| We have audited the attached standalone Balance Sheet of "M/s SURAJ
PRODUCTS LIMITED" (the 'Company") as at 31st March, 2015, and the
related Statement of Profit and Loss Account and Cash Flow Statement
for the year ended on that date annexed thereto, and a summary of
significant accounting policies and other explanatory information which
we have signed under reference to this report. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
Management's responsibility for the Financial Statements.
Management is responsible for the matters stated in section 134(5) of
the Companies Act, 2013 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 Accounting principles generally accepted in India,
including the Accounting Standards notified under the Companies Act,
1956 read with General circular 15/2013 dated 13th September, 2013
issued by Ministry of Corporate Affairs, in respect of Section 133 of
the Companies Act, 2013. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provisions of the act for safeguarding the assets of the company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgment and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors 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 specified under section 143(10) of the
Companies Act, 2013. Those standards require that we comply with the
ethical requirement and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of 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 circumstance but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. An audit also includes assessing the appropriateness
of the 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 audit evidence we have obtained, is sufficient and
appropriate to provide a basis for our audit opinion excepting as
stated below.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements together with
the notes thereon and attached thereto give, in the prescribed manner,
the information required by the Act, and give a true and fair view in
conformity with the accounting principles generally accepted in India :
-a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015
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
As required by the Companies (Auditor's Report) Order, 2015 ("The
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Companies Act, 2013 we give in
the Annexure a statement on the matters specified in Paragraphs 4 and 5
of the Order.
As required by Section 143(3) of the Companies Act, 2013 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, the Statement of Profit and Loss Account and the
Cash Flow Statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
Account and the Cash Flow Statement dealt with by this report comply
with the applicable accounting standards referred to in Section 133 of
the Companies Act, 2013, read with rule 7 of the Companies (Accounts)
Rules, 2014.
e) On the basis of written representations received from the directors
, as on 31st March, 2015, and 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 sub-section (2) of
Section 164 of the Companies Act, 2013;
f) With respect to the other matters included in the auditor's report
and to best of our information and according to the explanation given
to us.
1) The company has disclosed the impact of pending litigation on its
financial position in its financial statement.
2) The company has not entered into any long term contracts including
derivative contracts and hence it is not required to make provision for
material foreseeable losses, as required under the applicable law or
Accounting Standards.
3) There has been no delay in transferring amounts, required to be
transferred, to the investor's education and protection fund by the
company.
ADDITIONAL INFORMATION ANNEXED TO THE INDEPENDENT AUDITORS' REPORT
As required by the Companies (Auditor's Report) Order, 2015, issued by
the Company Law Board in terms of section 143(11) of the Companies Act,
2013, and on the basis of such checks as we considered appropriate and
as per the information and explanations given to us during the course
of audit, we further state that:
-(i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed Assets.
(b) The company has physically verified certain assets during the year
in accordance with a programme of verification, which in our opinion
provides for physical verification of the fixed assets at reasonable
intervals. According to the information and explanations given to us,
no material discrepancies were noticed on such verification.
(ii) In respect of inventory:
(a) According to information and explanation given to us the stocks of
finished goods has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and nature of its business.
(c) In our opinion and according to explanation given to us the company
is maintaining proper records of inventory and according to the
information given to us no material discrepancies were noticed on
physical verification of stock as compared to the books and records and
were properly dealt with in the books of accounts.
(iii) In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013, according to the
information and explanation given to us:
(a) The company has not granted secured/ unsecured loans to companies,
firms, parties covered in the register maintained under section 189 of
the Companies Act, 2013 and hence relevant clause is not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of 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 control system.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits. Hence the
directives issued by the Reserve Bank of India and provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under are not applicable to the company.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under u/s 148(1) of the Companies Act and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of
the records with a view to determine whether they are accurate or
complete.
(vii) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee state insurance, income tax, sales tax, service tax, excise
duty, cess and other material statutory dues applicable to it.
a) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, provident fund,
employee state insurance, sales tax, excise duty and other material
statutory dues were in arrears, as at 31st March, 2015 for a period of
more than six months from the date they became payable.
b) According to information and explanation given to us, there are
disputed Sales Taxes, Entry Tax and Excise Duty which has not yet been
paid and are pending in at forum for redressal of dispute. The
particulars of dues of Excise Duty, Sales Tax, Entry Tax which has not
yet been deposited on account of dispute are as follows:
Name of Statute Nature of Dues Amount in Period to which the
Rs, (Lacs) amount relates to
The Orissa Sales Dispute regarding 3.68 2005-2006 to
Tax Act 1947 ITC 2007-2008
The Orissa Sales Dispute regarding 8.09 01.10.2008 to
Tax Act 1947 ITC 31.03.2012
The Orissa Entry Entry Tax on 9.7 2002-2003 to
Tax Rules, 1999 Inter-State
Purchases 2003-2004
The Orissa Entry Entry Tax on 0.87 2005-2006 to
Tax Rules, 1999 Inter-State
Purchases 2003-2004
The Orissa Entry Entry Tax on 2.10 01.10.2008 to
Tax Rules, 1999 Inter-State
Purchases 31.03.2012
Central Sales Non-submission of 3.12 2004-2005
Tax, 1956 C-Form Declaration
Central Sales Non-submission of 9.52 2011-12
Tax, 1956 C-Form & H-Form
Declaration
Central Sales Non-submission of 28.57 2006-2008 to
Tax, 1956 H-Form Declaration 2007-2008
Central Excise Cenvat Credit on 4.86 2010-2011 to
Rules 2004 Cement 2011-2012
NAME OF STATUTE Forum where the dispute is pending
The Orissa Sales
Tax Act 1947 Additional Commissioner Sales Tax (Appeals)
North Zone, Sambalpur
The Orissa Sales
Tax Act 1947 Additional Commissioner Sales Tax (Appeals)
North Zone, Sambalpur
The Orissa Sales
Tax Act 1947 Dy. Commissioner (Appeals) Sundargarh Range,
Rourkela
The Orissa Sales
Tax Act 1947 Addl. Commissioner of Sales Tax (Appeals),
North Zone, Sambalpur.
The Orissa Sales
Tax Act 1947 Addl. Commissioner of Sales Tax (Appeals),
North Zone, Sambalpur.
Central Sales
Tax, 1956 Addl. Commissioner of Sales Tax (Appeals),
North Zone, Sambalpur.
Central Sales
Tax, 1956 Addl. Commissioner of Sales Tax, (Appeals)
North Zone, Sambalpur
Central Sales
Tax, 1956 Addl. Commissioner of Sales Tax, (Appeals)
North Zone, Sambalpur
Commissioner of Appeals, Central Excise Customs & Service Tax,
Bhubaneshwar
c) According to information and explanation given to us, 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.
viii) The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
ix) Based on our audit procedures and on the according to the
information and explanations given by the management, we are of the
opinion that the company has not defaulted in repayment of dues to
financial institutions and bank. The company does not have any
borrowings by way of debentures.
x) In our opinion and according to the information and explanations
given to us, the company has not given any guarantees for the loans
taken by the others from banks and financial institutions.
xi) According to information and explanation given to us we are of the
opinion that the company has not availed any term loan except loan for
acquisition of vehicles, which have been utilized for the purpose for
which they were raised.
xii) To the best of our Knowledge and belief and based on the audit
procedures performed by us and according to the information and
explanations given to us, we report that no fraud on or by the company
was noticed or reported during the course of our audit.
For RUSTAGI & Co.
Chartered Accountants
Firm Registration No. 301094E
ASHISH RUSTAGI
Place: Barpali (Partner)
Dated : the 22nd day of May 2015 Membership No. : 062982 |