Mar 31, 2018
Report on the standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Simmonds Marshall Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the standalone Ind AS Financial Statements
The Companyâs Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act and relevant rules thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018 and its profit (including other comprehensive income), its cash flows and changes in equity for the year ended on that date.
Other Matters
Opening balances have been considered based on the audited financial statements prepared under previous Generally Accepted Accounting Practices (Previous GAAP) issued by the predecessor auditors whose unqualified audit report dated 25th May, 2017 have been furnished to us. The differences arising from transition from previous GAAP to Ind AS have been derived from such audited financial statements.
Report on Other Legal and Regulatory Requirements
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 paragraph 3 and 4 of the Order.
As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The standalone Ind AS Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income),the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Ind AS specified under Section 133 of the Act, read with Companies (Indian Accounting Standard) Rules, 2015, as amended.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director 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 Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) With respect to other matter to be included in the Auditorâs Report in accordance with the Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements- Refer Note No. 37
ii. The Company did not have material foreseeable losses on long term contracts including derivative contracts.
iii. There are no amounts required to be transferred to the Investor Education and Protection Fund.
âANNEXURE Aâ
ANNEXURE REFERRED TO IN PARAGRAPH âREPORT ON OTHER LEGAL AND REGUALTORY REQUIREMENTSâ OF OUR REPORT TO THE MEMBERS OF âTHE COMPANYâFOR THE YEAR ENDED 31ST MARCH, 2018
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we state that:
1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment (fixed assets).
b) The Company has a regular programme of physical verification of its property, plant and equipment (fixed assets) by which all property, plant and equipment (fixed assets) are verified in a phased manner, over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain property, plant and equipment (fixed assets) were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c) Based on the information and explanations given to us, there are no immovable properties owned by the Company. Accordingly, the provisions of clause 1(iii) of the Order are not applicable to the Company.
2. The inventory has been physically verified by the management at reasonable intervals during the year. As per the information and explanations given to us, discrepancies noticed on physical verification between the physical stocks and book records were not material.
3. The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clause 3(iii) of the Order are not applicable to the Company.
4. The Company has not granted any loans, made any investment, provided guarantees or securities covered under Section 185 and 186 of the Act. Accordingly, the provisions of clause 3(iv) of the Order are not applicable to the Company.
5. No deposits have been accepted by the Company within the meaning of directives issued by RBI (Reserve Bank of India) and Sections 73 to 76 or any other relevant provisions of the Act and Rules framed there under.
6. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1) (d) of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and cost 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.
7. a) According to the information and explanations given to us and on the basis of our examination of the records, the Company is generally regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income- tax, sales-tax, goods and service tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues applicable to the Company with appropriate authorities. No undisputed amounts payable in respect of the aforesaid statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax which have not been deposited on account of any dispute except those mentioned in the table below:
Name of the statute |
Nature of dues |
Period to which it relates |
Amount (Rs. in lakhs) |
Forum where dispute is pending |
The Central Sales Tax, 1956 |
Central Sales Tax |
FY 2012-13 |
53.54 |
Joint Commissioner of Sales Tax |
The Central Sales Tax, 1956 |
Central Sales Tax |
FY 2013-14 |
11.09 |
Deputy Joint Commissioner of Sales Tax |
8. The Company has not defaulted in repayment of loans or borrowings to banks, financial institutions during the year. Further, the Company has not taken any loans or borrowings from debenture holder and Government during the year.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year or in the recent past. Based on the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.
10. During the course of our examination of the books 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 fraud by or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
11. According to the information and explanations given to us and based on our examination of the records, 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 of the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the Company.
13. During the course of our examination of the books 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, all transactions with the related party are in compliance with Section 177 and 188 of the Act and the details have been disclosed as required by the applicable Ind AS (Refer Note no 37 to the standalone Ind AS Financial Statements).
14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore, the provisions of clause 3(xiv) of the Order are not applicable to the Company.
15. Based on the information and explanations given to us, the Company has not entered into any non-cash transactions prescribed under Section 192 of the Act with directors or persons connected with them during the year.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
âANNEXURE Bâ
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 Simmonds Marshall Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
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 Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. 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 judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the 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 broadly in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on 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 LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
R. P. Baradiya
Mumbai Partner
30th May, 2018 Membership No. 44101
Mar 31, 2016
Report on the Financial Statements
1. We have audited the accompanying standalone financial statements of Simmonds Marshall Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. 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 and presentation 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 referred in under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. 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
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements, read together with notes to the accounts thereon, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a. in case of balance sheet of the state of affairs of the Company as at March 31, 2016,
b. in the case of Profit and Loss Account, of the profit for the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditors'' Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (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 "Annexure B"; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note 31 to the financial statements.
(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The annexure referred to in Paragraph 9 of Our Report of Even Date on the Standalone Financial Statements for the year ended March 31, 2016 of Simmonds Marshall Limited, we report that:
(i) In respect of Fixed Assets:
(a) According to the information and explanations given to us, the company is in the process of updating its records showing full particulars, including quantitative details and situation of fixed assets.
(b) According to information and explanations provided to us the company had carried out physical verification of its major assets viz. plant and machineries in earlier year, in accordance with its policy to conduct physical verification once in five years in a phased manner, which in our opinion, is reasonable having regard to the size of the company and nature of its business. We have been informed that necessary adjustments in respect of discrepancies if any between physical asset and book record will be made in the books on updation of its fixed assets register.
(c) According to information and explanations provided to us and based on our examination, the title deeds of immovable property are held in the name of the company.
(ii) In respect of Inventories:
As explained to us, inventory have been physically verified during the year by the management, except for inventory lying with outside parties, for which confirmations have been obtained from them. The discrepancies which were noticed on physical verification of inventory as compared to book records have been properly dealt with in the books of account.
(iii) In respect of Granting of Loan:
According to the information and explanations given to us, the Company has not granted any loan to any party covered in the register maintained u/s 189 of the Companies Act, 2013 (the "Act").
Thus the clause relating to terms and conditions of grant of loan, schedule of repayment of principal and interest and amount overdue are not applicable to the company.
(iv) In our opinion and according to information and explanations provided to us, the company has not granted any loan, made any investment, given any guarantee or provided any securities covered under section 185 and 186 of the Act during the year under review, except loans to employees as part of condition of services.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of section 73 to 76 or any other relevant provision of the Act and the rule framed there under during the year. No order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any Tribunal.
(vi) We have broadly reviewed the cost records pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148 of the Act and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made detailed examination of records with a view to determine whether they are accurate.
(vii) In respect of Statutory dues:
(a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, there are no arrears of outstanding statutory dues as mentioned above as at March 31, 2016 for a period of more than six months from the date they became payable except Income Tax Demand of Rs. 3.91 lakhs, which the company expects to get adjusted against refund arising on account of pending rectification.
(b) According to the information and explanations given to us, there are no dues of value added tax, service tax, duty of customs, duty of excise or cess outstanding on account of any dispute except as mentioned below:
Name of the Statute |
Nature of Dues |
Financial Year |
Forum where matter is pending |
Amount (R in Lakhs) |
Income Tax Act, 1961 |
Income Tax |
2006 - 2007 |
Appeal filed by the Departmental Authority to the Income Tax Appellate Tribunal |
21.14 |
|
2007 - 2008 |
Rectification u/s. 154 to Income Tax Officer |
6.61 |
|
2008 - 2009 |
Rectification u/s. 154 to Income Tax Officer |
32.11 |
||
2009 - 2010 |
Rectification u/s. 154 to Income Tax Officer |
25.05 |
||
2010 - 2011 |
Commissioner of Income Tax (Appeal) |
0.31 |
||
2011 - 2012 |
Commissioner of Income Tax (Appeal) |
3.36 |
||
2013 - 2014 |
Rectification u/s. 154 to Income Tax Officer |
0.48 |
||
Income Tax Act, 1961 |
Income Tax - TDS |
Prior Years |
Rectification to Departmental Authority |
5.42 |
|
2012 - 2013 |
Rectification to Departmental Authority |
3.68 |
|
2013 - 2014 |
Rectification to Departmental Authority |
0.50 |
||
2014 - 2015 |
Rectification to Departmental Authority |
0.07 |
||
2015 - 2016 |
Rectification to Departmental Authority |
1.08 |
(viii) According to the information and explanations given to us and based on the documents and records produced to us, the company has not defaulted in repayment of dues to a financial institution or bank.
(ix) According to the information and explanations given to us, the term loans were applied for the purpose for which the loans were obtained. The company has not raised any moneys by way of further public offer (including debt instruments).
(x) Based on the audit procedures performed and information and explanations given by the management, we report that no fraud on the company by its officers or employees or by the Company have been noticed or reported during the year.
(xi) According to the information and explanations given 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 the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(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 wherever 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 give 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.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to registered under section 45-IA of the Reserve Bank of India Act 1934.
For S H R & CO.
Chartered Accountants
FRN: 120491W
Deep N Shroff
Partner
Mumbai, May 23, 2016
Membership No. 122592
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Simmonds Marshall Limited ("the Company"), which comprise the Balance
Sheet as at March 31,2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. 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 referred in under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
4. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend
on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
5. 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
6. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone financial
statements, read together with notes to the accounts thereon, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a. in the case of balance sheet of the state of affairs of the Company
as at March 31,2015,
b. in the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditors'Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
8. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
31 to the financial statements.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
(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 THE AUDITORS' REPORT
(ANNEXURE REFERRED TO IN PARAGRAPH 7 OF OUR REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31,2015 OF SIMMONDS MARSHALL LIMITED)
i. (a) The Company is in process of updating its records showing
particulars, including quantitative details and situation of fixed
assets;
(b) According to information and explanations provided to us the
company had carried out physical verification of its major assets viz.
plant and machineries in earlier year, in accordance with its policy to
conduct physical verification once in five years in a phased manner,
which in our opinion, is reasonable having regard to the size of the
company and nature of its business. We have been informed that
necessary adjustments in respect of discrepancies if any between
physical asset and book record will be made in the books on updation of
its fixed assets register.
ii. (a) As explained to us, inventory have been physically verified
during the year by the management, except for inventory lying with
outside parties, for which confirmations have been obtained from them.
(b) In our opinion and according to the information and explanation
given to us, the procedures followed by the management for physical
verification of inventory, are, in our opinion, 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 the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies which were noticed on physical
verification of inventory as compared to book records have been
properly dealt with in the books of account.
iii. According to the information and explanations given to us, the
Company has not granted any loan to any party covered in the register
maintained u/s 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory and fixed assets and for the sale
of goods. During the course of our audit, no major weaknesses have been
noticed in the internal controls.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 73 to 76 or any other relevant provision
of the Companies Act and the rule framed there under during the year.
No order has been passed by Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any Tribunal.
vi. We have broadly reviewed the cost records pursuant to the Rules
made by the Central Government for the maintenance of cost records
under Section 143 (1) of the Companies Act, 2013 and we are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have, however, not made detailed examination of
records with a view to determine whether they are accurate.
vii. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection fund, Employees' State
Insurance, Income Tax, Value Added Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other statutory dues applicable to it with
the appropriate authorities. According to the information and
explanations given to us, there are no arrears of outstanding statutory
dues as mentioned above as at March 31,2015 for a period of more than
six months from the date they became payable except Income Tax Demand of
Rs.3.68 lakhs, which the company expects to get adjusted against refund
arising on account of pending rectifications.
(b) According to the information and explanations given to us, there
are no dues of Value Added Tax, Wealth Tax, Service Tax, Excise Duty,
Customs Duty or Cess outstanding on account of any dispute except as
mentioned below:
Name of the Financial Forum where matter
Statute Year is pending
Income Tax 2006-2007 Appeal filed by the Departmental to
the Income Tax Appellate Tribunal
Income Tax 2007-2008 Rectification u/s. 154 to
Income Tax Officer
Income Tax 2008-2009 Rectification u/s. 154 to
Income Tax Officer
Income Tax 2009-2010 Rectification u/s. 154 to
Income Tax Officer
Income Tax 2010-2011 Commissioner of Income
Tax (Appeal)
Income Tax 2011 -2012 Commissioner of Income
Tax (Appeal)
Name of the Amount
Statute (Rs. in Lakhs)
Income Tax 21.14
Income Tax 6.62
Income Tax 32.11
Income Tax 58.99
Income Tax 0.31
Income Tax 3.36
(c) According to the information and explanations given to us and based
on the documents and records produced to us, the amount required to be
transferred to investor education and protection fund in accordance
with the relevant provision of the Companies Act, 1956 and the rules
made thereunder have been so transferred.
viii. The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
ix. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
defaulted in repayment of dues to banks.
x. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions, the terms and conditions whereof are
prejudicial to the interest of the Company.
xi. According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
xii. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For S H R & CO.
Chartered Accountants
FRN:120491W
HITESH R. SHAH
Partner
Mumbai, May 29,2015 Membership No. 104795
Mar 31, 2014
1. We have audited the accompanying financial statements of SIMMONDS
MARSHALL LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated September 13, 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors Responsibility
3. 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.
4. 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 company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements, read together
with notes to the accounts thereon, give the information required by
the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. 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 the
books.
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. in our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards notified under the Companies Act, 1956 read
with the General Circular 15/2013 dated September 13, 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013 to the extent applicable.
e. on the basis of written representations received from the directors
as on March 31, 2014 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2014
from being appointed as a director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
(ANNEXURE REFERRED TO IN PARAGRAPH 7 OF OUR REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2014 OF SIMMONDS
MARSHALL LIMITED)
i. (a) The Company is in process of updating its records showing
particulars, including quantitative details and situation of fixed
assets;
(b) According to information and explanations provided to us the
company has carried out physical verification of its major assets viz.
plant and machineries in accordance with its policy to conduct physical
verification once in five years in a phased manner, which in our
opinion, is reasonable having regard to the size of the company and
nature of its business. We have been informed that the company is in
process of updating its fixed assets register and necessary adjustments
in respect of discrepancies if any between physical assets and book
records will be made in the books on such updation.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
ii. (a) As explained to us, inventory have been physically verified
during the year by the management, except for inventory lying with
outside parties, for which confirmations have been obtained from them.
(b) In our opinion and according to the information and explanation
given to us, the procedures followed by the management for physical
verification of inventory, are, in our opinion, 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 the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies which were noticed on physical
verification of inventory as compared to book records have been
properly dealt with in the books of account.
iii. (a) According to the information and explanations given to us, the
Company has not granted any loan to any party covered in the register
maintained u/s 301 of the Companies Act, 1956.
(b) According to the information and explanations given to us, the
Company has taken unsecured loans from Companies, firms and other
parties covered in the register maintained u/s 301 of the Companies
Act, 1956. The maximum amount involved during the year is 730.98 lakhs
and the year-end balance of such loans aggregates to 706.00 lakhs.
There are five parties including Companies, firms and other parties
covered in the register maintained u/s 301 of the Companies Act, 1956
from whom Company has taken loans.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been taken from Companies, firms or other parties
listed in the register maintained u/s 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company
(d) There is no stipulation as to repayments of principal amount in
respect of aforesaid loans. The Company is regular in payment of
interest.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory, fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal controls.
v. (a) According to the information and explanations given to us, we
are of the opinion that during the year, the particulars of
contracts/arrangements that need to be entered in the register
maintained in pursuance of section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in register maintained u/s 301 of the Companies
Act, 1956 and exceeding the value of 5 lakhs 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 explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58 AA of the Companies Act, 1956,
and the rules framed there under during the year. No order has been
passed by Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any Tribunal.
vii. The company has no formal internal audit system as such, but its
control procedures and systems ensure reasonable internal checking of
its financial and other records.
viii. We have broadly reviewed the cost records pursuant to the Rules
made by the Central Government for the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 and we are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have, however, not made detailed examination of
records with a view to determine whether they are accurate.
ix. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection fund, Employees''
State Insurance, Income Tax, Value Added Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanations given to us, there are no arrears of outstanding statutory
dues as mentioned above as at March 31, 2014 for a period of more than
six months from the date they became payable except Income Tax Demand
of 4.13 lakhs, which the company expects to get adjusted against refund
arising on account of pending rectifications.
(b) According to the information and explanations given to us, there
are no dues of Value Added Tax, Wealth Tax, Service Tax, Excise Duty,
Customs Duty or Cess outstanding on account of any dispute except as
mentioned below:
Name of the Financial Forum where matter is pending Amount
Statute Year ()
Income Tax 2004 - 2005 Commissioner of Income Tax 0.76
(Appeal)
Income Tax 2005 - 2006 Appeal filed by the Department to 23.01
the Income Tax Appellate Tribunal
Income Tax 2006 - 2007 Appeal filed by the Department to 21.14
the Income Tax Appellate Tribunal
Income Tax 2007 - 2008 Rectification u/s. 154 to Income 6.62
Tax Officer
Income Tax 2008 - 2009 Rectification u/s. 154 to Income 157.68
Tax Officer
Income Tax 2009 - 2010 Rectification u/s. 154 to Income 58.99
Tax Officer
Income Tax 2010 - 2011 Commissioner of Income Tax 0.32
(Appeal)
x. The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
xi. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
defaulted in repayment of dues to banks.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/ mutual benefit
fund/societies.
xiv. The Company does not deal or trade in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions, the terms and conditions whereof are
prejudicial to the interest of the Company.
xvi. According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
xvii. According to the information and explanations given to us on an
overall examination of Balance Sheet and Cash Flows of the Company, we
report that the Company has not utilised funds raised on short-term
basis for long term investment.
xviii. The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
xix. The Company did not issue any debentures during the year.
xx. The Company has not raised any money through a public issue during
the year.
xxi. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For S H R & CO.
Chartered Accountants
FRN: 120491W
HITESH R. SHAH
PARTNER
Mumbai, May 30, 2014 Membership No. 104795
Mar 31, 2013
1. We have audited the accompanying financial statements of SIMMONDS
MARSHALL LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position ,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
AUDITORS RESPONSIBILITY
3. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
OPINION
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements, read together
with notes to the accounts thereon, give the information required by
the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexurea
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. 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 the
books;
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. in our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 to the extent applicable.
e. on the basis of written representations received from the directors
as on March 31,2013 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2013
from being appointed as a director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(ANNEXURE REFERREDTO IN PARAGRAPH 7 OF OUR REPORTOF EVEN DATE ONTHE
FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,2013 OF SIMMONDS
MARSHALL LIMITED)
i. (a) The Company is in process of updating its records showing
particulars, including quantitative details and situation of fixed
assets;
(b) According to information and explanations provided to us the
company has carried out physical verification of its major assets viz.
plant and machineries in accordance with its policy to conduct physical
verification once in five years in a phased manner, which in our
opinion, is reasonable having regard to the size of the company and
nature of its business. We have been informed that the company is in
process of updating its fixed assets register and necessary adjustments
in respect of discrepancies if any between physical assets and book
record will be made in the books on such updation.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
ii. (a) As explained to us, inventory have been physically verified
during the year by the management, except for inventory lying with
outside parties, for which confirmations have been obtained from them.
(b) In our opinion and according to the information and explanation
given to us, the procedures followed by the management for physical
verification of inventory, are, in our opinion, 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 the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies which were noticed on physical
verification of inventory as compared to book records have been
properly dealt with in the books of account.
iii. (a) According to the information and explanations given to us, the
Company has not granted any loan to any party covered in the register
maintained u/s 301 of the Companies Act, 1956.
(b) According to the information and explanations given to us, the
Company has taken unsecured loans from Companies, firms and other
parties covered in the register maintained u/s 301 of the Companies
Act, 1956. The maximum amount involved during the year is Rs.808.81 lakhs
and the year-end balance of such loans aggregates to Rs.733.84 lakhs.
There are seven parties including Companies, firms and other parties
covered in the register maintained u/s 301 of the Companies Act, 1956
from whom Company has taken loans.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been taken from Companies, firms or other parties
listed in the register maintained u/s 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company.
(d) There is no stipulation as to repayments of principal amount in
respect of aforesaid loans. The Company is regular in payment of
interest.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory, fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal controls.
v. (a) According to the information and explanations given to us, we
are of the opinion that during the year, the particulars of
contracts/arrangements that need to be entered in the register
maintained in pursuance of section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in register maintained u/s 301 of the Companies
Act, 1956 and exceeding the value of Rs.5 lakhs 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 explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58 AA of the Companies Act, 1956,
and the rules framed there under during the year. No order has been
passed by Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any Tribunal.
vii. The company has no formal internal audit system as such, but its
control procedures and systems ensure reasonable internal checking of
its financial and other records.
viii. We have broadly reviewed the cost records pursuant to the Rules
made by the Central Government for the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 and we are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have, however, not made detailed examination of
records with a view to determine whether they are accurate.
ix. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection fund, Employees''
State Insurance, Income Tax, Value Added Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanations given to us, there are no arrears of outstanding statutory
dues as mentioned above as at March 31,2013 for a period of more than
six months from the date they became payable except Income Tax Demand
of Rs.3.80 lakhs, which the company expects to get adjusted against
refund arising on account of pending rectifications.
(b) According to the information and explanations given to us, there
are no dues of Value Added Tax, Wealth Tax, Service Tax, Excise Duty,
Customs Duty or Cess outstanding on account of any dispute except as
mentioned below:
Name of the
Statute Financial
Year Forum where matter is pending Amount (Rs.)
Income Tax 2004-2005 Commissioner of Income Tax 0.76
(Appeal)
Income Tax 2005-2006 Rectification u/s. 154 to Income 7.60
Tax Officer
x. The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
xi. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
defaulted in repayment of dues to banks.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/ mutual benefit
fund/societies.
xiv. The Company does not deal or trade in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions, the terms and conditions whereof are
prejudicial to the interest of the Company.
xvi. According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
xvii. According to the information and explanations given to us on an
overall examination of Balance
Sheet and Cash Flows of the Company, we report that the Company has not
utilised funds raised on short-term basis for long term investment.
xviii. The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
xix. The Company did not issue any debentures during the year.
xx. The Company has not raised any money through a public issue during
the year.
xxi. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For S H R & CO.
Chartered Accountants
FRN:120491W
HITESH R. SHAH
Mumbai, May 30,2013 PARTNER
Membership No. 104795
Mar 31, 2011
1. We have audited the attached Balance Sheet of SIMMONDS MARSHALL
LIMITED as at March 31,201 land also the Profit and Loss Account and
Cash Flow Statement of the company 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 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, 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 Annexurea
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 the
books;
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. in our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31,2011
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, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2011;
(ii) in the case of the Profit and 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 THE AUDITORS' REPORT
(ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2011 OF SIMMONDS
MARSHALL LIMITED)
i. (a) The Company is in process of updating its records showing
particulars, including quantitative details and situation of fixed
assets;
(b) According to information and explanations provided to us the
company has decided to carry out the physical verification of fixed
assets over a period of five years instead of three years as originally
envisaged, in a phased manner which in our opinion is reasonable having
regard to the size of the company and nature of its business. As
explained to us, necessary adjustments in respect of discrepancies if
any, noticed will be made in the books on such verification and
updation of fixed assets records.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
ii. (a) As explained to us, inventory have been physically verified
during the year by the management, except for inventory lying with
outside parties, for which confirmations have been obtained from them.
(b) In our opinion and according to the information and explanation
given to us, the procedures followed by the management for physical
verification of inventory, are, in our opinion, 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 the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies which were noticed on physical
verification of inventory as compared to book records have been
properly dealt with in the books of account.
iii. (a) According to the information and explanations given to us, the
Company has granted advance in the nature of loan to a firm covered in
the register maintained u/s 301 of the Companies Act, 1956. The maximum
amount involved during the year is Rs. 50,000/- and the year- end
balance of such loan is NIL.
(b) According to the information and explanations given to us, the
Company has taken unsecured loans from Companies, firms and other
parties covered in the register maintained u/ s 301 of the Companies
Act, 1956. The maximum amount involved during the year is Rs.
1,78,60,000/- and the year-end balance of such loans aggregates to Rs.
92,10,000/-. There are five parties including Companies and firms
covered in the register maintained u/s 301 of the Companies Act, 1956
from whom Company has taken loans.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been taken from Companies, firms or other parties
listed in the register maintained u/s 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company.
(d) There is no stipulation as to repayments of principal amount in
respect of aforesaid loans. The Company is regular in payment of
interest.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchaseof inventory, fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal controls.
v. (a) According to the information and explanations given to us, we
are of the opinion that during the year, the particu lars of
contracts/arrangements that need to be entered i n the register
maintained in pursuance of section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in register maintained u/s 301 of the Companies
Act, 1956 and exceeding the value of Rs. 5,00,000 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 explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58 AA of the Companies Act, 1956,
and the rules framed thereunder during the year. No order has been
passed by Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any Tribunal.
vii. The Company has no formal internal audit system as such, but its
control procedures and systems ensure reasonable internal checking of
its financial and other records.
viii. We have broadly reviewed the cost records pursuant to the Rules
made by the Central Government for the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 and we are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have, however, not made detailed examination of
records with a view to determine whether they are accurate.
ix. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection fund, Employees'
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanations given to us, there are no arrears of outstanding statutory
dues as mentioned above as at March 31,2011 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, Wealth Tax, Service Tax, Excise Duty, Customs
DutyorCessoutstandingon account of any dispute except as mentioned
below:
Name of the Financial Forum where matter Amount (Rs)
Statute Year is pending
Income Tax 2005-2006 Commissioner of 23,01,730
2006-2007 Income Tax (Appeal) 21,13,698
Income Tax 2009-2010 Assessing Officer 32,10,643
Professional Tax 2007-2008 Commissioner of 4,58,375
Profession Tax
(Appeal)
x. The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
xi. According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
defaulted in repayment of dues to banks.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
xiv.The Company does not deal or trade in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions, the terms and conditions whereof are
prejudicial to the interest of the Company.
xvi.As informed to us, the term loans were applied for the purpose for
which the loans were obtained.
xvii. According to the information and explanations given to us on an
overall examination of Balance Sheet and Cash Flows of the Company, we
report that the Company has not utilised funds raised on short-term
basis for long term investment.
xviii. According to the infoimation and explanations given to us, 'he
Company has not made preferential allotment of shares during the year.
xix. The Company did not issue any debentures during the year.
xx. The Company has not raised any money through a public issue during
the year.
xxi. Based on the audit procedures performed and information and
explanations give by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For S H R & CO.
Chartered Accountants
FIRM No. 120491W
HITESH R. SHAH
PARTNER
Membership No. 104795
Mumbai, dated July 30, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of SIMMONDS MARSHALL
LIMITED as at March 31, 2010 and also the Profit and Loss Account and
Cash Flow Statement of the company 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 statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, 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 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 the
books;
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with bythis report are in agreement with the books of account.
d. inouropinion,the Balance Sheet, Profit & Loss Account and the Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1 956;
e. on the basis of written representations received from the directors
as on March 31, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2010
from being appointed as a director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
f. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
(ii) in the case of the Profit and 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 THE AUDITORS REPORT
(ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2010 OF SIMMONDS
MARSHALL LIMITED)
i. (a) The Company is in process of updating its records showing
particulars,inclu(Jing quantitative details and situation of fixed
assets;
(b)According to information and explanations provided to us the company
has decided to carry out the physical verification of fixed assets over
a period of three years in a phased manner which in our opinion is
reasonable having regard to the size of the company and nature of its
business. As explained to us, necessary adjustments in respect of
discrepancies if any, noticed will be made in the books on such
verification of fixed assets.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern.
ii. (a) As explained to us, inventory have been physically verified
during the year by the management, except for inventory lying with
outside parties, for which confirmations have been obtained from them.
(b) The procedures explained to us, which are followed by the
management for physical verification of inventory, are, in our opinion,
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 the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies which were noticed on physical
verification of inventory as compared to book records have been
properly dealt with in the books of account.
iii. (a) According to the information and explanations given to us, the
Company has not granted any secured or unsecured loan to Companies,
firms and other parties covered in the register maintained u/s 301 of
the Companies Act, 1956.
(b) According to the information and explanation given to us, the
Company has taken unsecured loans from Companies, firms and other
parties covered in the register maintained u/s 301 of the Companies
Act, 1956. The maximum amount involved during the year is Rs.
3,77,50,355/- and the year-end balance of such loans aggregates to Rs.
92,60,000/-. There are nine parties including Companies and firms
covered in the register maintained u/s 301 of the Companies Act, 1956
from whom Company has taken loans.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been taken from Companies, firms or other parties
listed in the register maintained u/s 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the interest of the Company.
(d) There is no stipulation as to repayments of principal amount in
respect of aforesaid loans. The Company is regular in payment of
interest.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory, fixed assets and for the sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal controls.
v. (a) According to the information and explanations given to us, we
are of the opinion that during the year, the particulars of contracts
arrangements that need to be entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in register maintained u/s 301 of the Companies
Act, 1956 and exceeding the value of Rs. 5,00,000 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 explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58 AA of the Companies Act, 1956,
and the rules framed there under during the year. No order has been
passed by Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any Tribunal.
vii. The company has no formal internal audit system as such, but its
control procedures and systems ensure reasonable internal checking of
its financial and other records.
viii. We have broadly reviewed the cost records pursuant to the Rules
made by the Central Government for the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 and we are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have, however, not made detailed examination of
records with a view to determine whether they are accurate.
ix. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanations given to us, there are no arrears of outstanding statutory
dues as mentioned above as at March 31, 2010 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, Wealth Tax, Service Tax, Excise Duty, Customs
Duty or Cess outstanding on account of any dispute except income Tax
demand of Rs.23,01,730/-and Rs.21,13,698/- for assessment year 2006-07
and assessment year 2007-08 respectively, against which the company has
preferred appeals before the Commissioner Of Appeals (Mumbai).
x. The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
xi. According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
defaulted in repayment of dues to banks.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/ mutual benefit
fund/societies.
xiv. The Company does not deal or trade in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions, the terms and conditions whereof are
prejudicial to the interest of the Company.
xvi. As informed to us, the term loans were applied for the purpose for
which the loans were obtained.
xvii. According to the information and explanations given to us on an
overall examination of Balance Sheet and Cash Flows of the Company, we
report that the Company has not utilised funds raised on short-term
basis for long term investment.
xviii. According to the information and explanations given to us, the
Company has made preferential allotment of shares to parties covered in
the register maintained under section 301 of the Companies Act, 1956 at
a price which is not prejudicial to the interest of the company.
xix. The Company did not issue any debentures during the year.
xx. The Company has not raised any money through a public issue during
the year.
xxi. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For S H R & CO.
Chartered Accountants
HITESH R. SHAH
PARTNER
Membership No. 104795
FRN:120491W
Mumbai, July 30, 2010