TO THE MEMBERS OF SREECHEM RESINS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Sreechem Resins Limited ("theCompany")which comprise theBalance Sheet as at 31st March 2015theStatement of Profit and Loss and the Cash Flow Statementfor theyearthenendedand asummary of significant accounting policies and other explanatory information.
Managements Responsibilityfor the Financial Statements
The Companys 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 to 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 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 of assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccountingpolicies; 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 provision of the Act and the Rules made thereunderincluding the accountingand auditingstandards and matters which are required to beincluded in the audit report.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethatwe comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risk of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell as evaluating 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 aforesaidfinancial statementsgive the informationrequired by the Actinthe 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 March31 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred toas the "Order") and on the basis of such checks ofbooks and records of the Company as we consider appropriate and according to theinformation and explanation given to us we give in the Annexure a statement on thematters specified in paragraph 3 and 4of the Order.
2. As required by section 143(3) of the Act we report that:
a) We have sought and obtainedall the information and explanationswhich to the bestof our knowledge and beliefwere necessaryfor 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 ofthose books.
c) The Balance Sheet the Statement of Profit and Lossand the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In ouropinion the aforesaid financial statements complywiththe AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directorsas onMarch312015 taken on record by the Board of Directors none of the directors is disqualified asonMarch 31 2015from being appointed as a director in terms ofSection 164(2) of the Act.
f) With respect to the other matters to be includedin the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanation given to us:
i) TheCompany has disclosed theimpact of pending litigations on its financialposition in its financial statementsin accordance with the generally accepted accountingpractice.
ii) The Company did not have any long-term contracts including derivate contractsfor which there were any material foreseeable losses;
iii) There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company.
R C Jhawer
For and on behalf of
R C Jhawer & Co.
Annexure to the Independent Auditors Report
(Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date)
(i) 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 fixed assets have been physically verified during the year by the managementin accordance with a regular program of verificationwhich in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets.According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.
(ii) In respect of its inventory: a) As explained to us the inventorieswere physically verified during the year by the management at reasonable intervals.
b) In our opinion and according to the information and explanations given to usthe procedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c) On the basis of our examination of the inventory records of the Company we areof the opinion that the Company is maintaining proper records of its inventory.Nomaterial discrepancies were noticed on physical verification as compared to book records.
(iii) The Company hasnot granted any loansecured or unsecuredduring the yeartocompanies firms or other parties covered in the register maintained undersection189 ofthe Act.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of theCompanyand the nature of its businessfor the purchase ofinventory andfixed assetsand forsale ofgoods and services.During the course of our auditwe havenot observed anymajorweakness in internal controlsystem.
(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of section 73 and 74 of theactduring the yearand the rules framed thereunder to the extent notified.
(vi) We have broadly reviewed the cost records maintained by the Company pursuantto the Companies (Cost Records and Audit)Rules 2014prescribed by the Central Governmentunder section148(1)(d) of the Act and are of the opinion that prima facie the prescribedcost records have been maintained.We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.
(vii) In respect of statutory dues:
a) According to the information and explanations given to us the Company isgenerally regular in depositingundisputed statutory duesincluding provident fundemployees state insuranceincome taxsales tax wealth tax service tax customduty excise dutyvalue added tax cess and other material statutory dues as applicablewith the appropriate authorities.
b) According to the information and explanations given to us there are noundisputed amounts payable inrespect ofprovident fund employees stateinsuranceincome taxsales tax wealth tax service tax custom duty excise dutycess andother material statutorydues which were outstanding at theyear end for a period of morethan six months from the date they became payable.
c) According to the records of the Company examined by us the dues outstandingofincome taxsales tax wealth tax service tax custom duty excise duty value added taxandcesson account of any dispute as at 31st March 2015.
d) There are no amounts that are due to be transferred to Investor Education andProtection Fund in accordance with the relevant provisions of the Companies Act 1956 (1of 1956) and rules made thereunder.
(viii)The Company does not have accumulated losses at the end of the financialyear. The Company has not incurred cash losses during the financial year covered by theaudit and in the immediately preceding financial year.
(ix) According to the information and explanations given to us and the records ofthe company examined by us the Company has not defaulted in repayment of dues to anyfinancial Institution or Bank. The Company has not issued any debentures.
(x) According to the information and explanations givento us the Company has notgiven any guarantees for loans taken by others from banks or financial institutions.
(xi) The Companydid not have any term loans outstanding during the year.
(xii) To the best of our knowledge and according tothe information and explanationsgivento us nomaterialfraud on or by the Company has been noticed or reported during theyear.
R C Jhawer
For and on behalf of
R C Jhawer & Co.