Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
To,
The Members,
SRS Limited
Faridabad (Haryana)
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SRS Limited (âthe Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and summary of significant accounting policies and other explanatory information, in which are incorporated the Returns for the year ended on that date audited by the branch auditor of the Company''s branch at UAE.
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 (âthe Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence obtained by us and audit evidence obtained by other auditor in terms of their reports referred to in sub- paragraph (a) of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our qualified audit opinion on these standalone financial statements.
Basis for Qualified Opinion
1. Trade Receivables at UAE Branch includes an amount of Rs. 34272 lacs on account of sale to parties, during the year in UAE (including an amount of Rs.14756 Lacs on account of sale to parties from inventories sent through NSEZ unit of the company located in India to UAE Branch through Branch Transfer), which are unsecured/ not backed up by any security.
We are unable to form an opinion on the recoverability of the same & consequent impact on the profit of the company for the year ended 31st March''2016.
2. Deposit Repayment Reserve Account for the Fixed deposits at the close of the year, required under Section 73(2)(c) of the Companies Act, 2013 equal to 15% of the deposits maturing in the year & year following were found short by Rs.1360 Lacs.
We are unable to comment on the financial implications in respect of the same.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion Paragraph, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.
Other Matters
(a) We did not audit the financial statements of foreign branch (registered under SAIF Zone Authority, Sharjah, UAE) of the company included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs.34291 Lacs as at 31st March, 2016 and total revenues of Rs. 51257 Lacs for the year ended on that date, as considered in the standalone financial statements. The financial statements of this branch have been audited by the branch auditor (M/s. GSM Auditors, UAE) appointed by Company''s Board of Directors, whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of this branch, is based on the report of such branch auditor.
b) In terms of the Joint Responsibility Statement (as per Standards on Auditing-299) forming part of the Engagement Letter:
(i) audit of Gold & Jewellery Segment (except specified in (a) above) and other segments whose financial statements reflect total assets of Rs. 117101 Lacs as at 31st March, 2016 and total revenues of Rs.287733 Lacs for the year ended on that date has been carried out by M/s. Rakesh Raj & Associates; &
(ii) audit of remaining segments, other than those specified in
(a) & (b) (i) above viz. Retail, Cinemas and part of other segments (whose segment assets & segment revenues does not exceed 10 percent of the total segment assets & total segment revenue respectively), whose financial statements reflect total assets of Rs.33266 Lacs as at 31st March, 2016 and total revenues of Rs. 34383 Lacs for the year ended on that date has been carried out by M/s. S.S. Kothari Mehta & Co. Refer note no.40 of the standalone financial statements.
Our opinion is not modified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditor''s Report) Order, 2016 (''the order") issued by the Central government of India in the terms of Section 143 (11) of the Companies Act 2013 and based on the comments in the auditor''s report of the UAE Branch, we give in the Annexure 1 a statement on the matters specified in Paragraph 3 & 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 and proper returns adequate for the purposes of audit have been received from the UAE branch not visited by us;
(c) The reports on the accounts of the branch offices of the Company audited under Section 143 (8) of the Act by branch auditor in respect of UAE Branch have been sent to us and have been properly dealt with by us in preparing this report;
(d) 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 and with the returns received from the UAE Branch not visited by us;
(e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(f) The matter described in the Basis of Qualified Opinion paragraph above, in our opinion, may have an adverse effect on the functioning of the Company;
(g) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(h) With respect to the adequacy of the Internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in âAnnexure 2" ;and
(i) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note no. 22 of the Financial Statements.
ii. The Company did not have any material foreseeable losses on its long-term contracts including derivative contracts;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund.
ANNEXURE 1 TO THE INDEPENDENT AUDITOR''S REPORT
(As referred in paragraph (1) ''Report on Other Legal and Regulatory Requirements ''of our report to the members of SRS Limited on the accounts for the year ended March 31, 2016)
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, the company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the program, fixed assets were verified during the year and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties held are in the name of the company.
(ii) The inventory has been physically verified by the management at reasonable intervals during the year. As far as we could ascertain and according to the information and explanations given to us, no material discrepancies were noticed between the physical stock and the book records.
(iii) The Company has granted unsecured loan to one company covered in the register maintained under Section 189 of the Companies Act, 2013 (''the Act'').
(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted were not, prima facie, prejudicial to the interest of the Company.
(b) The principal and interest amount is repayable as per stipulations.
(c) Since the principal & interest amount is repayable as per stipulations, provisions of clause (3)(iii)(c) of the order are not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
S.No. Name of the Statute |
Nature of dues |
Amount ('' in lacs) |
Period to which the amount relates |
Forum where the dispute is pending |
||
1 Income Tax Act 1961 2 Income Tax Act 1961 3 Income Tax Act 1961 |
Income Tax Income Tax Income Tax |
15.70 516.33* 614.63 |
AY 2009-10 AY 2012-13 AY 2013-14 |
Commissioner of Income Tax- Appeal Commissioner of Income Tax- Appeal Commissioner of Income Tax- Appeal |
||
* net of amount of Rs.120 Lacs paid under protest
(v) In our opinion and according to the information and explanations given to us, except for the provisions of section 73(2)(c), the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under with regard to deposits accepted from the public. We have been informed that no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this regard. Deposit Repayment Reserve Account for the Fixed deposits at the close of the year, required under Section 73(2)(c) of the Companies Act, 2013 equal to 15% of the deposits maturing in the year & year following were found short by Rs.1360 Lacs.
(vi) According to information and explanations given to us, the Central Government has not prescribed maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013. Therefore, provisions of Clause 3 (vi) of the order are not applicable to the company.
(vii) (a) The Company, has been generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other material statutory dues applicable to it, though there has been a slight delay in a few cases.
According to information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax and Cess were in arrears as at March 31, 2016 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 are no dues of Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise & Value Added Tax which have not been deposited on account of any dispute except as given below:
(viii) In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of loan or borrowings to any banks and financial institutions as at balance sheet date, except in the below mentioned cases where the default has been made good till the balance sheet date :-
Name of the lender |
Amount involved ('' in lacs) |
Amount of default as at Balance Sheet Date (Rs,) |
Period of default |
State Bank of India |
250 |
Nil |
1-4 days |
The Company does not have any debentures, loans or borrowings from the government.
(ix) The company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year. The term loans have been applied for the purposes for which they were raised.
(x) Based upon the audit procedure performed for the purpose of reporting the true and fair view and on the basis of the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) As per the information and explanations given to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 wherever applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
We have audited the internal financial controls over financial reporting of SRS Limited (âthe Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Qualified opinion
According to the information and explanations given to us and based on our audit, the following material weakness has been identified as at March 31, 2016:
a) The Company''s UAE Branch did not have an appropriate internal control system for customer acceptance, credit evaluation and establishing customer credit limits for sales, which could potentially result in the Company recognizing revenue without establishing reasonable certainty of ultimate collection.
A ''material weakness'' is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company''s annual or interim financial statements will not be prevented or detected on a timely basis.
In our opinion, except for the possible effects of the material weakness described above on the achievement of the objectives of the control criteria, the Company has maintained, in all material respects, adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as of March 31, 2016, based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India"
We have considered the material weakness identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2016 financial statements of the Company, and the possible impact due to aforesaid material weakness, has been appropriately reflected in our qualified opinion on the standalone financial statements of the Company in respect of the same.
For S.S. Kothari Mehta & Co. For Rakesh Raj & Associates
Chartered Accountants Chartered Accountants
Firm Reg. No. 000756N Firm Reg. No. 005145N
Yogesh K. Gupta Ruchi Jain
Partner Partner
M. No. 093214 M. No. 099920
Place: Faridabad Place: Faridabad
Date: 8th June''2016 Date: 8th June''2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of SRS
Ltd. ("the Company"), which comprise the Balance Sheet as at March 31,
2015, the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended, and summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
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 the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on these
standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
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 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 the terms of
sub-section (11) of Section 143 of the Companies Act 2013, we give in
the Annexure a statement on the matters specified in Paragraph 3 & 4 of
the order.
(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 statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements- Refer Note 22 of the
Financial Statements;
ii. The Company did not have any material foreseeable losses on its
long-term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund.
Annexure to the Auditor's Report
(As referred in paragraph (1) 'Report on Other Legal and Regulatory
Requirements 'of our report to the members of SRS Ltd. on the accounts
for the year ended March 31, 2015)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the company has a regular program of physical
verification of its fixed assets by which fixed assets are verified in
a phased manner over a period of three years which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. In accordance with the program, fixed assets were verified
during the year and no material discrepancies were noticed on such
verification.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) 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) The Company is maintaining proper records of inventory. As far as
we could ascertain and according to the information and explanations
given to us, no material discrepancies were noticed between the
physical stock and the book records.
(iii) As per the information and explanations provided to us, the
company has granted interest bearing unsecured loan to two companies
covered in the register maintained under section 189 of the Companies
Act, 2013. These loans have been received back during the year. Hence,
clause 3 (iii) (a) & (b) of the order are not applicable to the
company.
(iv) In our opinion and according to the information and explanation
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control system of the Company.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 73 to 76 or any
other relevant provisions of the Companies Act and the rules framed
there under with regard to deposits accepted from the public. We have
been informed that no order has been passed by Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal in this regard.
(vi) According to information and explanations given to us, the Central
Government has not prescribed maintenance of cost records under
sub-section (1) of section 148 of the Companies Act, 2013.Therefore,
provisions of this clause the order are not applicable to the company.
(vii) (a) The Company, has been 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 Customs, Duty of Excise, Value Added
Tax, Cess and any other material statutory dues applicable to it though
there has been a slight delay in few cases.
According to 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
Customs, Duty of Excise, Value Added Tax and Cess were in arrears as at
March 31,2015 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
are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise Value Added Tax and Cess, which have not been
deposited on account of any dispute except as given below:
S.No. Name of the Amount Period to which the
Statute (Rs. In lacs) amount relates
1 Income Tax 15.70 AY 2009-10
2 Income Tax 1,041.33 AY 2012-13
3 Income Tax 614.63 AY 2013-14
S.No. Name of the Forum where the dispute is pending
Statute
1 Income Tax Commissioner of Income Tax- Appeal
2 Income Tax Commissioner of Income Tax- Appeal
3 Income Tax Commissioner of Income Tax- Appeal
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund.
(viii) The Company has no accumulated losses as at 31st March 2015 and
has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
Bankers. The Company did not have any outstanding debentures and loans
from any financial institution during the year.
(x) As per information and explanations given to us, the company has
not given any corporate guarantee for loan taken by others from banks
or financial institutions, hence provisions of this clause of the order
are not applicable to the company.
(xi) To the best of our information and knowledge and as per records
verified by us, the Company has applied its term loans for the purpose
for which the loans were obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For S.S. Kothari Mehta & Co. For Rakesh Raj & Associates
Chartered Accountants Chartered Accountants
Firm Reg. No. 000756N Firm Reg. No. 005145N
Yogesh K. Gupta Ruchi Jain
Partner Partner
M. No. 093214 M. No. 099920
Place: Faridabad Place: Faridabad
Date: 22nd May'2015 Date: 22nd May'2015
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of SRS Limited
(''the Company''), which comprise the Balance Sheet as at March 31, 2014,
and the Statement of Profit and Loss and the 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
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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act''2013. This
responsibility includes the design, implementation and maintenance of
internal controls 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 conducted our audit in accordance
with the Standards 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 disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of the 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 entity''s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and reasonableness of the
accounting estimates made by 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 a basis for our audit opinion.
Opinion
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 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 Other Legal and Regulatory Requirements
(1) 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, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
(2) As required by section 227(3) of the Act, 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 purpose 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, 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 referred to in
sub- section (3C) of section 211 of the Companies Act, 1956 read with
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) of sub-section (1) of
section 274 of the Companies Act, 1956;
(As referred in paragraph (1) ''Report on other Legal & Regulatory
Requirements'' of our report to the members of SRS LIMITED on the
accounts for the year ended 31st March 2014)
I. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the Company has a regular program of physical
verification of its fixed assets by which fixed assets are verified in
a phased manner over a period of three years which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. In accordance with the program, fixed assets were verified
during the year and no material discrepancies were noticed on such
verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore, do not affect the going concern assumption.
ii. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) 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) The Company is maintaining proper records of inventory. As far as
we could ascertain and according to the information and explanations
given to us, no material discrepancies were noticed between the
physical stock and the book records.
iii. (a) As per information and explanations given to us, the Company
has not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act 1956. Accordingly sub-clauses (a), (b), (c) and (d)
of the Order are not applicable to the Company.
(b) As informed the Company has not taken any loan, secured or
unsecured from companies, firms or any other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, clause 4 (iii) (f) to (g) of the Order are not applicable
to the Company.
iv. In our opinion and according to the information and explanation
given to us, there exists an adequate internal control system
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 and services. During the course of our
audit, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control system of the Company.
v. (a) According to information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 58 A and 58 AA or
any other relevant provisions of the Act and the rules framed there
under with regard to deposits accepted from the public. We have been
informed that no order has been passed by Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal in this regard.
vii. In our opinion, the Company has an internal audit system which is
commensurate with the size and nature of its business and activities.
viii. We have broadly reviewed the cost records maintained by the
Company, pursuant to the Companies (Cost Accounting Records) Rule 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost Records have been maintained. However, we have not
carried out a detailed examination of such records with a view to
determine whether they are accurate or complete.
ix. (a) The Company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty,
Excise Duty and Cess and any other material statutory dues applicable
to it though there has been a slight delay in few cases.
(b) According to the information and explanations given to us no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty and Cess were in arrear as
at 31st March 2014 for a period of more than six months from the date
they become payable.
(c) According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service
Tax, Excise Duty and Cess, which have not been deposited on account of
any dispute.
x. The Company has no accumulated losses as at 31st March 2014 and has
not incurred cash losses during the financial year covered by our audit
and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
Bankers. The Company did not have any outstanding debentures and loans
from any financial institution during the year.
xii. In our opinion and according to the information & explanation
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of Clause
4(xiii) of the Order are not applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
xv. As per the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi. To the best of our information and knowledge and as per records
verified by us, the Company has applied its term loans for the purpose
for which the loans were obtained.
xvii. According to the information and explanations 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.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties,
firms and companies covered in the register maintained under section
301 of the Companies Act, 1956.
xix. According to the information and explanations given to us, the
Company has not issued any debentures. Therefore, the provisions of
Clause 4(xix) of the Order are not applicable to the Company.
xx. The Company has not raised any money by means of public issue
during the year. Accordingly, the provisions of clause 4(xx) of the
Order are not applicable to the Company.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For S.S. Kothari Mehta & Co. For Rakesh Raj & Associates
Chartered Accountants Chartered Accountants
Firm Reg. No. 000756N Firm Reg. No. 005145N
Yogesh K.Gupta Ruchi Jain
Partner Partner
M. No. 093214 M. No. 099920
Place: Faridabad Place: Faridabad
Date: 28th May,2014 Date: 28th May,2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of SRS Limited,
which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss and the 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
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 referred to in sub- section (3C) of section
211 of the Companies Act, 1956( "the Act"). This responsibility
includes the design, implementation and maintenance of internal
controls 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 conducted our audit in accordance
with the Standards 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 disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of the 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 reasonableness of the accounting estimates made by
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 a basis for our audit opinion. Opinion
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, 2013;
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 Other Legal and Regulatory Requirements
(1) 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, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
(2) As required by section 227(3) of the Act, 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 purpose 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, 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 referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31,2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
(As referred in paragraph (1) ''Report on other Legal & Regulatory
Requirements'' of our report to the members of SRS LIMITED on the
accounts for the year ended 31st March 2013)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the Company has a regular program of physical
verification of its fixed assets by which fixed assets are verified in
a phased manner over a period of three years which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. In accordance with the program, fixed assets were verified
during the year and no material discrepancies were noticed on such
verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore, do not affect the going concern assumption.
ii. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) 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) The Company is maintaining proper records of inventory. As far as
we could ascertain and according to the information and explanations
given to us, no material discrepancies were noticed between the
physical stock and the book records.
iii. (a) As per information and explanations given to us, the Company
has not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act 1956.Accordingly sub-clauses (a), (b), (c) and (d) of
the Order are not applicable to the Company.
(b) As informed the Company has not taken any loan, secured or
unsecured from companies, firms or any other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, clause 4 (iii) (f) to (g) of the Order are not applicable
to the Company.
iv. In our opinion and according to the information and explanation
given to us, there exists an adequate internal control system
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 and services. During the course of our
audit, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control system of the Company.
v. (a) According to information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
and consequently, the directives issued by the Reserve Bank of India,
the provisions of Section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder are not
applicable to the Company.
vii. In our opinion, the Company has an internal audit system which is
commensurate with the size and nature of its business and activities.
viii. We have broadly reviewed the cost records maintained by the
Company, pursuant to the Companies (Cost Accounting Records) Rule 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost Records have been maintained. However, we have not
carried out a detailed examination of such records with a view to
determine whether they are accurate or complete.
ix. (a) The Company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty,
Excise Duty and Cess and any other material statutory dues applicable
to it though there has been a slight delay in few cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty and Cess were in arrear as
at 31st March 2013 for a period of more than six months from the date
they become payable.
(c) According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service
Tax, Excise Duty and Cess, which have not been deposited on account of
any dispute.
x. The Company has no accumulated losses as at 31st March 2013 and has
not incurred cash losses during the financial year covered by our audit
and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
Bankers. The Company did not have any outstanding debentures and loans
from any financial institution during the year.
xii. In our opinion and according to the information & explanation
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of Clause
4(xiii) of the Order are not applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
xv. As per the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi. To the best of our information and knowledge and as per records
verified by us, the Company has applied its term loans for the purpose
for which the loans were obtained.
xvii. According to the information and explanations 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.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties,
firms and companies covered in the register maintained under section
301 of the Companies Act, 1956.
xix. According to the information and explanations given to us, the
Company has not issued any debentures. Therefore, the provisions of
Clause 4(xix) of the Order are not applicable to the Company.
xx. The Management has disclosed the end use of money raised by public
issue during the previous year, in the notes to the financial
statements and we have verified the same.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported duringthe
course of ouraudit.
For S.S. Kothari Mehta & Co. For Rakesh Raj & Associates
(Chartered Accountants) . (Chartered Accountants)
Firm Regn. No. OOQT756N / Firm Regn. No. 005145N
Partner Partner
M. No. 093214 M. No. 083352
Place: Faridabad Place: Faridabad
Date: 28th May 2013 Date: 28 May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of SRS LIMITED ('the
Company') as at 31st March 2012, Statement of Profit and Loss and also
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 also 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 [as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004]
[hereinafter referred to as 'Order'] issued by the Central Government
of India in terms of sub- section (4A) of section 227 of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs4&5ofthesaid Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) 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;
(ii) 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;
(iii) 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;
(iv) In our opinion, the Balance Sheet, Statement of Profit & Loss
And Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at31stMarch, 2012;
(b) in the case of 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.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date
i. (a) The records showing full particulars including quantitative
details and situation of fixed assets are in the process of updation.
(b) As explained to us, the company has a regular program of physical
verification of its fixed assets by which fixed assets are verified in
a phased manner over a period of three years. In accordance with this
program, certain fixed assets were verified during the year and no
material discrepancies as such noticed on such verification, however
the same would be adjusted, if any, on the updation of records. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets.
(c) Fixed assets disposed off during the year were not substantial and
therefore, do not affect the going concern assumption.
ii. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such
verification is reasonable.
(b) 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) The Company is maintaining proper records of inventory. As far as
we could ascertain and according to the information and explanations
given to us, no material discrepancies were noticed between the
physical stock and the book records.
iii. (a) As per information and explanations given to us, the Company
has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956. Accordingly sub-clauses
(a), (b), (c) and(d) of the Order are not applicable to the company.
(b) As informed the Company has not taken any loan, secured or
unsecured from companies, firms or any other parties covered in the
register maintained under section 301 often Companies Act, 1956.
Accordingly, clause 4 (iii) (f) to (g) of the Order are not applicable
To the company.
iv. In our opinion and according to the information and explanation
given to us, there exists an adequate internal control system
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 and services, however the same need to be further
strengthened. During the course of our audit, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system of the Company
except as stated above.
v. (a) According to information and explanations given to us, we are
of the opinion that the particulars of all contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of the
Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
and consequently, the directives issued by the Reserve Bank of India,
the provisions of Section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under are not
applicable to the Company.
vii. In our opinion, the Company has an internal audit system which is
commensurate with the size and nature of its business and activities.
However the same needs to be strengthen in respect of coverage of scope
and frequency.
viii. According to information and explanation given to us, during the
year the Central Government has prescribed for the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 in respect of
business carried out by the Company, the prescribed records and
accounts have been made and maintained by the company. However we have
not carried out a detailed examination of such records with a view
to determining whether they are accurate or complete.
ix. (a) The Company except as mentioned in Para (b) below has been
generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Service Tax, Wealth Tax, Custom Duty, Excise Duty and Cess and any other
material statutory dues applicable to it though there has been a slight
delay in few cases.
(b) According to the information and explanations given to us, except
advance tax of Rs. 565.64 lacs, no undisputed amounts payable in respect
of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess were in arrear as at 31st March 2012 for a period of more
than six months from the date they become payable.
(c) According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service
Tax, Excise Duty and Cess, which have not been deposited on account
of any dispute.
x. The company has no accumulated losses as at 31st March 2012 and has
not incurred cash losses during the financial year covered by our audit
and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
Bankers. The Company did not have any outstanding debentures and loans
from any financial institution during the year.
xii. In our opinion and according to the information & explanation
given to us, the Company has not granted loans and advances on the
basis of security byway of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provisions of Clause
4(xiii)of the Order are not applicable to the Company.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause4(xiv) of the Order are not applicable to the
Company.
xv. As per the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions.
xvi. To the best of our information and knowledge and as per records
verified by us, the Company has applied its term loans for
the purpose for which the loans were obtained.
xvii. According to the information and explanations 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.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties,
Firms and companies covered in the register maintained under section 301
Of the Companies Act, 1956.
xix. According to the information and explanations given to us, the
Company has not issued any debentures. Therefore, the provisions of
Clause4(xix)of the Order are not applicable to the Company.
xx. The Company has raised Rs 2,03,00,00,000 (35000004 equity shares
of Rs. 10 each at a premium of Rs. 48/- per share) by means of
public issue during the year. The utilization of the money is disclosed
by the company and verified by us.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during
the course of our audit.
For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Reg. No. 000756N
(NEW DELHI)
Naveen Aggarwal
Partner
Membership No.094380
Place : New Delhi
Date : 30th May, 2012
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