor by its officers or employees so nothing to be disclosed separately.
11.Managerial remuneration has been paid or provided in accordance with the requisite approvals Mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12.Company is not a Nidhi Company hence nothing to be disclosed for any provisions applicable on Nidhi Company.
13.All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards;
14.The company hasn''t made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15.The company hasn''t entered into any non-cash transactions with directors or persons connected with him.
16.The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Y.K. Sud & Co
Chartered Accountants
Place : Jalandhar ( Y.K. Sud)
Date : 24/5/2016 Prop.
M No 16875
Mar 31, 2015
We have audited the accompanying financial statements of SARUP
INDUSTRIESLTD ("the company"), which comprise the Balance Sheet as at
31 March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the 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 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 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
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, 2015;
b) In the case of the Statement of Profit and Loss, of the profit 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.
Report on Companies (Auditors Report) Order, 2015
As required by the Companies (Auditors Report) Order, 2015 issued by
the central government in terms of Sub-section (11) of section 143 of
the Companies Act 2013.We enclosed in annexure statement(s) on the
matters specified in paragraphs 3 ad 4.
Report on other Legal and Regulatory Requirements 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 appears from our examination of those
books.
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
account.
d) In our opinion, the aforesaid 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) There is nothing to disclose which is having adverse effect on the
functioning of the company.
f) On the basis of written representations 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.
g) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us:
I. The Company does not have any pending litigations which would
impact its financial position]
II. The Company did not have any long-term contracts including
derivatives 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
The Annexure referred to in our report to the members of SARUP
INDUSTRIES LIMITED for the year ended 31st March, 2015.
On the basis of the information and explanation given to us during the
course of our audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification. In our opinion and according to the
information and explanations given to us, no fixed asset has been
disposed of during the year and therefore does not affect the going
concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has not
granted any loans, secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section 189 of the
Companies Act. Thus sub clauses (a) & (b) are not applicable to the
company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. In our opinion and according to the information and explanations
given to us company hasn't accepted any deposits, from the directives
issued by the Reserve Bank of India and as per the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act
6. As per information & explanation given by the management,
maintenance of cost records are not applicable to the company.
7. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st 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, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
(c) In our opinion company has transferred the amount which is required
to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made there under within time.
8. The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
10. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
11. In our opinion Terms Loans were applied for the purpose for which
loans were obtained
12. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Y. K. SUD & CO
Chartered Accountants
Signature
(Yoginder Kumar Sud)
Place: Jalandhar Prop.
Date: 29.05.2015 (M. No: 16875)
Mar 31, 2014
We have audited the accompanying financial statements of SARUP
INDUSTRIES LIMTED(the Company), which comprise the Balance Sheet AS AT
31st MARCH , 2014 , the statement of Profit and Loss and Cash Flow for
year ended , and a summary of significant accounting policies and other
explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Management is responsible for the preparation of these
financial statement 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 General Circular 15/2013 dated 13 the
Sept, 2013 of the Ministry of Corporate Affairs in respect of section
133 of 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 statements,
whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standard on Auditing 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.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure in the financial statements. The procedure
selected depends upon the Auditor''s judgment, including the
assessment of the risk 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, but not for the purpose of expressing an opinion on
the effectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
reasonableness of the accounting estimates made by the management, 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 basis for our audit opinion.
OPINION
In our opinion and to the best of our information and according to
explanations given to us, the aforesaid accounts, read together with
significant accounting policies and notes forming part of accounts,
give the information required by the companies Act,1956 in the manner
so required, and give a true and fair view in conformity with the
accounting principles generally accepted in India,
(i) In case of balance sheet, of the state of the affairs of the
company as at 31 March 2014.
(ii) In case of profit and loss Accounts, of the loss company for the
year ended on the date.
(iii) In the case of cash flow statement of the cash flow for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the companies (Auditor''s Report) order, 2003 issued
by the central government of India in terms of section 227 (4A) of the
companies act 1956. We enclosed in Annexure statement on the matters
specified in paragraphs 4&5 of the said order.
2. Further to our comments in the annexure refers to in paragraphs in 1
&2 above, we state that:
(a) We have 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 the
books of accounts ;
(c) The Balance sheet , profit & loss accounts and cash flow statement
dealt with by this report are in agreement with the books of accounts ;
(d) In our opinion , the balance sheet and profit &loss accounts read
together with notes thereon and cash flow statement of company comply
with the accounting standards as referred in sub-section (3C) of
sections 211 of the companies Act ,1956, to the extent applicable;
(e) As per information and explanations given to us ,none of the
directors of the company are disqualified from being appointed as a
directors under clause (g) of sub -section (1) of section 274 of the
companies Act, 1956;
Annexure refers to in paragraph 3 of the report of even date of the
auditors to the members M/s Sarup Industries Limited
1. (a) The company has maintained proper record showing full
particulars, including quantitative details situation of fixed assets.
(b) The fixed assets were physically verified by the management at
reasonable interval, the discrepancies noticed on physical verification
were not material and the same has been properly dealt with in the
books of account.
(c) According to information and explanation given to us, the company
has not disposed off substantial parts of its fixed assets during the
year and the going concern status of the company is not affected.
2. (a) Stock of finished goods, stores spare parts and raw materials
have been physically
verified by the managements at reasonable intervals.
(b) The procedures of physical verification of stock followed by the
management are reasonable and adequate in relation to the size of
company and nature of its business.
(c) in our opinion and according to the information and explanation
given to us the company is maintaining proper record of inventory . As
explained to us there were no material discrepancies have been noticed
on physical verification of stocks as compared to book record.
3. (a) The company has not granted any loans , secured or unsecured to
companies, firm or other parties listed in the register maintained
under section 301 of the act 1956. Therefore the provisions of clause
4(iii)(b)(c) and (d) of the order are not applicable to the company.
(b) The company has not taken any loans, secured or unsecured from
companies, firm or other parties listed in the register maintained
under section 301 of the act 1956. Therefore the provisions of clause
4(iii)(f) and (g) of the order are not applicable to the company.
4. There are adequate internal control procedures commensurate with the
size of company and nature of its business for the purchase of
inventory, fixed Assets and sale of goods. During the course of our
audit, we have not observed any failure to correct major weakness in
internal control procedures.
5. (a) The transactions of purchase of goods and material and sale of
goods, material and services made in pursuance of contracts or
arrangements entered in the register maintained under the section 301
of Companies Act - 1956.
(b) in our opinion and according to the information and explanations
given to us the transactions in pursuance of such contracts or
arrangement have been made at prices which are reasonable having regard
to prevalent market prices at the relevant time.
6. The company has not accepted ant deposit from public. Thus
provisions of section 58A &58AA of the companies Act 1956 are not
applicable. No order has been passed by company Law Board.
7. The company has an internal audit system commensurate with the size
and nature of its business.
8. The books of accounts maintained pursuant to the rule made by the
Central Govt. for the maintenance of cost records under section 209 (i)
(d) of the companies Act 1956 have broadly been reviewed by us and
prima facie, the prescribed accounts and record have been made and
maintained .
9. (a) The Company is regular in depositing provident Fund dues and
EMPLOYEES State Insurance dues with the appropriate authorities. No
undisputed amounts payable in respect of Investor Education Protection
Fund Income Tax, Sale Tax , Custom Duty and Excise Duty were
outstanding as 31 March 2014 for a period of more than six months from
the date they become payable .
(b) There are no dues pending in regard to Sale Tax/ Custom Tax/ Wealth
Tax / Income Tax / Excise Duty / Cess Duty, on account of any disputes
with respective department.
10. The company has no accumulated losses and has not incurred any cash
loss in the financial Year under audit and in the immediately preceding
financial Year.
11. In our opinion and according to the information and explanation
given to us , the company has not defaulted in repayment of dues to
bank, financial institution, and banks.
12. According to the information and explanations given to us the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debenture, and other securities.
13. In our opinion, the company is not chit fund or a nidhi / mutual
benefit fund s /Society, therefore the provisions of clause 4 (Xiii) of
the companies (Auditor''s Report) order, 2003 are not applicable to
the Company.
14. Based on our examination of record and evaluation of related
internal control we are of the opinion that proper records have been
made there in respect of companies'' activities relating to trading
/dealing in shares, securities and other investments and these have
been held by the company in its own name.
15. The Company has not given a guarantee for loans taken by another
company from Financial Institution.
16. In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
17. In our opinion and according to the information and explanation
given to us, and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis have been
used for long term investment. Further, no long term funds have been
used for short term investment.
18. According to the information and explanation given to us the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
section 301 of Companies Act 1956.
19. According to the information and explanation given to us the
company has not issued any secured debentures during the year.
20. The Company has not raised any money by way of a public issue
during the year , Therefore the provisions of clause 4(xx) of the
companies (Auditor''s Report ) order 2003 are not applicable to the
company.
21. According to the information and explanations given to us no fraud
on or by the company has been noticed or reported during the period
covered by our audit.
For Y.K. Sud & Co .
Chartered Accountant
PLACE: JALANDHAR
Date: 29th May .2014
Mar 31, 2013
1. We have audited the attached balance sheet of SARUP INDUSTRIES
LIMTED , AS AT 31st March , 2013 and also the Profit and Loss Accounts
for year ended on that date annexed thereto . These financial
statements are the responsibility of the company management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining , on a test basis , evidence supporting the amounts
and disclosures in the financial statement .An audit includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) order, 2003 issued
by the central government of India in terms of section 227 (4A) of the
companies act 1956. We enclosed in annexure statement on the matters
specified in paragraphs 4&5 of the said order.
4. Further to our comments in the annexure refers to in paragraphs in
1 &2 above, we state that:
(a) We have 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 the
books of accounts;
(c) The Balance sheet, profit & loss accounts and cash flow statement
dealt with by this report are in agreement with the books of accounts ;
(d) In our opinion , the balance sheet and profit &loss accounts read
together with notes thereon and cash flow statement of company comply
with the accounting standards as referred in sub-section (3C) of
sections 211 of the companies Act ,1956, to the extent applicable;
(e) As per information and explanations given to us ,none of the
directors of the company are disqualified from being appointed as a
directors under clause (g) of sub -section (1) of section 274 of the
companies Act, 1956;
(f) In our opinion and to the best of our information and according to
explanations given to us, the said accounts, read together with
significant accounting policies and notes forming part of accounts,
give the information required by the companies Act , ,1956 in the
manner so required, and give a true and fair view in conformity with
the accounting principles generally accepted in India, i. In case of
balance sheet, of the state of the affairs of the company as at 31st
March 2013. ii. In case of profit and loss Accounts, of the loss
company for the year ended on the date. iii. In the case of cash flow
statement of the cash flow for the year ended on that date.
Annexure refers to in paragraph 3 of the report of even date of the
auditors to the members M/s Sarup Industries Limited.
1) (a) The company has maintained proper record showing full
particulars, including quantitative details situation of fixed assets.
(b) The fixed assets were physically verified by the management at
reasonable interval, the discrepancies noticed on physical verification
were not material and the same has been properly dealt with in the
books of account.
(c) According to information and explanation given to us, the company
has not disposed off substantial parts of its fixed assets during the
year and the going concern status of the company is not affected.
2) (a) Stock of finished goods, stores spare parts and raw materials
have been physically verified by the managements at reasonable
intervals.
(b) The procedures of physical verification of stock followed by the
management are reasonable and adequate in relation to the size of
company and nature of its business.
(c) in our opinion and according to the information and explanation
given to us the company is maintaining proper record of inventory . As
explained to us there were no material discrepancies have been noticed
on physical verification of stocks as compared to book record.
3) (a) The company has not granted any loans, secured or unsecured to
companies, firm or other parties listed in the register maintained
under section 301 of the act 1956. Therefore the provisions of clause
4(iii)(b)(c) and (d) of the order are not applicable to the company.
(b) The company has not taken any loans, secured or unsecured from
companies, firm or Other parties listed in the register maintained
under section 301 of the act 1956. Therefore the provisions of clause
4(iii)(f) and (g) of the order are not applicable to the company.
4) There are adequate internal control procedures commensurate with the
size of company and nature of its business for the purchase of
inventory, fixed Assets and sale of goods. During the course of our
audit, we have not observed any failure to correct major weakness in
internal control procedures.
5) (a) The transactions of purchase of goods and material and sale of
goods, material and services made in pursuance of contracts or
arrangements entered in the register maintained under the section 301
of Companies Act - 1956.
(b) in our opinion and according to the information and explanations
given to us the transactions in pursuance of such contracts or
arrangement have been made at prices which are reasonable having regard
to prevalent market prices at the relevant time.
6) The company has not accepted ant deposit from public. Thus
provisions of section 58A &58AA of the companies Act 1956 are not
applicable. No order has been passed by company Law Board.
7) The company has an internal audit system commensurate with the size
and nature of its business.
8) The books of accounts maintained pursuant to the rule made by the
Central Govt, for the maintenance of cost records under section 209 (i)
(d) of the companies Act 1956 have broadly been reviewed by us and
prima facie, the prescribed accounts and record have been made and
maintained .
9) (a) The Company is regular in depositing provident Fund dues and
EMPLOYEES State Insurance dues with the appropriate authorities. No
undisputed amounts payable in respect of Investor Education Protection
Fund Income Tax, Sale Tax , Custom Duty and Excise Duty were
outstanding as 31st March 2013 for a period of more than six months
from the date they become payable .
(b) There are no dues pending in regard to Sale Tax/ Custom Tax/ Wealth
Tax / Income Tax / Excise Duty / Cess Duty, on account of any disputes
with respective department.
10) The company has no accumulated losses and has not incurred any cash
loss in the financial Year under audit and in the immediately preceding
financial Year.
11) In our opinion and according to the information and explanation
given to us , the company has not defaulted in repayment of dues to
bank, financial institution, and banks.
12) According to the information and explanations given to us the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debenture, and other securities.
13) In our opinion, the company is not chit fund or a nidhi / mutual
benefit fund s /Society, therefore the provisions of clause 4 (Xiii) of
the companies (Auditor''s Report) order, 2003 are not applicable to the
Company.
14) Based on our examination of record and evaluation of related
internal control we are of the opinion that proper records have been
made there in respect of companies'' activities relating to trading
/dealing in shares, securities and other investments and these have
been held by the company in its own name.
15) The Company has not given a guarantee for loans taken by another
company from Financial Institution.
16) In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
17) In our opinion and according to the information and explanation
given to us, and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis have been
used for long term investment. Further, no long term funds have been
used for short term investment.
18) According to the information and explanation given to us the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
section 301 of Companies Act 1956.
19) According to the information and explanation given to us the
company has not issued any secured debentures during the year.
20) The Company has not raised any money by way of a public issue
during the year, Therefore the provisions of clause 4(xx) of the
companies (Auditor''s Report ) order 2003 are not applicable to the
company.
21) According to the information and explanations given to us no fraud
on or by the company has been noticed or reported during the period
covered by our audit.
Sd/-
PLACE: JALANDHAR For Y.K. Sud & Co .
Date: 29th May, 2013 Chartered Accountant
Mar 31, 2010
1. We have audited the attached Balance Sheet of SARUP TANNERIES
LIMITED, as at 31st March, 2010 and also the Profit and Loss Account
for the year ended on that date annexed thereto. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit includes
assessing the accounting principles used and significant estimates made
by management, as we!) as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the companies (Auditors Report) order, 2003 issued by
the central government of India in terms of section 227 (4A) of the
companies act 1956. We enclosed in annexure a statement on the matters
specified in paragraphs 4 & 5 of the said order.
Further to our comments in the annexure refers to in paragraphs in 1 &
2 above, we state that:
(a) We have obtained ail 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 the
books of accounts;
(c) The Balance Sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with the books of accounts;
(d) In our opinion, the Balance Sheet and profit & loss account read
together with notes thereon and cash flow statement of the company
comply with the Accounting Standards as referred in Sub- Section (3C)
of Section 211 of the Companies Act, 1956, to the extent applicable;
(e) As per information and explanations given to us, none of the
directors of the company are disqualified from being appointed as a
director under clause (g) of Sub-Section (1) of Section 274 of the
Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
explanations given to us, the said accounts, read together with
Significant Accounting Policies and Notes forming part of Accounts,
give the information required by the Companies Act, 1956 in the manner
so required, and give a true and fair view in conformity with the
accounting principles generally accepted in India,
(i) In case of Balance Sheet, of the state of the affairs of the
company as at 31" March 2010.
(ii) In case of Profit and Loss Account, of the Loss of the Company
forthe year ended on that date.
(iii) In the case of cash flow statement of the cash flows forthe year
ended on that date.
Annexure refers to in paragraph 3 of the report of even date of the
auditors to the members M/s Sarup Tanneries Limited.
1 (a) The company has maintained proper records showing full
particulars, including quantitative
details situation of fixed assets.
(b) The fixed assets were physically verified by the management at
reasonable interval, the discrepancies noticed on physical verification
were not material and the same has been properly dealt with in the
books of account.
(c) According to information and explanation given to us, the company
has not disposed off substantial part of its fixed assets during the
year and the going concern status of the Company is not affected.
2 (a) The stock of finished goods, stores, spare parts and raw
materials have been physically verified by the management at reasonable
intervals.
(b) The procedures of physical verification of stock followed by the
management are reasonable and adequate in relation to the size of the
company and nature of its business.
(c) In our opinion and according to the information and explanation
given to us the Company is maintaining proper record of inventory. As
explained to us there were no material discrepancies have been noticed
on physical verification of stocks as compared to book records.
3 (a) The company has not granted or taken any loans, secured or
unsecured from the companies, firms or other parties lifted in the
register maintained under section 301 of the Act. In terms of section
370(6) of companies Act 1956 provisions of the section 370 are not
applicable to the company.
(b) The rate of interest and other terms and conditions of unsecured
loans granted to companies listed in the register maintained under
section 301 of the Companies Act 1956 are prima facie not prejudicial
to the interest of the Company. The company has not granted any loan,
secured or unsecured to other parties listed in the said register.
(c) In respect of loans and advances in the nature of loans given by
the company, the parties have repaid the principal amounts as
stipulated and have also been regular in the payment of interest, where
applicable.
(d) There are no overdue amounts in respect of transactions listed in
clause (a) above.
4 There are adequate internal control procedures commensurate with the
size of the company, and the nature of its business for the purchase of
inventory. Fixed Assets and sale of goods. During the course of our
audit, we have not observed any failure to correct major weakness in
internal control procedures.
5. (a) The transactions of purchase of goods and materials and sale of
goods, material and services made in pursuance of contracts or
arrangements entered in the register maintained under the section 301
of Companies Act -1956. (b) In our opinion and according to the
information and explanations given to us the transactions in
Pursuance of such contracts or arrangements have been made at prices
which are reasonable aving regard to prevalent market prices at the
relevant time.
6 The company has not accepted any deposit from the public. Thus
provisions of section 58A & 58AA of the Companies Act 1956 are not
applicable. No. order has been passed by Company Law Board.
7 The Company has an internal audit system commensurate with the size
and nature of its business.
8 The books of accounts maintained pursuant to the Rules made by the
Central Govt, for the maintenance of cost records under section 209 (i)
(d) of the Companies Act 1956 have broadly been reviewed by us and
prima facie, the prescribed accounts and records have been made and
maintained.
9 (a) The Company is regular in depositing provident Fund dues and
Employees State Insurance dues with the appropriate authorities. No
undisputed amounts payable in respect of Investor Education Protection
Fund, Income Tax, Wealth Tax, Sale Tax.Custom Duty and Excise Duty were
outstanding as at 31st March 2010 for a period of more than six months
from the date they become payable.
(b) There are no dues pending in regard to Sale Tax / Custom
Tax / Wealth Tax/ Income Tax / Excise Duty / Cess Duty, on account of
any disputes with respective department.
10 The company has no accumulated losses and has not incurred any cash
loss in the financial year under audit and in the immediately preceding
financial year.
11 In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
banks, financial institution, and banks.
12 According to the information and explanations given to us the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debenture and other securities.
13 Inouropinion.thecompanyismrtachKfuiKiorank^^ therefore the
provisions of clause 4 (kill) of the Companies (Auditors report)
order, 2003 are not applicable to the company.
14 Based on our examination of records and evaluation of related
internal control we are of the opinion that proper records have been
maintained of the transaction and contracts and timely entries have
been made there in respect of companies activities relating to
trading/dealing in shares, securities and other investments and these
have been held by the company in its own name.
15 The company has not given a guarantee for loans taken by another
company from Financial Institution.
16 In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
17 In our opinion and according to the information and explanation
given to us and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis have been
used for long term investment. Further, no long term funds have been
used for shortterm investment.
18 According to the information and explanation given to us the company
has not made any preferential allotment of shares during the year to
parties and companies covered in the register maintained under section
301 of the Companies Act 1956.
19 According to the information and explanations given to us, the
company has not issued any secured debentures during the year.
20 The Company has not raised any money by way of a public issue during
the year, Therefore the
provisionsofclause4(xx)oftheCompanies(Auditorsreport)order2003 are not
applicable to the company.
21 According to the information and explanations given to us no fraud
on or by the company has been noticed or reported during the period
covered by our audit.
For Y.KSud & Co.
Chartered Accountant
Prop.
Place : Jalandhar
Date:29th,May 2010