| We have audited the accompanying financial statements of SARDA PROTEINS
LIMITED , which comprise the Balance Sheet as at 31st March, 2015, the
Statement of Profit and Loss, the Cash Flow Statement for the year then
ended, and a summary of the significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Emphasis of Matters
We draw attention to the matter that Company has sold substantial parts
of Fixed Assets and for the same reason company books are showing
profit. There was no manufacturing taken place during the current
period and company is now working on rented premises. These conditions
indicate the existence of a material uncertainty that may cast
significant doubt about the Company's ability to continue as a
manufacturing concern. However, the financial statements of the Company
have been prepared on a going concern basis.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements As required by
Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanation
which to the best of our Knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) The going concern matter described in the Emphasis of Matters
paragraph above, in our opinion, may have an adverse effect on the
functioning of the Company.
(f) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company 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. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31 March 2015, we report that:
1. (i) The Company has maintained proper records showing full
particulars, quantitative details and situation of fixed assets.
(ii) 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. But during the year land, building and
plant and machinery fully disposed off.
2. As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(i) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
(ii) In our opinion and according to their information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory.
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.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of inventory and fixed assets, and
with regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 73 and 76 of the Companies Act,
2013 and Rules framed there under are not applicable to the Company.
6. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under sub-section (l) of section 148 of the Companies Act, 2013 in
respect of services carried out by the Company.
7. (i) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of provident
fund, employees state insurance, income tax, sales tax, wealth tax,
customs duty, excise duty, cess and other material statutory dues as
applicable, have been regularly deposited by the Company during the
year with the appropriate authority.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, wealth
tax, customs duty, excise duty and cess were in arrears, as at 31st
March 2015 for a period of more than six months from the date they
become payable.
(ii) According to the information and explanations given to us, there
are no dues of Income Tax, Sales Tax, wealth tax, customs duty, excise
duty and cess that have not been deposited on account of any dispute.
(iii) There is no amount required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder.
8 The Company has no accumulated losses as at 31st March 2015.
9 Based on our audit procedures and on the information and explanations
given by the management, in our opinion, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date.
10 According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
11 To the best of our knowledge and belief and according to the
information and explanations given to us, the Company has applied the
term loans for the purpose for which the loans were obtained.
12 To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Khetawat Agarwal & Co
Chartered Accountants
FRN: 003960C
M.L. AGARWAL
Partner
Membership No. 072854
Place: Alwar
Date: May 27, 2015
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