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SVC Resources Ltd.

BSE: 512449 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE254H01044
BSE LIVE 15:12 | 14 Aug 10.00 -0.40
(-3.85%)
OPEN

10.00

HIGH

10.00

LOW

10.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 10.00
PREVIOUS CLOSE 10.40
VOLUME 1
52-Week high 17.70
52-Week low 7.60
P/E 90.91
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 10.00
Sell Qty 899.00
OPEN 10.00
CLOSE 10.40
VOLUME 1
52-Week high 17.70
52-Week low 7.60
P/E 90.91
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 10.00
Sell Qty 899.00

SVC Resources Ltd. (SVCRESOURCES) - Auditors Report

Company auditors report

To The Members of SVC Resources Limited

Report on the Financial Statements

We have audited the accompanying financial statements of SVC Resources Limited(‘the Company’) which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the preparation of thesefinancial statements in terms of the requirements of the Companies Act 2013 (‘theAct’) that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. The respective Board ofDirectors of the Company are responsible for maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the respective assets of theCompany and for preventing and detecting frauds and other irregularities; the selectionand application of appropriate accounting policies; making judgements and estimates thatare reasonable and prudent; and the design implementation and maintenance of adequateinternal financial 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 which have been used for the purpose ofpreparation of these financial statements by the Board of Directors of the Company.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

While conducting the audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our 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 theauditor’s 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 Company’spreparation and presentation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial control system over financial reporting and the operating effectivenessof such controls. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Board of Directors as well as evaluating the overall presentation of thefinancial statements.

Basis for Disclaimer of Opinion

So far as information and explanations given to us the Old Management of the Companywas removed in an Extraordinary General Meeting held on January 11 2014 and supported bythe an order of the Company Law Board Delhi dated April 4 2014.

Thereafter the Old Management did not hand over books of accounts statutory recordsminutes books bank statements subsidiary details and any other records/documents to theNew Management. Since then the New Management of the Company is engaged in a legal battlewith the Old Management. As such the Company does not have books of accounts or any otherrecords. In this regard the Company had filed petition with the Company Law Board Delhi.The case was decided in favour of the New Management on June 4 2015. However the NewManagement are yet to receive the books of accounts and other records of the company fromthe Old Management.

We have not been able to access the books of accounts and other records of the companyfor the periods before June 4 2015 neither have we been able to ascertain the impact ofthe previous years transactions on the current and future years.

Disclaimer of Opinion

Because of the significance of the matters described in the Basis of Disclaimer ofOpinion paragraph we have not been able to obtain sufficient appropriate audit evidenceto provide a basis for an audit opinion. Accordingly we do not express an opinion on thefinancial statements.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 (‘theOrder’) issued by the Central Government of India in terms ofSection 143 (11) of theAct based on the comments in the auditors’ report of the Company we give in theAnnexure a statement on the mattersspecified in paragraphs 3 and 4 of the Order to theextent applicable.

2. As required by Section 143 (3) of the Act we report to the extent applicablethat:

a. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we have sought but not obtained any of the information and explanations whichto the best of our knowledge and belief were necessary for the purposes of our audit ofthe financial statements.

b. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether proper books of account as required bylaw relating to preparation of the financial statements have been kept.

c. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we are not able to opine on whether the Balance Sheet the Statement of Profitand Loss and the Cash Flow Statement dealt with by this Report are in agreement with therelevant books of account maintained for the purpose of preparation of the financialstatements.

d. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the financial statements comply withthe Accounting 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 of theCompany as on March 31 2016 taken on record by the Board of Directors of the Companynone of the Directors of the Company is disqualified as on March 31 2016from beingappointed as a Director in terms of Section 164 (2) of the Act.

f. With respect to the other matters to be included in the Auditors’ Report inaccordance with Rule 11 of the Companies(Audit and Auditor’s) Rules 2014:

i. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the Company has disclosed the impact ofpending litigations on the financial position in its financial statements as of March 312016.

ii. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the Company has made provisions in itsfinancial statements as required under the applicable law oraccounting standards formaterial foreseeable losses on long term contracts.

iii. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether there has been any delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company

For D N Khatri & Associates
Chartered Accountants
Firm Registration No. 133251W
Deepesh Khatri
Place Mumbai Proprietor
Date May 262016 Membership No. 143579

Annexure to Independent Auditors’ Report

(Referred to in paragraph 1 under "Report on Other Legal and StatutoryRequirements" section of our report of even date)

1. In respect of the fixed assets of the Company:

a. Due to the effects of the matter described in the Basis for Disclaimer of

Opinion paragraph we do not express an opinion on whether the respective entities havemaintained proper records showing full particulars including quantitative details andsituation of fixed assets.

b. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the fixed assets were physicallyverified during the year by the Management of the respective entities in accordance with aregular programme of verification which provides for physical verification of the fixedassets at reasonable intervals.

c. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the title deeds of immovable propertiesare held in the name of the Company.

2. In respect of the inventories of the Company:

a. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the inventories were physicallyverified during the year by the Management of the Company at reasonable intervals.

b. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether material discrepancies were noticed.

3. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the Company has granted any loanssecured or unsecured to companies firms or other parties covered in the Registersmaintained under Section 189 of the Act by the respective entities.

4. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the provisions of section 185 and 186of the Act have been complied with in respect of loans investments guarantees andsecurity.

5. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the Company has accepted depositsduring the year and have any unclaimed deposits.

6. The Company is not covered by the Companies (Cost Records and Audit) Rules 2014.

7. According to the information and explanations given to us in respect of statutorydues of the Company:

a. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether The Company has generally been regularin depositing undisputed statutory dues including Provident Fund Employees’ StateInsurance Income Tax Sales Tax and Value Added Tax Service Tax duty of Customs dutyof Excise Cess and other material statutory dues applicable to it with the appropriateauthorities.

b. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether there were any undisputed amountspayable in respect of Provident Fund Employees’ State Insurance Income Tax SalesTax and Value Added Tax Service Tax duty of Customs duty of Excise Cess and othermaterial statutory dues in arrears as at March 31 2016 for a period of more than sixmonths from the date they became payable.

c. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether there were any dues of Income TaxSales Tax Value Added Tax Service Tax Wealth Tax duty of Customs duty of Excise andCess which have not been deposited as at March 31 2016 on account of dispute.

However a demand notice of Income Tax was given to the Company for the financial yearending March 31 2013 for the amount of Rs. 53712930/- and the matter remains indispute.

8. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the Company has defaulted in repaymentof dues to a bank during the year and any amount outstanding to financial institutions ordebenture holders.

9. According to the information and explanations given to us the Company did not raisemoney by way of initial public offer or further public offer (including debt instruments)and term loan during the year.

10.Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether any fraud on or by the Company has beennoticed or reported during the year. However suspected frauds were detected during theaudit of the Company for financial year ending March 31 2014 which when confirmed canhave significant effect on the financial statements of the Company. We reproduce theobservations made in that year’s Audit Report;

"The order of the Company Law Board dated June 4 2015 has created doubts over thegenuineness of the balances of loans and advances taken and given creditors debtors andcash. We suspect that the Old Management conducted fraudulent activities against theCompany. The Company has already filed a complaint against the Old Management with theEconomic Offences Wing (EOW). The exact nature of the frauds is not ascertainable becauseof the significance of the matters described in the Basis of Disclaimer of OpinionParagraph."

11.Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the managerial remuneration has beenpaid and/or provided in accordance with the requisite approvals mandated by the provisionsof section 197 read with Schedule V of the Act.

12.The Company is not a Nidhi Company.

13.Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion whether all transactions with the related partiesare in compliance with section 177 and 188 of the Act where applicable and whether thedetails have been disclosed in the financial statements.

14.According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

15.Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether the Company has entered into non-cashtransactions with directors or persons connected with him and whether the provisions ofsection 192 of the Act have been complied with.

16.The Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For D N Khatri & Associates
Chartered Accountants
Firm Registration No. 133251W
Deepesh Khatri
Place Mumbai Proprietor
Date May 26 2016 Membership No. 143579