To the members of
Shetron Limited Bangalore
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Shetron Limited("the Company") which comprise the Balance Sheet as at 31 March 2016 and theStatement of Profit and Loss and Cash flow Statement for the year then ended and a summaryof the significant accounting policies and other explanatory information.
Management's Responsibility for the standalone 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the financial statements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2016 and its profits for the year 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 in terms of sub-section (11) of section 143 of the Actwe give in the Annexure a statement on the matters specified in the paragraph 3 and 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 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;
(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 standalone financial statements comply with theAccounting Standards 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 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164 (2) of the Act; and
(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 the best of our information and according to the explanations given to us: i. theCompany has disclosed the impact of pending litigations if any on its financial positionin its financial statements ;
ii. ii. the Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts; and
iii. There has been no delay in transferring amounts if any required to betransferred to the Investor
Education and Protection Fund by the Company
| ||For Pal and Shanbhogue |
| ||Chartered Accountants |
| ||Firm No : 002528S |
|Place : Bangalore ||K.R.SHANBHOGUE |
|Date : 16th May 2016. ||Partner |
| ||(Membership No. 018578) |
Annexure to Independent Auditors' Report of Shetron Limited
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of two years. Inaccordance with this programme a portion of the fixed assets has been physically verifiedby the management during the year and no material discrepancies have been noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets. All title deedsrelating to immovable properties of the Company are held in the name of the Company.
(ii) (a) The inventory except goods-in-transit has been physically verified by themanagement during the year. In respect of inventory lying with third parties these havesubstantially been confirmed by them. In our opinion the frequency of such verificationis reasonable.
(b) The procedures for the physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
(c) The Company is maintaining proper records of inventory. The discrepancies noticedon verification between the physical stocks and the book records were not material.
(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the Act duringthe year under review.
(iv) The company has not granted any loans or provided guarantees and security forwhich section 185 and 186 of the Companies Act 2013 are applicable during the year underreview. The investments made during the year were in compliance of Section 185 and 186 ofthe Companies Act 2013.
(v) The Company has not accepted any deposits from the public in accordance with theprovisions of sections 73 to 76 of the Act and the rules framed there under.
(vi) We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by the Central Government for maintenance of cost records undersub-section 1 of Section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.
(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 Provident fund Employees' StateInsurance Income tax Sales tax Wealth tax Service tax Customs duty Excise dutyValue added tax Cess Professional tax and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-tax Sales taxWealth tax Service tax Customs duty Excise duty Value added tax Cess Professionaltax and other material statutory dues were in arrears as at March 31 2016 for a period ofmore than six months from the date they became payable.
(b) According to the information and explanations given to us there are no dues ofIncome tax Wealth tax Sales tax Value added tax Service tax Customs duty Excise dutyand Cess which have not been deposited with the appropriate authorities on account of anydispute except the following:-
|Name of Statute ||Nature of Dues ||Amount Rs Lakhs ||Period to which it relates ||Forum where pending |
|Customs Act ||Customs Duty ||33.00 ||2015-16 ||Commissioner of Customs (Appeals) Bangalore. |
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to its bankers or financialinstitutions or Government. The Company did not have any outstanding to debentures holdersduring the year.
(xi) The Company has not raised moneys by way of further public offer (including debtinstruments). In our opinion and according to the information and explanations given tous terms loans raised have been applied by the company for the purpose for which theywere obtained.
(x) According to the information and explanations given to us no instances of materialfraud on or by the Company has been noticed or reported during the course of our audit.
(xi) The company had paid/provided managerial remuneration with requisite approvals ifany under Section 197 read with Schedule V of the Companies Act 2013.
(xii) The Company is not a Nidhi company and hence the provisions of Clause (xii) ofCARO 2016 are not applicable.
(xiii) All transactions with the related parties are in compliance with Section 177 and188 of the Companies Act 2013 wherever applicable and the details of all thosetransactions have been disclosed in Financial Statements and other documents as requiredby the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them.
(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
| ||For Pal and Shanbhogue |
| ||Chartered Accountants |
| ||Firm No : 002528S |
| ||K.R.SHANBHOGUE |
|Place : Bangalore ||Partner |
|Date : 16th May 2016. ||(Membership No. 018578) |