To the Members of
SOURCE INDUSTRIES (INDIA) LIMITED
Report on Financial Statements
We have audited the accompanying financial statement of SOURCE INDUSTRIES (INDIA)Limited ("the Company) which comprise the Balance Sheet as at March 31 2017 the
Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant other explanatoryinformation.
Management's Responsibility for the Financial Statements The Company's Board ofDirectors is responsible for the matters stated in Section
134(5) of the Companies Act 2013 ("the Act") with respect to the preparationof these 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 the Accounting Standards specified underSection 133 of the Act read with
Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; 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 andcompleteness of accounting records relevant to the preparation and presentation of thefinancial statements that give true and fair view and are free from material misstatementwhether 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 the Rules made thereunder. We have conducted our audit in accordance withthe Standards on Auditing issued by the Institute of Chartered Accountants of Indiaspecified under 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance whether thefinancial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on auditor's judgement including assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes the appropriateness of the accounting policies used andreasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis on thefinancial 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 gives a true and fair view in conformity with the accountingprinciples generally accepted in India:
In the case of the Balance Sheet of the state of affairs of the Company as at March31 2017; In the case of the Statement of Profit and Loss of the Profit for the yearended on that date; and In the case of the Cash Flow Statement of the cash flows for theyear ended on that date.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's report) Order 2016 ("the Order")issued by the
Central Government of India in terms of subsection 11 of section 143 of the Act wegive in the Annexure-1 a statement on the matters specified in paragraphs 3 and 4 of theOrder.
As required by section 143(3) of the Act we report that: We have sought and obtainedall the information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit;
In our opinion proper books of account as required by law have been kept by theCompany so far it appears from our examination of those books; The Balance SheetStatement of Profit and
Loss and Cash Flow Statement dealt with by this report are in agreement with the booksof account; In our opinion the aforesaid financial statements comply with the Accounting
Standards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31
2017 from being appointed as a director in terms of section 164(2) of the Act;
With respect to the adequacy of internal financial controls over financial reporting ofthe Company and the operating effectiveness of such controls refer to our separate Reportin
"Annexure 2" to this report;
(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 read withCompanies (Audit and Auditors) Amendment Rules 2017 in our opinion and to the best ofour information and according to the explanations given to us: i. the Company hasdisclosed the impact of pending litigations on its financial position in its financialstatements ii. the Company did not have any long-term contracts including derivativescontracts for which there were any material foreseeable losses. iii. there has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company; and iv. the Company has provided requisite disclosures inits financial statements as to holdings as well as dealings in Specified
Bank Notes during the period from 8 November 2016 to 30 December 2016 and these arein accordance with the books of accounts maintained by the Company.
For RAKESH S JAIN & ASSOCIATES Chartered Accountants Firm Registration no.:010129S(B. Ramesh Kumar) Date: 06/06/2017 Partner Place: Hyderabad M. No: 200304
Annexure 1 referred to in paragraph 1 of our report of even date Re: SOURCE INDUSTRIES(INDIA) LIMITED i. According to the information and explanations furnished to us thecompany does not have any Fixed Assets. Therefore the provisions of clause 3 (i) of theCompanies (Auditor's Report) Order 2016 are not applicable to the company. ii. Accordingto the information and explanations furnished to us the company does not have anyInventory. Therefore the provisions of clause 3 (ii) of the Companies (Auditor's Report)Order 2016 are not applicable to the company. iii. In our opinion and according to theinformation and explanations given to us the company has not granted any loans to any ofthe parties covered u/s 189 of the Companies Act 2013. iv. In our opinion and according tothe information and explanations given to us in respect of loans investment guaranteesand securities provisions of the section 185 and 186 of the Companies Act 2013 have beencomplied with by the company. v. According to the information and explanations given tous The Company has not accepted any deposits from the public within the meaning Sections73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under. vi. According to the information and explanations given to us during theyear Companyhasnotcarriedanymanufacturing operations hence as informed to us themaintenance of cost records under section 148(1) of the Companies Act 2013 is notapplicable.
vii. (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax sales-tax service tax customs duty excise duty value added tax cess and othermaterial statutory dues applicable to it. (b) According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundemployees' state insurance income tax service tax sales tax custom duty excise dutyvalue added tax cess and other material statutory dues were outstanding at the year endfor a period of more than six months from the date they became payable.
(c) According to the records of the Company there are no dues outstanding on accountof income tax sales tax service tax custom duty excise duty value added tax and cesson account of any dispute. viii. According to the records of the Company examined by usand the information and explanations given to us the company has not defaulted inrepayment of loans or borrowing to a financial institution bank
Government or dues to debenture holders as applicable as at the Balance sheet date.ix. According to the records of the Company examined by us and information andexplanations given to us the Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable x. According to theinformation and explanations given to us we have neither come across any instance offraud on the company by its officers or employees or by the Company noticed or reportedduring the year nor have we been informed of such case by the management. xi. Accordingto the records of the Company examined by us and the information and explanations given tous managerial remuneration has been paid in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act. xii.In our opinion the company is not a Nidhi company. Therefore the provisions of clause 3(xii) of the Companies (Auditor's Report) Order 2016 are not applicable to the company.xiii. According to the records of the Company examined by us and the information andexplanationsgiventousalltransactionswith sections 177 and 188 of Companies Act2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards; xiv. According to the information andexplanations given to us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. xv. According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him. xvi.According to the information and explanations given to us in our opinion the company isnot required to get registration under section 45-IA of the Reserve Bank of India Act1934
For Rakesh S Jain & Associates Chartered Accountants Firm Reg. Number: 010129-S (B.Ramesh Kumar) Place: Hyderabad Partner Date: 06/06/2017 M. No: 200304
Annexure to the Independent Auditor's Report of even date on the Financial Statementsof SOURCE INDUSTRIES (INDIA) LIMITED Report on the Internal Financial Controls underClause (i) of Sub-section 3 of 143 of the Companies Act 2013 ("the Ac') To theMembers of SOURCE INDUSTRIES (INDIA) LIMITED
We have audited the internal financial controls over financial reporting of SOURCEINDUSTRIES (INDIA) LIMITED ("the
Company") as of March 31 2017 in conjunction with our audit of the financialstatements 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 criteria establish by thecompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand timely preparation of reliable financial information as required under the CompaniesAct 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 of Financial Reporting (the"Guidance
Note") and the Standards on Auditing as specified under section 143(10) of theAct to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 and understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the risk of material misstatement ofthe financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis of our audit opinion on internal financial control system over financialreporting.