| We have audited the accompanying financial statements of S.R INDUSTRIES
LTD., which comprise the Balance Sheet as at March 31, 2015, the
Statement of Profit and Loss and Cash Flow Statement for the period
then 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 Standards referred to in Section 133 of the Companies
Act, 2013 (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 misstatements, 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 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, 2015;
b) In the case of the Statement of Profit and Loss, of the Profit for
the period ended on that date; and
c) In the case of the Cash Flow Statement of the cash flows for the
period ended on that date.
Report on other Legal and Regulatory requirements.
1. As required by the Companies (Auditor's Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of
sub-section (3) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs of the Order.
2. As required by Section 143(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 purpose 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 of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Section 133 of The Act.
e) On the basis of written representations received from the directors
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 sub-section (2) of Section 164 of The Act.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of S.R INDUSTRIES on the accounts of the Company for the
period ended 31st March, 2015.
On the basis of such checks as we considered appropriate during the
course of our audit, and according to the information and explanations
given to us, we report that:
1. IN RESPECT OF ITS FIXED ASSETS:
a. The Company has maintained proper records showing full particulars
including quantitative details and the situation of fixed assets on the
basis of available information.
b. As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, 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
physical verification.
c. In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. IN RESPECT OF INVENTORIES:
a. The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. According to the information and explanation given to us, the
procedure of physical verification of inventories followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
c. The Company has maintained proper records of inventories As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
However minor discrepancies noticed on verification between the
physical stocks were properly adjusted in the consumption of stores.
3. IN RESPECT OF LOANS GIVEN:
According to the information and explanations given to us and on the
basis of our examination of the books of accounts, the Company has not
granted any loans, secured or unsecured, to Companies, firms or other
parties listed in the register maintained under Section 189 of The Act
4. IN RESPECT OF INTERNAL CONTROL:
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 also for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in Internal control system
5. IN RESPECT OF DEPOSIT FROM PUBLIC:
According to information and explanations given to us, the Company has
not accepted any deposits from the public.
6. COST ACCOUNTING RECORDS:
We have 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 sub-section (1) of section 148 of the
Act but and are of the opinion that the prescribed accounts and records
have been made and maintained, However we have not vouched the said
records.
7. IN RESPECT OF STATUTORY DUES:
(a) The Company is not regular in depositing undisputed statutory dues
with the appropriate authorities such as Gratuity, ESI, EPF, TCS, TDS,
Excise Duty, Service Tax and CST. However, as at 31st March 2015, there
are no such dues outstanding for a period of more than six months from
the date they became payable.
(b) The following are disputed amounts outstanding, but were not paid
by the Company as at 31st March 2015:
Name Nature of Dues Amount Forum where
of the (Rs in Lacs) dispute is
Statute pending
Excise Duty Excise Duty 258.70 CESTAT
Excise Duty Excise Duty 723.00 CESTAT
(c) As per information and explanations given to us, the company was
not required to transfer any amount in Investor Education and
Protection Fund.
B. LOSS MAKING COMPANY:
The Company has accumulated losses of Rs.2567.83 Lacs at the end of the
financial year which is more than 50% of the net worth of the Company.
Further, the Company has not incurred cash loss during the financial
year covered by our audit and in the immediately preceding financial
year.
9. REPAYMENT OF DUES:
Based on our audit procedures and according to the information and
explanations given to us, the Company has paid dues to banks with
certain delays. The overdue amounts as at 31st March 2015 were Rs.
65.39 Lacs out of which Rs. 20.72 Lacs has since been paid.
10. GUARANTEE GIVEN:
As per the information and explanations given to us, we report that the
company has not given guarantee for the loans taken by others from
banks or financial institutions
11. END -USE-OF BORROWING:
As per the information and explanations given to us, we report that the
Company has not raised any term loans during the year.
12. FRAUDS:
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
period under audit
FOR KANSAL SINGLA & ASSOCIATES
Chartered Accountants
Place: Chandigarh
Date: May 8, 2015
sd/-
C.A. Surender Kumar
Partner
M.No.070405
FRN No 03897N
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