THE MEMBERS OF
SOLID STONE COMPANY LIMITED
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of SOLID STONECOMPANY LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone Financial Statements.
2. 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 safeguardingof the 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.
3. 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.
4. 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.
5. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 evaluatingappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's management and Board of Directors as well as evaluatingthe overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Financial Statements.
7. 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 31st March 2017 its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order 2016("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" - a statement on the matters specified inparagraphs 3 and 4 of the Order.
9. 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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 control refer to ourseparate report in "Annexure B"; and
(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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 27A to the financial statements;
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 Standalone FinancialStatements as regards holding and dealing in Specified Bank Notes (SBN) as defined in thenotification S.O. 3407(E) dated November 8 2016 of the Ministry of Finance during theperiod from 8th November 2016 to 30th December 2016. Based on audit procedures performedand relying on management representation we report that the disclosures in Note 17 of theStandalone Financial Statements are in accordance with the books of accounts maintained bythe Company and as produced to us by the Management.
For Ashar & Co
Mem. No. 046259
Date: May 29 2017
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF SOLID STONE COMPANY LIMITED
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) As explained to us the Assets have been physically verified by the management inaccordance with a phased programme of verification which in our opinion is reasonableconsidering the size and the nature of its business. The frequency of verification isreasonable and no material discrepancies have been noticed on such physical verification;
c) On the basis of our examination and according to the information and explanationsgiven to us the title deeds of immovable properties are held in the name of the Company.
2) The inventory has been physically verified by the management during the year. In ouropinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification;
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. Accordingly the clause 3 (iii)(a) 3 (iii)(b) and 3 (iii)(c) ofthe order is not applicable to the Company
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 Act with respectto the loans and investments made and guarantees given.
5) The Company has not accepted any deposit from public during the year in accordancewith the provisions of sections 73 to 76 of the Act and the rules framed thereunder.
6) According to the information and explanations given to us Central Government hasnot prescribed maintenance of cost records under section 148 (1) of the Act.
7) a) There is no Provident Fund scheme and Employees State Insurance scheme in thecompany. However the Company has enrolled under the Employees' Provident Fund Scheme andis seeking to take the benefit of Employees' Enrolment Campaign 2017. According to theCompany there is no material liability on account of the same. According to the records ofthe Company it has been generally regular in depositing undisputed statutory duesincluding Income-Tax Sales-Tax Custom Duty Excise Duty and other Statutory Dues withthe appropriate authorities except delay in few. According to the information andexplanations given to us there are no undisputed amounts payable in respect of suchstatutory dues which have remained outstanding as at 31st March 2017 for a period of morethan six months from the date they became payable.
b) According to the records of the company the dues outstanding of income-taxsales-tax service tax duty of customs duty of excise and value added tax on account ofany dispute are as follows:
|Name of the Statute ||Nature of Dues ||Financial Year ||Amount (Rs. in lacs) ||Forum where dispute is pending |
|Income Tax ||IT Matter under dispute ||A.Y 2011-12 (F.Y 2010-11) ||8.25 ||Commissioner (Appeals) |
|Income Tax ||IT Matter under dispute ||A.Y 2013-14 (F.Y. 2012-13) ||1.62 ||Commissioner (Appeals) |
|Income Tax ||IT Matter under dispute ||A.Y 2014-15 (F.Y. 2013-14) ||1.28 ||Commissioner (Appeals) |
|Maharashtra VAT ||VAT Matter under dispute ||2008-2009 ||357.06 ||Deputy Commissioner (Appeals) |
8) The Company has not defaulted in repayment of its dues to banks and FinancialInstitutions. The Company does not have any borrowings by way of debentures.
9) The Company has not raised any moneys by way of Initial public offer or furtherPublic offer (Including debt instruments) during the year. Moneys raised by way of Term /Hire Purchase Loan were applied for the purpose for which those are raised.
10) On the basis of our examination and according to the information and explanationsgiven to us no fraud by the Company or any fraud on the company by its officers oremployees has been noticed or reported during the year nor have we been informed of anysuch case by the management.
11) The managerial remuneration has been paid/provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.
12) The company is not a nidhi Company and accordingly provisions of clause (xii) ofPara 3 of the order are not applicable to the Company.
13) On the basis of our examination and according to the information and explanationsgiven to us we report that all the transaction with the related parties are in compliancewith Section 177 and 188 of the Act and the details have been disclosed in the Financialstatements in Note no. 27E as required by the applicable accounting standards.
14) The company has not made any preferential allotment or private placement of shareor fully or partly convertible debentures during the year and accordingly provisions ofclause (xiv) of Para 3 of the Order are not applicable to the Company.
15) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly provisions ofclause (xv) of Para 3 of the Order are not applicable to the company.
16) The company is not required to be registered under section 45-IA of the ReserveBank of India Act1934 and accordingly provisions clause (xvi) of Para 3 of the Order arenot applicable to the Company.
For Ashar & Co
Mem. No. 046259
Date: May 29 2017
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF SOLID STONE COMPANY LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of SOLIDSTONE COMPANY LIMITED ("the Company") as of 31 March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
2. 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 (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
3. 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.
5. 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
6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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
7. 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.
8. 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 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For Ashar & Co
Mem. No. 046259
Date: May 29 2017.