| We have audited the accompanying financial statements of M/s. SHREYAS
INTERMEDIATES LIMITED, which comprise the Balance Sheet as at March
31,2015, the Statement of Profit and Loss and the Cash Flow Statement
for the period from October 1,2014 to March 31,2015, and a summary of
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 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 standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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 true
and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
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 31 st March, 2015, and its profit and its cash flows for the period
from October 1,2014 to March 31,2015.
Emphasis of matters
We draw attention to the following notes in Note 24 attached to the
financial statements. Our opinion is not qualified in respect of these
matters.
iv. Notes 24C (1) regarding Company being declared within the purview
of the Sick Company's definition and the BIFR Regulations and the
application with the board and other matters referred to there under.
v. Notes 24 C (2) regarding Secured Loans from Financial Institutions
and other matters as referred to there under.
vi. Notes 24 C (3) regarding Fixed Assets and other matters as referred
to there under.
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 of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31,2015, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements -
Refer Note 24 B (12) to the financial statements;
ii. The Company has made provisions as required under the applicable
law or accounting, standards, for material foreseeable losses if any,
on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 of our report of even date)
i. In respect of its fixed assets:
a The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of two years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us no material
discrepancies were noticed on such verification.
ii. In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the period. As explained to
us, the inventories were physically verified during the year by the
Management. In our opinion, having regard to the nature and location of
the stocks, the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
vii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
viii. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials including
components, plants and machinery, equipment and other assets and for
the sale of goods. During the course of our audit, and according to the
information and explanations given to us we have neither come across
nor have been informed of any continuing failure to correct major
weakness in the internal control procedures.
ix. The company has not accepted any deposits from the public within
the meaning of Section 73 and 74 of the Act and the Rules framed there
under to the extent notified. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal
x. We are informed by the Company that maintenance of cost records
have not been prescribed under clause (d) of sub-section (i) of Section
209 of the Act.
vii. According to the information and explanations given to us, in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Income-tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and
other material statutory dues applicable to it with the appropriate
authorities.
b. There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31, 2015 for a period of
more than six months from the date they became payable.
c. Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax and Cess which have not been
deposited as on March 31,2015 on account of disputes are given below
Name of the Statute Forum where
(Nature of Dues) Dispute is pending
The Central Excise Act, 1944 CESTAT
The Central Excise Act, 1944 CESTAT
The Central Excise Act, 1944 CESTAT
The Central Excise Act, 1944 CESTAT
The Central Excise Act, 1944 CESTAT
The Securitization & Reconstruction Of Debt Recovery
Financial Assets And Enforcement Of Tribunal
Securities Act, 2002 [SARFAESI] Act, 2002
Name of the Statute Period to which the amount
(Nature of Dues) relates Amount involved
The Central Excise Act, 1944 July 2007 to October 2008
The Central Excise Act, 1944 6th Nov 2009 to 25th Nov 2009
The Central Excise Act, 1944 2005-06 to 2008-2009
The Central Excise Act, 1944 Jan 2005- Dec 2010
The Central Excise Act, 1944 Jan 2005-Dec 2010
The Securitization & Reconstruction May 2009 to 25/11/2010
Of Financial Assets And Enforcement
Of Securities Act, 2002 [SARFAESI]
Act, 2002
Name of the Statute (Rs. In Lacs)
(Nature of Dues)
The Central Excise Act, 1944 Rs. 164.71
The Central Excise Act, 1944 Rs. 129.16
The Central Excise Act, 1944 Rs. 127.48
The Central Excise Act, 1944 Rs. 32.21
The Central Excise Act, 1944 Rs. 2.45
The Securitization & Reconstruction Rs. 41.38
Of Financial Assets And Enforcement
Of Securities Act, 2002 [SARFAESI]
Act, 2002
d. The Company has been generally regular in transferring amounts to
the Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and Rules
made there under within time.
viii. The accumulated losses of the company as at the end of the year
exceed fifty percent of its net worth. The company has also incurred
cash losses during the financial year covered by our audit and in the
preceding financial year as well.
ix. Based on our audit procedures and as per the information and
explanations given to us by the management, the company had approached
the financial institutions with a settlement scheme which has been duly
approved by both the lending bankers. Bank of Baroda had approved a One
Time Settlement option in respect of its dues by assigning its entire
dues to Invent ARC. Furthermore State Bank of India had also assigned
their dues on Security Realization basis to Invent ARC. The company is
in the process of executing the said scheme of settlement and the board
has expressed its utmost commitment to resolve the issue accordingly.
Refer Note 24C (2) to the financial statements;
x. 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.
xi. In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
xii. In our opinion and according to the information and explanation
given to us, no material fraud on or by the company has been noticed or
reported during the course of our audit.
For LAYERED KHAN & ASSOCIATES
Chartered Accountants
Sayeed Khan
Proprietor
Place: Mumbai
Date: 28th AUGUST, 2015
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