To the members of Sri Krishna Constructions (India) Limited
Report on the Standalone Financial Statements
I have audited the accompanying standalone financial statements of Sri KrishnaConstructions (India) Limited ("the Company") which comprise the BalanceSheet as at 31st March 2016 the Statement of Profit and Loss and Cash Flow Statement forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.
Management's Responsibility for the Standalone 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position and financial performance of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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
My responsibility is to express an opinion on these standalone financial statementsbased on my audit.
I 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 there under.
I conducted my 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 the auditors 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 the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company s Directors as well asevaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the standalone financial statements.
In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone financial statements give the information required by theAct 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 2016 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 (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 I give in the Annexure A a statement on the matters specified in the paragraph 3and 4 of the order.
2. As required by Section 143 (3) of the Act I report that:
a. I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit;
b. In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books;
c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. In my 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 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 myseparate 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 my opinion and to the best ofmy information and according to the explanations given to me:
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
For Suthar & Co
Firm's Registration No.013840S
Membership No. 224990
Place : Bangalore
Date : 28th May 2016
Annexure - A to the Auditors' Report
The annexure referred in Independent auditor s report to the members of the Company onthe standalone financial statements for the year ended 31st March 2016 Ireport that;
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
b) Fixed assets have been physically verified by the management at reasonableintervals; and no material discrepancies were noticed on such verification. In my opinioninterval of physical verification is reasonable having regard to the size of the companyand the nature of its assets.
c) According to the information and explanation given to me and on the basis ofverification of records of the company the title deeds of immovable properties are heldin the name of the company
2. Physical verification of inventory in the form of Land has been conducted atreasonable intervals by the management and no material discrepancies were noticed onphysical 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 Companies Act accordingly paragraph 3(iii) of the Order is notapplicable.
4. According to the information and explanation given to us the company has compliedwith the provisions of section 185 & section 186 of the Companies Act in respect ofthe loan and investment made.
5. During the year The company has not accepted any deposits from the public.
6. Maintenance of cost records has not been specified by the Central Government undersub-section (1) of section 148 of the Companies Act
7. a) According to the information and explanation given to us and based on ourverification of books of account Generally the Company is regular in depositingundisputed statutory dues including provident fund employees state insurance income-taxprofessional tax and any other statutory dues with the appropriate authorities and thereare no arrears of statutory dues as at the last day of the financial year concerned for aperiod of more than six months from the date they became payable except tax deducted atsource.
b) There were no dues of income tax or sales tax or wealth tax or service tax or dutyof customs or duty of excise or value added tax or cess which have not been deposited onaccount of any dispute.
8. According to the information and explanation given to us the Company has notdefaulted in repayment of dues to a financial institution or bank.
9. According to the information and explanation given to me the Company has appliedmoneys raised by way of initial public offer (listed in SME segment) and term loans forthe purpose raised.
10. According to the information and explanation given to me no fraud by the companyor fraud on the company by its officers or employees has been noticed or reported duringthe year.
11. According to the information and explanation given me managerial remuneration hasbeen paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act;
12. According to the information and explanation given to me the company is not aNidhi Company Accordingly paragraph 3(ix) of the Order is not applicable
13. According to the information and explanation given to me transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details such transactions have been disclosed in the FinancialStatements as required by the applicable accounting standards
14. According to the information and explanation given to me the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year
15. According to the information and explanation given to me the Company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly paragraph 3 (xv) of the Order is not applicable
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934
For Suthar & Co
Firm s Registration No. 013840S
Membership No. 224990
Place : Bangalore
Date: 28th May 2016