Mar 31, 2015
We have audited the accompanying financial statements of Sita Shree
Food Products Limited, which comprise the Balance Sheet as at March 31,
2015, and the Statement of Profit and Loss and Cash Flow Statement for
the year ended, and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of director is responsible for the matters stated
in section 134(5) of the Companies act 2013("the act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial statements, financial performance and cash flow
of the company in accordance with the accounting principles generally
accepted in India, including the accounting standards specifies in
section 133 of the act, read with rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provisions of the
act for safeguarding the assets of the company and for preventing and
detecting fraud & other irregularities; selection and application of
appropriate accounting policies; making judgment and estimates that are
reasonable and prudent; and design, implementation and maintenance of
internal financial control, that were operating effectively for
ensuring the accuracy and completeness of accounting records, relevant
to the preparation and presentation of financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the act, 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the 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 of the
financial statements that give true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by
company's directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereinafter referred to the "Order"), and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in section 133 of the Companies Act, 2013, read with rule 7 of the
Companies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of sub-section (2) of section 164 of
the Companies Act, 2013.
f. With respect to the other matters included in the auditor's report
and to best of our information and according to the explanation given
to us.
1) The company has disclosed the impact of pending litigation on its
financial position in its financial statements.
2) The company has made provisions, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
3) There has been no delay in transferring amounts, required to be
transferred, to the investor's education and protection fund by the
company.
1.1. The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
1.2. All the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancies were
noticed on such verification.
2.1. The inventories have been physically verified at reasonable
intervals by the management.
2.2. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
2.3. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification of
inventory as compared to book records.
3. As informed to us, the company has not granted any loans, secured
or unsecured, to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act, 2013.
Accordingly, the sub-clauses (a) and (b) are not applicable to the
company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. According to the information and explanations given to us, the
Company has not accepted any deposits in terms of directives issued by
Reserve Bank of India and the provisions of Sections 73 to 76 or any
other relevant provisions of the Companies Act, 2013 and the rules
framed there under.
6. We have broadly reviewed the books of account maintained by the
Company pursuant sub-section (1) of Section 148 of the Companies Act,
2013 and are of the opinio n that prima facie, the prescribed accounts
and records have been made and maintained.
7. The company is generally regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and any other statutory dues with the appropriate
authorities and we have been informed that there are no arrears of
outstanding statutory dues as at the last day of the financial year
under audit for a period of more than six months from the date they
became payable.
7.2. According to the information and explanations given to us, there
are no material dues of wealth tax, and cess which have not been
deposited with the appropriate authorities on account of any dispute.
However, according to information and explanations given to us, the
following dues of income tax, and entry tax and sales tax have not been
deposited by the Company on account of disputes:
Name of Statute Nature Amount Period to Forum
of Dues (in Rs.) which where
amount dispute is
relates pending
Income Tax
Act, 1961 Income Tax 8,06,93,640/- A.Y. 2012-13 CIT
(Appeals) -
II,Indore
Madhya Pradesh
VAT VAT 11,90,410/- A.Y. 2008-09 M. P.
Commercial
Kshetra
Me Mal Ke Tax Tri-
bunal
Pravesh Par
Kar Adhiniyam, Board,
Bhopal.
1976 & Madhya
Pradesh VAT
Act,2002
7.3. According to the information and explanations given to us, the
Company has transferred the amount of Rs. 6,000.00/- lying in the
Refund Account for the year 2008-09 after expiry of Seven (7) years
from the date of transfer to the Investor Education and Protection
Fund.
8. The Company has no accumulated losses at the end of the financial
year under audit. The company has not incurred cash losses during the
financial year covered by audit and in the immediately preceding
financial year.
9. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank.
10. 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.
11. As per our verification of books and records and explanation given
to us the Company has not taken any new Term Loan during the year
except a car loan for purchase of car.
12. Based upon the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year of our audit.
For: M.K.SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
(Regn.No.002077C)
Date: 30th May 2015 (M.K.SHAH)
PROPRIETOR
M.NO. 400-71199
Mar 31, 2014
We have audited the accompanying financial statements of Sita Shree
Food Products Limited, which comprise the Balance Sheet as at March
31st, 2014, and the Statement of Profit and Loss and Cash How Statement
for the year ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance, of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st, 2014;
(b) In the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) In the case of the Cash How Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash How Statement comply with the Accounting Standards referred to
in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31st, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st , 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Annexure to the Auditor''s Report (referred to in paragraph 3 of our
Report of even date to the members of Sita Shree Food Products Ltd..
Indore on the Financial Statement for the year ended 31st March. 2014).
(i) Fixed Assets
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) Fixed assets are physically verified by the management according to
a phased program designed to all assets as per regular program which in
our opinion is reasonable having regards to the size of the company and
nature of its assets. Fixed Assets at certain location were physically
verified by the Management during the year and no material
discrepancies between the books records and the physical verification
have been notice according to information given to us by the management
of the company.
(c) In our opinion and according to the information and explanation
given to us since no substantial part of the fixed assets has been
disposed by the company during the year. It doesn''t affect the going
concern status of the company.
(ii) Inventories
(a) Inventory has been physically verified by the management during the
year in our opinion frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification of
inventory as compared to book records.
(iii) Loan Granted or Taken
(a) There is no unsecured loan granted to Companies, Firms & Other
Parties covered in die Register maintained u/s 301 of Companies Act
1956.
(b) During die year, company has taken unsecured loan from directors &
outstanding as on 31.03.2014 is of Rs.34.60 Lacs (maximum balance of
during the year was Rs. 10.63 Crore), and no payment terms has been
defined except this there is no unsecured loan taken from Companies,
Firms & Other Parties covered in the Register maintained u/s 301 of
Companies Act 1956.
(c) In respect of the said loans and interest diereon, there is no
interest charged on loan taken
(iv) Internal Control Procedure
In our opinion and according to die information and explanations given
to us having regard to die explanation tiiere is an adequate internal
control procedure commensurate witii die size of die Company and the
nature of its business for the purchase of goods, fixed assets and for
the sale of goods. Further on die basis of our examination of die books
and die records of the company carried out in accordance witii die
auditing standard generally accepted in India and according to the
information and explanation given to us. We have neither come across
nor have been informed of any continuing failure to correct major
weakness in the aforesaid internal control system.
(v) Transaction with Parties u/s 301
In respect of die contract are arrangements referred to in section 301
of die Companies Act, 1956.
(a) In our opinion and according to die information and explanations
given to us, die particular of contract or arrangement referred to
section 301 of die Companies Act, 1956, have been so entered in die
register required to be maintained under tiiat section.
(b) In our opinion and information and explanation given to us, Company
has made the transactions required to be entered in the register
maintained under section 301 of the Companies Act 1956 aggregating
during the year to Rs. 5,00,000.00 or more in respect of each party
have been made at the price which are prima-facie reasonable having
regard to prevailing market price at the relevant time.
(vi) Public Deposit
According to the information & explanation given to us, the Company has
neither accepted nor invited any deposit from the public and hence
directives issued by Reserve Bank of India and the provisions of
section 58A and 58AA of the Companies Act, 1956 and rules framed there
under are not applicable for the year under audit.
(vii) Internal Audit System
In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) Cost Record
We have broadly reviewed cost record maintained by the company pursuant
to the companies (Cost Accounting Records) Rules, 2011 prescribed by
the Central Government under section 209(1) (d) of the Companies Act,
1956 and are the opinion that prima facie the prescribed cost records
have been maintained. We have, however, not made detail examination of
the cost records with a view to determined whether they are accurate or
complete.
(ix) Statutory Dues
(a) According to the information and explanation given to us and the
records of the company examined by us, in our opinion the company is
generally regular in depositing the undisputed statutory dues in
respect of Provident Fund, Sales tax, Service tax and other material
statutory dues as applicable with the appropriate authority in India.
b) According to the information and explanation given to us, no
undisputed statutory dues
payable in respect of Provident Fund, Income Tax, Service Tax, Sales
Tax and others same have been generally regularly deposited with the
appropriate authority. According to the information & explanation given
to us, no undisputed amount payable in respect of the aforesaid dues
were outstanding as at March 2014 for a period of more than six months
from the date they become payable.
(x) Accumulated/Cash losses
The Company has no accumulated losses at the end of the financial year
and has not incurred any cash losses during the current year covered
under audit and in the immediately preceding financial year.
(xi) Default in repayment of dues to Financial Institutions or Bank
Based on our audit procedures and on die basis of information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions or banks with respect to its borrowings as at the balance
sheet date.
(xii) Granting of Loan and Advances
According to die information and explanations given to us, die Company
has not given any loans and advances on the basis of security by way of
pledge of shares, debentures and odier securities of the Company.
(xiii) Chit Fund/Nidhi/Mutual Benefit/Society Activities
In our opinion, the Company is not a Chit Fund, a Nidhi or a Mutual
Benefit Society. Therefore, die provisions relating to any such statute
are not applicable to the Company.
(xiv) Investment
The Company has maintained proper records of the transactions and
contracts in respect of dealing of trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
(xv) Guarantee given by the Company for loan taken by others
As information and explanation given to us the Company has not given
any guarantee in respect of loans taken by others from any Bank or
Financial Institutions.
(xvi) Utilization of Term Loan
During the year Company has not raised any additional term loan from
any Bank or Financial institution.
(xvii) Application of Short Term Fund for Long Term Investment and vice
versa
According to the information and explanation given to us and on the
basis of an overall examination of the balance sheet of the company
there are no funds which raised for short-term basis have been used for
long term investment.
(xviii) Preferential Allotment of Shares
We are informed that, the Company has not made any allotment of equity
share on preferential basis to the parties and companies covered in the
Register maintained under section 301 of the Act, in the financial year
under audit.
(xix) Creation of Securities for Debenture Issue
According to the information and explanations given to us and the
records examined by us, the company has not issued debentures hence;
disclosure regarding creation of securities in respect of debentures
issued does not arise.
(xx) Money raised by Public Issue
The Company has not raised any money by public issues during the year.
(xxi) Fraud noticed or Reported
During the course of our examination of the Books and records of the
company carried out in accordance with the generally accepted auditing
practice in India and according to the information and explanations
given to us. We have neither come across any instances of material
fraud on or by the company, noticed or reported during the year or have
been informed of such case by the management.
For: M.K.SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
(Regn.No.002077C)
Place: Indore (M.K.SHAH)
Date: 30th May 2014 PROPRIETOR
M.NO. 400-71199
Mar 31, 2013
RePort on the Financial Statements
We have audited the accompanying financial statements of Sita Shree
Food Products Limited, which comprise the Balance Sheet as at March 31,
2013, and the Statement of Profit and Loss and Cash Flow Statement for
the year ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance. of internal
control relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company'' s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date;
and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Resort on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
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,
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.
(i) Fixed Assets
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) Fixed assets are physically verified by the management according to
a phased program designed to all assets as per regular program which in
our opinion is reasonable having regards to the size of the company and
nature of its assets. Fixed Assets at certain location were physically
verified by the Management during the year and no material
discrepancies between the books records and the physical verification
have been notice according to information given to us by the management
of the company.
(c) In our opinion and according to the information and explanation
given to us since no substantial part of the fixed assets has been
disposed by the company during the year. It doesn''t affect the going
concern status of the company.
(ii) Inventories
(a) Inventory has been physically verified by the management during the
year in our opinion frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification of
inventory as compared to book records.
(iii) Loan Granted or Taken
(a) The Company has granted unsecured loan to its 100% subsidiary
company GG Real Estate Pvt.Ltd. and maximum outstanding at any time
during the year was Rs. 81639401/- and the yearend balance is NIL. The
Company has charges interest @ 18% p.a. except this there is no
unsecured loan granted to Companies, Firms & Other Parties covered in
the Register maintained u/s 301 of Companies Act 1956.
(b) During the year, company has taken unsecured loan of Rs.11.51 Crore
from 3 Parties and maximum balance of all the three parties during the
year was Rs. 26.87 Crore, except this there is no unsecured loan taken
from Companies, Firms & Other Parties covered in the Register
maintained u/s 301 of Companies Act 1956.
(c) In respect of the said loans and interest thereon, there is no
interest charged on loan taken & in respect of loan given to GG Real
Estate Pvt. Ltd. Interest @18% the entire amount due was received.
(iv) Internal Control Procedure
In our opinion and according to the information and explanations given
to us having regard to the explanation there is an adequate internal
control procedure commensurate with the size of the Company and the
nature of its business for the purchase of goods, fixed assets and for
the sale of goods. Further on the basis of our examination of the books
and the records of the company carried out in accordance with the
auditing standard generally accepted in India and according to the
information and explanation given to us. We have neither come across
nor have been informed of any continuing failure to correct major
weakness in the aforesaid internal control system.
(v) Transaction with Parties u/s 301
In respect of the contract are arrangements referred to in section 301
of the Companies Act, 1956.
(a) In our opinion and according to the information and explanations
given to us, the particular of contract or arrangement referred to
section 301 of the Companies Act, 1956, have been so entered in the
register required to be maintained under that section.
(b) In our opinion and information and explanation given to us, Company
has made the transactions required to be entered in the register
maintained under section 301 of the Companies Act 1956 aggregating
during the year to Rs. 5,00,000.00 or more in respect of each party
have been made at the price which are prima-facie reasonable having
regard to prevailing market price at the relevant time.
(vi) Public Deposit
According to the information & explanation given to us, the Company has
neither accepted nor invited any deposit from the public and hence
directives issued by Reserve Bank of India and the provisions of
section 58A and 58AA of the Companies Act, 1956 and rules framed there
under are not applicable for the year under audit.
(vii) Internal Audit System
In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) Cost Record
As informed to us, All the required records as prescribed by the
Central Government has maintained as specified cost record under
section 209(1) (d) of the Companies Act, 1956.
(ix) Statutory Dues
(a) According to the information and explanation given to us and the
records of the company examined by us, in our opinion the company is
generally regular in depositing the undisputed statutory dues in
respect of Provident Fund, Sales tax, Service tax and other material
statutory dues as applicable with the appropriate authority in India.
b) According to the information and explanation given to us, no
undisputed statutory dues payable in respect of Provident Fund, Income
Tax, Service Tax, Sales Tax and others same have been generally
regularly deposited with the appropriate authority. According to the
information & explanation given to us, no undisputed amount payable in
respect of the aforesaid dues were outstanding as at March 2013 for a
period of more than six months from the date they become payable.
(x) Accumulated/Cash losses
The Company has no accumulated losses at the end of the financial year
and has not incurred any cash losses during the current year covered
under audit and in the immediately preceding financial year.
(xi) Default in repayment of dues to Financial Institutions or Bank
Based on our audit procedures and on the basis of information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions or banks with respect to its borrowings as at the balance
sheet date.
(xii) Granting of Loan and Advances
According to the information and explanations given to us, the Company
has not given any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities of the Company.
(xiii) Chit Fund/Nidhi/Mutual Benefit/Society Activities
In our opinion, the Company is not a Chit Fund, a Nidhi or a Mutual
Benefit Society. Therefore, the provisions relating to any such statute
are not applicable to the Company.
(xiv) Investment
The Company has maintained proper records of the transactions and
contracts in respect of dealing of trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
(xv) Guarantee given by the Company for loan taken by others
As information and explanation given to us the Company has not given
any guarantee in respect of loans taken by others from any Bank or
Financial Institutions.
(xvi) Utilization of Term Loan
In our opinion and according to the information and explanation given
to us, on an overall basis the term loans taken from consortium State
Bank of India & Union Bank of India have been applied for the purposes
for which they were raised.
(xvii) Allocation of Short Term Fund for Long Term Investment in vice
versa
According to the information and explanation given to us and on the
basis of an overall examination of the balance sheet of the company
there are no funds which raised for short-term basis have been used for
long term investment.
(xviii) Preferential Allotment of Shares
We are informed that, the Company has not made any allotment of equity
share on preferential basis to the parties and companies covered in the
Register maintained under section 301 of the Act, in the financial year
under audit.
(xix) Creation of Securities for Debenture Issue
According to the information and explanations given to us and the
records examined by us, the company has not issued debentures hence;
disclosure regarding creation of securities in respect of debentures
issued does not arise.
(xx) Money raised by Public Issue
The Company has not raised any money by public issues during the year.
The management has disclosed the end use of monies during the year, out
of public issue raised in the earlier year (Refer point 16 of Note 26
notes of accounts)
(xxi) Fraud noticed or Reported
During the course of our examination of the Books and records of the
company carried out in accordance with the generally accepted auditing
practice in India and according to the information and explanations
given to us. We have neither come across any instances of material
fraud on or by the company, noticed or reported during the year or have
been informed of such case by the management.
For: M.K.SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
(Regn.No.002077C)
Place: Indore (M.k.shah)
Date: 30th May 2013 PROPRIETOR
M.NO. 400-71199
Mar 31, 2012
1. We have audited the attached Balance Sheet of Sita Shree Food
Products Limited, as at 31st March 2012 and the related Profit and Loss
Account and also the cash flow statement for the year ended on that
which we have signed under reference to this report. 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, of India we enclose in the
Annexure a statement of the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to above and our comments in the Annexure referred to in
paragraph 3 above, we report that: (i) We have obtained all the
information and explanations, which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appear for our examination of those
books;
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts;
(iv) In our opinion, the Balance Sheet Profit and Loss Account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 to the extent they are applicable.
(v) On the basis of written representations received from the Directors
as on 31st March 2012 and taken on record by the Board of Directors,
none of the director is disqualified as on 31st March 2012 from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statement together
with notes thereon and attached there to give in the prescribed matter
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012; and
(b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date and
c) In the case of the cash flow statement of the cash flow for the year
ended on the date.
Annexure to the Auditor's Report (referred to in paragraph 3 of our
Report of even date to the members of Sita Shree Food Products Ltd..
Indore on the Financial Statement for the year ended 31st March. 2012).
(i) Fixed Assets
(a) The Company is maintaining proper records showing full particulars.
including quantitative details and situation of fixed assets.
(b) Fixed assets are physically verified by the management according to
a phased program designed to all assets as per regular program which in
our opinion is reasonable having regards to the size of the company and
nature of its assets. Fixed Assets at certain location were physically
verified by the Management during the year and no material
discrepancies between the books records and the physical verification
have been notice according to information given to us by the management
of the company.
(c) In our opinion and according to the information and explanation
given to us since no substantial part of the fixed assets has been
disposed by the company during the year. It doesn't affect the going
concern status of the company.
(ii) Inventories
(a) Inventory has been physically verified by the management during the
year in our opinion frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us. the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us. the Company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification of
inventory as compared to book records.
(iii) Loan Granted or Taken
(a) The Company has granted unsecured loan to its 100% subsidiary
company GG Real Estate Pvt.Ltd. and maximum outstanding at any time
during the year was Rs. 81639401/- and the year end balance is
Rs.81639401/-. The Company has charges interest @ 18% p.a. except this
there is no unsecured loan granted to Companies. Firms & Other Parties
covered in the Register maintained u/s 301 of Companies Act 1956.
(b) During the year. company has taken unsecured loan of Rs.17.00 Crore
from GG Infra Pvt. Ltd. Except this there is no unsecured loan taken
from Companies. Firms & Other Parties covered in the Register
maintained u/s 301 of Companies Act 1956.
(c) In respect of the said loans and interest thereon. there are no
overdue amounts.
(iv) Internal Control Procedure
In our opinion and according to the information and explanations given
to us having regard to the explanation there is an adequate internal
control procedure commensurate with the size of the Company and the
nature of its business for the purchase of goods. fixed assets and for
the sale of goods. Further on the basis of our examination of the books
and the records of the company carried out in accordance with the
auditing standard generally accepted in India and according to the
information and explanation given to us. We have neither come across
nor have been informed of any continuing failure to correct major
weakness in the aforesaid internal control system.
(v) Transaction with Parties u/s 301
In respect of the contract are arrangements referred to in section 301
of the Companies Act. 1956.
(a) In our opinion and according to the information and explanations
given to us. the particular of contract or arrangement referred to
section 301 of the Companies Act. 1956. have been so entered in the
register required to be maintained under that section.
(b) In our opinion and information and explanation given to us, Company
has made the transactions required to be entered in the register
maintained under section 301 of the Companies Act 1956 aggregating
during the year to Rs. 5,00,000.00 or more in respect of each party
have been made at the price which are prima-facie reasonable having
regard to prevailing market price at the relevant time.
(vi) Public Deposit
According to the information & explanation given to us, the Company has
neither accepted nor invited any deposit from the public and hence
directives issued by Reserve Bank of India and the provisions of
section 58A and 58AA of the Companies Act, 1956 and rules framed there
under are not applicable for the year under audit.
(vii) Internal Audit System
In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) Cost Record
As informed to us, the Central Government has not prescribed the
maintenance of cost record under section 209(1) (d) of the Companies
Act, 1956.
(ix) Statutory Dues
(a) According to the information and explanation given to us and the
records of the company examined by us, in our opinion the company is
generally regular in depositing the undisputed statutory dues in
respect of Provident Fund, Sales tax, Service tax and other material
statutory dues as applicable with the appropriate authority in India .
b) According to the information and explanation given to us, no
undisputed statutory dues payable in respect of Provident Fund, Income
Tax, Service Tax, Sales Tax and others same have been generally
regularly deposited with the appropriate authority. According to the
information & explanation given to us, no undisputed amount payable in
respect of the aforesaid dues were outstanding as at March 2012 for a
period of more than six months from the date they become payable.
(x) Accumulated/Cash losses
The Company has no accumulated losses at the end of the financial year
and has not incurred any cash losses during the current year covered
under audit and in the immediately preceding financial year.
(xi) Default in repayment of dues to Financial Institutions or Bank
Based on our audit procedures and on the basis of information and
explanations given by the management, we are of the opinion that the
company has not defaulted in the repayment of dues to financial
institutions or banks with respect to its borrowings as at the balance
sheet date.
(xii) Granting of Loan and Advances
According to the information and explanations given to us, the Company
has not given any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities of the Company.
(xiii) Chit Fund/Nidhi/Mutual Benefit/Society Activities
In our opinion, the Company is not a Chit Fund, a Nidhi or a Mutual
Benefit Society. Therefore, the provisions relating to any such statute
are not applicable to the Company.
(xiv) Investment
The Company has maintained proper records of the transactions and
contracts in respect of dealing of trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
(xv) Guarantee given by the Company for loan taken by others
As information and explanation given to us the Company has not given
any guarantee in respect of loans taken by others from any Bank or
Financial Institutions.
(xvi) Utilization of Term Loan
In our opinion and according to the information and explanation given
to us, on an overall basis the term loans taken from consortium State
Bank of India have been applied for the purposes for which they were
raised.
(xvii) Application of Short Term Fund for Long Term Investment in vice
versa
According to the information and explanation given to us and on the
basis of an overall examination of the balance sheet of the company
there are no funds which raised for short-term basis have been used for
long term investment.
(xviii) Preferential Allotment of Shares
We are informed that, the Company has not made any allotment of equity
share on preferential basis to the parties and companies covered in the
Register maintained under section 301 of the Act, in the financial year
under audit.
(xix) Creation of Securities for Debenture Issue
According to the information and explanations given to us and the
records examined by us, the company has not issued debentures hence;
disclosure regarding creation of securities in respect of debentures
issued does not arise.
(xx) Money raised by Public Issue
The Company has not raised any money by public issues during the year.
The management has disclosed the end use of monies during the year, out
of public issue raised in the earlier year (Refer point 16 of Note 26
notes of accounts)
(xxi) Fraud noticed or Reported
During the course of our examination of the Books and records of the
company carried out in accordance with the generally accepted auditing
practice in India and according to the information and explanations
given to us. We have neither come across any instances of material
fraud on or by the company, noticed or reported during the year or have
been informed of such case by the management.
For M.K.SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
(Regn.N o.002077C)
Place: Indore
Date: 30th May 2012 (M.K.Shah)
Proprietor
M.NO. 400-71199
Mar 31, 2010
1. We have audited the attached Balance Sheet of Sita Shree Food
Products Limited, as at 31st March 2010 and the related Profit and Loss
Account and also the cash flow statement for die year ended on.that
which we have signed under reference to this report. 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 as
amended by companies (Auditors Report) Amendment order 2004 together
the order issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, of India
(the Act) and on the basis of such check of books and records of the
company as considered appropriate and according the information and
explanation given to us we given in the Annexure a statement of the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to above and our comments in the Annexure referred to ia
paragraph 3 above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appear for our examination of those
books;
(iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts;
(iv) In our opinion, the Balance Sheet Profit and Loss Account and cash
flow statement dealt with by this report
comply with the accounting standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956 to the extent they are
applicable.
(v) On the basis of written representations received from the Directors
as on 31st March 2009 and taken on record by
the Board of Directors, none of the director is disqualified as on 31st
March 2010 from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statement together with
notes thereon and attached there to give in the prescribed matter the
information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010; and
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date and
(c) In the case of the cash flow statement of the cash flow for the
year ended on the date.
Annexure to the Auditors Report (referred to in paragraph 3 of our
Report of even date to the members of Sita Shree Food Products Ltd..
Indore on the Financial Statement for the year ended 31s March. 2010).
(i) Fixed Assets
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) Fixed assets are physically verified by the management according to
a phased programme designed to all assets once in two year which in our
opinion is reasonable having regards to the size of the company and
nature of its assets. Fixed Assets at certain location were physically
verified by the Management during the year and no material discrepancies
between the books records and the physical verification have been notice.
c) In our opinion and according to the information and explanation
given to us since no part of
the fixed assets has been disposed by the company during the year.
Therefore do not affect the going concern status of the company.
(ii) Inventories
(a) Inventory has been physically verified by the management during the
year in our opinion frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification of
inventory as compared to book records.
(iii) Loan Granted or Taken
(a) The Company has not given any secured or unsecured loan to
companies or other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Thus clause 3 (b)(c)(d) does
not applicable to the company.
(b) During die year company repaid die loan of Rs. 1292913/- to the
parties which are covered in the register maintained under section 301
ofthe Companies Act 1956.
(iv) Internal Control Procedure
In our opinion and according to the information and explanations given
to us having regard to the explanation there is an adequate internal
control procedure commensurate with the size of the Company and the
nature of its business for the purchase of goods, fixed assets and for
the sale of goods. Further on the basis of our examination ofthe books
and the records ofthe company carried out in accordance with the
auditing standard generally accepted in India and according to the
information and explanation given to us. We have neither come across
nor have been informed of any continuing failure to correct major
weakness in the aforesaid internal control system.
(v) Transaction with Parties u/s 301
(a) In our ojpinion and according to the information and explanations
given to us, the particular of contract or arrangement referred to
section 301 ofthe Companies Act, 1956, have been so entered in the
register required to be maintained under that section.
Annexure to the Auditors Report (referred to in paragraph 3 of our
Report of even date to the members of Sita Shree Food Products Ltd..
Indore on the Financial Statement for the year ended 31st March. 2010).
(i) Fixed Assets
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) Fixed assets are physically verified by the management according to
a phased programme designed to all assets once in two year which in our
opinion is reasonable having regards to the size of the company and
nature of its assets. Fixed Assets at certain location were physically
verified by the Management during the year and no material
discrepancies between the books records and the physical verification
have been notice.
c) In our opinion and according to the information and explanation
given to us since no part of
the fixed assets has been disposed by the company during the year.
Therefore do not affect the going concern status of the company.
(ii) Inventories
(a) Inventory has been physically verified by the management during the
year in our opinion frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification of
inventory as compared to book records.
(iii) Loan Granted or Taken
(a) The Company has not given any secured or unsecured loan to
companies or other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Thus clause 3 (b)(c)(d) does
not applicable to the company.
(b) During the year company repaid the loan of Rs. 1292913/- to the
parties which are covered in the register maintained under section 301
ofthe Companies Act 1956.
(iv) Internal Control Procedure
In our opinion and according to the information and explanations given
to us having regard to the explanation there is an adequate internal
control procedure commensurate with the size of the Company and the
nature of its business for the purchase of goods, fixed assets and for
the sale of goods. Further on the basis of our examination ofthe books
and the records ofthe company carried out in accordance with the
auditing standard generally accepted in India and according to the
information and explanation given to us. We have neither come across
nor have been informed of any continuing failure to correct major
weakness in the aforesaid internal control system.
(v) Transaction with Parties u/s 301
(a) In our opinion and according to the information and explanations
given to us, the particular of contract or arrangement referred to
section 301 ofthe Companies Act, 1956, have been so Place Indore
entered in the register required to be maintained under that section.
Date: 29th May 2010
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