THE MEMBERS OF SHIVA GRANITO EXPORT LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of Shiva Granito Export Limitedwhich comprises the Balance sheet as at 31 st March 2016 and the statement of Profit& Loss for the year then ended and a summary of the significant accounting policiesand other explanatory information.
Management's Responsibility for the Financial Statement
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 andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companie(Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments 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 fraud orerror.
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 madethereunder.
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 assessmentof the risks of material misstatement of thefinancial statements whether due to fraud or error. In makingthose risk assessments theauditor considers internal financial control relevant to the
Company's preparationof the financial statements that give a true and fair view inorder to design audit procedures that areappropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accountingpolicies used and thereasonableness of the accounting estimates made by the Company's Directors as wellasevaluating 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the afore said 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:
a) In the case of the Balance Sheet of the state of affairs of the Company as at 31 stMarch 2016.
b) In the case of statement of the Profit and Loss of the loss of the company for theyear ended on that date.
Report on other Legal & Regulatory Requirement
As required by the Companies (Auditors' Report) Order2016("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013. We give in the Annexure a statements on the matters specified inparagraphs 3 and 4 of the order to the extent applicable.
As required by Section 143 (3) of the Act we reportthat:
(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 dealt with by this Reportare in agreement with the books of account.
(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 on31/03/2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31/03/2016 from being appointed as a director in terms of Section 164(2) of the Act.
(f) 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 March 312016.
(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 given to us:
i. The Company does not have any pending litigations which would impact on itsfinancial position.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any Material foreseeable losses
iii. There was no amount which were required or required to be transferred to theInvestor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our
report of even date)
(1) In respect of Fixed Assets
(a) The company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) The Fixed assets have been physically verified by the management at reasonableintervals; According to the information and explanation given to us no materialdiscrepancies were noticed on such verification.
(c) The land taken on lease and the title deeds held in the name of lease holder.
(2) In respect of Inventory
(a) As explained to us inventories were physically verified during the year by themanagement at reasonable Intervals.
(b) In our opinion and according to the information and explanations given to us thecompany has maintained Proper records of its inventories and no material discrepancieswere noticed on physical verification.
(3) The Company has not granted any loans secured or unsecured to Companies firmslimited
liability Partner ships or other parties covered in the register maintained undersection 189 of The Companies Act 2013. Accordingly the provisions Of clause 3(iii)(a) to(c) of the order are not applicable.
(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 companies Act2013 inrespect of loans investments guarantee and security.
(5) According to the information and explanations given to us the company has notaccepted any deposit from public during the year hence the directives issued by ReserveBan of India and the provisions of section 73 to 76 or any other relevant provision of theAct and the companies! Acceptance of deposit) Rules2015 with regard to the depositsaccepted from public are not applicable.
(6) According to the information and explanations given to us the Central Governmenthas not prescribedmaintenance of cost records under sub-section (1) of section 148 of theCompanies Act for the products of the company
(7) (a) According to the information and explanations given to us and on the basis ofour examination of
the books of accounts and records the Company has generally been regular in depositingundisputed statutory dues including income-tax. Sales-tax service tax value added taxcustom duty Excise duty cess and any other statutory dues with the appropriateAuthorities. .We are informed that the provisions of Employees Provident Fund Act andState Insurance Act is not applicable to the Company. According to the information andexplanations given to us no undisputed amounts payable in respect of the above were inareas as at March 312016 for a period of more than six months from the date on when theybecome payable.
(b) In our opinion and information given to us there are no other disputes pendingregarding statutory due of income-tax Sales-tax service tax value added taxcustomduty Excise duty cess.
(8) Based on our audit and according to the information and explanations given by themanagement we are of the opinion that the company has not defaulted in the repayment ofdues to financial institutions and Banks.
(9) Based on our audit and according to the information and explanations given by themanagement the company has not raised moneys by way of initial public offer or furtherpublic offer including debt instruments and term oans . Accordingly the provisions ofclause 3(ix) of the order are not applicable to the company hence not commented upon.
(10) Based on our audit and according to the information and explanations given by themanagement we report that no fraud by the company or on the company by its officers oremployees has been notices or reported during the year.
(11) Based on our audit and according to the information and explanations given by themanagement the managerial remuneration has been paid or provided in accordance with therequisite apporvals by the provisions of section 197 read with schedule V to the CompaniesAct.
(12) In our opinionthe company is not a NidhyCompanythereforethe provisions ofclause 3(xii) of the order are not applicable to the company.
(13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of the Companies Act 2013 and details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
(14) Based on our audit and according to the information and explanations given by themanagement the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review exceptshares issued in exchange of capital of firms which has been acquired by the company.Accordingly the provisions of clause 3(xiv) of the order are not applicable to thecompany hence not commented upon.
(15) Based on our audit and according to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of clause 3(xv) of the order arenot applicable to the company hence not commented upon.
(16) In our opinion the company is not required to be registered under section 45IA ofthe Reserve Bank of India Act 1934 and Accordingly the provisions of clause 3(xvi) ofthe order are not applicable to the company hence not commented upon.
| ||FOR NENAWAT & ASSOCIATES. |
| ||Chartered Accountants |
| ||FRN 02148C |
|Place: Udaipur ||Sd/- |
|Date :23 rd April 2016 ||(C.S.NENAWATI) |
| ||Partner |
| ||M.No.071341 |