| 1. We have audited the accompanying financial statements of Saboo
Brothers 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 then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. 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 to 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit. standards and matters which are
required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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.
6. 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, 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.
opinion on the financial statements.
Opinion
8. 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 profit/loss and
its cash flows for the year ended on that date.
9. The financial statements of the Company as at March 31, 2014 and
for the year then ended were audited by another firm of chartered
accountants under the Companies Act, 1956 who, vide their report dated
May 28, 2014, expressed an unmodified opinion on those financial
statements.
Our opinion is not qualified in respect of the above matter.
10. As required by 'the Companies (Auditor's Report) Order, 2015',
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143 (3) of the Act, we report that:
(a) We have thought 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) examination of those books. agreement with the books of account. 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 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 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 knowledge and belief
and according to the information and explanations given to us:
Company during the year ended March 31, 2015. the financial statements
as of and for the year ended March 31, 2015 situation, o fixed The
Company is maintaining proper records showing full particulars,
including quantitative details and
As explained to us, the fixed assets of the Company have been
physically verified by the Management during the year and as informed
to us no material discrepancies have been noticed on such verification.
In our opinion, the frequency of verification is reasonable.
ii. (a ) As explained to u, the inventory has been physically verified
by the Management during the year. In our opinion, the frequency of
verification is reasonable.
In our opinion in or mention and explanation given to us, the procedures
of physical verification of inventory followed by the Management are
reasonable and adequate in relation to the size of the Company and the
nature of its business.
On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. 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 Act. Therefore, the provisions of Clause
3(iii), (iii)(a) and (iii)(b) of the said Order are not applicable to
the Company.
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 the
purchase of inventory and fixed assets and for the sale of goods.
Further, on the basis of our examination of the books and records of
the Company, 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 weaknesses in the aforesaid
internal control system.
v. The Company has not accepted any deposits from the public within
the meaning of Sections 73, 74, 75 and 76 of the Act and the rules
framed there under to the extent notified.
vi. The Central Government of India has not specified the maintenance
of cost records under sub-section (1) of Section 148 of the Act for any
of the products of the Company.
vii. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues,
including provident fund, employees' state insurance, income tax, sales
tax, service tax, duty of excise, value added tax, cess and other
material statutory dues, as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of sales-tax,
wealth-tax, service-tax, duty of excise, value added tax, cess which
have not been deposited on account of any dispute. The particulars of
dues of income tax as at March 31, 2015 which have not been deposited
on account of a dispute, are as follows
Name of Nature of dues Amount Period to
which the Forum
the statute (Rs.) amount
relates the dispute is
Income Tax Penalty U/s Rs. 23.99 2009-10 CIT (Appeal)-
Act, 1961 271(1)(c)
(c) There are no amounts required to be transferred by the Company to
the Investor Education and Protection Fund in I accordance with the
provisions of the Companies Act, 1956 and the rules made there under.
viii. The accumulated losses of the Company did not exceed fifty
percent of its net worth as at March 3, 2015 however it has incurred
cash losses in the financial year ended on that date and in the
immediately preceding financial year.
ix. According to the records of the Company examined by us and the
information and explanations given to us, the Company does not have any
borrowings from any financial institution or bank nor has it issued any
debentures as at the balance sheet date, hence the provisions of Clause
3(ix) of the Order are not applicable to the Company.
x. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
Accordingly, the provisions of Clause 3(x) of the Order are not
applicable to the Company
xi. In our opinion, and according to the information and explanations
given to us, the Company has not raised any term loans during the year.
Accordingly, the provisions of Clause 3(xi) of the Order are not
applicable to the Company.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For C. L Ostwal & Co.
FRN: 02850C
Chartered Accountants
Sd/-
Ashish Ostwal
Udaipur Partner
May 30, 2015 Membership Number:405273 |