The Members of S.R INDUSTRIES LTD. Chandigarh.
A.Report on the Financial Statements
We have audited the accompanying financial statements of S.R INDUSTRIES LTD. whichcomprise the Balance Sheet as at March 31 2017 the Statement of Profit and Loss and CashFlow Statement for the period then ended and a summary of significant accounting policiesand other explanatory information.
B.Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in section 133 of theCompanies Act 2013 (The Act). This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatements whether due to fraud or error.
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 issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; b) In the case of the Statement of Profitand Loss of the loss for the period ended on that date; and c) In the case of the CashFlow Statement of the cash flows for the period ended on that date.
E.Report on other Legal and Regulatory requirements
1. As required by the Companies (Auditor's Report) Order 2017 (the Order)issued by the Central Government of India in terms of subsection (3) of Section 143 of theAct we give in the Annexure a statement on the matters specified in paragraphs of theOrder.
2. As required by Section 143(3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge 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 referred to in Section 133 of The Act.
e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312017 from being appointed as a director in terms of sub-section (2) of Section 164 of TheAct.
f) In our opinion the Company has adequate internal financial control system and thesame are operating effectively.
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
I. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer note no.
22.1 to the financial statements and Para 7 of the Annexure of our report below.
II. The Company did not have any long-term contracts including derivative contracts.
III. As per information and explanations given to us the Company was not required totransfer any amount in Investor Education and Protection Fund.
IV. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes(SBN's) during the period from 9ThNovember 2016 to 30th December 2016 which is in accordance with the books ofaccounts maintained by the company [Refer Note No.22(XX)]
| ||For KANSAL SINGLA & ASSOCIATES |
| ||Chartered Accountants |
|Place: Chandigarh ||(CA. SHRI KRISHAN KANSAL) |
|Date: 30.05.2017 ||PARTNER |
| ||M.No.080632 |
| ||FRN 003897N |
The Annexure referred to in paragraph E-1 of the Our Report of even date to the membersof S.R.INDUSTRIES LTD. on the accounts of the Company for the period ended 31stMarch 2017.
On the basis of such checks as we considered appropriate during the course of our auditand according to the information and explanations given to us we report that: 1. INRESPECT OF ITS FIXED ASSETS: a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets. b. As explainedto us all the fixed assets have been physically verified by the management in a phasedperiodical manner which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. No material discrepancies were noticed on suchphysical verification. c. In our opinion the Company has not disposed off a substantialpart of its fixed assets during the year and the going concern status of the Company isnot affected. d. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company and the original documents of which are inthe custody of the lenders.
2. IN RESPECT OF INVENTORIES:
The inventories have been physically verified during the year by the management.Asexplained to us there was no material discrepancies noticed on physical verification ofinventories as compared to the book records. However minor discrepancies have been foundin stores and spares and the same has been adjusted in consumption of the same.
3. IN RESPECT OF LOANS GIVEN:
According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the Company has not granted any loans secured orunsecured to Companies firms or other parties listed in the register maintained underSection 189 of the Act.
4. IN RESPECT OF COMPLAINCE OF SECTION 185 & 186 OF COMPANIES ACT
In our opinion and according to the information and explanations given to us theCompany has not made loans investments guarantees and security in contravention with theprovisions of Section 185 and 186 of the Act.
5. IN RESPECT OF DEPOSITS FROM PUBLIC:
According to the information and explanations given to us the Company has not acceptedany deposits from the public.
6. COST ACCOUNTING RECORDS:
We have broadly reviewed the books of account maintained by the Company pursuant to therules made by the Central Government for the maintenance of cost records under sub-section(1) of section 148 of the Act and are of the opinion that the prescribed accounts andrecords have been made and maintained. However we have not vouched for the correctness ofthe cost records maintained by the Company.
7. IN RESPECT OF STATUTORY DUES:
The Company is not regular in depositing undisputed statutory dues with the appropriateauthorities such as Gratuity ESI EPF TCS TDS Excise Duty Service Tax and CST.Further as at 31st March 2016 there are dues outstanding for a period of more than sixmonths from the date they became payable which are as under :-
|Nature of Dues ||Amount(Rs in lacs) ||Period to which the amount relates |
|Employees' Provident Fund ||2994038.00 ||Financial Year 2016-17 |
|Employees' Provident Fund ||2089852.00 ||Financial Year 2015-16 |
|Service Tax Payable ||157190.00 ||Financial Year 2015-16 |
8. REPAYMENT OF DUES:
Based on our audit procedures and according to the information and explanations givento us the Company has paid dues to banks with certain delays. The overdue amounts as at31st March 2017 were Rs. 53.30 lacs.
9. END-USE-OF BORROWINGS:
As per the information and explanations given to us we report that the Company has notraised any term loan during the year. The Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments).
According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
11. MANAGERIAL REMUNERATION
According to the information and explanations given to us the Company has paidmanagerial remuneration in compliance with the provisions of Section 197 read withSchedule V of the Act.
12. NIDHI COMPANY
In our opinion and according to the information and explanations given to us theCompany does not fall under the category of Nidhi Company. Accordingly paragraph 3(xii)of the Order is not applicable.
13. TRANSACTIONS WITH RELATED PARTIES
According to the information and explanations given to us and based on our examinationof the records of the Company the company has complied with the provisions of section 177and 188 of the act in respect of transactions made with the related parties.
14. PREFERENTIAL ALLOTMENT
During the year the Company has not made Preferential Allotment or private placement ofshares during the year and so provisions of section 42 of the Act are not applicable.
15. NON-CASH TRANSACTIONS
According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with them during the year.
16. SECTION 45-IA
The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
| ||For KANSAL SINGLA & ASSOCIATES |
| ||Chartered Accountants |
|Place: Chandigarh ||(CA SHRI KRISHAN KANSAL) |
|Date: 30.05.2017 ||PARTNER |
| ||MNO.080632 |
| ||FRN: 003897N |