Mar 31, 2018
Report on the Standalone IND AS Financial Statements
We have audited the accompanying standalone financial statements of M/s. S V Global Mill Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity for the year ended and the Cash Flow Statement for the year ended, and a summary of the 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 Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit and loss (financial performance including other comprehensive income), changes in equity 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 standalone Ind AS 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 Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures 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 standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to the following matter in the Notes to the financial statements Note No. 29 regarding orders of the Hon''ble Supreme Court of India dated 10.05.2018 and 17.05.2018, whereby the company has been directed to buy the shares of Respondent 1 to Respondent 6 for a fixed sum of Rs. 100 crore by way of reduction of share capital of the company and such buy back shall be completed within 9 months from the date of the order.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the CentralGovernment of India in terms of sub-section (11) of Section 143 of the Act, we give in Annexure - I astatement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS 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 written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of internal financial control systems and the operating effectiveness of such controls, we give our Report in Annexure - II
g) 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 standalone Ind AS financial statements - Refer Note 32 to the financial statements;
ii. The company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE - I TO INDEPENDENT AUDITOR''S REPORT
Statement of matters specified in Para 3 & 4 of the order referred to in sub-section (11) of section 143
1) Fixed Assets
a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
b) As per the information and explanation given to us, all the fixed assets have been physically verified by the management at regular intervals, which in our opinion, is reasonable. According to the information and explanations given to us, no material discrepancies were noticed on such verification
c) The company have title deeds of immovable properties and the same are held in the name of the company.
2) Inventory
According to the information and explanations given to us, inventory has been physically verified during the year by the management, which in our opinion is reasonable and no material discrepancies were noticed.
3) Transactions with parties covered by register referred to in section 189
The Company has granted unsecured loan to a subsidiary company covered by the register maintained under section 189 of the Companies Act, 2013.
a) In our opinion, the terms and conditions of grant of the loans are not prejudicial to the interest of the company.
b) According to the information and explanations given to us, the schedule of repayment of principal and payment of interest has been stipulated while granting such loans and the repayment/receipts are regular.
c) No amounts are overdue for more than 90 days.
4) Compliance with section 185 & 186 in respect of Loans and Investments
The company has not advanced loans, given guarantees or security or made any investment in contravention of section 185 and/or section 186 of the Companies Act, 2013
5) Public Deposits
In our opinion and according to the information and explanations given to us, the company has not accepted deposits from public and hence the provisions of sections 73 to 76 or any other provisions of the Companies Act and the rules made there under are not applicable to the company.
6) Maintenance of Cost Records
Maintenance of cost records specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 is not applicable to the company
7) Statutory dues
a) The company has generally been regular in depositing Income-tax, GST, Sales-tax, Service Tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities. Based on information and explanation given to us, no undisputed amounts payable in respect of Income Tax, Sales-tax, GST, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues were outstanding as at 31st March 2018 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of Income Tax, GST, Sales-tax, Customs Duty, Excise Duty, Value Added Tax and Cess which have not been deposited by the Company.
8) Repayment of Loans
The company has not taken loans from any from financial institution, bank or Government, and has not issued debentures and therefore the question of default does not arise.
9) Raising of monies through Public Offer and/or Term Loans
The company has not raised monies by way of initial public offer or further public offer (including debt instruments) during the relevant financial year. Also the company has not taken any term loans during the relevant financial year.
10) Frauds
According to the information and explanations given to us no fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year
11) Managerial Remuneration
According to the information and explanations provided to us, the total Managerial remuneration paid/provided by the Company is within the overall maximum limit as specified section 197 read with Schedule V to the Companies Act, 2013 and accordingly requirements as to obtaining requisite approval under this section does not arise
12) Compliance with Net Owned Funds Ratio & unencumbered term deposits
The company is not a Nidhi company and hence the provisions para 3(xii) of the Order referred to in Companies (Auditor''s Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act does not apply to the company
13) Transaction with Related Parties
There were no transactions as referred to in section 188 entered into with related parties during the relevant financial year.
14) Preferential Allotment or Private Placement
The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review as referred to in section 42 of the Companies Act, 2013
15) Non-cash transactions
The company has not entered into any non-cash transactions with directors or persons connected with them as referred to in section 192 of the Companies Act, 2013
16) Registration with Reserve Bank of India
The company is not carrying any activities which require registration under section 45-IA of the Reserve Bank of India Act, 1934
ANNEXURE - II TO INDEPENDENT AUDITOR''S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of S V Global Mill Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone Ind AS 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. 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 "Guidance 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 judgement, 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 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, 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.
P. B. Vijayaraghavan& Co.,
Chartered Accountants
Place: Chennai FRN: 004721S
Date: 30.05.2018
P.B. SRINIVASAN
Partner
M. No. 203774
Mar 31, 2016
We have audited the accompanying standalone financial statements of M/s. S V Global Mill Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
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 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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, of the state of affairs of the Company as at 31st March, 2015, and its profit and its 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, 2016 (''the Order'') issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in Annexure - I a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, 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 written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164 of the Act.
f) With respect to the adequacy of internal financial control systems and the operating effectiveness of such controls, we give our Report in Annexure - II
g) 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 Item No. 6 of Note 17 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
1) Fixed Assets
a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
b) As per the information and explanation given to us, all the fixed assets have been physically verified by the management at regular intervals, which in our opinion, is reasonable. According to the information and explanations given to us, no material discrepancies were noticed on such verification
c) The Company has title deeds of immovable properties and the same are held in the name of the Company.
2) Inventory
According to the information and explanations given to us, inventory has been physically verified during the year by the Management and no material discrepancies were noticed.
3) Transactions with parties covered by register referred to in Section 189
The Company has not granted loans, 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) Compliance with Section 185 & 186 in respect of Loans and Investments
The company has not advanced loans, given guarantees or security or made any investment in contravention of Section 185 and/or Section 186 of the Companies Act, 2013
5) Public Deposits
In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public and hence the provisions of Sections 73 to 76 or any other provisions of the Companies Act, 2013 and the rules made there under are not applicable to the Company.
6) Maintenance of Cost Records
Maintenance of cost records specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 is not applicable to the company
7) Statutory Dues
a) The Company has generally been regular in depositing Income-tax, Sales-tax, and Service Tax, duty of customs, duty of Excise, Value Added Tax, Cess and any other statutory dues to the appropriate authorities. Based on information and explanation given to us, no undisputed amounts payable in respect of Income Tax, Sales-tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues were outstanding as at 31st March 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, Customs Duty, Excise Duty, Value Added Tax and Cess which have not been deposited by the Company.
8) Repayment of Loans
The Company has not taken loans from any Financial Institution, Bank or Government, and has not issued debentures and therefore the question of default does not arise.
9) Raising of monies through Public Offer and/or Term Loans
The company has not raised monies by way of initial public offer or further public offer (including debt instruments) during the relevant financial year. Also the Company has not taken any term loans during the relevant financial year.
10) Frauds
According to the information and explanations given to us no fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year
11) Managerial Remuneration
According to the information and explanations provided to us, the total Managerial remuneration paid/provided by the Company is within the overall maximum limit as specified under Section 197 read with Schedule V to the Companies Act, 2013 and accordingly requirements as to obtaining requisite approval this section does not arise
12) Compliance with Net Owned Funds Ratio & Unencumbered Term Deposits
The Company is not a Nidhi Company and hence the provisions para 3(xii) of the order referred to in Companies (Auditor''s Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act does not apply to the Company
13) Transaction with Related Parties
There were no transactions as referred to in Section 188 entered into with related parties during the relevant financial year.
14) Preferential Allotment or Private Placement
The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review as referred to in Section 42 of the Companies Act, 2013
15) Non-cash Transactions
The company has not entered into any non-cash transactions with directors or persons connected with him as referred to in Section 192 of the Companies Act, 2013
16) Registration with Reserve Bank of India
The Company is not carrying any activities which require registration under Section 45-IA of the Reserve Bank of India Act, 1934
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of S V Global Mill Limited ("the 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. 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 Section143(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 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 tarn sections 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.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, 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.
P. B. Vijayaraghavan & Co., Chartered Accountants FRN: 004721S
Place: Chennai P. B. SRINIVASAN
Date: 25.05.2016 Partner
M. No. 203774
Mar 31, 2015
We have audited the accompanying financial statements of S V Global
Mill Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the 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 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 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, 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 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, of the state of affairs of the Company as
at 31st March, 2015, and its profits and its 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section 11 of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 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 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 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(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 litigation on its
financial position in its financial statements (where ascertainable) -
Refer Note 18 (9) to the financial statements.
II. There are no material foreseeable losses requiring provision under
law or accounting standards with respect to long-term contracts
including derivative contracts.
III. There are no amounts which are required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITOR'S REPORT
Annexure referred to in our report of even date to the members of S V
GLOBAL MILL LIMITED 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) The Fixed assets have been physically verified by the Management
during the year in accordance with a program of verification, which in
our opinion provides for physical verification of the Fixed Assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(ii) (a) The inventories have been physically verified by the management
during the year in accordance with a program of verification, which in
our opinion provides for such physical verification at reasonable
intervals.
(b) The procedures of physical verification of inventory carried out 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 and no
material discrepancies were noticed on physical verification.
(iii) The company has not granted any loans, secured or unsecured, to
any companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act, 2013. However the
company has placed a Deposit with a company covered in the register
maintained under section 189 of the Companies Act, 2013. The receipt of
the principal and interest are regular and there are no overdue
amounts.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and nature of its business with regard to
purchase of inventory and fixed assets. The company's operations during
the year did not involve any sale of goods and services. During the
course of audit, we have not observed any continuing failure to correct
major weaknesses in the internal control systems.
(v) According to the information and explanations given to us, the
company has not accepted any deposits from the public. Therefore, the
provisions of clause 3(v) of the Order are not applicable to the
company.
(vi) The Company has no manufacturing activity. Accordingly, in our
opinion clause 4 (vi) of the Order is not applicable.
(vii) a) The Company has been generally regular in depositing undisputed
statutory dues, wherever applicable, including Provident Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, and
Municipal Profession Tax with the appropriate authorities. According to
the information and explanations given to us, no undisputed amounts
payable in respect of the above statutory dues is outstanding as at 31st
March 2015 for a period of more than six months from the date they
became payable.
b) According to the information and explanation given to us, there are
no dues of income tax, sale tax, wealth tax, service tax, customs duty,
excise duty, value added tax and cess which have not been deposited on
account of disputes.
c) According to the information and explanations given to us, there are
no amounts required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 and the rules made thereunder.
(viii) There are no accumulated losses at the end of the current
financial year. The company has not incurred cash losses during the
current financial year, but incurred cash losses in the immediately
preceding year.
(ix) In our opinion and according to the information and explanations
given to us, the company did not have any dues to financial
institutions / banks or debenture holders. Accordingly, clause 4 (ix)
of the Order is not applicable.
(x) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions. Accordingly, clause 4 (x)
of the Order is not applicable.
(xi) According to the information and explanations given to us no term
loans have been obtained during the year. Accordingly, clause 4 (xi) of
the Order is not applicable.
(xii) Based on the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanations given to us, no fraud on or by the company
has been noticed or reported during year.
For M Kuppuswamy PSG & CO LLP
Chartered Accountants
Firm Regn. No. 001616S
(S/d.)
Date : May 27, 2015 M. K. KRISHNAN
Place : Chennai Partner
M. No.020116
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. SV GLOBAL
MILL LIMITED (the Company), which comprises the Balance Sheet as at
March, 31 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risk of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessment, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by 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 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 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, 2013;
b) In the case of Statement of Profit or Loss, of the loss for the year
ended on that date; and
c) In the case of Cash Flow Statement, of the Cash Flows of the Company
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 accounts 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 the 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 or Loss, and
Cash Flow statement comply with the accounting standards referred to
sub-section (3C) of Section 211 of the Act;
e. on the basis of written representation received from the Directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors are 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 Act;
f. since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act,
nor has it issued any Rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
ANNEXURE TO THE AUDITORS'' REPORT (Referred to in our Report of even
date)
1. a) In respect of fixed assets, the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
b) The fixed assets have not been verified by the management during
this year. The discrepancies (between physical verification and book
records) and accounting for such discrepancies does not arise.
c) There was no sale of fixed assets during the year.
2. There is no inventory during the year and hence reporting under
clause 4(ii) of the order does not arise.
3. In our opinion, and according to the information and explanations
given to us, the Company has not granted any loans, secured or
unsecured to the companies, firms or individual parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the reporting under clause 4(iii) of the order does not
arise.
4. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 have
been entered in the register maintained under that section.
b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements and hence reporting under this clause does
not arise.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public. Hence
reporting under this clause does not arise.
6. The Company does not have any internal audit system to commensurate
with the size of the company and the nature of its business and
services.
7. There are accumulated losses as at the year end. The company has
incurred cash losses during the financial year covered by our audit and
incurred cash loss in the immediately preceding financial year.
8. The reporting under clauses 4(iv) (viii) (ix) (xi) (xii) (xiii)
(xiv) (xv) (xvi) (xvii) (xviii) (xix) (xx) and (xxi) does not arise as
the same are not applicable to the company.
For TSelvaraj & Co
Chartered Accountants
Firm Registration No:003703S
Place: Chennai TSelvaraj
Date: 29th May 2013 Partner
Membership No.11370
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. S.V.GLOBAL MILL
LIMITED as at 31st March, 2012, the Profit and Loss Account of the
Company for the year ended on that date annexed thereto and the Cash
Flow Statement for the year ended on that date, which we have signed
under reference to. this report. 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 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 the 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) (Amendment) Order,
2004 (together the "Order") issued by the Central Government jn terms
of sub-section (4A) of section 227 of the Companies Act, 1956 we
enclose in the Annexure hereto a statement on the matters specified in
the paragraphs 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, 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 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
those books;
(c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report - -, are in agreement with the
books of accounts ;
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement are in compliance with the Accounting Standards
referred to in sub-section (3C) of the section 211 of the Companies
Act1, 1956;
(e) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, none of the Directors is
disqualified as on 31-3-2012 from being appointed as a Director under
clause (g) of sub-section (1) of section 274 of the Companies Act, 1956
on the said date;
(f) In qur opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the notes
thereon 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 the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012; ii. in the case of the Profit and Loss Account,
of the loss for the year ended on that date ; and iii. in the case of
the Cash Flow Statement, of the Cash Flow for the year ended on that
date .
Referred to in Paragraph 3 of our Report of even date
1. a) In respect of fixed assets, the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixeti assets.
b) The fixed assets have not been verified by the management during
this year. The discrepancies (between physical verification and book
records) and accounting for such discrepancies does not arise. N ''
c) There was no sale of fixed assets during the year.
2. There is no inventory during the year and hence reporting under
clause 4(ii) of the order does not arise.
3. In our opinion, and according to the information and explanations
given to us, the Company has not granted any loans, secured or
unsecured to the companies, firms or individual parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the reporting under clause 4(iii) of the order does not
arise. -
4. a) Iri''our opinion and according to the information and
explanations given, to us, we are of the opinion that the particulars
of contracts or arrangements referred to in section 301 of the
Companies Act, 1956 have been entered in the register maintained under
that section.
b) In our opinion and according to the information and explanations
given to us, there are no- transactions made in pursuance of such
contracts or arrangements and hence reporting under this clause does
not arise.
5. In our opinion a.nd according to the information and explanations
given to us, the Company-has not accepted deposits from public. Hence
reporting under this clause does not arise.
6. The-Company does not have any internal audit system to commensurate
with the size of the company and the nature of its business and
services.
7. There are accumulated losses as at the year end. The company has
incurred cash losses during the financial year covered by our audit and
incurred cash loss in the immediately preceding financial year.;
8. The reporting untler clauses 4(iv) (viii) (ix) (xi) (xii) (xiii)
(xiv) fcv) (xvi) (xvii) (xviii) (xix) (xx) and (xxi) does not arise as
the same are not applicable to the company.
For T.Selvaraj & Co
Chartered Accountants
Firm Regd No:003703S
Place: Chennai T.Selvaraj
Date: 1st-September 2012 Partner
Membership No.11370
Mar 31, 2011
1. We have audited the attached Balance Sheet of SV GLOBAL MILL
LIMITED as at 31st March 2011, the Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed there to.
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 the 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 (Auditors'' Report)(Amendment) Order,
2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we give in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to above, we
report that :
a) We have obtained all 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 such
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this Report are in agreement with the Books of Account;
d) In our opinion the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt by this report, 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 representation received from the Directors,
as on 31/03/2011 and taken on records by the Board of Directors, we
report that, none of the Directors are disqualified as on 31/03/2011
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) The said accounts, in our opinion and to the best of our information
and according to the explanations given to us, 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 the case of Balance Sheet, of the State of Affairs of the
Company as at 31s1 March 2011,
ii. In the case of Profit and Loss Account, of the LOSS of the Company
for the year ended on that date; and
iii. In the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE
Referred to in Paragraph 3 of our Report of even date
1. (a) The Company is maintaining proper records showing full
Particulars, including quantitative details and situation of fixed
assets, which needs to be updated.
(b) The fixed assets have not been verified by the management during
this year. The discrepancies (between physical verification and book
records) and accounting for such discrepancies does not arise.
(c) The Company has not disposed off any fixed assets during the year.
2. There is no inventory during the year and hence reporting under
clause 4(ii) of the order does not arise.
3. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to the
companies, firms or individual parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
the reporting under clause 4(iii) of the order does not arise.
4. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements and hence reporting under this clause does
not arise.
5. In our opinion and according to the information and explanation
given to us, the Company has not accepted deposits from public. Hence
reporting under this clause does not arise.
6. The Company does not have any internal audit system to commensurate
with the size of the company and the nature of its business and
services.
7. There are accumulated losses as at the year end. The company has
incurred cash losses during the financial year covered by our audit and
incurred cash loss in the immediately preceding financial year.
8. According to the information given to us, the Company has made
preferential allotment of preference shares during the year as follows:
(i) 23902516 9% Cumulative Redeemable Preference Shares of Rs.5 each
amounting to
Rs.11,95,12,580/- (ii) 39200 9.75 % Cumulative Redeemable Preference
Shares of Rs.5 each amounting to Rs.1,96,000/-
The Company has not made any preferential allotment of equity shares
during the year.
9. The reporting under clauses 4 (iv) (vii) (viii), (ix), (xi), (xii),
(xiii), (xiv), (xv), (xvi), (xvii), (xix), (xx) and (xxi) does not
arise as the same are not applicable to the company.
For TSELVARAJ & CO
CHARTERED ACCOUNTANTS
FIRM REGN NO .003703S
TSELVARAJ PARTNER
Place: Chennai MEMBERSHIP No: 11370
Date: 26.08.11
Mar 31, 2010
1. We have audited the attached Balance Sheet of S V GLOBAL MILL
LIMITED as at 31st March 2010, the Profit & Loss Account 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 (Auditors'' Report) (Amendment) Order,
2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we give in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to above, 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 purposes of
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 such
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion the Balance Sheet, the Profit & Loss Account and the
Cash Flow Statement dealt with by this report, comply with the
Accounting Standards referred to in Sub-section (3C) of section 211 of
the Companies Act, 1956;
e) On the basis of the written representations received from the
Directors, as on 31/03/2010 and taken on records by the Board of
Directors, we report that, none of the Directors are disqualified as on
31/03/2010 from being appointed as a Director in terms of Clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) We draw the attention of members to the following Note: Transfer of
assets from the Binny Ltd as per the High Court Sanctioned Scheme of
Demerger and consequent accounting of share application pending
allotment are stated in the notes on accounts.
g) The said accounts, in our opinion and to the best of our information
and according to the explanations given to us, 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 the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March 2010,
ii. in the case of the Profit SLossAccount, of the LOSS of the Company
for the year ended on that date; and
iii. In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE
Re: S V GLOBAL MILL LIMITED
Referred to in paragraph 3 of our report of even date
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets, which needs to be updated.
(b) The fixed assets have been verified by the management during this
year. The discrepancies (between physical verification and book
records) and accounting for such discrepancies does not arise.
(c) The Company has not disposed off any fixed assets during the year.
2. There is no inventory during the year and hence reporting under
clause 4(ii) of the Order does not arise.
3. According to the information and explanations given to us, the
company has not granted or taken any loans, secured or unsecured, to or
from the companies, firms or individual, parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the reporting under clause 4 (iii) of the Order does not
arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business, in respect
of fixed assets. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal control
systems.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements and hence reporting under this clause does
not arise.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from public. Hence
reporting under this clause does not arise.
7. The Company does not have any internal audit system to commensurate
with the size of the company and the nature of its business and
services.
8. There are accumulated losses as at the year end. The company has
incurred cash losses during the financial year covered by our audit and
incurred cash loss in the immediately preceding financial year.
9. According to the information given to us, the company has not made
any preferential allotment of shares during the year. The amount of
share capital pending allotment is as per the high court sanctioned
scheme of demerger, as stated in the notes on accounts".
10. 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.
11. The reporting under clauses 4(viii), (ix), (xi), (xii), (xiii),
(xiv), (xv), (xvi), (xvii), (xix) and (xx) does not arise as the same
are not applicable to the company.
ForT.SELVARAJ & CO
CHARTERED ACCOUNTANTS
Firm Regn.No:003703S
Place: Chennai.
Date: 25.08.2010 T.SELVARAJ
Partner
Membership No.11370