INDEPENDENT AUDITOR'S REPORT
To the Members of
SYBLY INDUSTRIES LIMITED
Report on the Financial Statements
1. We have audited the accompanying standalone financial statements of "SyblyIndustries Limited" which comprise the Balance Sheet as at March 31 2016 theProfit and Loss Statement 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
2. 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 financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
3. 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.
4. 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.
5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's 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 thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. 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.
6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
7. In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements subject to the remark as contained in notes formingpart of accounts particularly Note No. 29 regarding non confirmation of balances; previousyear expenditures; & non-disclosure of outstanding of small scale undertakings andread significant accounting policies and other notes forming part of the accountsappearing thereon give the information required by the Act in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India:
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2016; b) In the case of the Profit and Loss Account of the PROFIT for the year endedon that date; and c) In the case of the Cash Flow Statement of the cash flows for theyear ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order 2016("the Order")issued by the Central Government of India in terms of subsection (11) of Section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs4 and 5 of the Order to the extent applicable.
9. 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 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 our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) 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 our opinionand to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note 19 to the financialstatements;
ii. the Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses; and
iii. there were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.
Place : MEERUT
Dated : 26 May 2016
Annexure to the Independent Auditor's Report to the members of Sybly Industries Limitedon the accounts of the company for the year ended 31 March 2016
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) The assets have been physically verified by the management during the yearaccording to the regular program of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its fixed assets. Thediscrepancies noticed on such physical verification were not material.
(c) According to the information and explanations given to us and on the basis of ourexaminations of the records of the Company the title deeds of immovable properties areheld in the name of the company.;
(ii) (a) The inventories of the company at all its locations (except stocks lying withthird parties and in transit confirmation/subsequent receipts have been obtained inrespect of such inventory) have been physically verified by the management during the yearat reasonable intervals.
(b) The procedures of physical verification of Inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The Company is maintaining proper records of Inventory. The discrepancies betweenthe physical stocks as compared to book records were not material.
(iii) The Company has not granted any Loans secured or unsecured to Companies FirmsLimited Liability Partnership or Other Parties covered in the Register maintained underSection 189 of the Companies Act 2013 (the Act). Accordingly paragraph 3(iii) (a) (b)& (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us TheCompany has not accepted any deposits from the public covered under Section 73 to 76 ofthe Companies Act 2013.
(vi) As informed by the management the books of account relating to materials labourand other items of cost maintained by the company pursuant to the Rules made by theCentral Government for the maintenance of cost records under Section 148 of the CompaniesAct 2013 are maintained. We have however not made a detailed examination of the saidrecords with a view to determine whether they are accurate or complete as the company isgetting a cost audit conducted from a qualified person in this regard and will submit CostAudit Report to the Central Government.
(vii)(a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees State Insurance Investor EducationProtection Fund Income Tax Sales Tax Wealth Tax Service Tax Custom Duty Excise DutyCess Value Added Cess and other material statutory dues applicable to it.
According to the information and explanation given to us no undisputed amounts payablein respect of statutory dues including Provident Fund Employees State Insurance InvestorEducation Protection Fund Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty Cess Value Added Cess and other material statutory dues applicable to itwere in arrears as at 31st March 2016 for a period of more than six months from the datethey became payable.
(b) According to the information and explanation given to us there are no dues ofSales Tax Custom Duty Wealth Tax Service Tax Excise Duty and Cess which have not beendeposited on account of any dispute. However according to information and explanationsgiven to us the following dues of income tax have not been deposited by the Company onaccount of disputes:
|Nature of Statute ||Nature of Dues ||Amount (Rs.) ||Period to which Amount relates ||Forum where dispute is pending |
|Income Tax Act ||Demand ||39776/- ||A.Y. 1998-99 ||ITAT |
|Income Tax Act ||Demand ||243034/- ||A.Y. 2001-02 ||ITAT |
|Income Tax Act ||Demand ||NIL ||A.Y. 2013-14 ||CIT |
(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to a financial institution bankGovernment or debenture holders.
(ix) In our opinion moneys raised by way of initial public offer or further publicoffer (including debt instruments) and term loans have been applied for the purpose forwhich they were obtained.
(x) According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and on the basis of ourexaminations of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act.
(xii) in our opinion the company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Companies (Auditor's Report) Order 2016 are not applicable to thecompany.
(xiii) According to the information and explanations given to us and on the basis ofour examinations of the records of the Company transactions with the related parties arein compliance with Sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.
(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.
(xv) According to the information and explanations given to us and on the basis of ourexaminations of the records of the Company the company has not entered into any non-cashtransactions with directors or persons connected with him.
(xvi) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT
To the Members of
SYBLY INDUSTRIES LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of "SyblyIndustries Limited" as of 31 March 2016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's 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 Company's 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 31 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.
Place : MEERUT
Dated : 26 May 2016