Senbo Industries Ltd.
|BSE: 532021||Sector: Health care|
|NSE: N.A.||ISIN Code: INE792C01010|
|BSE 14:30 | 20 Nov||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 532021||Sector: Health care|
|NSE: N.A.||ISIN Code: INE792C01010|
|BSE 14:30 | 20 Nov||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of Senbo Industries Limited
Report on Financial Statements
We have audited the accompanying financial statements of Senbo Industries Limited("The Company") which comprise the Balance Sheet as at March 312016 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and a summaryof 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act and the Rules there underincluding the accounting standards and matters which are required to be included in theaudit report.
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 auditors'judgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof accounting estimates made by the Company's Board of Directors as well as evaluatingthe 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 standalone financial statements
In our opinion and to the best of our information and according to the explanationgiven to us the aforesaid standalone financial statements subject to:
Read together with other notes therein give the information required by the Act in themanner 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 31stMarch 2016;
(b) In the case of the Statement of Profit & Loss of the loss for the year endedon that date; and
(c) In case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
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 Section 143 (11) of the Act we givein "Annexure A" a Statement on the matters specified in Paragraphs 3 & 4 ofthe 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 purpose 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 & Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standard specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e. On the basis of the written representations received from the Directors as on March312016 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 312016 from being appointed as a Director in terms Section 164(2) of theAct.
f. With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in "Annexure B"; and
g. 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 the best of our information and according to the explanations and certificate givento us :
i. The pending litigations of the Company would not have any impact on its financialposition.
ii. The Company did not have any long-term contract including derivative contract andas such no provision is required to be made for any likely material losses arising therefrom.
iii. The Company has never declared any dividend in its life time and therefore thereis no need to transfer any amount to the Investor Education and Protection Fund.
Companies (Auditor's Report) Order 2016 ANNEXURE "A" TO AUDITORS' REPORT
(Referred to in Paragraph 1 under the heading of 'Report on Other Legal &Regulatory Requirements' of our Report)
1. In respect of its Fixed Assets :
a. The Company has updated its Fixed Assets Register to show full particulars includingquantitative details and situation of Fixed Assets left after sale of substantial Part afPlant & Machinery during earlier years.
b. According to the information and explanations given to us the Fixed Assets werephysically verified by the management and no material discrepancies were noticed.
c. According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of Immovable properties areheld in the name of the Company.
2 As explained to us the inventory has been physically verified by the management atthe year end. We understand that no material discrepancy was noticed during verification.
3 The Company has not granted any loans secured or unsecured to companies firms LLPsor other parties covered in the Register maintained under section 189 of The CompaniesAct 2013.
4 In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans & investments made.
5 On the basis of documents examined & information received we understand that theCompany has not accepted any deposits from the public in pursuance of sections 73 to 76 orany other relevant provisions of the Act.
6 According to information and explanations given to us the Central Government has notprescribed maintenance of cost records u/s 148 (1) of the Act for any product of theCompany.
7 In respect of Statutory dues:
a) According to the records of the Company there were no outstanding undisputed duesover 6 months which remained unpaid as on 31st March 2016; except in respectof West Bengal VAT Rs. 17062; Municipal Tax Rs. 90900 and local Govt. tax on land Rs.69195.
b) According to the information and explanations given to us there were no disputedamounts payable in respect of income tax sales tax vat customs duty excise duty ordues payable to any other Statutory and/or Local Authority as at 31st March2016.
8 As per records produced before us the Company has not defaulted in payment of duesto any Financial Institution Bank Government or debentures holders.
9 As per records produced before us the Company has not raised any moneys by way ofany public offer or term loans during the year. Accordingly paragraph 3 (IX) of the Orderis not applicable.
10 According to the information and explanation 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.
11 According to the information and explanation given to us Managerial remunerationhas been paid / provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act except ratificationof remuneration of one whole-time Director in the ensuing Annual General Meeting.
12 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.
13 According to the information and explanation given to us all transactions with therelated parties are in compliance with Section 177 and 188 of the Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc asrequired by the applicable accounting standards.
14 According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment / private placement of shares or fully / partly convertible debentures duringthe year under review.
15 According to the information and explanation given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3 (XV)of the Order is not applicable.
16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE "B" TO AUDITORS' REPORT
Report on Internal Financial Controls under Clause (i) of sub-section 3 of Section 143of the Companies Act 2013 ('The Act')
We have audited the internal financial controls over financial reporting of SenboIndustries Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on 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 ('ICAI'). These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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 Controlsover Financial Reporting (the 'Guidance Note') and the Standards on Auditing issued byICAI and deemed to be prescribed under Section 143(10) of the Companies Act2013 to theextent applicable to an audit of Internal Financial Controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 were established andmaintained and if such controls operated effectively in all materials respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal controls system over financial reporting and their operating effectiveness.Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors' judgment including the assessment of the risk of materialmisstatement 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 control systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statement for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable details 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 of theManagement 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 material effect on the financial statements.
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. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March2016based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.