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Sarthak Industries Ltd.

BSE: 531930 Sector: Others
NSE: SARTHAKIND ISIN Code: INE074H01012
BSE LIVE 15:24 | 19 Feb Stock Is Not Traded.
NSE 00:00 | 05 Sep Stock Is Not Traded.
OPEN 5.67
PREVIOUS CLOSE 5.40
VOLUME 2
52-Week high 5.67
52-Week low 0.00
P/E 3.44
Mkt Cap.(Rs cr) 4
Buy Price 5.67
Buy Qty 498.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.67
CLOSE 5.40
VOLUME 2
52-Week high 5.67
52-Week low 0.00
P/E 3.44
Mkt Cap.(Rs cr) 4
Buy Price 5.67
Buy Qty 498.00
Sell Price 0.00
Sell Qty 0.00

Sarthak Industries Ltd. (SARTHAKIND) - Auditors Report

Company auditors report

To

The Members of Sarthak Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Sarthak Industries Limited("The Company") which comprises the Balance Sheet as at 31st March2015 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand 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 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 position financial 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 maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgment and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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 fraudor error.

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 auditingstandard 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 anddisclosures 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 but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report ) Order 2015 ("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 statement on the matters specified inthe paragraph 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 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 it appears from our examination of those books and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

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 account and with the returnsreceived from the branches not visited by us.

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 the written representations received from the directors as on 31stMarch 2015 taken on records by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in termsof section 164(2) of the Act.

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

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statement – refer note 27 contingent liabilities andcommitments to the financial statement;

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company.

For ASHOK KHASGIWALA & CO.
CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CA Avinash Baxi
Place : Indore Partner
Date : 30th May 2015 M.No. 79722

Annexure to Independent Auditor’s Report

Referred to in paragraph (1) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of SarthakIndustries Limited on the financial statements for the year ended March 31 2015. i. Inrespect of its Fixed Assets :

a. The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b. As explained to us the fixed assets of the Company have been physically verified bythe management during the year which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies between thebook records and the physical inventory have been noticed. In our opinion the frequencyof verification is reasonable.

ii. In respect of its Inventories:

a. The inventories has been physically verified during the year by the Management. Inour opinion the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c. On the basis of our examination of inventory records in our opinion the Company ismaintaining proper records of inventories. As explained to us there were no materialdiscrepancies noticed on physical verification of inventory as compared to the bookrecords.

iii. According to the information and explanations given to us the Company has notgranted any loan secured or unsecured to companies firms or other parties covered in theregister maintained under section 189 of the Companies Act 2013. Hence the provisions ofpara 3 clauses 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 thereis adequate internal control systems commensurate with the size of the Company and thenature of its business with regard to purchases of inventory and fixed assets and for thesale of goods and services. Further on the basis of our examination of the books andrecords of the Company and according to the information and explanations given to us wehave not observed any continuing failure to correct major weakness in internal controlsystem in respect of these areas.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits within the meaning of section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under. Hencethe provisions of para 3 clause (v) of the Order is not applicable to the company for theyear under audit.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to therules made by the Central Government under sub-section (1) of Section 148 of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed records have beenmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete. vii. In respect of Statutory dues:

a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund employee’s state insuranceincome tax sales tax service tax wealth tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities. There wereno undisputed statutory dues in arrears as at 31st March 2015 for a period ofmore than six months from the date they became payable except professional tax of Rs.15440.

b) According to the information and explanations given to us there are no dues ofsales tax value added tax income tax service tax duties of customs wealth tax dutiesof excise have not been deposited with appropriate authorities on account of any disputeexcept detailed as under :

Name of the Statute Nature of Dues Amount Involved Rs. Period to which amount relates Forum where dispute is pending
Cental Sales Tax Act 1956 Sales Tax 729731 2009-10 & 2010-11 MP Commercial Tax Appellate Board
Bombay Sales Tax Act 1959 Sales Tax 9231996 2001-02 Maharastra Sales Tax Tribunal Mumbai.
Bombay Sales Tax Act 1959 Sales Tax 18631908 2002-03 Maharastra Sales Tax Tribunal Mumbai.
Competition Commission of India MRT Practice 38974489 2007-08 to 09-10 Competition Appellate Tribunal New Delhi
M.P. Vat Act 2002 Sales Tax 313051 2011-12 Dy. Comm. of Comm. Tax (Appeals)

c) There has been no delay in transferring amounts as required to be transferred tothe Investor Education and Protection Fund by the Company in accordance with the relevantprovisions of the Companies Act 1956 (1 of 1956) and rules made there under.

viii. The Company have accumulated losses of Rs. 40955462 as at 31st March2015. It has not incurred cash losses during the financial year under audit however ithad incurred cash losses in the immediately preceding financial year.

ix. According to the records of the company examined by us and as per the informationand explanations given to us the Company has not defaulted in repayment of dues to aFinancial Institutions or Banks or debenture holders as at 31st March 2015.

x. The Company has given guarantee for loans taken by Others from Bank. In our opinionand according to the information and explanations given to us the terms and condition ofthe guarantee given are not prima facie prejudicial to the interest of the company.

xi. In our opinion and according to the information and explanations given to us thecompany has not obtained any term loan during the year.

xii. During the course of our examination of the books of account and records of theCompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us we have neither come acrossany instance of material fraud on or by the Company noticed or reported during the yearnor have we been informed of such case by the management.

For ASHOK KHASGIWALA & CO.
CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CA Avinash Baxi
Place : Indore Partner
Date : 30th May 2015 M.No. 79722