We have audited the accompanying financial statements of Mis. SHREYASINTERMEDIATES LIMITED which comprise the Balance Sheet asat March 312015theStatement of Profit andLossand theCash Flow Statement for the period from October 12014toMarch 312015andasummary of significant accountingpoliciesandother explanatoryinformation.
Management's Responsibility forthe Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the CompaniesAct 2013 ("theAct") 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 theAccounting Standards specified underSection 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes 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; selection and application of appropriateaccounting policies; makingjudgments and estimates that are reasonable andprudent;anddesign implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy andcompleteness ofthe accountingrecords relevant to the preparation and presentation of the financial statements that giveatrue and fair view and arefree from material misstatement whether due to fraudorerror.
Our responsibility is to express anopinion onthese standalonefinancial statements basedon our audit.We have taken into account the provisions of the Act the accounting andauditing standards and matters which are requiredto beincluded inthe audit report undertheprovisionsoftheActandthe Rules made there under. We conducted our audit in accordancewiththe Standards onAuditing specified under Section 143 (10) oftheAct.
Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statementsarefreefrom 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made bythe Company's Directors aswell asevaluating 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 onthefinancial 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 Indiaof the state ofaffairs ofthe Company as at 31 stMarch 2015and its profit and its cash flowsforthe periodfrom October 12014 to March 312015.
Emphasis of matters
We draw attention to the following notes in Note 24 attached to the financialstatements. Our opinion is not qualified in respect ofthese matters.
iv. Notes 24C (1) regarding Company being declared within the purview of the SickCompany's definition and the BIFR Regulations andthe applicationwiththe boardandothermatters referredtothere under.
v. Notes 24 C (2) regarding Secured Loans from Financial Institutions and other mattersas referred to there under.
vi. Notes 24 C(3) regarding FixedAssets and other matters asreferred tothere under.
ReportonOther LegalandRegulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure a statement on the matters specified in paragraphs 3and4 ofthe Ordertotheextent applicable.
2. Asrequired by Section 143(3) oftheAct we reportthat:
(a) Wehave sought and obtained all the information and explanations which to the bestof our knowledge and beliefwere necessaryforthepurposesofouraudit.
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appearsfromourexamination ofthosebooks.
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Reportareinagreementwiththebooksofaccount.
(d) Inour opinionthe aforesaidfinancialstatements comply with the Accounting Standardsspecified under Section 133 of the Act read with Rule7of the Companies (Accounts)Rules2014.
(e) Onthe basis of the written representations received fromthe directors ason March312015andtaken on record by the Board of Directors none of the directors isdisqualified as on March 312015 from being appointed as a director interms of Section164(2) of the Act.
(f) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:
.i The Company has disclosed the impact of pending litigations on its financialposition in its financial statements-Refer Note24 B(12)tothe financial statements;
ii. The Company hasmade provisions asrequired under theapplicable lawor accountingstandards for materialforeseeable losses if any onlong-termcontracts includingderivativecontracts.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund bythe Company.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 of our report of even date)
i. In respect of its fixedassets:
a The Company has maintained proper records showing full particulars includingquantitative details and situation offixed assets.
b The Company has a program of verification of fixed assets to cover all the items in aphased manner over a period of twoyears which in our opinion is reasonable havingregardto the size of the Company and the nature ofits assets. Pursuant to the programcertainfixed assetswere physically verified bythe Management during the year. According tothe information and explanations given to us no material discrepancieswerenoticedonsuchverification.
ii. Inrespect of its inventories:
a. As explained to us inventories have been physically verified by the management atregular intervals during the period. As explained to us the inventories were physicallyverified during the year by the Management. In our opinion having regard to the natureand location of the stocks the frequency of verification is reasonable.
b. In our opinion andaccording to the information and explanations given to ustheprocedures of physical verification of inventories followed bythe Management werereasonable and adequate in relation tothe size ofthe Company andthe nature of itsbusiness.
c. 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.
vii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered inthe Register maintained under Section 189of the CompaniesAct2013.
viii. In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the Companyand the nature of its business for the purchase of stores raw materials includingcomponents plants and machinery equipment and other assets and for the sale of goods.During the course of our audit and according to the information and explanations given tous we have neither come across nor have been informed of any continuing failure to correctmajor weakness in the internal control procedures.
ix. The company has not accepted any deposits from the public within the meaning ofSection 73 and 74 of the Act and the Rules framed there under to the extent notified.According to the information and explanations given to us no order has been passed by theCompany Law Board or the National Company LawTribunal or the Reserve Bank of India or anyCourt or any other Tribunal
x. We areinformed by the Company that maintenance of cost records have not beenprescribed under clause
(d) ofsub-section (i) of Section 209 of theAct. vii. Accordingto the informationandexplanations given to us in respect of statutory dues: a. The Company has generallybeen regular in depositing undisputed statutory dues including Provident FundIncome-tax Sales Tax Wealth Tax Service Tax Customs Duty Excise Duty Value AddedTax Cess andother materialstatutory dues applicableto it withthe appropriate authorities.b. There were no undisputed amounts payable in respect of Provident Fund Employees' StateInsurance Income-tax Sales Tax Wealth TaxService TaxCustoms Duty Excise Duty ValueAdded TaxCess and other material statutory dues in arrears as at March 31 2015 for aperiod of more than six months fromthe datethey became payable. c. Details of dues ofIncome-tax Sales Tax Wealth Tax Service Tax Customs Duty Excise Duty Value AddedTaxand Cess which have not been deposited as on March 31 2015 on account of disputes aregiven below
|Name of the Statute (Nature of Dues) ||Forum where Dispute is pending ||Period to which the amount relates Amount involved ||(Rs. In Lacs) |
|The Central Excise Act 1944 ||CESTAT ||July 2007 to October 2008 ||Rs. 164.71 |
|The Central Excise Act 1944 ||CESTAT ||6th Nov 2009 to 25th Nov 2009 ||Rs. 129.16 |
|The Central Excise Act 1944 ||CESTAT ||2005-06 to 2008-2009 ||Rs. 127.48 |
|The Central Excise Act 1944 ||CESTAT ||Jan 2005- Dec 2010 ||Rs. 32.21 |
|The Central Excise Act 1944 ||CESTAT ||Jan 2005- Dec 2010 ||Rs. 2.45 |
|The Securitization & Reconstruction Of Financial Assets And Enforcement Of SecuritiesAct 2002 [SARFAESI] Act 2002 ||Debt Recoverya Tribunal ||May 2009 to 25/1 1/2010 ||Rs. 41.38 |
d. The Company has been generally regular in transferring amounts to the InvestorEducation and Protection Fund in accordance with the relevant provisions of the CompaniesAct 1956 (1 of 1956) and Rules madethere underwrthin time.
viii. The accumulated losses of the company as at the end of the year exceed fiftypercent of its net worth. The company has also incurred cash losses during the financialyear covered by our audit and in the preceding financial year aswell.
ix. Based on our audit procedures and as per the information and explanations given tous bythe management the company had approached the financial institutions with asettlement scheme which has been duly approved by both the lending bankers. Bank of Barodahad approved a One Time Settlement option in respect of its dues by assigning its entiredues to Invent ARC. Furthermore State Bank of India had also assigned their dues onSecurity Realizationbasisto InventARC. The company is inthe process of executing the saidscheme of settlement and the board has expressed its utmost commitment to resolve theissue accordingly. Refer Note 24C(2) tothefinancialstatements;
x. According to the information and explanations given to us the company has not givenany guarantee for loanstaken by others from banks andfinancial institutions.
xi. In our opinion and according tothe information and explanation givento us the termloans have been applied for the purpose forwhichthey were raised.
xii. In our opinion and according to the information and explanation given to us nomaterial fraud on or by the company has been noticed or reportedduringthe course of ouraudit.
| ||For SAYEED KHAN & ASSOCIATES |
| ||Chartered Accountants |
|Place: Mumbai ||Sayeed Khan |
|Date: 28th AUGUST 2015 ||Proprietor |