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Sabrimala Industries India Ltd.

BSE: 540132 Sector: Others
NSE: N.A. ISIN Code: INE400R01018
BSE LIVE 14:11 | 31 May Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 19.80
PREVIOUS CLOSE 20.20
VOLUME 114
52-Week high 21.50
52-Week low 10.70
P/E
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 19.20
Sell Qty 865.00
OPEN 19.80
CLOSE 20.20
VOLUME 114
52-Week high 21.50
52-Week low 10.70
P/E
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 19.20
Sell Qty 865.00

Sabrimala Industries India Ltd. (SABRIMALAINDUS) - Auditors Report

Company auditors report

To

The Members of

M/s Sabrimala Leasing and Holdings Limited

1. Report on the Financial Statements

We have audited the accompanying financial statements of M/s Sabrimala Leasing andHoldings Limited (Hereinafter referred to as "the company") which comprisethe Balance Sheet as at March 31 2016 the Statement of Profit and Loss and Cash flowstatement for the year then ended and a summary of significant accounting policies andother explanatory information.

2 . Management’s Responsibility for the Financial Statements

The Company’s Board of Directors are responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

4. Basis for qualified opinion We draw your attention to :

Note no. 12 to the financial statements the company is in the process of reconcilingthe trade receivable balances with certain customers and the impact of adjustments if anythat may arise is presently not ascertainable.

5. Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the "Basis forqualified opinion" paragraph above the aforesaid financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the company as at 31st March 2016 and its profit and its cash flows for theyear ended on that date.

6. Report on other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor’s report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in the paragraph 3 and 4 of the Order to the extent applicable.

(ii) 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 bestof 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 theCompany so far as appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of accounts.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:

i. The company does not have any pending litigations as on 31.03.2016 which haveimpact on its financial position in its financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For M/s Khatter & Associates

Firm Registration No. 021979N

Chartered Accountants

Sd/-

ADITI

Partner

M.No.-514302

Place : New Delhi

Date : May 30 2016

 

Annexure "A'' to the "Independent Auditors report"

[The annexure referred to in Paragraph 6 (i) under the heading of "Report on otherLegal & Regulatory Requirements" of Independent Auditors’ Report to themembers of the Company on the financial statements for the year ended 31 March 2016 wereport that :

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the Management according to theprogram of periodical verification in phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its fixed assets. Thediscrepancies noticed on such physical verification were not material.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no immovable properties are held in the name ofthe Company accordingly paragraph 3(i)(c) of the Order is not applicable to the Company.

(ii) As explained by the management the company is into E-Commerce Business and due tonature of its business some of the stock of the company is lying with third parties forwhich company has never conducted the physical verification during the year. Howevermanagement is regular in physical verification of stock lying with company. As reported bymanagement no discrepancies were found upon physical verification of stock lying withcompany. In our opinion the procedure for the physical verification followed by theManagement is reasonable and adequate in relation to the size of the Company and nature ofits business. In our opinion and on the basis of our examination of the records theCompany is generally maintaining proper records of its inventories. No materialdiscrepancy was noticed on physical verification of stocks by the management as comparedto book records.

(iii) In our opinion and according to the information and explanation given to us theCompany has not granted any loan secured or unsecured to any companies firms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013. Accordingly the provisions of Clause 3(iii) (a) (b)& (c) of the Order are not applicable to the Company.

(iv) The Company has not made any transaction in respect of loans investmentsguarantees and security in violation of Section 185 and 186 of the Companies Act 2013.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from public within the meaning of the Section 73to76 of the Act and rules framed there under and the directives issued by Reserve bank ofIndia or any other relevant provisions of the Act. We have been informed that no order hasbeen passed by the Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any Court or other tribunal in this regard.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the activities of the company. Therefore this clauseis not applicable to the company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including in provident fund income-taxservice tax value added tax central excise duty other material statutory dues have beenregularly deposited during the year by the company with the appropriate authorities.However delays in the deposit of tax deducted at source and service tax were noticed.

According to the information and explanations given to us no undisputed amountspayable in respect of income tax service tax value added tax cess and other materialstatutory dues were in arrears as at 31 March 2016 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us there are no materialdues of income tax and service tax which have not been deposited with the appropriateauthorities on account of any dispute.

(viii) The Company has not defaulted in repayment of dues to a financial institutionbanks government or debenture holders during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) The Company has not paid managerial remuneration which is above the limitsprescribed by the provisions of section 197 read with schedule V of the Companies Act2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company All transactions with the related parties arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements etc. as required by the applicableaccounting standards;

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3 (xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934.

For M/s Khatter& Associates

Firm Registration No. 021979N

Chartered Accountants

Sd/-

ADITI

Partner

M.No.-514302

Place : New Delhi

Date : May 30 2016

Annexure "B'' to the "Independent Auditors report"

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/s SabrimalaLeasing and Holdings Limited ("the Company") as of 31 March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

The company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements. InherentLimitations of Internal Financial Controls Over Financial Reporting

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

Based on the information provided by the management and our test checking at the timeof the audit the following material weaknesses noticed at the time of the audit:

 

The company has weak system for the reconciliation of customer balances i.e. tradereceivables on periodical basis. This could results in the impact on the profitability ofthe company by recognition of revenue without establishing reasonable certainty ofultimate collection and other accounting adjustments on confirmation and reconciliationif any.

A ‘material weakness’ is a deficiency or a combination of deficiencies ininternal financial control over financial reporting such that there is a reasonablepossibility that a material misstatement of the company's annual or interim financialstatements will not be prevented or detected on a timely basis. in our opinion exceptfor the possible effects of the material weaknesses described above on the achievement ofthe objectives of the control criteria the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31 March2016 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For M/s Khatter& Associates

Firm Registration No. 021979N

Chartered Accountants

Sd/-

ADITI

Partner

M.No.-514302

Place : New Delhi

Date : May 30 2016