The Members of
SURAJ PRODUCTS LIMITED.
Reports on the Financial Statements
We have audited the attached standalone Balance Sheet of "M/s SURAJ PRODUCTSLIMITED" (the "Company") as at 31st March 2015 and the relatedStatement of Profit and Loss Account and Cash Flow Statement for the year ended on thatdate annexed thereto and a summary of significant accounting policies and otherexplanatory information which we have signed under reference to this report. Thesefinancial statements are the responsibility of the Companys Management. Ourresponsibility is to express an opinion on these financial statements based on our audit.
Managements responsibility for the Financial Statements.
Management is responsible for the matters stated in section 134(5) of the CompaniesAct 2013with respect to the preparation of these financial statements that give a trueand fair view of the financial position financial performance and cash flows of theCompany in accordance with Accounting principles generally accepted in India includingthe Accounting Standards notified under the Companies Act 1956 read with General circular15/2013 dated 13th September 2013 issued by Ministry of Corporate Affairs in respect ofSection 133 ofthe Companies Act 2013. This responsibility also includes the maintenanceofadequate accounting records in accordance with the provisions of the act forsafeguarding the assets of the company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgment and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness ofthe accounting records relevant to the preparation andpresentation offinancial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Companies Act 2013. Those standards require that we comply withthe ethical requirement and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 control relevant to the companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstance but not for the purpose of expressing an opinion on theeffectiveness of the entitys internal control. An audit also includes assessing theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.
We believe that audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion excepting as stated below.
In our opinion and to the best of our information and according to the explanationsgiven to us the said financial statements together with the notes thereon and attachedthereto give in the prescribed manner the information required by the Act and give atrue and fair view in conformity with the accounting principles generally accepted inIndia :
a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2015
b) in the case of the Statement of Profit and Loss of the profit for the yearended on that date; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order 2015 ("TheOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Companies Act 2013 we give in the Annexure a statement on the mattersspecified in Paragraphs 4 and 5 of the Order.
As required by Section 143(3) ofthe Companies Act 2013we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books;
c) The Balance Sheet the Statement of Profit and Loss Account and the Cash FlowStatement dealt with by this report are in agreement with the books of account;
d) In our opinion the Balance Sheet the Statement of Profit and Loss Account and theCash Flow Statement dealt with by this report comply with the applicable accountingstandards referred to in Section 133 ofthe Companies Act 2013 read with rule 7 oftheCompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors none ofthe directors isdisqualified as on 31st March 2015 from being appointed as a director in terms ofsub-section (2) of Section 164 of the Companies Act 2013;
f) With respect to the other matters included in the auditors report and to bestof our information and according to the explanation given to us.
1) The company has disclosed the impact of pending litigation on its financial positionin its financial statement.
2) The company has not entered into any long term contracts including derivativecontracts and hence it is not required to make provision for material foreseeable lossesas required under the applicable lawor Accounting Standards.
3) There has been no delay in transferring amounts required to be transferred to theinvestors education and protection fund by the company.
For RUSTAGI & Co.
Firm Registration No. 301094E
Membership No. : 62982
Place : Barpali
Dated : the 22nd day of May 2015
ADDITIONAL INFORMATION ANNEXED TO THE INDEPENDENT AUDITORS REPORT
As required by the Companies (Auditors Report) Order 2015 issued by the CompanyLaw Board in terms of section 143(11) of the Companies Act 2013 and on the basis of suchchecks as we considered appropriate and as per the information and explanations given tous during the course of audit we further state that:
(i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed Assets.
(b) The company has physically verified certain assets during the year in accordancewith a programme of verification which in our opinion provides for physical verificationof the fixed assets at reasonable intervals. According to the information and explanationsgiven to us no material discrepancies were noticed on such verification.
(ii) In respect of inventory:
(a) According to information and explanation given to us the stocks of finished goodshas been physically verified during the year by the management. In our opinion thefrequency ofverification is reasonable.
(b) In our opinion the procedures of physical verification of inventories followed bythe management are reasonable and adequate in relation to the size of the company andnature of its business.
(c) In our opinion and according to explanation given to us the company is maintainingproper records of inventory and according to the information given to us no materialdiscrepancies were noticed on physical verification of stock as compared to the books andrecords and were properly dealt with in the books of accounts.
(iii) In respect of loans secured or unsecured granted by the Company to companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013 according to the information and explanation given to us:
(a) The company has not granted secured/ unsecured loans to companies firms partiescovered in the register maintained under section 189 of the Companies Act 2013 and hencerelevant clause is not applicable.
(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of ouraudit no major weakness has been noticed inthe internal control system.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits. Hence the directives issued by the Reserve Bank ofIndia and provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act and the rules framed there under are not applicable to the company.
(vi) We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the rules made by the Central Government of India themaintenance of cost records has been prescribed under u/s 148(1) of the Companies Act andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. We have not however made a detailed examination of the records with aview to determine whether they are accurate or complete.
(vii) The company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including providentfund employee state insurance income taxsales tax service tax excise duty cess and other material statutory dues applicable toit.
a) According to the information and explanations given to us no undisputed amountspayable in respect of income tax provident fund employee state insurance sales taxexcise duty and other material statutory dues were in arrears as at 31st March 2015 fora period of more than six months from the date they became payable.
b) According to information and explanation given to us there are disputed SalesTaxes Entry Tax and Excise Duty which has not yet been paid and are pending in at forumfor redressal of dispute. The particulars ofdues of Excise Duty Sales Tax Entry Taxwhich has not yet been deposited on account of dispute are as follows:
|Name of Statute ||Nature of Dues ||Amount in Rs. (Lacs) ||Period to which the amount relates to ||Forum where the dispute is pending |
|The Orissa Sales Tax Act 1947 ||Dispute regarding ITC ||3.68 ||2005-2006 to 2007-2008 ||Additional Commissioner Sales Tax (Appeals) North Zone Sambalpur |
|The Orissa Sales Tax Act 1947 ||Dispute regarding ITC ||8.09 ||01.10.2008 to 31.03.2012 ||Additional Commissioner Sales Tax (Appeals) North Zone Sambalpur |
|The Orissa Entry Tax Rules 1999 ||Entry Tax on Inter-State Purchases ||9.7 ||2002-2003 to 2003-2004 ||Dy. Commissioner (Appeals) Sundargarh Range Rourkela |
|The Orissa Entry Tax Rules 1999 ||Entry Tax on Inter-State Purchases ||0.87 ||2005-2006 to 2003-2004 ||Addl. Commissionerof Sales Tax (Appeals) North Zone Sambalpur. |
|The Orissa Entry Tax Rules 1999 ||Entry Tax on Inter-State Purchases ||2.10 ||01.10.2008 to 31.03.2012 ||Addl. Commissionerof Sales Tax (Appeals) North Zone Sambalpur. |
|Central Sales Tax 1956 ||Non- submission of C-Form Declaration ||3.12 ||2004-2005 ||Addl. Commissionerof Sales Tax (Appeals) North Zone Sambalpur. |
|Central Sales Tax 1956 ||Non- submission of C-Form & H-Form Declaration ||9.52 ||2011-12 ||Addl. Commissionerof Sales Tax (Appeals) North Zone Sambalpur |
|Central Sales Tax 1956 ||Non- submission of H-Form Declaration ||28.57 ||2006-2008 to 2007-2008 ||Addl. Commissionerof Sales Tax (Appeals) North Zone Sambalpur |
|Central Excise Rules 2004 ||Cenvat Credit on Cement ||4.86 ||2010-2011 to 2011-2012 ||Commissioner of Appeals Central Excise Customs & Service Tax Bhubaneshwar |
c) According to information and explanation given to us there is no amount required tobe transferred to investor education and protection fund in accordance with the relevantprovisions of the Companies Act 1956 (1 of 1956) and rules made thereunder.
viii) The company has no accumulated losses at the end of the financial year and it hasnot incurred any cash losses during the financial year covered by our audit and in theimmediately preceding financial year.
ix) Based on our audit procedures and on the according to the information andexplanations given by the management we are of the opinion that the company has notdefaulted in repayment of dues to financial institutions and bank. The company does nothave any borrowings by way of debentures.
x) In our opinion and according to the information and explanations given to us thecompany has not given any guarantees for the loans taken by the others from banks andfinancial institutions.
xi) According to information and explanation given to us we are of the opinion that thecompany has not availed any term loan except loan for acquisition of vehicles which havebeen utilized for the purpose for which they were raised.
xii) To the best of our Knowledge and belief and based on the audit proceduresperformed by us and according to the information and explanations given to us we reportthat no fraud on or by the company was noticed or reported during the course of our audit.
For RUSTAGI & Co.
Firm Registration No. 301094E
Membership No. : 062982
Dated : the 22nd day of May 2015