Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying Ind AS financial statements of Signet Industries Limited (âThe Companyâ) which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the 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 (the Act) 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 Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. This Responsibility also includes maintenance of adequate accounting records in accordance with the provision 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 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 provision of the Act, the accounting and auditing standard and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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 accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation ofthe 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 financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended 31st March 2017 and transition date opening balance sheet as at 1st April 2016 included in these Ind AS financial statements are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31st March, 2017 and 31st March, 2016 dated 30.05.2017 and 30.05.2016 respectively expressed an unmodified opinion on those financial statements and have been restated to comply with Ind AS. Adjustments made to the previously issued said financial information, prepared in accordance with the Companies (Accounting Standards) Rules, 2006, to comply with Ind AS have been audited by us.
Our opinion on the financial statements above and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report ) Order, 2016 (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 the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian accounting standards specified under section 133 of the act, read with rules framed thereunder.
e) On the basis of the written representations received from the directors as on 31st March 2018 taken on records by the Board of Director, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of section 164(2) ofthe 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 (as amended), in our opinion and to be best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigations on its financial position in its financial statement - refer note 35 to the financial statement;
ii. The Company did not have any long term contract including derivative contract for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
Referred to in paragraph (1) under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date to the members of Signet Industries Limited on the Ind AS financial statements for the year ended March 31, 2018.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.
c. According to the information and explanations given to
us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. In respect of its Inventories:
The inventories has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed.
iii. According to the information and explanations given to us, the Company has not granted loans secured or unsecured to company, firms, LLP or other parties covered in the register maintained under section 189 of the Companies Act, 2013. In our opinion provisions of para 3 clause (iii) of the order are not applicable to the company.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made and guarantee given. The company has not provided any security in terms of section 185 and 186 ofthe Act.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules, framed there under. As informed to us no Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. In respect of Statutory dues :
a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion the Company is generally regular in depositing undisputed statutory dues including provident fund, employeeâs state insurance, income tax, sales tax, service tax, goods and service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. There were no undisputed statutory dues in arrears, as at 31st March, 2018 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of sales tax, value added tax, income tax, service tax, goods and service tax, duties of customs, duties of excise which have not been deposited with appropriate authorities on account of any dispute except as follows :
Name of the Statute |
Nature of Liability |
Related Period |
( Rs. In lacs) # |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
2006-07, 2007-08, 2009-10 and 2011-12 |
230.73 |
High Court |
M.P. Value Added Tax Act, 2002 |
Sales Tax |
2008-09 |
2.19 |
Additional Comm. (Appeal) |
Custom & Central Excise & Service Tax |
Excise Duty |
2008-09 |
11.10 |
Commissioner (Appeal) |
Custom & Central Excise & Service Tax |
Excise Duty |
2014-15 |
48.77 |
Commissioner (Appeal) |
Income Tax Act, 1961 |
Income tax |
2013-14 |
3.05 |
Commissioner (Appeal) |
Income Tax Act, 1961 |
Income tax |
2014-15 |
2.45 |
Commissioner (Appeal) |
Madhya Pradesh Value Added Tax Act 2002 |
Entry Tax |
2015-16 |
0.91 |
Additional Commissioner Commercial Tax (Appeal) |
Madhya Pradesh Value Added Tax Act 2002 |
Central Sales Tax |
2015-16 |
39.95 |
Additional Commissioner Commercial Tax (Appeal) |
Madhya Pradesh Value Added Tax Act 2002 |
VAT |
2015-16 |
4.94 |
Additional Commissioner Commercial Tax (Appeal) |
# Net of amount deposited |
viii. According to the records of the company examined by us and as per the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution, bank or government as on the balance sheet date. The Company has not issued any debenture.
ix. In our opinion and according to the information and explanations given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) and In our opinion and according to the information and explanations given to us, the term loans obtained during the year have been applied for the purpose for which they were obtained.
x. During the course of our examination of the books of account and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the company by employees or officers, noticed or reported during the year, nor have we been informed of such case by the management.
xi According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to information and explanation given to us, the company is not a Nidhi Company therefore, the provision of para 3 (xii) of the Order is not applicable to the company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year, therefore the provision of para 3 (xiv) of the Order is not applicable to the company.
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 during the year, hence the provision of para 3 (xv) of the Order is not applicable to the company.
xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 therefore, the provision of para 3 (xvi) of the Order is not applicable to the company for the year under audit.
Annexure B To the Independent Auditorâs Report of even date on the Ind AS Financial Statements of Signet Industries Limited
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 Signet Industries Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the 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 Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness ofthe 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 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. 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 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 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 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 financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SMAK & Co.
Chartered Accountants
(Firm Reg. No. 020120C)
CA Shridhar Mandhanya
Partner
Date: 23.05.2018 M. No. 421425
Place: Indore
Mar 31, 2016
To,
The Members of
Signet Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Signet Industries Limited (âThe Companyâ) which comprises the Balance Sheet as at 31st March, 2016, 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.
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 (the Act) with respect to the preparation of these standalone financial statement 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 Standard specified under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014. This Responsibility also includes maintenance of adequate accounting records in accordance with the provision 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 judgment 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provision of the Act, the accounting and auditing standard and matters which are required to be included in the audit report under the provision of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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. 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 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 accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 2016, 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, 2016 (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 the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us.
d) In our opinion, the aforesaid standalone financial statement comply with the accounting standards specified under section 133 of the act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March 2016 taken on records by the Board of Director, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of section 164(2) of the Act.
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 be best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigations on its financial position in its financial statement - refer note 27 to the financial statement;
ii. The Company did not have any long term contract including derivative contract for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
Referred to in paragraph (1) under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date to the members of Signet Industries Limited on the financial statements for the year ended March 31, 2016.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. In respect of its Inventories:
The inventories has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed
iii. According to the information and explanations given to us, the Company has not granted loans secured or unsecured to company, firms, LLP or other parties covered in the register maintained under section 189 of the Companies Act, 2013. In our opinion provisions of para 3 clause (iii) of the order are not applicable to the company.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made and guarantee given. The company has not provided any security in terms of section 185 and 186 of the Act.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules, framed there under. As informed to us no Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. In respect of Statutory dues :
a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion the Company is generally regular in depositing undisputed statutory dues including provident fund, employeeâs state insurance, income tax, sales tax, service tax, wealth tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. There were no undisputed statutory dues in arrears, as at 31st March, 2016 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of sales tax, value added tax, income tax, service tax, duties of customs, wealth tax, duties of excise which have not been deposited with appropriate authorities on account of any dispute except as follows :
Name of the Liability |
Nature of Period |
Related |
(Amount in Rs.) pending |
Forum Statute where dispute is |
Income Tax Act, 1961 |
Income Tax |
2006-07, 2007-08, 2009-201 0 and 2011-2012 |
53876520 |
ITAT Appeal |
M.P. Value Added Tax Act, 2002 |
Sales Tax |
2008-09 |
384839 |
Additional Comm. (Appeal) |
Name of the Liability |
Nature of Period |
Related |
(Amount in Rs.) pending |
Forum Statute where dispute is |
Custom & Central Excise & Service Tax |
Excise Duty |
2008-09 |
1200000 |
Commissioner (Appeal) |
Custom & Central Excise & S ervice Tax |
Excise Duty |
2014-15 |
4876994 |
Commissioner (Appeal) |
I nco me Ta x Ac t, 1 9 6 1 |
Income tax |
2013-14 |
305380 |
Commissioner (Appeal) |
I nco me Ta x Ac t, 1 9 6 1 |
Income tax |
2008-09 |
56591125 |
Commissioner (Appeal) |
viii. According to the records of the company examined by us and as per the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution, bank or government as on the balance sheet date. The Company has not issued any debenture.
ix. In our opinion and according to the information and explanations given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) and In our opinion and according to the information and explanations given to us, the term loans obtained during the year have been applied for the purpose for which they were obtained.
x. During the course of our examination of the books of account and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to information and explanation given to us, the company is not a Nidhi Company therefore, the provision of para 3 (xii) of the Order is not applicable to the company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the company, the company has made private placement of preference shares during the year, The requirement of Section 42 of the companies act, 2013 have been complied with and the amount have been used for the purpose for which the funds were raised.
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 during the year, hence the provision of para 3 (xv) of the Order is not applicable to the company.
xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 therefore, the provision of para 3 (xvi) of the Order is not applicable to the company for the year under audit.
For Ashok Khasgiwala & Co.
Chartered Accountants
(Firm Reg. No. 0743C)
CA Avinash Baxi
Date: 30.05.2016 (Partner)
Place: Indore M NO. 079722
Mar 31, 2015
We have audited the accompanying financial statements of Signet
Industries Limited ("The Company") which comprises 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.
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 standalone financial statements that give a
true and fair view of the financial position , financial performance
and cash flows of the company in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with rule 7 of
the Companies (Accounts) Rules, 2014. This Responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgment and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement , whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standard 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 auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
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 accounting principles generally
accepted in India, of the state of affairs of the Company as at 31st
March, 2015, and its profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report ) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub
section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
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 and with the returns received from the branches not
visited by us.
d) In our opinion, the aforesaid financial statements comply with the
accounting standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March 2015 taken on records by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of section 164(2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to be best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statement - refer note 27
contingent liabilities and commitments to the financial statement;
ii. The Company did not have any long term contract including
derivative contract for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
Annexure to Independent Auditor's Report
Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date to the
members of Signet Industries Limited on the financial statements for
the year ended March 31, 2015.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company have been
physically verified by the management during the year, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of its assets. No material discrepancies between the book
records and the physical inventory have been noticed. In our opinion,
the frequency of verification is reasonable.
ii. In respect of its Inventories:
a. The inventories 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 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. On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii. According to the information and explanations given to us, the
Company has not granted any loan secured or unsecured loans to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. In our opinion provisions
of para 3 clause iii(b) and iii(c) of the order are not applicable to
the company.
iv. In our opinion and according to the information and explanations
given to us, there is an 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 the sale of goods
and services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have not observed any continuing failure
to correct major weakness in internal control system in respect of
these areas.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
within the meaning of section 73 to 76 or any other relevant provisions
of the Companies Act, 2013 and the rules, framed there under. Hence the
provisions of clause (v) of the Order is not applicable to the company
for the year under audit.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the rules made by the Central Government under sub-section
(1) of Section 148 of the Companies Act, 2013 and are of the opinion
that prima facie the prescribed records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
vii. In respect of Statutory dues :
a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing undisputed statutory dues, including
provident fund, employee's state insurance, income tax, sales tax,
service tax, wealth tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate
authorities. There were no undisputed statutory dues in arrears, as at
31st March, 2015 for a period of more than six months from the date
they became payable.
b) According to the information and explanations given to us, there are
no dues of sales tax, value added tax, income tax, service tax, duties
of customs, wealth tax, duties of excise which have not been deposited
with appropriate authorities on account of any dispute except as
follows :
Name of the Nature of Related (Amount Forum
Statute Liability Period in Rs.) where dispute is
pending
Income Tax
Act, 1961 Income Tax 2005-06 114883290 ITAT Appeal
To 2011-12
M.P. Value
Added Sales Tax 2008-09 384839 Additional Comm.
Tax Act, 2002 (Appeal)
Custom &
Central Excise Excise Duty 2007-08 2775198 Commissioner
& 2008-09 (Appeal)
Central Sales
Tax 1956 Central 2008-09 1058490 Asst.
Commissioner
Sales Tax Commercial Tax
Maharastra
Value Sales Tax 2010-11 1354672 Joint
Commissioner
Added Tax,
2002 of Sales Tax
M.P. Value
Added Sales Tax 2014-15 142505 Appellate
Authority
Tax Act, 2002 Commercial Tax
Central Sales Central 2010-11 1160021 Dy. Commissioner
Tax 1956 Sales Tax &2011-12 Commercial Tax
c) There has been no delay in transferring amounts, as required to be
transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 1956 (1 of 1956) and rules made there under.
viii. The Company does not have accumulated losses as at 31st March
2015 and it has not incurred cash losses during the financial year
ended on that date and in the immediately preceding financial year.
ix. According to the records of the company examined by us and as per
the information and explanations given to us, the Company has not
defaulted in repayment of dues to a Financial Institutions or Bank or
debenture holders as at 31st March, 2015.
x. The Company has given guarantee for loans taken by Others from Bank.
In our opinion and according to the information and explanations given
to us the terms and condition of the guarantee given are not prima
facie prejudicial to the interest of the company.
xi. In our opinion and according to the information and explanations
given to us, the term loan have been applied for the purposes for which
they were obtained.
xii. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
Place: Indore For ASHOK KHASGIWALA & CO.,
Date: 28th May, 2015 CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CA Avinash Baxi
Partner
M.No. 79722
Mar 31, 2014
We have audited the accompanying financial statements of Signet
Industries Limited ("The Company") which comprises the Balance Sheet as
at 31a March, 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (''the Act'') read with the Genera! Orcular
15/2013 dated 13* September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, £013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
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 auditors 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 entity''s interna! 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 accompanying financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with accounting principles generally
accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31a March, 2014;
ii. in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
iii. in the case of the Cash How Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2003 (as
amended}, issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
2. As required by section 227 (3) of the Act, we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit:
b) in our opinion, proper books of account as required by law have been
kept by the Company, so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) the Balance Sheet, the Statement of Profit and Loss and Cash How
Statement dealt with by this report are in agreement with the books of
account and with the returns received from the branches not visited by
us;
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash How Satement comply with the Accounting standards referred to
in Section 211 (3C) of the Campanies Act, 1956 read with the General
Qrcular 15/2013 dated 1 3P September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013;
e) on the basis of written representations received from the directors,
as on 31s1 March, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31a March, 2014, from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956,
For ASHOKKHASGIWALA & CO.,
CHARTERED ACCOUMTAMTS.
(Firm Reg. No.0743C)
CA Avinash Baxi
Race : Indore Partner
Date : 28th May,2014 M.No. 79722
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Signet
Industries Limited ("The Company") which comprises the Balance Sheet as
at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information. Management''s
Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1955 ("the Act''). This responsibility includes
the design, implementation and mainte- nance 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 Responsibi lity
Cur responsibility is to express an opinion on these financial
statements based on our audit. We conducted cur audit in accordance
with Standards en Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the auditto 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 depends 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 procedires that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for oir audit opinion. Basis for
Qualified Opinion
The company has shown interest expense of Rs. 20,95,15,382/-(in Note 23
finance costs) after netting off Rs. 6,50,34,992/-being the interest
income. As per the requirements of Revised Schedule VI the interest
income and interest expenses should have been shown at gross on income
and expense side respectively. However this disclosire has no impact on
the profit of the company. Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified opinion paragraph, the financial
statements give the information required by the Act in the manners so
required and give a true and fair view in conformity with accounting
principles generally accepted in India: i. in the case of the Balance
Sheet, of the state of affairs of the Company as at 31" March, 2013;
ii. in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. 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) Crder 2003 (as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1955, we give in the
Annexire a statement on the matters specified in paragraphs 4 and 5 of
the said Crder.
2. As required by section 227 (3) of the Act, we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from oir examination of those
books and proper returns adequate for the pirposes of our audit have
been received from the branches not visited by us;
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 and with the returns received from the branches not visited by
us;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting standards referred to in
Section 211 (3C) 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 31" March, 2013 from being
appointed as a director in terms of clause (g) of subsection (1) of
section 274 of the Companies Act, 1955;
Annexure To Independent Auditor''s Report
(Referred to h paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" 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 its fixed assets.
b. The fixed assets have been physically verified by the management
during the year and there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its fixed assets. As informed, no material
discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
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 ophion 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. In our opinion and according to the information and explanations
given to us, the Companyhasmain- tained proper records of inventories.
As explained to us, there were no material discrepancies noticed on
physical verificatcn of inventory as compared to the book records.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to companies,
frms or other parties covered in the register maintained under 301 of
the Companies Act, 1956. Hence 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, the
Company has not taken any ban secured or unsecured from companies, frms
or other parties covered in the register maintained under section 301
of the Companies Act,1956. Hence the provisions of clauses iii (f) and
iii (g) of the Order are not applicable to the company.
iv. In our opinbn 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 inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system in respect of these areas.
v. In respect of transactions covered U/s 301 of the Companies Act,
1956.
a. According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956 has been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of the rupees five lakhs in
respect of each party dur rig the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi. In our opinion and according to the information and explanatbns
given to us, the Company has not accepted any deposits from public to
which the provisions of Section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply.
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 (l)(d)of the
Compa- nies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detained examination of the cost records with a view to
determine whether they are accurate or complete.
ix. In respect of Statutory dues :
a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee % state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other statutory dues applicable to it. There were no undisputed
statutory dues in arrears, as at 31sl March, 2013 for a period of more
than six months from the date they became payable.
x. In our opinion, the Company has no accumulated losses as at 31st
March 2013 and it has not hcurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
xi. In our opinion and according to the hformation and explanations
given to us, the Company has not defaulted in repayment of dues to a
Financial Institutions or Banks. The Company has not issued any
debenture.
xii. In our opinion, according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii. 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.
xiv. In our opinion, the Company is not dealing in or trading in
shares,securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
xv. The Company has given guarantee for loans taken by Others from
Bank. In our opinion and according to the information and explanations
given to us the terms and condition of the guarantee given are not
prima facie prejudicial to the interest of the company.
xvi. In our opinion, the company has not raised any term loan during
the year.
xvii. According to the hformation 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 or Companies covered in the register maintained under section
301 of the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised money by public issues during the year
under audit.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and expla- nations given to us, we have neither come across any
instance of material fraud on or by the Company, noticed or reported
during the year, nor have we been informed of such case by the
management.
For ASHOKKHASGIWALA & CO.
CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CAAvinash Baxi
Place : Lndore Partner
Date : 30Â May, 2013 M.No. 79722
Mar 31, 2012
1. We have audited the attached Balance Sheet of SIGNET INDUSTRIES
LIMITED as at 31st March, 2012, the Statement of Profit and Loss and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to ex- press an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 (as
amended), 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.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report are prepared in
compliance with the Accounting standards referred to in Section 211
(3C) of the Companies Act, 1956;
e) On the basis of written representations received from the Directors,
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of Clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, said accounts read with the notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with accounting
principles generally accepted in India;
i. In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012;
ii. In the case of Statement of Profit and Loss, of the Profit for the
year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITOR'S REPORT Referred to in paragraph 3 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 its fixed assets.
b. As per the information given to us the fixed assets have been
physically verified by the management during the year and there is a
regular programme of verification which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its fixed
assets. No material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
ii. In respect of Inventories:
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. As
explained to us, there were no discrepancies noticed on physical
verification of inventory as compared to the book records.
iii. a. According to the information and explanations given to us, the
Company has not granted loans secured or unsecured to companies, firms
or other parties covered in the register maintained U/s 301 of the
Companies Act, 1956. Hence 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, the
Company has not taken any loan secured or unsecured from companies,
firms or other parties covered in the register maintained U/s 301 of
the Companies Act, 1956. Hence the provisions of clauses iii(f) and
iii(g) of the Order are not applicable to the company.
iv.. In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system in respect of these areas.
v. In respect of transactions covered U/s 301 of the Companies Act,
1956.
a. According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements that
need to be entered into the register maintained U/s 301of the Companies
Act, 1956 has been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of the rupees five lakhs in
respect of each party during the year, have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply.
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
Compa- nies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detained examination of the cost records with a view to
determine whether they are accurate or complete.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee's state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. There were no
undisputed statutory dues in arrears, as at 31st March, 2012 for a
period of more than six months from the date they became payable.
b) According to the information and explanation given to us, the
particulars of dues of sales tax, income tax, custom duty, wealth tax,
excise duty and cess which have not been deposited with appropriate
authorities on account of any dispute are as under :
Period to Forum where Amount
Name of the Nature of
which the dispute is (Rs. in
Statute Liability
amt.
Relates pending Lacs)
Income Tax
Act, 1961. Income Tax 2008-09 CIT Appeal 5.97
Income Tax
Act, 1961. Income Tax 2009-10 CIT Appeal 8.38
Sales Tax Value Added Tax 2008-09 Add. Comm
Commercial 2.89
Act, 2002 Tax (Appeal)
Custom &
Central Excise Excise Duty 2007-08 Commisioner
(Appeal) 11.81
Custom & Central
Excise Excise Duty 2009-10 Add. Commiss
-ioner 16.04
x. In our opinion, the Company has no accumulated losses as at 31st
March 2012 and it has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
Financial Institution or Bank. The Company has not issued any
debenture.
xii. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii. 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.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
xv. According to the information and explanations given to us, and the
representations made by the management, the Company has given guarantee
for loans taken by others from Bank. In our opinion the terms and
condition of the guarantee given are not prejudicial to the interest of
the company.
xvi. According to the information and explanations given to us, the
term loan has been applied for the purpose it was raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii. According to the information and explanations given to us the,
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act.
xix. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
xx. The Company has not raised money by public issues during the year
under audit.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and expla- nations given to us, we have not come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.,
CHARTERED ACCOUNTANTS.
(FirMreg. No. 0743C)
CA Avinash Baxi
Place : Indore
Partner
Date : 30TH May, 2012 M.No. 79722
Mar 31, 2011
1. We have audited the attached Balance Sheet of SIGNET INDUSTRIES
LIMITED as at 31st March, 2011 and also the Profit & Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial state- ments are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 (as
amended), 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.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report are prepared in compliance
with the Accounting standards referred to in Section 211 (3C) of the
Companies Act, 1956;
e) On the basis of written representations received from the Directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors 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;
f) In our opinion and to the best of our information and according to
the explanations given to us, said accounts read with the notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with accounting
principles generally accepted in India;
i. In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2011;
ii. In the case of Profit & Loss Account, of the Profit for the year
ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to in paragraph 3 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 situa- tion of its fixed assets.
b. As per the information given to us the fixed assets have been
physically verified by the management during the year and there is a
regular programme of verification which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its fixed
assets. No material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
ii. In respect of Inventories:
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. As
explained to us, there were no discrepancies noticed on physical
verification of inventory as compared to the book records.
iii. a. According to the information and explanations given to us, the
Company has not granted loans secured or unsecured to companies, firms
or other parties covered in the register maintained U/s 301 of the
Companies Act, 1956. Hence 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, the
Company has not taken any loan secured or unsecured from companies,
firms or other parties covered in the register maintained U/s 301 of
the Compa- nies Act, 1956. Hence the provisions of clauses iii(f) and
iii(g) of the Order are not applicable to the company.
iv.. In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system in respect of these areas.
v. In respect of transactions covered U/s 301 of the Companies Act,
1956.
a. According to the information and explanations given to us, we are
of the opinion that the company has no contract or arrangements that
need to be entered into the register maintained U/s 301 of the
Companies Act, 1956.
b. In our opinion provisions of clause v(b) of the Order are not
applicable to the company.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. As per information and explanations given to us Central
Government has not prescribed maintenance of cost records under section
209 (l)(d) of the Companies Act, 1956 for the product of the Company,
hence provisions of clause 4 (viii) of the order are not applicable to
the Company.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee's state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. There were no
undisputed statutory dues in arrears, as at 31st March, 2011 for a
period of more than six months from the date they became pavable.
x. In our opinion, the Company has no accumulated losses as at 31st
March 2011 and it has not incurred any rash losses during the financial
year covered by our audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
Financial Institution or Bank. The Company has not issued any
debenture.
xii. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii. 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.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
xv. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any Bank or financial
institution.
xvi. According to the information and explanations given to us, the
term loan has been applied for the purpose it was raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii. According to the information and explanations given to us the,
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act.
xix. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
xx. The Company has not raised money by public issues during the year
under audit.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explana- tions given to us, we have not come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.,
CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CA Avinash Baxi
Partner
M.No. 79722
Place : Indore
Date : 30Ã May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of SIGNET INDUSTRIES
LIMITED (Formerly Signet Overseas Limited) as at 31st March, 2010 and
also the Profit & Loss account and the Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We 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 state- ments are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003 (as
amended), 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.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report are prepared in compliance
with the Accounting standards referred to in Section 211 (3C) of the
Companies Act, 1956;
e) On the basis of written representations 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 31st March,
2010 from being appointed as a director in terms of Clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, said accounts read with the notes thereon
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with accounting
principles generally accepted in India;
i. In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2010;
ii. In the case of Profit & Loss Account, of the Profit for the year
ended on that date; and iii. In the case of the Cash Flow Statement,
of the cash flows for the year ended on that date.
ANNEXURE TO AUDITORS REPORT Referred to in paragraph 3 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 situa- tion of its fixed assets.
b. As per the information given to us the fixed assets have been
physically verified by the management during the year and there is a
regular programme of verification which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its fixed
assets. No material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
ii. In respect of Inventories:
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. As
explained to us there were no discrepancies noticed on physical
verification of inventory as compared to the book records.
iii. a. According to the information and explanations given to us, the
Company has not granted loans secured or unsecured to companies, firms
or other parties covered in the register maintained U/s 301 of the
Companies Act, 1956. Hence 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, the
Company has not taken any loan secured or unsecured from companies,
firms or other parties covered in the register maintained U/s 301 of
the Compa- nies Act, 1956. Hence the provisions of clauses iii(f) and
iii(g) of the Order are not applicable to the company.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system in respect of these areas.
v. In respect of transactions covered U/s 301 of the Companies Act,
1956.
a. According to the information and explanations given to us, we are
of the opinion that the company has no contract or arrangements that
need to be entered into the register maintained U/s 301of the Companies
Act, 1956.
b. In our opinion provisions of clause v(b) of the Order are not
applicable to the company.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. As per information and explanations given to us Central
Government has not prescribed maintenance of cost records under section
209 (l)(d) of the Companies Act, 1956 for the product of the Company,
hence provisions of clause 4 (viii) of the order are not applicable to
the Company.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. There were no
undisputed statutory dues in arrears, as at 3 la March, 2010 for a
period of more than six months from the date they became payable. b)
According to the information and explanation given to us, the
particulars of dues of sales tax, income tax, custom duty, wealth tax,
excise duty and cess which have not been deposited with appropriate
authorities on account of any dispute are as under:
Period to
Name of the Nature of which the
Statue Liability amt. Relates
Income Tax Act, 1961. Income Tax 2006-07
Sales Tax Central Sales Tax 2006-07
Custom & Central Excise Excise Duty 2007-08
Custom & Central Excise Excise Duty 2009-10
Custom & Central Excise Excise Duty 2009-10
Name of the Statue Forum where Amount
dispute is (in Rs.)
pending
Income Tax Act, 1961. CIT Appeal 718731
Sales Tax Dy. Comm Commercial 123333
Tax (Appeal)
Custom & Central Excise Commisioner 1575198
(Appeal)
Custom & Central Excise Add. Commissioner 1604310
Custom & Central Excise Commissioner 12245850
x. In our opinion, the Company has no accumulated losses as at 31st
March 2010 and it has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
Financial Institution or Bank. The Company has not issued any
debenture.
xii. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii. 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 (Auditors Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
xv. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any Bank or financial
institution.
xvi. According to the information and explanations given to us, the
term loan has been applied for the purpose it was raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xviii. According to the information and explanations given to us the,
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act.
xix. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
xx. The Company has not raised money by public issues during the year
under audit.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explana- tions given to us, we have not come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
ForASHOK KHASGIWALA & CO.,
CHARTERED ACCOUNTANTS
(Firm Reg. No. 0743C)
CA Avinash Baxi
Partner
M.No. 79722
Place : Indore
Date : 29.05.2010
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