Auditor Report of SAR Auto Products Ltd.
Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of SAR AUTO PRODUCTS LIMITED (âthe Companyâ), which comprises the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year ended on that date, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these 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 have 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the 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 Companyâs Directors, as well as evaluating the overall presentation of the 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 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 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 including Ind AS of the state of affairs (financial position) of the Company as at 31st March, 2018 and its Profit (financial performance) including other comprehensive income, its Cash Flow Statement and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ the statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, We further 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 Cash Flow Statement dealt with by this Report are in agreement with the books of accounts;
D. In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards referred to in Section 133 of the Act, read with Rule 7 of the Companies (Indian Accounting Standards) Rules, 2015.
E. On the basis of written representations received from the directors as on 31st March, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director under sub-section (2) of Section 164 of the Act.
F. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ
G. With respect to the other matters to be included in the Auditorâs 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 does not have any pending litigations which would impact its financial position.
II. The Company did not have any long-term contracts including derivative contracts for which there requires commenting on 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 A To The Independent Auditorsâ Report
(Referred to in paragraph 1 under the heading of âReport on other Legal and Regulatory Requirementsâ of our report of even date)
On the basis of the records produced to us for verification/perusal, such checks as we considered appropriate, and in terms of information and explanations given to us on our enquiries, we state that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of two years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets have been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) According to the information & explanation given to us and the records examined by us and based on the examination of the registered sale deed/ transfer deed / conveyance deed and other relevant records evidencing title provided to us, we report that, the title deeds, comprising the immovable properties of land and building which are free hold are held in the name of the company as at the Balance Sheet date.
(ii) According to the information and explanation given to us, the inventory has been physically verified during the year by the management at reasonable intervals and no material discrepancies were noticed on such physical verification.
(iii) According to the information and explanations given to us, during the period covered under report, the Company has not granted any secured or unsecured loan to parties covered in the register maintained under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and securities.
(v) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, 2013 in respect of goods manufactured by the Company. According to the information and explanations given to us, The Companies (Cost Records & Audit) amendment Rules, 2014 is not applicable to the company.
(vii) In respect of statutory dues;
(a) According to the information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Employee Provident Fund, ESIC, Income Tax, Sales Tax, Value Added Tax, Service Tax, Excise Duty, Cess and other material statutory dues apart from few cases of delay in payment of tax deducted at source, Sales Tax, Value Added Tax, Service Tax, Excise Duty, Goods and Service Tax, Cess and other material statutory dues.
(b) According to the information and explanations given to us, there are no dues in respect of Provident Fund, ESIC, Income Tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty, Excise Duty, Goods and Service Tax , cess and any other material dues applicable to it, were outstanding, at the year end, for a period of more than six months from the date they become payable.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of any loan either to banks, financial institutions or from the government and has not issued any debentures. The Company is enjoying Bill Discounting facilities from the Bank which is being timely honored by the company.
(ix) In our opinion and according to the information and explanations given to us, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
(x) In our opinion and according to the information and explanations given to us, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order is not applicable to the Company.
(xiii) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
(xiv) In our opinion and according to the information and explanations given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provision of clause 3 (xiv) of the Order is not applicable to the Company and hence not commented upon.
(xv) In our opinion and according to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provision of clause 3 (xv) of the Order is not applicable to the Company and hence not commented upon.
(xvi) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provision of clause 3 (xvi) of the Order is not applicable to the Company and hence not commented upon.
âAnnexure Bâ to the Independent Auditorâs Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SAR AUTO PRODUCTS LIMITED (âthe Companyâ) 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.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 Control 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 companyâs 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. we have conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) 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, 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 auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs 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 Ind AS 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 companyâs assets that could have a material effect on the Ind AS 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 and to the best of our information and according to explanations given to us, 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 31st March, 2018, based on internal financial 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 Control over Financial Reporting issued by the Institute of Chartered Accountants of India.
For J. A. Sheth & Associates,
Chartered Accountants
(Firm Registration Number - 119980W)
Jingal A. Sheth
Proprietor
(Membership No.107067)
Rajkot, 29th May, 2018
Mar 31, 2016
To,
The Members,
SAR AUTO PRODUCTS LIMITED
Report on the Financial Statements
I have audited the accompanying financial statements of SAR AUTO PRODUCTS LIMITED ("the Company"), which comprises the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year ended on that date, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters 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 includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; 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
My responsibility is to express an opinion on these financial statements based on my audit.
I 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.
I conducted my audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that I 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 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
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the financial statements.
Opinion
In my opinion and to the best of my information and according to the explanations given to me, 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 31st March, 2016;
(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, I give in the "Annexure A" the statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, I further report that:
A. I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.
B. In my opinion, proper books of account as required by law have been kept by the Company so far as it appears from my 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 accounts;
D. In my opinion, the aforesaid financial statements comply with the Accounting Standards referred to in 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 31st March, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director under sub-section (2) of Section 164 of the Act.
F. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"
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 my opinion and to the best of my information and according to the explanations given to me:
I. The Company does not have any pending litigations which would impact its financial position.
II. The Company did not have any long-term contracts including derivative contracts for which there requires commenting on 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.
(Referred to in paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" of our report of even date)
On the basis of the records produced to me for verification/perusal, such checks as I considered appropriate, and in terms of information and explanations given to me on my enquiries, I state that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of two years which, in my opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets have been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The company does not have any Immovable Property. Accordingly, the provisions of clause 3 (i) of the Order are not applicable to the Company and hence not commented upon.
(ii) (a) According to the information and explanations given to me, the inventory has been physically verified during the year by the management. In my opinion, the frequency of verification is reasonable.
(b) In my opinion and according to the information & explanations given to me, there are no discrepancies noticed on physical verification of the inventory as compared to book records which are material.
(iii) According to the information and explanations given to me, during the period covered under report, the Company has not granted any secured or unsecured loan to parties covered in the register maintained under Section 189 of the Companies Act, 2013.
(iv) In my opinion and according to the information and explanations given to me, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
(v) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, 2013 in respect of goods manufactured by the Company. According to the information and explanations given to me, The Companies (Cost Records & Audit) amendment Rules, 2014 is not applicable to the company.
(vii) In respect of statutory dues;
(a) According to the information and explanations given to me, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Employee Provident Fund, ESIC, Income Tax, Sales Tax, Value Added Tax, Service Tax, Excise Duty, Cess and other material statutory dues apart from few cases of delay in payment of tax deducted at source.
(b) According to the information and explanations given to me, there are no dues in respect of Provident Fund, ESIC, Income Tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty, Excise Duty and cess that have not been deposited with the appropriate authorities on account of any dispute.
(viii) In my opinion and according to the information and explanations given to me, the Company has not taken any loan either from banks, financial institutions or from the government and has not issued any debentures. Accordingly, the provisions of clause 3 (viii) of the Order are not applicable to the Company and hence not commented upon.
(ix) In my opinion and according to the information and explanations given to me, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
(x) In my opinion and according to the information and explanations given to me, I report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
(xi) In my opinion and according to the information and explanations given to me, managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) In my opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order is not applicable to the Company.
(xiii) In my opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv) In my opinion and according to the information and explanations given to me, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provision of clause 3 (xiv) of the Order is not applicable to the Company and hence not commented upon.
(xv) In my opinion and according to the information and explanations given to me, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provision of clause 3 (xv) of the Order is not applicable to the Company and hence not commented upon.
(xvi) In my opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provision of clause 3 (xvi) of the Order is not applicable to the Company and hence not commented upon.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
I have audited the internal financial controls over financial reporting of SAR AUTO PRODUCTS LIMITED ("the Company") as of March 31, 2016 in conjunction with my 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 Control 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
My responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on my audit. I have conducted my 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, issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that I 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.
My audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. My 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.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In my 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, criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Control over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Arun M. Kothari,
Chartered Accountant
Arun M. Kothari
Proprietor
Membership No.: 108669
Ahmedabad, dated 31st May, 2016
Mar 31, 2015
I have audited the accompanying financial statements of SAR AUTO
PRODUCTS LIMITED ("the Company"), which comprises the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year ended on that date, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters 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 includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; 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
My responsibility is to express an opinion on these financial
statements based on my audit.
I 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.
I conducted my audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that I 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 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
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion on the financial
statements.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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 31st March, 2015;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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, I 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, I further report that:
A. I have sought and obtained all the information and explanations
which to the best of my knowledge and belief were necessary for the
purposes of my audit.
B. In my opinion, proper books of account as required by law have been
kept by the Company so far as it appears from my 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
accounts;
D. In my opinion, the aforesaid standalone financial statements comply
with the applicable 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 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 under sub-section (2) of Section 164 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 my opinion and to the best of my information and
according to the explanations given to me, I report as under:
I. The Company does not have any pending litigations which would
impact its financial position.
II. The Company did not have any long-term contracts including
derivative contracts for which there requires commenting on 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.
As referred to in paragraph 1 of my report of even date, on the basis of
such checks as I considered appropriate and according to the information
and explanations given to me during the course of my audit, I report
that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of two years which, in my opinion, is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to
the programme, a portion of the fixed assets have been physically
verified by the Management during the year and no material
discrepancies have been noticed on such verification.
(ii) (a) According to the information and explanation given to me, the
inventory has been physically verified during the year by the
management. In my opinion, the frequency of verification of inventory is
reasonable.
(b) In my opinion and according to the information & explanations given
to me, 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 has maintained proper records of inventory. As
explained to me, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
(iii) According to the information and explanations given to me, during
the year, the Company has not granted any loans, secured or unsecured
loan to parties covered in the register maintained under Section 189 of
the Companies Act, 2013.
(iv) In my opinion and according to the information and explanations
given to me, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and for sale of goods and
services. During the course of my audit, I have not observed any
continuing failure to correct major weakness in internal controls.
(v) The Company has not accepted any deposits from the Public covered
under Section 73 to 76 of the Companies Act, 2013.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Companies Act, 2013 in respect of
goods manufactured by the Company. According to the information and
explanations given to me, The Companies (Cost Records & Audit)
amendment Rules, 2014 is not applicable to the company.
(vii) In respect of statutory dues;
(a) According to the information and explanations given to me, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, ESIC, Income Tax,
Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty,
Excise Duty, Cess and other material statutory dues apart from few
cases of delay in payment of tax deducted at source.
(b) According to the information and explanations given to me, no
undisputed amounts payable in respect of Provident Fund, ESIC, Income
Tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty,
Excise Duty and Cess were in arrears, as at 31st March, 2015 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to me, there
were no amounts which were required to be transferred to the Investor
Education and protection Fund by the company.
(viii) In my opinion, the Company has no accumulated losses. The
Company has incurred cash losses amounting to Rs. 2,29,83,487/- during
the year covered by my audit; however there were no cash losses in
immediately preceding year financial year.
(ix) In my opinion and according to the information and explanations
given to me, the Company has not defaulted in repayment of dues to
financial institutions and banks.
(x) In my opinion, and according to the information and explanations
given to me, the Company has not given guarantees for loans taken by
others from banks or financial institutions. Accordingly, clause 4(xv)
of the Order is not applicable.
(xi) In my opinion and according to the information and explanations
given to me and on an overall examination, the company has not raised
any term loan during the year. Accordingly, paragraph 4(xvi) of the
Order is not applicable to the Company.
(xii) According to the information and explanations given to me, no
fraud on or by the Company has been noticed or reported during the
course of my audit.
For Arun M. Kothari,
Chartered Accountant
Arun M. Kothari
Proprietor
(Membership No.108669)
Ahmedabad, 11th May, 2015
Mar 31, 2013
Report on the Financial Statements
I have audited the accompanying financial statements of SAR AUTO
PRODUCTS LIMITED ("the Company"), which comprises the Balance Sheet as
at 31st March, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year the ended on that date, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal 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
My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I 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.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the losses 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.
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, I 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, I report that:
A. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
audit;
B. In my opinion proper books of account as required by law have been
kept by the Company so far as appears from my 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. Except for the possible effects of the matter described in the
Basis for Qualified Opinion paragraph, In my 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 Companies Act, 1956;
E. On the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Statement on the Companies (Auditor''s Report) Order, 2003
To,
The Members,
Sar Auto Products Limited
Referred to in paragraph 3 of my 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 explanation given to me, the fixed
assets of the Company were physically verified by the management in a
phased & periodical manner which, in my opinion, is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) During the year, the Company has not disposed off substantial part
of fixed assets and the going concern statement of the Company is not
affected.
(ii) (a) According to the information and explanation given to me, the
inventory has been physically verified during the year by the
management. In my opinion, the frequency of verification is reasonable.
(b) In my opinion and according to the information & explanations given
to me, 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 has maintained proper records of inventory. As
explained to me, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
(iii) (a) The Company has not granted loans to the party covered in the
Register maintained under section 301 of the Companies Act, 1956.
Accordingly,sub-clause (b), (c) and (d) of the clause (iii) does not
apply.
(e) The Company has accepted secured or unsecured loans from party
covered in the Register maintained under section 301 of the Companies
Act, 1956.
Sr. Name of the Related Maximum amount due Balance due as at
No. Party at any time during the end of the
the year financial year
Amount (Rs.) Amount (Rs.)
1 Mr. Ramesh D. Virani 13,48,690/- 1,18,690/-
2 Mr. Shreyas R. Virani 77,672/- 77,672/-
(f) In my opinion and according to the information and explanation
given to me, the same is prima facie, not prejudicial to the interest
of the company.
(g) There is no stipulation for repayment of the said loan.
(iv) In my opinion and according to the information and explanations
given to me, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of fixed assets and for sale of goods. During the course
of my audit, I have not observed any continuing failure to correct
major weakness in internal controls.
(v) (a) In my opinion and according to the information and explanations
given to me, the particulars of contracts and arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five lakhs entered into
during the financial year, because of the unique and specialized nature
of the transaction and absence of any comparable prices, I are unable
to comment whether the transactions were made at prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public.
(vii) In my opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) I have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(l)(d)of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. I have however, not made
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(ix) In respect of statutory dues;
(a) According to the information and explanations given to me, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, ESIC, Income Tax,
Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty,
Excise Duty, Cess and other material statutory dues apart from few
cases of delay in payment of tax deducted at source.
(b) According to the information and explanations given to me, no
undisputed amounts payable in respect of Provident Fund, ESIC, Income
Tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty,
Excise Duty and Cess were in arrears, as at 31st March, 2013 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to me, there
are no dues in respect of Provident Fund, ESIC, Income Tax, Wealth Tax,
Sales Tax, Value Added Tax, Service Tax, Customs Duty, Excise Duty and
Cess that have not been deposited with the appropriate authorities on
account of any dispute.
(x) In my opinion, the Company has no accumulated losses. The Company
has not incurred cash losses during the year and immediately preceding
year financial year.
(xi) In my opinion and according to the information and explanations
given to me, the Company has not defaulted in repayment of dues to a
financial institutions and banks
(xii) In my opinion and according to the information & explanations
given to me, no loans and advances have been granted on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, Clause 4 (xii) of the Order is not applicable.
(xiii) In my opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Accordingly, Clause 4 (xiii) of the Order is
not applicable
(xiv) In my opinion, the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. The shares, securities, debentures and
other investments have been held by the Company in its own name except
as permissible under Section 49 of the Companies Act, 1956.
(xv) In my opinion, and according to the information and explanations
given to me, the Company has not given guarantees for loans taken by
others from banks or financial institutions. Accordingly, clause 4(xv)
of the Order is not applicable.
(xvi) In my opinion and according to the information and explanations
given to me and on an overall examination, no term loan was raised
during the year under review. Thus the provision of Clause (xvi) of the
order is not applicable.
(xvii) According to the information and explanations given to me and on
an overall examination of the balance sheet of the Company, I report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act. Accordingly, clause 4(xviii) of the Order is not
applicable.
(xix) The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is not applicable.
(xxi) According to the information and explanations given to me, no
fraud on or by the Company has been noticed or reported during the
course of my audit.
For ARUN M. KOTHARI,
Chartered Accountant
Arun M. Kothari
Proprietor
(Membership No. 108669)
Ahmedabad, 21st May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of SAR AUTO PRODUCTS
LIMITED. as at 31st MARCH 2012, the Profit & Loss Account and Cash Flow
Statement for the year ended on that date. 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.
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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order
Further to our comments in the Annexure referred to 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 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 written representations received from the
directors, as on 31st March, 2012 and taken on records by the Board of
Directors, we report that none of the director is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by 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 31st March, 2012 ;
(b) in the case of the Profit & Loss Account, of the Loss for the year
ended on that date.
(c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Statement on the Companies (Auditor''s Report) Order, 2003
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 explanation given to us, the fixed
assets of the Company were 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 verification.
(c) During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected.
(ii) (a) According to the information and explanation given to us, the
inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
(iii) (a) The Company has not granted loans to the party covered in the
Register maintained under section 301 of the Companies Act, 1956.
Accordingly, clause 4 (iii) (b), (c) and (d) does not apply.
(e) The Company has accepted secured or unsecured loans from party
covered in the Register maintained under section 301 of the Companies
Act, 1956.
Sr. Name of the Related Maximum amount due Balance due as at
No. Party at any time during the end of the
the year financial year
Amount (Rs.) Amount (Rs.)
1 Mr. Ramesh D. Virani 14,30,000/- 10,48,690/-
2 Mr. Shreyas R. Virani 3,59,712/- 77,672/-
(f) In our opinion and according to the information and explanation
given to us, the same is prima facie, not prejudicial to the interest
of the company.
(g) There is no stipulation for repayment of the said loan.
(iv) 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 with regard
to purchases of fixed assets and for sale of goods. During the course
of our audit, we have not observed any continuing failure to correct
major weakness in internal controls.
(V) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts and arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five lakhs entered into
during the financial year, because of the unique and specialized nature
of the transaction and absence of any comparable prices, we are unable
to comment whether the transactions were made at prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209(1)(d)of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however, not made
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
(ix) In respect of statutory dues;
(a) According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, ESIC, Income Tax,
Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty,
Excise Duty, Cess and other material statutory dues apart from few
cases of delay in payment of tax deducted at source.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, ESIC, Income
Tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty,
Excise Duty and Cess were in arrears, as at 31st March, 2012 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues in respect of Provident Fund, ESIC, Income Tax, Wealth Tax,
Sales Tax, Value Added Tax, Service Tax, Customs Duty, Excise Duty and
Cess that have not been deposited with the appropriate authorities on
account of any dispute.
(x) In our opinion, the Company has no accumulated losses. The Company
has not incurred cash losses during the 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 a
financial institutions and banks.
(xii) In our opinion and according to the information & explanations
given to us, no loans and advances have been granted on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, Clause 4 (xii) of the Order is not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Accordingly, Clause 4 (xiii) of the Order is not
applicable
(xiv) In our opinion, the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. The shares, securities, debentures and
other investments have been held by the Company in its own name except
as permissible under Section 49 of the Companies Act, 1956.
(xv) In our opinion, and 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. Accordingly, clause 4(xv)
of the Order is not applicable.
(xvi) In our opinion and according to the information and explanations
given to us and on an overall examination, no term loan was raised
during the year under review. Thus the provision of Clause (xvi) of the
order is not applicable.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act. Accordingly, clause 4(xviii) of the Order is not
applicable.
(xix) The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is not applicable.
(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 ARUN M. KOTHARI,
Chartered Accountant
Arun M. Kothari
Proprietor
(Membership No.108669)
Ahmedabad, 29th May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of SAR AUTO PRODUCTS LIMITED
as at 31st MARCH 2011, the Profit & Loss Account and Cash Row Statement
for the year ended on that date. 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.
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 indudes
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.
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order
Further to our comments in the Annexure referred to 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 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
Row 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 written representations received from the
directors, as on 31st March, 2011 and taken on records by the Board of
Directors, we report that none of the director is disqualified as on
31st March, 2011 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 31st March, 2011;
(b) in the case of the Profit & Loss Account, of the Profit for the
year ended on that date.
(c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
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 explanation given to us, the fixed
assets of the Company were 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 verification.
(c) During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected.
(ii) (a) According to the information and explanation given to us, the
inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
(iii) (a) The Company has not granted loans to the party covered in the
Register maintained under section 301 of the Companies Act, 1956.
Accordingly, clause 4 (iii) (b), (c) and (d) does not apply.
(e) The Company has accepted unsecured loans from two parties covered
in the Register maintained under Section 301 of the Companies Act,
1956.
Sr. Name of Related Party Maximum amount Balance due as
No. due at any time at the end of
during the year the financial year
Amount (Rs.) Amount (Rs.)
1. Mr. Ramesh D. Virani 11,75,000 11,75,000
2. Mr. Shreyas R. Virani 7,79,712 1,79,712
(f) In our opinion and according to the information and explanations
given to us, the same is prima fade, not prejudicial to the interest of
the Company.
(g) There is no stipulation for repayment of the said loan.
(iv) 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 with regard
to purchases of fixed assets and for sale of goods. During the course
of our audit, we have not observed any continuing failure to correct
major weakness in internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts and arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In respect of transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five lakhs entered into
during the financial year, because of the unique and specialized nature
of the transaction and absence of any comparable prices, we are unable
to comment whether the transactions were made at prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has prescribed the maintenance of cost
records under section 209(l)(d) of the Companies Act, 1956 in respect
of goods manufactured by the Company. We have broadly reviewed the
accounts and records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the same.
(ix) In respect of statutory dues;
(a) According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues induding Provident Fund, ESIC, Income Tax,
Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty,
Excise Duty, Cess and other material statutory dues apart few cases of
delay in payment of tax deducted at source.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, ESIC, Income
Tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty,
Excise Duty and Cess were in arrears, as at 31st March, 2011 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues in respect of Provident Fund, ESIC, Income Tax, Wealth Tax,
Sales Tax, Value Added Tax, Service Tax, Customs Duty, Excise Duty and
Cess that have not been deposited with the appropriate authorities on
account of any dispute.
(x) In our opinion, the Company has no accumulated losses. The Company
has not incurred cash losses during the year, but has incurred cash
losses during 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 a
financial institutions and banks.
(xii) In our opinion and according to the information & explanations
given to us, no loans and advances have been granted on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, Clause 4 (xii) of the Order is not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Accordingly, Clause 4 (xiii) of the Order is not
applicable
(xiv) In our opinion, the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. The shares, securities, debentures and
other investments have been held by the Company in its own name except
as permissible under Section 49 of the Companies Act, 1956.
(xv) In our opinion, and 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. Accordingly, clause 4(xv)
of the Order is not applicable.
(xvi) In our opinion and according to the information and explanations
given to us and on an overall examination, no term loan was raised
during the year under review. Thus the provision of Clause (xvi) of the
order is not applicable.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act. Accordingly, clause 4(xviii) of the Order is not
applicable.
(xix) The Company has not issued any debentures. Accordingly, clause
4(xix) of the Order is not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the Order is not applicable.
(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 ARUN M. KOTHARI,
Chartered Accountant
Arun M. Kothari
Proprietor
Ahmedabad, 28th May, 2011 Membership No. 108669
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More Information on SAR Auto Products Ltd.
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SAR Auto Products Ltd. Company Details
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Company History
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SAR Auto Products Ltd. Key Financial Ratios
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SAR Auto Products Ltd. Results
- Quarterly Results
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- Nine Months Results
- Annual Results
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SAR Auto Products Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
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SAR Auto Products Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
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SAR Auto Products Ltd. Corporate Announcements
- Book Closure
- Board Meetings
