Salasar Techno Engineering Limited
1. We have audited the accompanying financial statements of M/s Salasar TechnoEngineering Limited which comprise the Balance Sheet as at March 31 2017 and theStatement ol Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
2. Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in Section 134(5) ofthe Companies Act. 2013 (''the act") with respect to preparation of these financialstatements that give a true and fair view' of the financial position financialperformance and cash flows of the Company in accordance with the Accounting Principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act read with rule 7 of the Companies (Accounts) Rule. 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act tor saleguarding the assets of the company and forpreventing and detecting the frauds and other irregularities selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of accountingrecords relevant to the preparation and fair presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
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 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 evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
i) In the case of the Balance Sheet of the State of Affairs ol the Company as at 31March 2017.
ii) In the case of the Profit & Loss Statement of the Profit of the Company forthe year ended on that date.
iii) In the case of the Cash Flow Statement of the Cash Flows for the year ended onthat date.
4. Report on Other Legal and Regulatory Requirements
As required by section 143(3) oI 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 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 and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 ol the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31 March2017. taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us:
i The Company has disclosed the impact of pending litigations on its financial positionin its financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.
iii. There has been no amount required to be transferred required to be transferredto the Investor Education and Protection Fund by the Company .
For VAPS & Co.
Firm Regn. No. 003612 N
(CA. VI PIN AGGARWAL)
Dated: June 12 2017
Annexure to the Independent Auditors' Report
Re: Salasar Techno Engineering Limited
Referred to in paragraph 3 and 4 of our report of even date
l a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) A substantial portion of the fixed assets has been physically verified by themanagement during the period and in our opinion the frequency of verification isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such physical verification.
c) According to the information given to us the title deeds of all the immovableproperties are held in the name of the company.
II) The inventories have been physically verified during the period by the managementat reasonable intervals. The discrepancies noticed on verification between the physicalstocks and the book records were not material and have been properly dealt with in thebooks of account.
a) The company has granted unsecured loan to its one wholly owned subsidiary Companycovered in the register maintained to under section 189 of the companies Act 2013. TheMaximum amount involved during the year was f 319.44 Lacs and the year end balance of loangiven to these parties was ? 417.58 Lacs (Previous year end balance of loan given to theseparties was f 98.14 Lacs)
b) T he company has taken unsecured loan from five parties covered in the registermaintained to under section 189 of the companies Act 2013. The Maximum amount involvedduring the year was t 18.30 Lacs and the year end balance of loan taken from these partieswas f 201.13 Lacs (Previous year end balance of loan taken from these parties was ? 182.83Lacs)
c) The company is regular in receipt of the principal amounts as stipulated and hasbeen regular in the receipt of interest if any.
d) There is no overdue amount of loans granted to companies firms or other partiescovered in the register maintained under section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions section 185 and 186 of the Companies Act 2013with respect to the loans and investment made.
5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits within the meaning of provisions of sections of 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthere under .
In our opinion and according to the information and explanations given to us no orderhas been passed by the Company Law Board or the National Company Law Tribunal or theReserve Bank of India or any other Tribunal against the company.
6. We have broadly reviewed the books of account relating to materials labor and otheritems of cost maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under section 148 (1) of the Companies Act2013 we are of the opinion that prima facie the prescribed accounts and record have beenmade and maintained. We have not made however a detailed examination of the record with aview to determine whether they are accurate or complete.
(a) According to the records of the company the company is bye & large regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Investor Education Protection Fund Employees State Insurance Income Tax SalesTax Wealth Tax Custom Duty Excise Duty Service Tax. Value Added Tax Cess and othermaterial statutory dues applicable to it.
(b) According to the information and explanations given to us no undisputed amountpayable in respect of Income Tax Wealth Tax Sales Tax Customs Duty and Excise DutyService Tax Value Added Tax Cess etc. were outstanding as at 31stMarch 2017for a period of more than six months from the date they became payable.
(e) According to the information and explanation given to us and records of the companyexamined by us the particulars dues ol Sales Tax Income Tax Customs Duty Wealth TaxExcise Duty Service Tax Value Added Tax Cess which have not been deposited on accountof any dispute are NIL.
8 In our opinion and according to the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto a financial institution bank or debenture holders.
9. The company has given Corporate guarantee for loans taken by its subsidiary companyfrom bank or financial institutions the terms and conditions whereof are not prejudicialto the interest of the Company.
10. In our opinion the term loans have been applied for. the purpose for which theywere raised.
11. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the company has been noticed or reportedduring the course of our audit.
12. The company has not made any preferential allotment or private allotment of sharesor fully or partly paid convertible debentures during the year under review.
13. On the basis of information provided to us the company has not entered into anynoncash transactions with directors or parties connected with him under Section 192 of theCompanies Act 2013.
14. The company is not required to get. registered under Section 45-IA of the ReserveBank of India Act 1934.
For VAPS& Co.
Firm Regn. No. 003612N
(CA. VIPIN AGGARWAL)
Dated: June 12 2017.