Mar 31, 2015
To the Members of
SFL INTERNATIONAL LTD.
(formerly known as Suryanagri Finlease Ltd.)
We have audited the accompanying financial statements of SFL International Ltd. (formerly known as Suryanagri Finlease Ltd.) (âthe companyâ),which comprise the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of 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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2015 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters to be included in the 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 derivatives contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure to 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
(i) In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets
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 nature of its assets. No material discrepancies were noticed on such physical verification.
(ii) In respect of its inventories:
a. The inventories have 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 and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
c. 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.
(iii) According to the information and explanations given to us, the Company has not granted loans, secured or unsecured to the Companies, firms or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause (iii) (a) and (iii) (b) of paragraph 3 of the Order are not applicable to 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 for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit we have not observed any major weaknesses in such internal control system.
(v) According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year. Therefore, the provisions of Clause (v) of paragraph 3 of the Order are not applicable to the Company.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act for the Company. Therefore, the provisions of Clause (vi) of paragraph 3 of the Order are not applicable to the Company.
(vii) According to the information and explanations given to us in respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other material statutory dues applicable to it with the appropriate authorities. There were no undisputed statutory dues in arrears as on 31st March, 2015 for a period of more than six months from the date they became payable.
b) There are no amounts payable in respect of income tax, wealth tax, service tax, sales tax, duty of customs, duty of excise or value added tax or cess which have not been deposited on account of disputes.
c) According to the information and explanations given to us, there are no amounts that are required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of1956) and rules made thereunder.
(viii) The Company has accumulated losses of Rs. 83,72,367 (Previous year Rs. 84,11,406) at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by the audit. However, the company had incurred cash losses in the immediately preceding financial year.
(ix) The Company has not taken any borrowings from banks, financial institutions or by way of debentures. Accordingly, the provisions of clause (ix) of the paragraph 3 of the Order are not applicable to the Company.
(x) According to the information and explanations given to us, the company has not given any guarantee for the loan taken by others from banks or financial institutions. Accordingly, the provisions of clause (x) of the paragraph 3 of the Order are not applicable to the Company.
(xi) The Company has not taken any term loans during the year. Accordingly, the provisions of clause (xi) of the paragraph 3 of the Order are not applicable to the Company.
(xii) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.
For ASHOK DHARIWAL & CO
Chartered Accountants
Registration No. 100648W
CA ASHOK DHARIWAL
Place : Ahmedabad Partner
Date: 30th May, 2015 Membership No. 36452
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Suryanagri
Finlease Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") read with the General Circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the 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, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in india:
a. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b. In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) 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 ail 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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013.
e. On the basis of the written representations received from the
directors as on March 31, 2014, 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 Section 274(l)(g) of the
Act.
Annexure to Independent Auditors'' Report
Referred to in Paragraph 1 under the heading of "report on other legal
and reguiatory requirements" of our report of even date
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars
including Quantitative details and 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
nature of its assets, No material discrepancies were noticed on such
physical verification.
c. The Company has disposed off a substantial part of its fixed assets
during the year; however the going concern status of the Company is not
affected.
2. In respect of its inventories:
a. The inventories have 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 and explanations
given to us, the procedures of physical verification of Inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. 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.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
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 Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
b. 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 taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. 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
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. in respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, there was no transaction which made in pursuance of
contracts / arrangements entered in the Register maintained under
section 301 of the Companies Act, 1956 and exceeding the value of Rs.
5,00,000 in respect of each party during the year
6, According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. in our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. Companies (Cost Accounting Records) Rules, 2011 prescribed by the
Central Government under Section 209(l)(d) of the Companies Act, 1956
are not applicable to the company.
9. In respect of statutory dues:
a. According to the records of the company, undisputed statutory dues
including Provident Fund, cess to the extent applicable and any other
statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable.
b.. According to the information and explanations given to us, there
is no amounts payable in respect of income tax, wealth tax, service
tax, sales tax, customs duty and excise duty which have not been
deposited on account of any disputes.
10. The Company has accumulated losses of Rs. 84,11,406 (Previous year
Rs. 57,38,373) at the end of the financial year. The Company has
incurred cash losses during the financial year covered by the audit and
also in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, the Company has not borrowed any amount which
was due for repayment to financial institutions, banks and debenture
holders.
12. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund /nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
15. The Company has not given any guarantees for loans taken by others
from banks and financial institutions,
16. The Company has not raised any term loans during the year and
there are no outstanding term loans either at the beginning or at the
end of the financial year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
18 Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares d uring the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. In our opinion and according to the information and explanations
given to us, no materia! fraud on or by the Company has been noticed
or reported during the year.
For Ashok Dhartwal & Co.
Chartered Accountants
(Registration No. 100648W)
(CA Ashok Dhariwal)
Partner
Membership No. 36452
Place: Ahmedabad
Date: 30/05/2014
Mar 31, 2010
1. We have audited the attached Balance sheet of SURYANAGRI FINLEASE
LIMITED. as at 31st March 2010, the profit and loss account and also
the cash flow statements for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the companies (Auditor's Report ) order, 2003 issued
by the Central Government of India in terms of subsection(4A) of
section 227 of the Companies Act. 1956, We enclosed in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
under.
4. 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 believe 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 it appears from our examination of
those books.
(iii) The Balance sheet. Profit and Loss account and cash flow
statements dealt with by this report are in agreement with the books of
account.
(iv) in our opinion, the Balance sheet. Profit and loss and cash flow
statements dealt with by this report comply with accounting standards
referred to in sub-section (3C) of section 211 of the companies act,
1956.
(v) On the basis of written representation received from the directors,
as on 31st March. 2010 and taken on record by the Board of directors,
we report that none of the directors is disqualified as on 31/03/2010
from being appointed as a director, in terms of clause (g) of
sub-section(l) of section 274 of the companies act, 1956.
(vi) In our opinion and to the best of our information and according to
The explanation given to us. the said account 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 2010.
(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 flow for the
year ended on that date.
Referred to in paragraph 3 of our report of even date.
1. a) The company is maintaining proper records showing full particular
including quantitative details' and situation of Fixed assets.
b) The fixed assets are physically verified by the management during
the year. We are informed that no material Discrepancies were noticed
on such verification.
c) In our opinion the company has not disposed off substantial part of
its fixed assets during the year and the going concern status of the
company is not affected.
2. a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. The
Discrepancies noticed on verification between the physical Stocks and
the book records were not material.
3. The Company has not taken any loans, secured or unsecured from the
companies / firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
4. The company has granted loan to Agarwal Estate organizers Ltd. And
the outstanding balance as on 31/03/2010 was Rs.12308983/-(Previous
Year 10991563/-). The company has not granted any other loan secured or
unsecured to the firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956.
5. In our opinion, to rate of interest and others terms and conditions
on which loans have been granted to company listed in the register
maintained under section 301 of the Companies Act. 1956.
6. In our opinion and according to the information and explanations
given to us, there is adequate internal control procedures commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
7. a) According to the information and explanations given to us. we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanation
given to us, the transaction made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act,1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market price at the relevant
time.
8. The company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
9. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
10. We have broadly reviewed the books of account relating to
materials, labor and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act. 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
11. a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee's state insurance, income tax, sales tax. custom duty, cess
and other material statutory dues applicable to it.
b) According to the information and explanation given to us, there are
no dues of sale tax. income tax. customs duty, excise duty and cess
which have not been deposited on account of any dispute.
12. The Company has accumulated losses of Rs.5696324/- as at 31st
March.2010 and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
13. 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 institution and banks.
14. The company has not granted any loans and advances on the basis of
security by way of pledge of shares and other securities.
15. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
16. In our opinion . the company is not a dealer or trader in share,
securities, debenture and other investment.
17. In our opinion and according to the information and explanations
given to us. the company has not given any guarantee for the loan taken
by others from banks or financial institutions during the year.
18. In our opinion, the term loan have been applied for the purpose
for which it was raised.
19. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that short term fund have not been used for the long term uses.
20. During the period covered by our audit report, the company has not
raised any money through the public issue.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed during the course of our
audit.
The other clauses of paragraph 4 of the companies (Auditor's Reports)
order 2003 are not applicable in the case of the company for the
current year, since in our opinion their is not matter which arises to
be reported in the aforesaid order.
PLACE: AHMEDABAD.
DATE: 27/05/2010 FOR, ASHOK DHARIWAL &CO.,
CHARTERED ACCOUNTANTS,
(CA ASHOK DHARIWAL)
PROPRIETOR.