Shree Surgovind Tradelink Ltd.
|BSE: 531667||Sector: Others|
|NSE: N.A.||ISIN Code: INE117K01013|
|BSE LIVE 09:07 | 07 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 531667||Sector: Others|
|NSE: N.A.||ISIN Code: INE117K01013|
|BSE LIVE 09:07 | 07 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
to the shareholders of Shree Surgovind Tradelink Limited for the year ended March 312017
To the Members of
Shree Surgovind Tradelink Limited
Report on the financial statements
We have audited the accompanying financial statements of Shree Surgovind TradelinkLimited (the 'Company') which comprises of Balance Sheet as at March 31 2017 theStatement of Profit and Loss account and Cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the financial statements
The Company 's Board of Directors ('Board') is responsible for the matters stated inSection 134(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 relevant rules issued there under. . The respectiveBoard are responsible for 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; the selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. While conducting the audit we have taken into account the provisions of the Actthe accounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under. We conductedour audit in accordance with the Standards on Auditing specified under section 143(10) ofthe Act. Those standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedure selected depends on the auditor'sjudgment 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 control relevant to the Company's preparation and fair presentation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Board as well as evaluating the overallpresentation 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 statement.
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 the accountingprinciples generally accepted in India.
i. In the case of the Balance Sheet of the state of affairs of the Company as at March31 2017
ii. In the case of Statement of Profit and Loss of the Profit for the year ended onthat date and
iii. In the case of Cash Flow statement of the cash flows for the year ended on thatdate
Emphasis of Matter
We draw attention to
1. Note 29 to the financial statements in respect of Debit orCredit balances on whatever account are subject to confirmation from parties/ authoritiesconcerned and
2. Note no.30 to the financial statements relating to Case against theCompany / Erstwhile Directors by Registrar of Companies (ROC).
The matters in respect of the case against the directors under section 628 of theerstwhile Companies Act 1956 is still to be resolved. No contingent liability had beenmade for the same in respect of the exceptional amount likely to materialize in the nearfuture. In the opinion of the Management as per strong defense presented to theauthorities the outcomes are likely to be favorable. Our opinion is not modified inrespect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("the order")issued by the Central Government of India in terms of Section 143 (11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder.
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 accounts as required by law have been kept by thecompany so far as it appears from our examination of the 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 account;
(d) In our opinion the aforesaid financial statements comply with the applicableAccounting standards specified under the 133 of the Act read with the relevant rulesissued there-under;
(e) On the basis of written representation received from the directors as on March 312017 and taken on record by the Board none of the directors is disqualified as on March31 2017 from being appointed as a director in terms of section 164(2) of the Act;
(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) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
The financial statement disclose the impact of pending litigations if any as atMarch 31 2017 on its financial position in its financial statements; (Refer to Note 27 tothe financial statement) .
The Company did not have any long-term contracts pending on the balance sheetdate including derivative contracts; as such the question of commenting on any materialforeseeable losses thereon does not arise and;
There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.
The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and those are in accordance with the books of accountsmaintained by the company. (Refer to Note No. 16 (a) to the financial statements).
"Annexure A" to the Independent Auditors' Report
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31 March 2017 we report that:
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:
1. In respects of the Company's fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us fixed assets have been physically verified by the management atall locations at reasonable intervals. As informed to us no material discrepancies werenoticed on such verification.
(c) With respect to immovable properties of acquired godowns according to theinformation and explanations given to us and the records examined by us and based on theexamination of the registered sale deed/ transfer deed provided to us we report that thetitle deeds in respect of properties purchased during the year are in the name of thecompany.
2. In respect of the Company's inventories:
(a) The Management has conducted the physical verification of inventory at reasonableintervals.
(b) As explained to us the discrepancies if any noticed on physical verification ofthe inventory as compared to books records which have been properly dealt with in thebooks of account were not material.
3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act.
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesif any as applicable.
5. The Company has not accepted any deposits from the public during the year and doesnot have any unclaimed deposits as at March 31 2017 and therefore the provisions of theclause 3(v) of the order are not applicable to the company.
6. Reporting under clause 3(vi) as to Cost Records Maintenance the order is notapplicable as the Company's business is not covered by the Companies (Cost Records andAudit) Rules 2014.
7. According to the information and explanations given to us in respect of statutorydues
(a) The Company has generally been regular in depositing undisputed statutory duesincluding Income Tax Sales Tax Value Added Tax Service Tax Customs Duty Excise Dutyand other material statutory dues applicable to it have been generally regularly depositedduring the year with the appropriate authorities. However there have been some delays.
(b) According to the information and explanations given to us the disputed dues inrespect of income tax and VAT/ Sales Tax which have not been deposited are as follows:
8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to Financial Institutions and banks.Further in our opinion and according to information and explanations given to us theCompany did not have any amount outstanding to debentureholders or non-financial banking institutions.
9. The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term Loans and hence reporting under clause 3 (ix)of the Order is not applicable.
10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the company byits officers or employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
12. The Company is not a Nidhi Company and hence reportingunder clause 3(xii) of the Order is not applicable.
13. In our opinion and according to the information and explanations given to us theCompany is compliant with Section 177 and 188 of the Act whereapplicable for transactions if any; with the related parties and thedetails of related party transactions have been disclosed in the financial statements asrequired by the applicable accounting standards.
14. During the year the company has made preferential allotment by way ofprivate placement of Equity shares and warrants convertible into fully paid equityshares on exercise of same to existing promoter shareholders on pro-rata basis hence therequirement of section 42 of the Companies Act 2013 have been complied with and theamount raised have been used for meeting the working capital requirements of the Company.
15. In our opinion and according to the information and explanations given to usduring the year the company has not entered into any non-cashtransactions with directors or persons connected with its Directors and hence theprovisions of clause 3 (xv) of the Order is not applicable to the Company.
16. The Company is not required to be registered under section 45-Iof the Reserve Bank of India Act 1934.
"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of Shree Surgovind Tradelink Limited Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ('theAct')
In conjunction with our audit of the financial statements of the Company for the yearended on March 31 2017we have audited the internal financial controls over financialreporting of Shree Surgovind Tradelink Limited ('the Company') as of that date.
Management's Responsibility for Internal Financial Controls
The Company's Board is responsible for establishing and maintaining internal financialcontrols based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India ('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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act. In order to further strengthen the operations of the company and also to addressthe requirements of internal controls the company has installed integrated ERP system.The company has installed integrated ERP system which is being implemented.
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') issued by ICAI and Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both issued by ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A 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.
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.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by ICAI.