|BSE: 538441||Sector: Others|
|NSE: SHRENIK||ISIN Code: INE632X01014|
|BSE 05:30 | 01 Jan||Shrenik Ltd|
|NSE 05:30 | 01 Jan||Shrenik Ltd|
|BSE: 538441||Sector: Others|
|NSE: SHRENIK||ISIN Code: INE632X01014|
|BSE 05:30 | 01 Jan||Shrenik Ltd|
|NSE 05:30 | 01 Jan||Shrenik Ltd|
TO THE MEMBERS OF SHRENIK LIMITED
(Formerly Shrenik Pvt Ltd and Shrenik Tradelink Pvt Ltd)
Report on the Financial Statements
We have audited the accompanying financial statements of SHRENIK PRIVATE LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March2017 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant 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 positionfinancial performance and cash flow of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act as applicable.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder and the order under section 143 (11)of the act.
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 assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 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 of the state of affairs of the Company as at 31stMarch 2017 and its profit and loss 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 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 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 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 as applicable.
(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(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 its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The company has provided requisite disclosures in its financial statements. Asfinancial statements as to holding as well as dealing in specified bank notes during theperiod from 8th November 2016 to 30th December 2016 and these arein accordance with the books of accounts maintained by the company. Refer note no. p onnotes of accounts
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2 (f) under 'Report on Other Legal and RegulatoryRequirements' of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub- section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SHRENIKPRIVATE LIMITED ("the Company") as of 31st March 2017 in conjunctionwith our audit of the financial statements of the Company for the year 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 of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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 Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material 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 31 March 2017 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India"
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 its fixed assets:
a The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b All the assets have been physically verified by the management during the year andthere is a regular programmed of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such verification and same matched with balance in the books of accounts
C Title Deeds of all the Immoveable properties of the company are in the name of Mr.Shrenik S Vimawala a proprietor of the erstwhile Proprietorship Firm M/s. Shree ShyamCorporation. Immovable Properties have been transferred to the Company on account ofconversion of the Company from proprietorship to Partnership Firm and then to PrivateCompany under Chapter IX of the Companies Act 1956. Details of the Property is attachedas ANNEXURE I.
2. In respect of its inventories:
a. The inventory has been physically verified during the year by the management. In ouropinion the frequency of verification is reasonable and no material discrepancies werenoticed on physical verification.
3. The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
4. The Company has not given any Loans Investments and Guarantees& Securities toDirectors. The Company has complied with the provisions of Section 186 of the CompaniesAct 2013 and has made disclosure in the financial statements.
5 The Company has not accepted deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act and the rules framed there under whereapplicable
6 In our opinion and according to the information and explanations given to us theCentral Government has not prescribed for maintenance of cost records under sub-section(1) of section 148 of the Companies Act in respect of the products manufactured by theCompany.
7 a. The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax. service tax custom duty excise duty and other statutory duesapplicable to it with appropriate authorities.
b. According to the information and explanations given to us no disputed amountspayable in respect of income-tax sales-tax wealth tax service tax customs duty exciseduty and cess were in arrears.
8 In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of Loans & Borrowings dues to a FinancialInstitution. Bank and Government. The Company has not issued any debenture.
9 The Company was a private limited company for the period under audit; hence questionof raising any money by way of public issue does not arise. In our opinion and accordingto the information and explanations given to us the term loan has been applied for thepurpose for which it was raised.
10 To the best of our knowledge and belief and according to the information andexplanations given 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.
12 The Company was a private limited company for the period under audit; hence thesection 197 is not applicable.
13 Clause (xii) of Companies (Auditor's Report) order 2016 Is not applicable to ourcompany.
13 According to the information and explanations given to us the Company has compliedwith the provisions of section 188 of the Companies Act 2013 and the details of thetransactions have been disclosed in the financial statements as required by the AccountingStandard 18. The transactions entered with the related parties are in the ordinary courseof business and the amounts involved in the transactions are at arm's length.
14 The Company has not made any preferential allotment or private placement of sharesundersection 42 of the Companies Act 2013or fully or partly convertible debentures duringthe year under review.
15 The Company has not entered into any non-cash transactions with directors or personsconnected with him.
16 The Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.