Auditor Report of Smruthi Organics Ltd.
Mar 31, 2018
Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Smruthi Organics Limited("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive Income), the Cash Flow Statement and the statement of changes of equity for the year ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, profit or loss (financial performance including other comprehensive Income and cash flows and changes in the equity of the Company in accordance with the accounting principles generally accepted in India, including Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.
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 IndAS 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 of the Standalone Ind AS financial statement 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 Ind AS of the state of affairs ( Financial Position) of the Company as at March 31, 2018, and its loss (Financial performance including other comprehensive Income) and its cash flows and the changes in equity for theyearended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 ("the Order) issued by the Central Government in terms of sub-section (11) of section 143 of the Act, we give in Annexure A, a statement on matters specified in paragraphs 3 and 4 of the said order .
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, Cash Flow Statement 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 standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015.
(e) In the course of our audit we have not come across any transactions or matters which have any adverse effects on the functioning of the company.
(f) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) With respect to the adequacy of the internal financial control over financial reporting of the company and operating effectiveness of such controls - Annexure B.
(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations on its financial position in Standalone Ind AS financial statement.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure-A to the Independent Auditorâs Report
Referred to in paragraph 1 under the heading of " Report on other legal and regulatory requirements of our report of even date."
Smruthi Organics Limited
For the Year Ended March 31st 2018
1. Fixed Assets [Clause 3(I)]:
a) Proper Records: The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets:
b) Physical Verification: These fixed assets have been physically verified by the management at reasonable intervals - Not Applicable.
Any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account by the management at regular intervals.
c) Title Deed: The title deeds of immovable properties are held in the name of the company.
2. Inventory [Clause 3(ii)]:.
Physical verification: Physical verification of inventory has been conducted at reasonable intervals by the managements; Valuation of closing stock is taken as certified, valued and verified by the management by the Company
No such material discrepancies were noticed on such verification. And if so, whether the same have properly dealt with in the books of account is not applicable;
3. Loan given by Company [Clause 3(iii)]:
a) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships(LLP) or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
b) Terms and Conditions: The terms and conditions of the grant of such loans are not prejudicial to the companyâs interest Not Applicable.
c) Regular Recovery: The schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; Not Applicable.
d) Steps for Recovery: If the amount is overdue, state the total amount overdue for more than 90 days, and whether reasonable steps have been taken by the company for recovery of the principal and interest. Not Applicable.
4. Loan to the Directors and investment by Company [Clause3(iv)];
The company has not granted or made any investments, guarantees, and security to the parties covered under section 185 and 186 of the Companies Act, 2013 have been complied with. If not, provided the details thereof. Not Applicable.
5. Deposits[Clause3(v)]:
If the company has not accepted any deposits from the public within the meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder - Not Applicable.
6. Cost Records [Clause3(vi)]:
The Central Government has specified maintenance of cost records under section 148 (1) of the Companies Act, 2013, and hence such accounts and records have been made and maintained.
7. Statutory Dues [Clause 3(vii)]
Following matters shall be reported for statutory dues and disputes for tax and duties.
a) Statutory Dues for more than 6 Months: Whether the company is regular in depositing undisputed statutory dues with the appropriate authorities including:
i. Provident fund; No Such Dues
ii. Employeeâs state insurance ;No Such Dues
iii. Income - tax; No Such Dues
iv. Sales- tax; No Such Dues
v. Service tax; No Such Dues
vi. Duty of customs; No Such Dues
vii. Duty of excise; No Such Dues
viii. Value Added Tax (VAT);No Such Dues
ix. Cess; and No Such Dues
x. Any other statutory dues. No Such Dues
If the company is not regular in depositing such statutory dues, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor. No such dues are pending.
a) According to the records of the company and as per information and explanation given to me, there are no dues of Sales Tax or Value added tax and Excise which have not been deposited on account of any dispute as on 31.03.2018,
8. Repayment of Loans [Clause 3(viii)]
The company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government.
9. Utilization of IPO and further Public offer [Clause 3(ix)]:
The Company has not raised money by way of initial public offer or further public offer and Term Loans where applied for the purposes for which those are raised,
If not, the details together with delays or default and subsequent rectification, if any, as may be applicable, be reported - Not applicable.
10 Reporting of Fraud [Clause(x)]:
No fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
11 Approval of Managerial Remuneration [Clause 3(xi)]:
Managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.
12 Nidhi Company [Clause3 (xii)]:
Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1:20 to meet out the liability and whether the Nidhi Company is maintaining 10% unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet our the liability; Not Applicable
13 Related Party Transaction [Clause 3 (xiii)]:
All transactions with the related parties are in compliance with sections 177 and 188 Companies Act, 2013. The details of such related party transaction have been disclosed in the Financial Statements as required under Indian Accounting Standard (Ind AS) 24, related party disclosures specified under section 133 of the Act.
14 Private Placement or Preferential Issues [Clause 3(xiv)]:
The company has not made any preferential allotment or private placement of shares or fully or party convertible debentures during the year under review. Accordingly the provisions of Clause 3 (xiv)of the order are not applicable to the company.
15 Non- cash Transactions [Clause 3(xv)]:
The company has not entered into any non-cash transactions with directors of persons connected with him. Accordingly provisions of [Clause 3(xv)] of the order are not applicable to the company.
16 Register under RBI Act 1934 [Clause 3 (xvi)]:
The company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly provision of Clause 3 (xvi) of the order are not applicable to the company.
Annexure - B to the Independent Auditorsâ Report
Referred to in paragraph 2(g) under the heading of " Report on other legal and regulatory requirements of our report of even date."
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Smruthi Organics Ltd ("the Company") 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 Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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, 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 31 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.
N.R.Waghchaure & Associates
Chartered Accountants,
FRN : 114999W
Nilkanth R Waghchaure
Place : Solapur Proprietor
Date : 19th May, 2018 ICAI Membership No :048890
Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT
To,
The Members of Smruthi Organics Limited
Standalone Financial Statements
We have audited the accompanying standalone financial statements of Smruthi Organics Limited (âthe Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order) issued by the Central
Government in terms of sub-section (11) of section 143 of the Act, we give in Annexure a statement on matters specified in paragraphs 3 and 4 of the said order .
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015.
(e) In the course of our audit we have not come across any transactions or matters which have any adverse effects on the functioning of the company.
(f) 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.
(g) In our opinion, the company has adequate internal financial control systems in place and the same are effective and commensurate with the nature of business of the company and the scale of its operations.
(h) 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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii The amounts were transferred to the Investor Education and Protection Fund by the Company of Rs. 101798/-.
1. Fixed Assets [Clause 3(i)]:
a) Proper Records: The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets:
b) Physical Verification: These fixed assets have been physically verified by the management at reasonable intervals;
Any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account by the management at regular intervals; Yes.
c) Title Deed: The title deeds of immovable properties are held in the name of the company.
2. Inventory [Clause 3(ii)]:
Physical verification: Physical verification of inventory has been conducted at reasonable intervals by the managements;
No such material discrepancies were noticed on such verification.
And if so, whether the same have properly dealt with in the books of account is not applicable;
3. Loan given by Company [Clause 3(iii)]:
a) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships(LLP) or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
b) Terms and Conditions: The terms and conditions of the grant of such loans are not prejudicial to the company''s interest Not Applicable.
c) Regular Recovery: The schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular; Not Applicable.
d) Steps for Recovery: If the amount is overdue, state the total amount overdue for more than 90 days, and whether reasonable steps have been taken by the company for recovery of the principal and interest. Not Applicable.
4. Loan to the Directors and investment by Company [Clause3(iv)];
In respect of loans, investments, guarantees, and security whether provisions of section 185 and 186 of the Companies Act, 2013 have been complied with. If not, provided the details thereof. Not Applicable.
5. Deposits[Clause3(v)]:
If the company has accepted deposits whether the following has been complied with:
Directives issued by the Reserve Bank of India (RBI) Not Applicable.
The provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under; and Not Applicable.
If an order has been passed by Company Law Board (CLB) or National Company Law Tribunal (NCLT) or Reserve Bank if India (RBI) or any court or any other tribunal. Not Applicable.
6. Cost Records [Clause3(vi)]:
The Central Government has specified maintenance of cost records under section 148 (1) of the Companies Act, 2013, and hence such accounts and records have been made and maintained.
7. Statutory Dues [Clause 3(vii)]
Following matters shall be reported for statutory dues and disputes for tax and duties.
a) Statutory Dues for more than 6 Months: Whether the company is regular in depositing undisputed statutory dues with the appropriate authorities including:
i. Provident fund; No Such Dues
ii. Employee''s state insurance; No Such Dues
iii. Income - tax; No Such Dues
iv. Sales- tax; No Such Dues
v. Service tax; No Such Dues
vi. Duty of customs; No Such Dues
vii. Duty of excise; No Such Dues
viii. Value Added Tax (VAT); No Such Dues
ix. Cess; and No Such Dues
x. Any other statutory dues. No Such Dues
If the company is not regular in depositing such statutory dues, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor. No such dues are pending.
b) Dispute for Tax and Duty: Dues of income tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending as follows:
|
Name of the Status |
Nature of the dues |
Amount (Rs. in Lacs) |
Period to which the amount relates various years covering the period |
Forum where Pending |
|
Central Excise Department |
Cenvat Credit is obtained instead of PLA (EOU) |
28.72 |
2007-2011 4 Years |
Additional Commissioner of Central Excise, Pune |
|
Central Excise Department |
Cenvat Set off of EOU Unit is transferred to DTA |
28.72 |
2007-2011 4 Years |
Additional Commissioner of Central Excise, Pune |
|
Central Excise Department |
Cenvat credit is not considered on purchase |
1.09 |
2009-10 |
Tribunal, Mumbai |
8. Repayment of Loans [Clause 3(viii)]
The company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government.
9. Utilization of IPO and further Public offer [Clause 3(ix)]:
The Company has not raised money by way of initial public offer or further public offer and Term Loans where applied for the purposes for which those are raised,
If not, the details together with delays or default and subsequent rectification, if any, as may be applicable, be reported - Not applicable.
10 Reporting of Fraud [Clause(x)]:
No fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
11 Approval of Managerial Remuneration [Clause 3(xi)]:
Managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.
12 Nidhi Company [Clause3 (xii)]:
Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1:20 to meet out the liability and whether the Nidhi Company is maintaining 10% unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet our the liability; Not Applicable
13 Related Party Transaction [Clause 3 (xiii)]:
All transactions with the related parties are in compliance with sections 177 and 188 Companies Act, 2013 are applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards;
14 Private Placement or Preferential Issues [Clause 3(xiv)]:
Whether the company has made any preferential allotment or private placement of shares or fully or party convertible debentures during the year under review and if so, as to whether the requirement of section 42 of the Companies Act, 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not, provided the details in respect of the amount involved and nature of non-compliance; Not Applicable
15 Non- cash Transactions [Clause 3(xv)]:
Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so, whether the provisions of section 192 of Companies Act, 2013 have been complied with; Not applicable
16 Register under RBI Act 1934 [Clause 3 (xvi)]:
Whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act and if so, whether the registration has been obtained. Not applicable
ASHOK MADGUNDI & CO.
Chartered Accountants
Sd/-
(Ashok D. Madgundi)
Place : Solapur project Limited
⢠ICAI M.No. 036983
Date : 28th April, 2016 F R No. 100668W
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Smruthi Organics 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 ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility 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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order) issued by the Central Government in terms of sub-section (11) of
section 143 of the Act, we give in Annexure a statement on matters
specified in paragraphs 3 and 4 of the said order .
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid 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) In the course of our audit we have not come across any transactions
or matters which have any adverse effects on the functioning of the
company.
(f) 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.
(g) In our opinion, the company has adequate internal financial control
systems in place and the same are effective and commensurate with the
nature of business of the company and the scale of its operations.
(h) 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 does not have any pending litigations which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. During the year, there has been no delay in transferring amounts,
required to be transferred, to the Investor Education and Protection
Fund by the Company.
1. (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets of the company have been physically verified by
the management at reasonable intervals and no material discrepancies
were noticed on such verification.
2. (a) The inventory has been physically verified at reasonable
intervals during the year, by the management and internal auditors.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) The company is maintaining proper records of inventory and
according to information and explanations given to us no material
discrepancies have been noticed on such physical verification.
3. 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. If so,
4. In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of the
business with regard to the purchase of the inventory and fixed assets
and for the sale of goods and services. During the course of our audit,
no major weakness has been noticed in the internal controls.
5. The company has not accepted any deposits from the public.
6. We have broadly reviewed the records maintained by the company
pursuant to the rules made by the Central Government for the
maintenance of Cost Records under sub-section (1) of Section 148 of the
Companies Act, and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. However,
we have not carried out a detailed audit of the same.
7. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it. No undisputed amounts in respect of these statutory
payments were in arrear as on March 31, 2015 for a period of more than
six months from the date they became payable except as :
Amount Period to which
Name of Nature of Rs in the amount relates
the Status the dues Lacs Various years .
covering the period
Sales Tax Sales tax refund is reduced 2.48 2009-10
Department on account of tax on deemed
export and job work charges
Sales Tax Sales tax refund is reduced 19.35 2011-12
Department on account of tax on deemed
export and job work charges
Central Excise Cenvat Credit is obtained 28.72 2007-2011
Department instead of PLA (EOU) 4 Years
Central Excise Cenvat Set off of EOU Unit 28.72 2007-2011
Department is transferred to DTA 4 Years
Central Excise Cenvat credit is not
Department considered on purchase 1.09 2009-10
Name of the Status Forum where Pending
Sales Tax Department JCST (Appeal) Solapur
Sales Tax Department JCST (Appeal) Solapur
Central Excise Department Additional Commissioner of Central
Excise, Pune
Central Excise Department Additional Commissioner of Central
Excise, Pune
Central Excise Department Tribunal, Pune
(b) During the year, there has been no delay in transferring amounts,
required to be transferred, to the Investor Education and Protection
Fund by the Company.
8 The company does not have any accumulated losses as on 31st March,
2015 and has not suffered any cash losses for the year ended on that
date.
9. The company has not defaulted in repayment of dues to financial
institution or banks. The company has not issued debentures.
10. The company has not given guarantee for any loans taken by others.
11. The term loans have been applied for the purpose for which they
have been obtained. According to the information and explanations given
to us and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis have been
used for long term investments.
12. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management
ASHOK MADGUNDI & CO.
Chartered Accountants
F R No. 100668W
Sd/-
Place - Solapur (Ashok D- Madgundi)
Place - Solapur Proprietor
Date - 10th June, 2015 ICAI M.No. 36983
Mar 31, 2014
We have audited the accompanying financial statements of "Smruthi
Organics Limited", which comprise the Balance Sheet as at March 31,
2014, 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 principles generally accepted in India including
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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of The
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the 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, 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 purposes of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by The Company so far as appears from our examination of those
books.
c) The Balance sheet, Statement Profit & Loss, and Cash Flow Statement
dealt with by this Report are in agreement with books of account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with 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, 2014, and taken on record by Board of Directors, 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.
Annexure to the Auditor''s Report
Referred to in Paragraph 3 of our report of even date.
i) a) The company has maintained proper records showing full particular
including quantitative details and situation of fixed assets.
b) All fixed assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company is maintaining proper records of inventory.
Discrepancies noted on verification between the physical stocks and the
book records were not material and have been properly dealt with in the
books of accounts.
(iii) a) According to the information and explanations given 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
301 of the Companies Act, 1956. Accordingly, the provision of clause 4
(iii) (a) to (d) of the Order are not applicable to the company and
hence not commented upon.
b) The Company had obtained a loan from Directors covered in the
register maintained under section 301 of the Companies Act, 1956.
c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to Companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of company.
d) The company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest
e) There is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to the purchases of inventory, fixed assets and with regard to the sale
of goods. During the course of our audit, we have not observed any
major weakness or continuing failure to the correct any major
weaknesses in the internal control system of the Company in respect of
these areas.
(v) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees Five Lacs have been
entered in to during the financial year at prices which are reasonable
and comparable figures are not available having regard to the
prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from public during the
year.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956, and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees'' state insurance, income tax, sales tax, service tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of provident fund, employees''
state insurance, income tax, sales tax, service tax, custom duty,
central excise duty, cess and other material statutory dues were
outstanding, at the year end, for a period of more than six months from
the date they became payable.
Name of Nature of amount
the Status the dues (Rs.in
Lacs)
Sales Tax Sales tax refund is reduced on 2.48
Department account of tax on deemed
export and job work charges
Sales Tax Sales tax refund is reduced on 19.35
export and job work charges
Central Excise Cenvat Credit is obtained 28.72
Department instead of PLA (EOU) 4 Years
Central Excise Cenvat Set off of EOU Unit 28.72
Department is transferred to DTA 4 Years
Central Excise Cenvat credit is not
Department considered on purchase 1.09
Period to which
Name of the amount relates Forum where
the Status various years. Pending
covering the period
Sales Tax 2009-10 JCST (Appeal)
Department Kolhapur
Sales Tax 2011-12 JCST (Appeal)
Kolhapur
Central Excise 2007-2011 Additional
Department Commissioner
of Central
Excise, Pune
Central Excise 2007-2011 Additional
Department Commissioner
of Central Excise,
Pune
Central Excise
Department 2009-10 Tribunal, Pune
(x) The company has not accumulated losses at the end of the financial
year and it has incurred cash loss in the current year and not for
immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution / bank. During the year restructuring of working capital
limit of Rs. 600.00 lacs is treated as working capital term loan for 5
years considering holiday period for 2 years.
(xii) According to the information and explanations given to us and
based on the documents and records produced, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provision of clause 4
(xiii) of the companies (Auditor''s Report) Order, 2003 (as amended) are
not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) Based on the information and explanations given to us by the
management, term loan were applied and sanctioned for the purpose for
which the loans were obtained. Not Applicable.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long term
investment
(xviii) The company has not made 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 has not issued any debentures during the year.
(xx) The company has not raised any money by public issue during year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the 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.
ASHred Accountants
F R No. 100668W
sd/-
Place : Solapur (Ashok D- Madgundi)
p|ace : Solapur Proprietor
Date : 9th Aug 2014 M.No.36983
Mar 31, 2013
We have audited the accompanying financial statements of "Smruthi
Organics 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 principles generally accepted in India including
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 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, 2013;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 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 purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
(c) The Balance sheet, Statement Profit & Loss, and Cash Flow Statement
dealt with by this Report are in agreement with books of account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with 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, 2013, and taken on record by 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.
Annexure to the Auditor''s Report
Referred to in Paragraph 3 of our report of even date.
i) a) The company has maintained proper records showing full particular
including quantitative details and situation of fixed assets.
b) All fixed assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company is maintaining proper records of inventory.
Discrepancies noted on verification between the physical stocks and the
book records were not material and have been properly dealt with in the
books of accounts.
(iii) a) According to the information and explanations given 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
301 of the Companies Act, 1956. Accordingly, the provision of clause 4
(iii) (a) to (d) of the Order are not applicable to the company and
hence not commented upon.
b) The Company had obtained a loan from Directors covered in the
register maintained under section 301 of the Companies Act, 1956.
c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to Companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of company.
d) The company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest
e) There is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to the purchases of inventory, fixed assets and with regard to the sale
of goods. During the course of our audit, we have not observed any
major weakness or continuing failure to the correct any major
weaknesses in the internal control system of the Company in respect of
these areas.
(v) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees Five Lacs have been
entered in to during the financial year at prices which are reasonable
and comparable figures are not available having regard to the
prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from public during the
year.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956, and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees'' state insurance, income tax, sales tax, service tax, custom
duty, Excise duty, Cess and other material statutory dues applicable to
it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of provident fund, employees''
state insurance, income tax, sales tax, service tax, custom duty,
Excise duty, Cess and other material statutory dues were outstanding,
at the year end, for a period of more than six months from the date
they became payable.
Period to
which the
amount
Name of Nature of Amount Forum where
relates
various
years
covering
the Statu the dues (Rs.
in
Lacs) Pending
the period
Sales Tax Sales Tax dues JCST (Appeal)
26.87 2004-05
Department (incl.Interest &
Penalty) Kolhapur
Sales Tax Sales Tax dues CST (Appeal)
56.12 2005-06
Department (incl.Interest &
Penalty) Kolhapur
Sales Tax Sales Tax dues JCST (Appeal)
36.95 2006-07
Department (incl.Interest &
Penalty) Kolhapur
Stay for recovery of sales tax is ordered by Joint CST Kolhapur against
order passed by Deputy CST Solapur for the above period. The company
has filled the writ petition with H''ble High Court, Mumbai for availing
total sales tax benefit under PSI 1993 scheme.
(x) The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution / bank.
(xii) According to the information and explanations given to us and
based on the documents and records produced, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/
mutual benefit fund/society. Therefore, the provision of clause 4
(xiii) of the companies (Auditor''s Report) Order, 2003 (as amended) are
not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) Based on the information and explanations given to us by the
management, term loan were applied and sanctioned for the purpose for
which the loans were obtained.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long term
investment
(xviii) The company has not made 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 has not issued any debentures during the year.
(xx) The company has not raised any money by public issue during year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the 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.
Ashok Madgundi & Co.
Chartered Accountants
F.R.No.: 100668W.
Sd/
(Ashok D. Madgundi)
Place : Solapur
Proprietor
Date : 25th May, 2013 M. No. 36983
Mar 31, 2012
1. We have audited the attached balance sheet of Smruthi Organics
Limited Solapur as on 31.03.2012 and the Profit and Loss account and
also the cash flow statement for the year on that date annexed thereto.
These Financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
Financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure 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 statements
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 annexure a
statement on the matters specified in Paragraphs 4 & 5 of the said
order.
4. Further to our comments in Annexure referred to above, we report
that :
I) We have obtained all the information and explanation, 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 appears from our examination of
those books (and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us. The Branch
Auditors Report(s) have been forwarded to us and have been
appropriately dealt with- Not Applicable).
III) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with books of accounts.
IV) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub Section (3C) of Section 211 of the
Companies Act,1956.
V) On the basis of written representations received from the Directors,
as on 31st March 2012 and taken on record by Board of Directors, we
report that none of the Directors is
disqualified as on 31st March, 2012 from being appointed as a Director
in terms of Clause (g) of sub-Section (1) of Section 274 of the
Companies Act, 1956.
VI) In our opinion and to the best of our information and according to
the explanations given to us , the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
true and fair view the conformity with accounting principles generally
accepted in India.
a) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2012.
b) in the case of the profit & loss account, of the profit for the year
ended on that date.
c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in Paragraph 3 of our report of even date.
1) a) The Company has maintained proper records showing full particular
including quantitative details and situation of fixed assets.
b) All fixed assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c) There was no disposal of a substantial part of fixed assets during
the year.
2) a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory.
Discrepancies noted on verification between the physical stocks and the
book records were not material and have been properly dealt with in the
books of accounts.
3) a) According to the information and explanations given 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
301 of the Companies Act, 1956. Accordingly, the provision of Clause 4
(iii) (a) to (d) of the Order are not applicable to the Company and
hence not commented upon.
b) The Company had obtained a loan from Directors covered in the
register maintained under Section 301 of the Companies Act, 1956.
c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to Companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of Company .
d) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest
e) There is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchases of inventory, fixed assets and with regard to the sale
of goods. During the course of our audit, we have not observed any
major weakness or continuing failure to the correct any major
weaknesses in the internal control system of the Company in respect of
these areas.
5) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act 1956 that
need to be entered into the register maintained under Section 301 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs have been
entered in to during the Financial Year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6) The Company has not accepted any deposit from public during the
year.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956, and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9) a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees' state
insurance, income tax, sales tax, service tax, custom duty, Excise
duty, Cess and other material statutory dues applicable to it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income tax, sales tax, service tax, custom duty,
Excise duty, Cess and other material statutory dues were outstanding,
at the year end, for a period of more than six months from the date
they became payable.
Period to which
the amount
Name of Nature of Amount Forum where
relates various
years covering
the
Status the dues (Rs. in
Lacs) the Pending period
-- NIL --
10) The Company has no accumulated losses at the end of the Financial
year and it has not incurred cash losses in the current and immediately
preceding Financial year.
11) Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a Financial
institution / bank.
12) According to the information and explanations given to us and based
on the documents and records produced, the Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/society. Therefore, the provision of Clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company .
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of Clause 4 (xiv) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company .
15) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or Financial institutions.
16) Based on the information and explanations given to us by the
management, term loan were applied and sanctioned for the purpose for
which the loans were obtained.
17) According to the information and explanation given to us and on an
overall examination of the balance sheet of the Company , we report
that no funds raised on short-term basis have been used for long term
investment
18) 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.
19) The Company has not issued any debentures during the year.
20) The Company has not raised any money by public issue during year.
21) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the Financial statements and as per
the 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.
Ashok Madgundi & Co.
Chartered Accountants
Sd/-
A. D. Madgundi
Place : Solapur Proprietor
Date : 22nd May, 2012 M.No. 100-36983
Mar 31, 2011
1. We have audited the attached balance sheet of Smruthi Organics
Limited Solapur as on 31.03.2011 and the profit and loss account and
also the cash flow statement for the year 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 onouraudit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure 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 statements
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 Paragraphs4&5ofthesaidorder.
4. Further to our comments in Annexure referred to above, we report
that:
I) We have obtained all the information and explanation, 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 appears from our examination of
those books (and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us. The Branch
Auditors Report(s) have been forwarded to us and have been
appropriately dealt with- Not Applicable).
III) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with books of accounts.
IV) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of section 211 of the
Companies Act,1956.
V) On the basis of written representations received from the Directors,
as on 31st March 2011 and taken on record by Board of Directors, we
report that none of the directors is disqualified as on 31st March 2011
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act 1956.
VI) In our opinion and to the best of our information and according to
the explanations given to us , the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
true and fair view the conformity with accounting principles generally
accepted in India.
a) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2011.
b) in the case of the profit & loss account, of the profit for the year
ended on that date and
c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in Paragraph 3 of our report of even date.
1) a) The company is maintaining proper records showing full particular
including quantitative details and situation of fixed assets.
b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed
on such verification.
c) During the year, the company has not disposed off a major part of
plant & machinery.
2) a) The Inventory has been physically verified during the year by the
management.
In our opinion, the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3) a) The Company had obtained a loan from Directors covered in the
register maintained under section 301 of the Companies Act, 1956.
b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to Companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of company.
c) The company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest
d) There is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
5) a) According to the information and explanations given to us, we are
of the opinion
that the transactions that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6) The company has not accepted any deposit from public during the
year.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the books of account relating to material.,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained.
9) a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, custom duty, Cenvat and other
material statutory dues applicable to it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, sales tax, custom
duty and Cenvat were in arrears as at 31st March 2011 for a period of
more than six months from the date they became payable.
Period to which the amount Forum where
Name of Nature of Amount relates various years covering
the Status the dues (Rs.in
Lacs) Pending
the period
- NIL -
10) The company does not have accumulated losses as at 31st March 2011
and also not incurred cash losses during the financial year covered by
our audit and not forthe immediately preceding financial year.
11) In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institution / bank during the year.
12) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to chit fund or a nidhi/ mutual benefit fund/society a re
not applicable to the company.
14) In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments.
15) The company has not given any guarantees for loans taken by others
from banks orfinancial institutions.
16) In our opinion, the term loans have been applied for the purpose
for which they were raised. - Not applicable as no loan is obtained
during the year.
17) According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that
the funds raised on short-term basis have not been used for long term
investment and vice-versa.
18) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
19) The company has not issued any debentures during the year.
20) The company has not raised any money by public issue during year.
21) According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
Ashok Madgundi & Co.
Chartered Accountants
sd/-
A.D. Madgundi
Place : Mumbai
Proprietor.
Date : 28th April 2011 M.No.100-36983
Mar 31, 2010
1. We have audited the attached balance sheet of Smruthi Organics
Limited Solapur as on 31.03,2010 and the profit and loss account and
also the cash flow statement for the year 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure 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 statements
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 Paragraphs4&5 of the said order.
4. Furtherto our comments in Annexure referred to above, we report
that:
i) We have obtained all the information and explanation, 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 appears from our examination of
those books (and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us. The Branch
Auditors Report(s) have been forwarded to us and have been
appropriately dealt with- Not Applicable).
iii) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with books of accounts.
iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of section 211 of the
Companies Act,1956.
v) On the basis of written representations received from the Directors,
as on 31st March 2010 and taken on record by Board of Directors, we
report that none of the directors is disqualified as on 31st March 2010
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act 1956.
vi) In our opinion and to the best of our information and according to
the explanations given to us , the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
true and fair view the conformity with accounting principles generally
accepted in India.
a. in the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2010.
b. in the case of the profit & loss account, of the profit for the
year ended on that date and
c. in the case of cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in Paragraph 3 of our report of even date.
1) a) The company is maintaining proper records showing full particular
including quantitative details and situation of fixed assets.
b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed
on such verification.
c) During the year, the company has not disposed off a major part of
plant &. machinery.
2) a) The Inventory has been physically verified during the year by the
management.
In our opinion, the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3) a) The Company had obtained a loan from Directors covered in the
register maintained under section 301 of the Companies Act, 1956.
b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to Companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of company.
c) The company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest. The parties
have repaid the principal amounts as stipulated and have been regular
in the payment of interest
d) There is no overdue amount of loans taken from or granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
5) a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6) The company has not accepted any deposit from public during the
year.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the books of account relating to material.,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained.
9 a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, custom duty, Cenvat and other
material statutory dues applicable to it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, sales tax, custom
duty and Cenvat were in arrears as at 31st March 2010 for a period of
more than six months from the date they became payable.
Period to which the amount Forum where
Name of Nature of Amount
the the dues relates various years Pending
covering
Status (Rs. in Lacs) the period
- NIL -
10) The company does not have accumulated losses as at 31st March 2010
and also not incurred cash losses during the financial year covered by
our audit and not forthe immediately preceding financial year.
11) In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institution / bank during the year.
12) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to chit fund or a nidhi / mutual benefit fund / society are
not applicable to the company.
14) In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments.
15) The company has not given any guarantees for loans taken by others
from banks orfinancial institutions.
16) In our opinion, the term loans have been applied for the purpose
for which they were raised.
17) According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that
the funds raised on short-term basis have not been used for long term
investment and vice-versa.
18) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act which has been approved by the members, in Extra
Ordinary General Meeting dt.21st May 2009. (Refer Notes to Accounts)
19) The company has not issued any debentures during the year.
20) The company has not raised any money by public issue during year.
21) According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
Ashok Madgundi & Co.
Chartered Accountants
sd/-
A. D. Madgundi
Place : Solapur proprietor
Date : 27th April 2010 M.No. 100-36983
Mar 31, 2000
We have audited the attached Balance Sheet of SMRUTHI ORGANICS LIMITED
as at 31st March 2000, and also the Profit & Loss Account of the
Company for the year ended on that date annexed thereto and report that
:
As required by the Manufacturing and Other Companies (AuditorsReport)
Order, 1988 issued by the Company Law Board in terms of Section 227
(4A) of the Companies Act, 1956, and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us during the course of audit, we further state
that :
1) 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;
2) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of such
books of accounts;
3) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of accounts;
4) In our opinion, the said Balance Sheet and Profit & Loss Account
comply with the Accounting Standards referred to in Section 211 (3C) of
the Companies Act, 1956 (thereinafter referred to as the "Act");
5) In our opinion and to the best of information and according to the
explanations given to us, the said accounts read together with notes
thereon and notes in Schedule of" Significant Accounting Policies and
Notes to Accounts" and those appearing elsewhere in the reports, give
the information required by the Act in the manner so required and give
a true and fair view;
i) In case of the Balance Sheet, of the state of affairs of the company
as at 31st March 2000.
ii) In case of the Profit & Loss Account, of the profit of the company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in our report to even date.
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of the fixed assets. As
informed, the fixed assets have been physically verified by the
management at reasonable intervals during the year. We are informed
that no material discripencies have been noticed by the man- agement on
such verification.
2. According to explanation given to us, none of the Fixed Assets have
been revalued during the year under audit.
3. As explained to us, the stock of raw material, work-in-process,
stores, spare parts, finished goods have been physically verified by
the management at reasonable intervals during the year.
A. In our opinion and according to the information and explanation
given to us, the procedure for physical verification of stock followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
5. According to explanation given to us, the discrepancies noticed on
physically verification of stock were not material and the same have
been properly dealt with in the books of accounts.
6. On the basis of our examination of stock records, in our opinion,
the valuation of stock is fair and proper in accordance with the
normally accepted accounting principles and is on the same basis as in
the preceding year.
7. In our opinion, the Company has not obtained any loans from
Company, in which relative of Directors is a Director and Member. There
are no loans from Companies under the same management as defined under
Section 370 (1B) of the Companies Act, 1956.
8. As per the information and explanation given to us the Company has
not granted any loans to a Company in which Directors are interested.
There are no loans to the Companies under the same management as
defined under Section 370 (1B) of the Company Act, 1956.
9. The party (including employees) to whom loans or advances in the
nature of loans have been given by the Company are generally repaying
the principle amount either as stipulated or has rescheduled.
10. In our opinion, and according to the information and explanations
given to us having regard to the explanation that some of items
purchased and sold are of special na- ture and suitable alternate
sources do not exist for obtaining comparable quotations there are
adequate internal control procedures, commensurate with the size of the
Company and nature of its business with regard to purchase of fixed
assets, other assets, raw materials, consumable items and for the sale
of goods.
11. In our opinion and having regard to our comments in Para 10 above,
and according to the information and expianatians given to us, the
transaction of purchase of goods and materials and sale of goods,
materials and services made in pursuance of contracts or arrangements
entered in the Register maintained under Section 301 of the Companies
Act, 1956 and aggregating during the period to Rs. 50,000/- or more in
respect each party have been made at the prevailing market price.
12. As explained to us, the Company has a system of determining
un-serviceable or damaged stock with the Company.
13. As explained to us, the Company has maintained reasonable record
for sale and disposal of realisable materials.
14. In our opinion the Company has an internal audit system, in
general, commensurate with its size and nature of its business.
15. As informed the Central Government has not prescribed for the
maintenance of the cost records as required under Section 209 (1) (a),
of the Company Act, 1956.
16. The Company has not accepted any deposits to which provisions of
Section 58 A of the Companies Act 1956, are applicable.
17. According to the record of the Company, the Employees Provident
Fund and Employees State Insurance dues have generally been regularly
deposited with the appropriate authorities.
18. According to the information & explanation given to us, there were
no undisputed amounts payable in respect of Sales Tax, Excise Duty
(refer clause 1 (b) Notes to Accounts) and Income Tax outstanding as on
last day of the financial year concerned.
19. During the course of our examination of books of accounts carried
out in accordance with generally accepted auditing practices, we have
not come across any personal expenses other than those payable under
contractual obligations with the Companys employees / directors or
generally accepted business practices with have been charged to revenue
account.
20. The Company is not a Sick Industrial Company within the meaning of
Section 3 (1) (o) of the Sick Industrial Companies (Special Provisions)
Act, 1985.
PLACE : SOLAPUR ASHOK MADGUNDI & CO.
CHARTERED ACCOUNTANTS,
DATE : 03/07/2000
Sd/-
(Shri. A. D. Madgundi)
Proprietor
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