To the Member of
Sai Industries Limited
CIN-L74999DL1991PLC045678 Financial Year-2017-18
Report on the standalone Financial Statements
We have audited the accompanying standalone financial statements of SaiIndustries Limited CIN-L74999DL1991PLC045678("the Company") which comprisethe balance sheet as at 31st March 2018 the statement of profit & loss the CashFlow Statement for the year ended and a summary of the significant accounting policiesand other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of the Directors is responsible for the mattersstated in Section 134(5) of The Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true & fair viewof the financial position financial performance & 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 of theadequate 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 are operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give true & fair viewand free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.
We have taken into account the provision of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirement 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 aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of the materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditors considers internal financial control relevant to thecompany's preparation of the financial statements that give a true & fair view inorder to design audit procedure that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the company has in place an adequate internalcontrols system over financial reporting and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and comply with the accountingstandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2018 and profit & loss and its cash flows for the year ended on that date.
Investments in equity investments is not ascertainable in absence ofany reliable data/information with respect to the market price of quoted equity shares forthe purpose of impairment testing however the management is of the opinion therealisable value of investments at least equal to the book value hence no furtherprovision for diminishment in value has been made.
Report on Other legal and Regulatory Requirements
As required by Section 143(3) of the Act We report that:
a) We have sought and obtained all the information & explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion proper books of accounts as required by law have beenkept by the Company so far as it appears from our examination of the those books .
c) The Balance sheets the statement of Profit & Loss and CashFlow Statements dealt with by this Report are in agreement with the books of accounts.
d) In our opinion the aforesaid standalone financial statements complywith the accounting standards specifies under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014
e) On the basis of the written representations received from thedirectors as on 31 March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2018 from being appointed as a director in termsof Section 164 (2) of the Act.
f) With respect to the adequacy of internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A".
g) In our opinion and to the best of information and the explanationsas provided to us: i. The Company does not have any pending litigation which would impactits financial position except as stated in point number.7 of Companies (Auditor's Report)Order 2016 Annexure 2.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the
h) As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the Annexure a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.
For Dhillion& Associates
Reg No. 002783N
Partner-Sunil Gaba F.C.A
"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT OF EVEN ONTHE STANDALONE FINANCIAL STATEMENTS OF SAI INDUSTRIES LIMITED
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
i. We have audited the internal financial controls over financialreporting for Sai Industries Limited ("the Company") as of
March 31 2018 in conjunction with our audit of the financialstatements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
ii. The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of
Chartered Accountants of India "These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
iii. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with Guidance Note on Audit of Internal Financial Controls OverFinancial
Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
iv. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. v. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
vi. A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purpose in accordancewith generally accepted accounting principles. A company's 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 thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
vii. Because of the inherent limitations of internal controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not todetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the financial controlover financial reporting may become inadequate become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.
viii. In our opinion the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312018 based on "the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe
Institute of Chartered Accountants of India".
For Dhillion& Associates
Reg No. 002783N
Partner-Sunil Gaba F.C.A
M. No -507916