Superior Industrial Enterprises Ltd.
|BSE: 519234||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE843L01012|
|BSE LIVE 14:29 | 30 Mar||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 519234||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE843L01012|
|BSE LIVE 14:29 | 30 Mar||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of Superior Industrial Enterprises Limited
Report on Standalone Financial Statements
We have audited the accompanying Standalone financial statements of M/s SuperiorIndustrial Enterprises Limited New Delhi which comprise the Balance Sheet as at 31stMarch 2016 Statement of Profit and Loss and the cash flow statement for the year endedand a summary of significant accounting policies and other explanatory information. TheseFinancial statements are the responsibility of the Companys management. Ourresponsibility is to express our opinion on these financial statements based on our audit.
Managements Responsibility for 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 andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows 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 the assets of the Companyand for preventing and detecting fraud and other irregularities; selection and applicationof appropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring that accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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.
We have conducted our audit in accordance with the auditing specified under Section143(10) of the Act. Those standards require that we comply with ethical requirement andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatements.
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 risks 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 expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls includesevaluating the appropriates of the accounting policies used and the reasonableness of theaccounting estimates made by the Companys Directors as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a reasonable basis for our audit opinion.
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 withaccounting principles generally accepted in India:
a) In the case of the Balance Sheet of the state of affairs of the Company as at 31March 2016; b) In the case of the Statement of Profit and Loss of the profit of theCompany for the year ended on that date; c) In the case of the Cash Flow Statement of thecash 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 ("theOrder") issued by the Central Government in terms of Section 143(11) of the CompaniesAct 2013 we enclose in Annexure a statement on the matters specified in the paragraph 3& 4 of the said order to the extent applicable to the company.
2. 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 purpose of our audit.
b) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of the books of account made available tous.
c) The Balance Sheet Statement of Profit & Loss and the Cash Flow Statement dealtwith by this report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the accountingstandards specified under section 133 of the Act read with rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representation received from the Directors as on 31.03.2016taken on record by the Board of Directors we report that none of the directors aredisqualified as on 31.03.2016 from being appointed as director in terms of Sub Section (2)of Section 164 of the companies Act 2013.
f) Our separate report on adequacy of internal financial control system and operatingeffectiveness of such controls is enclosed.
3. With respect to the other matters to be included in the Auditors 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. Company has not made provision for gratuity and leave encashment which is on paymentbasis-Refer Note No.28 (d).
ii. Depreciation is provided using the Straight Line Method as per the useful lives ofthe assets estimated by the management .
ANNEXURE -1 TO THE INDEPENDENT AUDITORS REPORT
The annexure referred to in our Independent Auditors Report to the member ofSuperior Industrial Enterprises Limited New Delhi for the year ended march 31st2016 we report that:
1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets except vehicles. (b) The assets havebeen physically verified by the management during the year. In our opinion the frequencyof physical verification being conducted from time to time by the company appears to bereasonable having regard to the size of the company and nature of such assets. Nosignificant discrepancy was noticed in the regard.
2. (a) Inventory of raw materials stores finished goods and packing material havebeen physically verified by the management during the year. Frequency of verification isreasonable and the procedures of physical verification of such inventories followed bymanagement are adequate in relation to the size of company and nature of its business. (b)Company is maintaining proper records of inventory and the discrepancies noticed duringthe physical verification between physical stock and book records are not material and thesame have been properly dealt with.
3. Company has not granted loans to parties listed in the register maintained u/s 189of the Companies Act 2013; hence this provision is not applicable to the company.
4. The Company has complied with provisions of Section 185 of Companies Act 2013. Thecompany has given corporate guarantees to the Bankers for loan raised by M/s Hal OffshoreLimited its Group Company under the same management. The terms and condition of the sameare not prima facie prejudicial to the interest of the company.
5. Provision regarding acceptance of Public Deposit with directive issued by RBI alongwith Section-73 to 76 of Companies Act 2013 is not applicable to the company as no suchdeposits accepted.
6. We have reviewed the books of account maintained by the company pursuant to theorder made by the Central Government for the maintenance of cost records under section148(I) of the Companies Act 2013 and we are of the opinion that prima facie theprescribed accounts and records have been made and maintained.
7. a) The Company is regular in depositing wit appropriate authorities undisputedstatutory dues including PF ESI TDS Sales Tax Entry Tax
Service Tax and Excise Duty except sometimes there have been delay in deposit. b) Noamount was in arrears for a period more than 6 months as regards undisputed amount payablein respect of statutory dues. c) According to the information and explanation given to usprovision regarding transferring amounts which were required to be transferred to theinvestor education and protection fund by the Company is not applicable as no such fundexists.
8. Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that the company has not defaulted in repayment ofdues to any bank or government. Company has no debenture holder or any financialinstitutional borrowing during the year. Provision regarding end use of term loans is notapplicable as no such loan raised by the company except Car Loan for Honda Car raised& utilized for purchase of aforesaid Car in the yester years.
9. Neither any term loan has been obtained during the year nor any money was raised byway of public offer (including debt instruments) during the year by the company.
10. During the course of our examination of the Books and Records of the companycarried out in accordance with the generally accepted audit practices in India andaccording to the information and explanation given to us we have neither come acrossinstances of any fraud on or by the company noticed or reported during the year nor havewe been informed of such cases by management.
11. The Managerial Remuneration has been paid or provided in accordance with Section197 read with Schedule V of the Act.
12. The Company is not a Nidhi Company hence paragraph 3(xii) of the order is notapplicable.
13. All related party transactions with the related parties are in Compliance withSection 177 and 188 of the Companies Act 2013.
14. The Company has not made preferential allotment or private placement of Sharesduring the year.
15. The Company has not entered into any Non-Cash Transactions with Directors or anyother person concerned with him as referred to in
Section 192 of Companies Act 2013.
16. The Company is not required to be registered under Section 45-IA of Reserve Bank ofIndia Act 1934.
ANNEXURE 2 TO THE INDEPENDENT AUDITORS REPORT
Report on Internal Financial Controls under Clause (i) of Sub Section 3 of Section 143of the Companies Act 2013("the Act")
We have audited the internal financial controls over financial reporting of SuperiorIndustrial Enterprises Limited ("the Company") as of 31st March 2016in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys 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. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Companys internal financial controls system over financialreporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys 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 companys 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompanys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
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.
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 31st March 2016 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.