Mar 31, 2015
We have audited the accompanying financial statements of S.R INDUSTRIES
LTD., which comprise the Balance Sheet as at March 31, 2015, the
Statement of Profit and Loss and Cash Flow Statement for the period
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 Section 133 of the Companies
Act, 2013 (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 misstatements, 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 material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
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, 2015;
b) In the case of the Statement of Profit and Loss, of the Profit for
the period ended on that date; and
c) In the case of the Cash Flow Statement of the cash flows for the
period 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 (3) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs of the Order.
2. As required by Section 143(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
Section 133 of The Act.
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 March 31, 2015, from being appointed as a director
in terms of sub-section (2) of Section 164 of The Act.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of S.R INDUSTRIES on the accounts of the Company for the
period ended 31st March, 2015.
On the basis of such checks as we considered appropriate during the
course of our audit, and according to the information and explanations
given to us, we report that:
1. IN RESPECT OF ITS FIXED ASSETS:
a. The Company has maintained proper records showing full particulars
including quantitative details and the situation of fixed assets on the
basis of available information.
b. As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
physical verification.
c. In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. IN RESPECT OF INVENTORIES:
a. The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. According to the information and explanation given to us, the
procedure of physical verification of inventories followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
c. The Company has maintained proper records of inventories As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
However minor discrepancies noticed on verification between the
physical stocks were properly adjusted in the consumption of stores.
3. IN RESPECT OF LOANS GIVEN:
According to the information and explanations given to us and on the
basis of our examination of the books of accounts, the Company has not
granted any loans, secured or unsecured, to Companies, firms or other
parties listed in the register maintained under Section 189 of The Act
4. IN RESPECT OF INTERNAL CONTROL:
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 the nature of its business for the purchase
of inventory and fixed assets and also for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in Internal control system
5. IN RESPECT OF DEPOSIT FROM PUBLIC:
According to information and explanations given to us, the Company has
not accepted any deposits from the public.
6. COST ACCOUNTING RECORDS:
We have reviewed the books of account maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of cost records under sub-section (1) of section 148 of the
Act but and are of the opinion that the prescribed accounts and records
have been made and maintained, However we have not vouched the said
records.
7. IN RESPECT OF STATUTORY DUES:
(a) The Company is not regular in depositing undisputed statutory dues
with the appropriate authorities such as Gratuity, ESI, EPF, TCS, TDS,
Excise Duty, Service Tax and CST. However, as at 31st March 2015, there
are no such dues outstanding for a period of more than six months from
the date they became payable.
(b) The following are disputed amounts outstanding, but were not paid
by the Company as at 31st March 2015:
Name Nature of Dues Amount Forum where
of the (Rs in Lacs) dispute is
Statute pending
Excise Duty Excise Duty 258.70 CESTAT
Excise Duty Excise Duty 723.00 CESTAT
(c) As per information and explanations given to us, the company was
not required to transfer any amount in Investor Education and
Protection Fund.
B. LOSS MAKING COMPANY:
The Company has accumulated losses of Rs.2567.83 Lacs at the end of the
financial year which is more than 50% of the net worth of the Company.
Further, the Company has not incurred cash loss during the financial
year covered by our audit and in the immediately preceding financial
year.
9. REPAYMENT OF DUES:
Based on our audit procedures and according to the information and
explanations given to us, the Company has paid dues to banks with
certain delays. The overdue amounts as at 31st March 2015 were Rs.
65.39 Lacs out of which Rs. 20.72 Lacs has since been paid.
10. GUARANTEE GIVEN:
As per the information and explanations given to us, we report that the
company has not given guarantee for the loans taken by others from
banks or financial institutions
11. END -USE-OF BORROWING:
As per the information and explanations given to us, we report that the
Company has not raised any term loans during the year.
12. FRAUDS:
Based upon the audit procedures performed for the purpose of reporting
the true and fair view of the financial statements and as per 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
period under audit
FOR KANSAL SINGLA & ASSOCIATES
Chartered Accountants
Place: Chandigarh
Date: May 8, 2015
sd/-
C.A. Surender Kumar
Partner
M.No.070405
FRN No 03897N
Mar 31, 2014
We have audited the accompanying financial statements of S.R INDUSTRIES
LTD., which comprise the Balance Sheet as at March 31,2014, the
Statement of Profit and Loss and Cash Flow Statement for the period
then ended and a summary of significant accounting policies and other
explanatory Information.
Management's Responsibility tor 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. 1856 (The Act,) This responsibility Indudes
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 end are free from material misstatements,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility Is to express an opinion on these financial
statements baaed 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 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 lo design audit
procedures that are appropriate In the, circumstances,. An audit also
Includes evaluating the appropriateness of accounting policies used and
the reason ableness 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 la sufficient and
appropriate to provide a basts lor our audit opinion.
Opinion
In our opinion and to the best of our Information end 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 geneally accepted In
India:
a) In the case of the Balance Sheet, of the slate of affaire of the
Company as at Match 31.2014;
b) In the case of the Statement of Profit and Loss, of the Profit for
the period ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
period ended on that date.
Report on other legal and Regulatory requirements.
1. As required by the Companies (Auditors 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 at 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 tar 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
subsection (3C) of Section 211. of The Act,
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 March 31,2014,from being appointed as a director in
terms of clause (g) of sub- section (1) of Section 274 of The Act,
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF S.R. INDUSTRIES ON THE ACCOUNTS OF THE COMPANY FOR THE
PERIOD ENDED MARCH 31 2014
On the basis of such checks as we considered appropriate and according
to the Information and explanations given to us. during the course of
our audit, we report that
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained lo us, fixed assets have been physically verified by
the management at reasonable Intervals and no material discrepancies
were noticed on such verification
(c) During the year, the Company has not disposed off any part of the
plant and machinery affecting the going concern status of the Company
2. (a) According to the Information and explanations given to us, the
Inventory has been physically verified by the Stock auditors till 31st
January 2014 In terms of their appointment by the bankers, we have
relied upon the physical verification done by the said auditor.
(b) In our opinion and according lo the Information and explanations
given to us, the procedures of physical verification of inventories ere
reasonable and adequate in relation to the size of the Company and the
nature of lb business'
(C) The Company Is maintaining proper records of Inventory. AS
explained to us. no material discrepancies were noticed on physical
verification' However minor discrepancies noticed on verification
between the physical stocks were properly adjusted In the consumption
of stores
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of accounts, the Company
has not granted any loans, secured or unsecured, to Companies, firms or
other parties listed In the register maintained under Section 301 of
The ACT.
(b) As per Information given and records produced before us. the
Company he* taken unsecured loans from two Directors. The Balance
outstanding as at 31st march 2014 from these parties amounts to Rs
567.60 lacs and maximum amount outstanding during the year was Rs
646.40 lacs.
(c) As explained to us, the terms 8 conditions on which such loans were
accepted are not prejudicial to the Interest of the Company.
(d) No stipulation has been specified lor the repayment of these loans.
4. In our opinion and according to the Information and explanations
given to us, there Is generally an adequate Internal control procedure
commensurate with the size of the Company and the nature of Its
business, for the purchase of Inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses In the
internal control system has been noticed.
5. According to the information and explanations provided by the
management, the particulars of contracts or arrangements that need to
be entered Into the register maintained under section 301 of the Act
have been so entered'
6. In our opinion and according to the Information and explanations
given to us, the Company has not accepted the deposits covered as per
the provisons of sections 58A and 58AA or any other provisions of the
Act.
7. As per information 4 explanations given by the management' the
Company has an internal audit system commensurate with Its size and the
nature of Its business'
8. Maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section M) of section 209 of the Act
As per Information 4 explanations given by the management we are of the
opinion that prims facie the prescribed accounts end records have been
made and maintained'
8. (a) The company Is not regular In depositing undisputed statutory
dues with the appropriate authorities. However, as at 311 March 2014,
there are no such dues outstanding for a period of more than six months
tram the date they became payable'
(b) The following are disputed amounts outstanding, but were not paid
by the Company as at 31St March 2014;
New of the Nature of Amount in Forum where
Statue Duet Dues dispute it
pending
Income Tax Demand u/s 1471143 (3) 43.02 CIT
(Appeals),
chd
Excise Duty Excise Duty 258.70 CESTAT
Excite Duty Excite Duty 723.00 CESTAT
10. The Company has accumulated loss of Rs.2673.18 lacs at the end of
the financial year which la more than 50% of the net worth of the
Company. Further, the Company has not incurred cash loss during the
financial year covered by our audit. However there was a cash loss of
Rs. 216.84 lacs during the Immediatety preceding financial year
11. In our opinion and according to the Information and explanations
given to us during the year under audit, the company has paid with
certain delays,'the amounts due to banks and financial Institutions.
The overdue amounts as at 31st March 2014 was Rs 131.99 Lacs out of
which Ra. 115.23 lacs has since been paid
12. According to the information and explanations 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.
13 The Company Is not a chit fond or a nidhi/mutual benefit fond/
society.
14. According to information and explanations given to us, the Company
is not trading in Shares. Mutual funds & other Investments'
15. According to the Information and explanations given to us, the
company has not given any guarantees for loan taken by others from any
bank or financial Institution.
16. Based on our audit procedures and on the information given by the
management, we report that the Company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31 at
March, 2014, we report that no funds raised on short-term basis have
been used for tong-term Investment by the Company.
18. According to the Information and explanations given to us, the
Company has not made preferential allotment of equity shares to parties
covered in the Register maintained under Section 301 of The Act.
18. The Company has not Issued any debentures during the period
under audit.
20. According to the information and explanations given to us. during
the period covered by our audit report, the Company has not raised any
money by public issue of equity shares.
21. Based on the audit procedures performed end the Information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management,
FOR KANSAL SINGLA & ASSOCIATES
Chartered Accountants
Place; Chandigarh
Date; May 31, 2014 sd/-
CA S.K, Arora
Partner
M.No.070405
FRN No. 03897N
Mar 31, 2013
1. Report on the Financial Statements
We have audited the accompanying financial statement of S.R.
Industries Limited, which comprise the Balance Sheet as at March 31,
2013, the Statement of Profit and Loss and Cash Flow Statement for the
period then ended and a summary of significant accounting policies and
other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preperation 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 sun-section (3C) of Section 211
of the Companies Act, 1956 (The Act). This responsibility includes the
design, implementation and maintainence 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 misstatements, whether
due to fraud or error.
3. 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 judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropiate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. 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 ad 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 Account, for the
period ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
period ened on that date.
5. Report on other Legal and Regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
(ÂtheOrderÂ) issued by the Central Goverment of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the metters 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
subsection (3C) of Section 211 of the Act, except non- provision of
liability as required by AS-15 ÂACCOUNTING FOR RETIREMENT BENEFITSÂ.
e) On 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 March 31, 2013, from being appointed as a director
in terms of clause (g) of sub-section (1) of Section 274 of the Act.
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF S.R. INDUSTRIES LIMITED ON THE ACCOUNTS OF THE
COMPANY FOR THE PERIOD ENDED MARCH 31, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us, during the course of
our audit, we report that;
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals and no material discrepancies
were noticed on such verification.
(c) During the year, the Company has not disposed off any part of the
plant and machinery affecting the going concern status of the Company.
2. (a) According to the information and explanations given to us, the
inventory has been physically verified by the stock auditors till April
30, 2013 in terms of their appointment by the bankers and quantitative
details have been reconciled up to March 31, 2013. We have relied upon
the physical verification done by the said auditor.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories 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
explained to us, no material discrepancies were noticed on physical
verification. However minor discrepancies noticed on verification
between the physical stocks were properly adjusted in the cosumption of
stores.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to Companies, firms or
other parties listed in the register maintained under Section 301 of
the Act.
(b) As per information given and records produced before us, the
Company has taken unsecured loans from two Directors and Companies
covered in the Register maintained under Section 301 of The Act. The
Balance outstanding as at March 31, 2013 from these parties amounts to
Rs 646.39 lacs and maximum amount outstanding during the year was Rs
1022.93 lacs.
(c) As explained to us, the terms & conditions on which such loans were
accepted are not prejudicial to the interest of the Company.
(d) No stipulation has been specified for the repayment of these loans.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in
internal controls has been noticed.
5. According to the information and explanations provided by the
management, the particulars of contracts or arrangements that need to
be entered into register maintained under Section 301 of The Act have
been so entered.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted the Deposits covered as per
the provisions of Sections 58A and 58AA or any other provisions of The
Act. However, the company has accepted unsecured loans from directors
and intercorporate loans from Companies which are within exempted
category of the said section.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with the size and
nature of its business.
8. As per information & explanations given by the management,
maintenance of cost records has been prescribed by the Central
Goverment under clause (d) of sub-section (1) of Section 209 the Act
and we are of the opinion that prima-facie the prescribed accounts and
records have been made and maintained.
9. (a) The Company is regular in depositing undisputed dues for
a period of more than six month for the date they became payable with
appropiate authorities except Service Tax and Provident fund.
(b) According to the information and explanations given to us Rs 21.31
lacs payable in respect of provident fund and Rs. 1.60 lacs payable in
respect of service tax were in arrears as at March 31, 2013 for a
period more than six months from the date they became payable.
(c) The following are disputed amounts Outstanding for a period of more
than six months from the date they became payable, but were not paid by
the Company as at March 31, 2013.
10. The Company has accumulated loss of Rs.2687.93 lacs at the end of
the financial year. Further, the Company has incurred cash loss of
Rs.218.84 lacs during the financial year covered by our audit and Rs
1302.79 lacs during the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has paid with certain delays, the amounts due
to banks and financial institutions. The overdue interest of Rs.35.04
Lacs as on March 31, 2013 has since been paid.
12. According to the information and explanations 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.
13. The Company is not a chit fund or a nidhi / mutual benefit fund/
society.
14. According to the information and explanations given to us, the
Company is not trading in Shares, Mutual funds & other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from any
banks or financial institution.
16. Based on our audit procedure and on the information given by the
management, we report that the Company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at March 31,
2013, we report that the no funds raised on short-term basis have been
used for long-term investment by the Company.
18. According to the information and explanations given to us, the
Company has made preferential allotment of equity shares to parties
covered in the Register maintained under Section 301 of The Act. The
price at which such shares are allotted is not prejudicial to the
interest of the Company.
19. The Company has not issued any debentures during the period under
audit.
20. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not raised any
money by public issue of equity shares.
21. Based on the audit procedures and the information and explanations
given to us, we report that no fraud on or by the Company has been
noticed or reported during the year, nor have we been informed of such
case by the management.
FOR KANSAL SINGLA & ASSOCIATES
Chartered Accountants
sd/-
C.A. S.K. Kansal
Partner
Place: Chandigarh M.No.080632
Date: May 28, 2013 FRN No. 03897N
Jun 30, 2012
1. We have audited the attached Balance Sheet of S.R. Industries
Limited as at 30th June, 2012. Statement of Profit & Loss Account and
Cash Flow Statement for the fifteen months period 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 auditing standards
generally accepted in India. These 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 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 statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order (Amendment).
2004 issued by the Central Government of India in terms or sub- section
(4A) of Section 227 of the Companies Act: 1956 (The Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said order.
4. Further to our comments in 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 purpose of our
audit
(ii) in our opinion, proper books of account as required by law have
been kept by the Company so (ar as appears from our examination ol
those books.
(iii) the Balance Sheet. Statement of Profit & Loss Account and Cash
Flew Statement dealt with by this report are in agreement with the
books of accounL
(iv) In our opinion, the Balance Sheet Statement of Profit & Loss
Account and Cash Flow Statement dealt with by this report comply with
the Accounting Standards referred to In sub-section (3C) of Section 211
of The Act.
(v) on the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as at 30th June, 2012 from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of The Act.
(vi) In our opinion and to the best of our Information and according to
the explanation given to us, the said accounts subject to and notes
(vli) & (vlii) of Note 21 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 30th June, 2012,
b. In the case of the Statement of Profit and Loss account, of the
Loss for the fifteen months period ended on that date and
c. In the case of Cash Flow Statement of the Cash Flows Tor the
fifteen months period ended on that date.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. ''
(b) As per information given and records produced before us, all the
assets have been physically verified by the management during the
period. In our opinion, the frequency of verification is reasonable
having regard to the size of the Company and the nature of its fixed
assets. The discrepancies noticed on such verification were not
significant in nature and have been properly dealt with.
(c) During the period, the Company has disposed off its terry towel
division at Derabassi. however, it does not affect the going concern
status of the Company as footwear division at Village. Singha Distt.
Una(H.P.) is in operation.
(ii) (a) As per information given and records produced before us, the
Inventories except small items of stores and spares has been physically
verified during the period by the management tn our opinion, the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its business. As regards Stores and
Spares, there are numerous small items, total value of which is
insignificant as compared to total inventories. .
(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 inventories. As
explained to us. no material discrepancies were noticed on physical
verification, however minor discrepancies noticed on verification
between the physical and book stock has been properly adjusted.
(iii) (a) As per information given and records produced before us, the
Company has not given any advance to the Companies/Parties , covered in
the Register maintained under Section 301 of The Act.
(b) As per information given and records produced before us, the
Company has taken unsecured loans and intercorporate deposits from
Directors and Companies covered in the Register maintained under
Section 301 of The Act Balance outstanding as at 30th June, 2012 from
these parties amounts to Rs 621.69 lacs and maximum amount outstanding
during the period was Rs 1544.05 lacs.
(c) As explained to us, the terms & conditions on which such loans were
accepted are not prejudicial to the interest of the Company.
(d) No stipulation has been specified for the repayment of these loans.
(iv) In our opinion and according to the information and explanations
given to us. it appears to be an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of Inventories, fixed assets and sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) According to the information and explanations given to us. the
particulars of contracts or arrangements that need to be entered into
the Register maintained under Section 301 of The Act have been so
entered.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted the Deposits covered as per
the provisions of Sections 58A and 58AA or any other provisions ol The
Act, and The Companies (Acceptance of Deposits) Rules. 1978. However,
the company has accepted unsecured loans from directors and
intercorporate loans from companies which are within exempted category
of the said section.
(vii) In our opinion, the Company, has in house internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has prescribed the maintenance of cost records under
Section 209 (1) (d) of The Act we have broadly reviewed these records
maintained by the Company and are of the opinion that, prima-facie. the
prescribed records seems to have been maintained.
(ix) (a) The Company Is not regular In depositing with appropriate ''
authorities undisputed statutory dues such as Income Tax, Sates Tax,
Service Tax, Excise Duty, Provident fund, ESI and other materia/
statutory dues applicable.
(b) According to Mie information and explanations given to us, Rs 23.33
lacs payable in rasped of provident fund wara in arrears, as at 30th
June, 2012.
(c) According to the Information and explanations given to us, the
disputed demand of excise duty against the Company amounting to Rs.
981.70 Lacs (Previous Year 981.70 Lacs) have not been deposited 3S
appeals are pending willi CESTAT for the final adjudication.
(x) The Company has accumulated loss of Rs.2339.20 lacs at the end of
the financial year. Further, the Company has incurred cash loss of Rs.
1302.79 lacs during the financial year covered by our audit and Rs
790.51 lacs during the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has defaulted In repayment of dues to banks
amounting to Rs.69.91 lacs as at 30th June, 2012, However the same has
been paid by 17th August, 2012.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basts 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.
(xiv) In our opinion, the Company Is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) 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 banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans raised during the period have been utilized for the purposes
for which the same were taken.
(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 the 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 made preferential allotment of equity shares to parties
covered in the Register maintained under Section 301 of The Act. The
price at which such shares are allotted is not prejudicial to (he
interest of the Company.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
(xx) According to the information and explanations given to us. during
the period covered by our audit report, the Company has not " raised
any money by public issue of equity shares, however the '' Company has
issued preferential equity shares, convertible share , warrants 5 non
cumulative preference shares.
(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 KANSAL SINGLA & ASSOCIATES
Chartered Accountants
C.A.S.K. Kansal
Partner
place: Chandigarh M. No.080632
Date: December 04, 2012 FRN No. 03897N
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s S R. Industries
Limited as at March 31. 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 Companys
management Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. These 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) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the "Order-) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act 1956 and
on the basis of such checks of the books and records of the Company as
we consider appropriate and according to the information and
explanations given to us we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in 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
(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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of Account;
(iv) in our opinion the Balance Sheet, Profit & Loss Account and 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;
(v) on the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on March 31, 2010 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 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31. 2010;
b) in the case of the Profit and Loss Account, of the loss for the year
c) ended case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT TO THE MEMBERS OF S.R.INDUSTRIES
LIMITED ON THE ANNUAL ACCOUNTS FOR THE YEAR ENDED MARCH 31. 2010
(Referred to in paragraph 3 of our report of even date)
(i) (a)The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, all the
assets have not been physically verified by the Management during the
year, but there is a regular programme of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. As explained to us, no material discrepancies
were noticed on such verifications.
(c) According to information and explanations given to us, during the
year, the Company has disposed off a part of old obsolete plant and
machinery which do not effect the going concern stap us of the Company
as production has reduced marginally.
(II) (a)Accordingto information and explanations given to us, the
inventory have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b)ln our opinion, 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. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) (a) According to information and explanations given to us, the
Company has not granted any loan to the parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) According to the information and explanations given to us, the
Companies Act, 1956 and an amount of Rs. 1138.80 lacs is outstanding as
on March 31, 2010. The maximum amount outstanding during the year was
Rs. 1141.58 lacs. In our opinion, the terms and conditions on which
these loans have been taken are not prejudicial to the interest of the
Company.
(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 the nature of its business with regard
to purchases of inventory, fixed assets and with regard to sale of
goods. During the course of our audit, we have neither come across nor
have been informed of any continuing failure to correct major
weaknesses in internal control system.
(v) According to the information and explanations given to us, we are
of the opinion that the particulars of transactions that need to be
entered into the register maintained under Section 301 of the Companies
Act 1956 have been so entered.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted the Deposits covered as per
the provisions of Section 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules 1975.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii)According to the information and exenlanations given to us, the
maintenance of cost records have been prescribed b/the Central
Government under Section 209(1 )(d) of the Companies Act, 1956 which
are maintained by the Company. However, we have not made detailed
scrutiny of these records.
(ix))(a)According to the records of the Company, the Company is
generally regular in depositing with ap,ropriate authorities,
undisputed statutory dues including provident fund investors education
and protection fund employees state insurance, income tax, sales tax,
wealth tax, custom duty excise duty, service tax, cess and other
material statutory dues applicable to it with appropriate authorities.
(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, customs duty and excise duty were in arrearsas at
31st March, 2010 for a period of more than six months from the date
they became payable.
(c) According to the information and explanations given to ur, the
disputed demands of excise duty against the Company amounting to Rs.
981.70 lacs (previous year Rs. 981.70 lacs) have not been deposited as
appeals are pending with CESTAT for final adjudication.
(x) The Company does not have any accumulated losses at the end of the
financial year. Also, the company has not incurred any cash losses
during the current financial year covered by our audit and in 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 the
banks and has not issued any debentures.
(xii) According to the information and explanations given to us the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii)The Company is not a chit fund, nidhi or mutual benefit
fund/society. Therefore Clause 4(xiii) of the said Order is not
applicable to the
(xiv) The Company is not dealing in or trading in shares, secures,
debentures and other investments. Therefore, Clause 4(xiv) of the said
Order is not applicable to the Company
(xv) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks
or financial institutions.
(xvi)ln our opinion, the term loans have been applied for the purpose
for which they were raised.
(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 to finance
long-term investments. No long-term funds have been used to finance
short-term investments except permanent working capital requirements.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to Parties and
Companies in the register maintained under Section 301 of the Companies
Act, 1956.
(xix)According to the information and explanations given to us, during
the year covered by our audit report, the Company has not issued any
debentures.
(xx) According to the information and explanation given to us, during
the year covered by our audit report, the Company has not raised any
money by public issue.
(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 our audit.
For KANSAL SINGLA & ASSOCIATES
Chartered Accountants
S.K. KANSAL
Place : Chandigarh Parter
Date : July 7, 2010 Membership No. 080632
FRN 003897N
Mar 31, 2009
1. We have audited the attached Balance Sheet of M/s S.R. Industries
Limited as at March 31, 2009, 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 Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. These 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) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the "Order") issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and
on the basis of such checks of the books and records of the Company as
we consider appropriate and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in 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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of Account;
(iv) in our opinion, the Balance Sheet, Profit & Loss Account and 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;
(v) on the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on March 31, 2009 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 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2009;
b) in the case of the Profit and Loss Account, 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 TO THE MEMBERS OF S.R.INDUSTRIES
LIMITED ON THE ANNUAL ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2009
(Referred to in paragraph 3 of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, all the
assets have not been physically verified by the Management during the
year, but there is a regular programme of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. As explained to us, no material discrepancies
were noticed on such verifications.
(c) According to information and explanations given to us, during the
year, the Company has not disposed off major part of the plant and
machinery affecting the going concern status of the Company. Therefore
Clause 4(i)(c) of the Companies (Auditors Report)Order, 2003
(hereinafter referred to as the "said Order") is not applicable to the
company.
(ii) (a) According to information and explanations given to us, the
inventory have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable,
(b) In our opinion, 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. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) (a) According to information and explanations given to us, the
Company has not granted any loan to the parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) According to the information and explanations given to us, the
Company has taken unsecured loans from three directors and one company
covered in the register maintained under Section 301 of the Companies
Act, 1956 and an amount of Rs. 356.00 lacs is outstanding as on March
31, 2009. The maximum amount outstanding during the year was Rs. 356.00
lacs. In our opinion, the terms and conditions on which these loans
have been taken are not prejudicial to the interest of the Company.
(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 the nature of its business with regard
to purchases of inventory, fixed assets and with regard to sale of
goods. During the course of our audit, we have neither come across nor
have been informed of any continuing failure to correct major
weaknesses in internal control system.
(v) According to the information and explanations given to us, we are
of the opinion that the particulars of transactions that need to be
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted the Deposits covered as per
the provisions of Section 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) According to the information and explanations given to us,the
maintenance of cost records has been prescribed by the Central
Government under Section 209(1 )(d) of the Companies Act, 1956 which
are maintained by the Company. However, we have not made detailed
scrutiny of these records.
(ix) (a) According to the records of the Company, the Company is
generally regular in depositing with appropriate authorities,
undisputed statutory dues including provident fund, investors education
and protection fund, employees state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, service tax, cess and other
material statutory dues applicable to it with appropriate authorities.
Further, since the Central Government has not yet prescribed the amount
of cess payable under Section 441A of the Companies Act, 1956, we are
not in a position to comment upon the regularity or otherwise of the
Company in depositing the same.
(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, customs duty and excise duty were in arrears, as at
31s March, 2009 for a period of more than six months from the date
they became payable.
(c) According to the information and explanations given to us, the
disputed demands of excise duty against the Company amounting to Rs.
981.70 lacs (previous year Rs. 981 70 lacs) has not been deposited as
appeals are pending with CESTAT for final adjudication.
(x) The Company does not have any accumulated losses at the end of the
financial year. Also, the company has not incurred any cash losses
during the current financial year covered by our audit and in 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 the
financial institutions and banks. The Company has not issued any
debentures.
(xii) According to the information and explanations given to us the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund, nidhi or mutual benefit fund/
society. Therefore, Clause 4(xiii) of the said Order is not applicable
to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, Clause 4(xiv) of the said
Order is not applicable to the Company.
(xv) According to the information and explanations given to us.the
Company has not given guarantees for loans taken by others from banks
or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(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 to finance
long-term investments. No long-term funds have been used to finance
short-term investments except permanent working capital requirements.
(xviii) According to the information and explanations given to us,the
Company has not made preferential allotment of shares to Parties and
Companies in the register maintained under Section 301 of the Companies
Act, 1956.
(xix) According to the information and explanations given to us, during
the year covered by our audit report, the Company has not issued any
debentures.
(xx) According to the information and explanation given to us, during
the year covered by our audit report, the Company has not raised any
money by public issue.
(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 KANSAL SINGLA & ASSOCIATES
Chartered Accountants
S.K.KANSAL
Place: Chandigarh Partner
Date : June 30, 2009 Membership No. 080632
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