the Members of
SANJIVANI PARANTERAL LIMITED.
Report on the standalone Financial Statements
We have audited the accompanying standalone financial statements of SANJIVANIPARANTERALLIMITED (" the Company") which comprise the Balance Sheet as at 31st March 2017 the Statement of Profit and Loss and Cash flow for the year the n endedand a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
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 the se standalone financial statements that give a true and fair viewof the financial position and financial performance of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial 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 andare free from materialmisstatement whether due to fraud orerror.
Our responsibility is to express an opinion on the se 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 o t be included in the audit reportunder the provisions of the act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the act .Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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 judgement including the assessment of the risks of material misstatement of thefinancial statements whether duet of raud or error.
n I making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation and fair presentation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and there as on ableness of the accounting estimates made by the Company'sDirectors as well 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 on the Standalone Financial Statements.
Opinion n I 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 give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 st March 2017 and its loss for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. 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 ofthe Companies act 2013 we give in the Annexure "A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 oft hose books.
c) the Balance Sheet and Statement of Profit and Lossdealt with by this Report are inagreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the act readwith Rule7 of theCompanies(Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31 stMarch 2017 taken on record by the Board of Directors none of the Directors isdisqualified as on 31 st March 2017 from being appointed as a director in terms ofSection 164(2) of the act .
f ) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer o ourseparate report in"Annexure B".
g) 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 does not have any pending litigations which would imp act its financialposition.
ii) the Company did not have anyout standing long-term contract s including derivativecontract s asat 31 st March 2017for which there were any material foreseeable losses.
iii)there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv) the Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced t o us by the Management-Refer Note No :27.
For MILIND MEHTA & CO.
CharteredAccountants Firm Registration No: 129664W
(MILIND MEHTA) PROPRIETO R
Membership No. 047739
Place : Mumbai Date : 30th May2017
ANNEXURE-A TO THE AUDIT REPORT
the Annexure referred to the Independent Auditor's Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2017 we reportthat:
(i) (a) the Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us the se fixed assets have been physically verified by themanagement at reasonable intervals. No material discrepancies were noticed on suchphysical verification.
(c) the title deeds of immovable properties are held in the name of the company.
(ii) As explained to us inventories have been physically verified by the management atregular intervals during the year and there were no material discrepancies noticed onphysical verification of inventory as compared o t the book records.
(iii) As informed to us the Company has not granted any loans secured or unsecured tocompanies firms limited liability partnership firm or other parties covered in theregister maintained under section 189 of the Companies act 2013.Accordingly clause3(a) 3 (b)&3 (c)are not applicable.
(iv)there are no transactions undertaken by the company which attract s provisions ofsection 185 and 186 of the Companies act 2013 and hence this clause is not applicable.
(v) the company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of accounts relating to materials labour andother items of cost maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under sub-section (1) of section 148 of theCompanies act 2013 and we are of the opinion that prima facie the prescribed accountsand records have been made and maintained.
(vii) In respect of statutory dues:
(a) According to there cords of the company undisputed statutory dues includingProvident Fund Employee's State Insurance Income Tax Sales Tax Service Tax duty ofcustoms duty of excise value added taxCess and other statutory dues have been generallyregularly deposited with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of aforesaid dues wereoutstanding as at the balance sheet date for a period of more than 6 months from the dateof becoming payable.
(b) According to information and explanation given to usthere are no disputed dueswhich have not been deposited by the company in respect of Income Tax/Sales Tax/Duty ofCustoms/Duty of excise or Value added tax.
(viii) Based on our audit procedures and according to the information and explanationsgiven to us the company has defaulted in repayment of loans or borrowings to thefinancial institutions banks government or debenture holdersand the detailsare asunder:
|Particulars ||Amount of default as at balance sheet date ||Period of default |
|Axis Bank ||243499155 ||JANUARY 2017 ONWADS |
|State Bank of India ||156136479 ||JANUARY 2017ONWADS |
|the Shamrao Vitthal Co-Op. Bank Ltd. ||136830446 ||JANUARY 2017ONWADS |
(ix) the company has not raised any money by way of initial public offer or fur the rpublic offer (including debt instruments) and term loans. Hence this clause is notapplicable.
(x) Based on our audit procedures and the information and explanation made available tous no fraud by the company or any fraud on the Company by its officers or employees hasbeen noticed or reported during the year.
(xi) Managerial remuneration has been paid or provided in accordance with there quisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Companiesact .
(xii) the Company is not a Nidhi Company and hence this clause is not applicable.
(xiii) All trans actions with there lated parties are in compliance with section 177and188 of Companies act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by- the applicable accounting standards:
(xiv) the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and hencethis clause is not applicable.
(xv) the company has not entered into any non-cash trans act ions with directors orpersons connected with him.
(xvi) the company is not required to be registered under section 45-IA of there serveBank of India act 1934.
ANNEXURE - B TO THE AUDITOR'S REPORT
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 internalfinancial controls over financial reporting of SanjiyaniParanteral Ltd as of 31st March 2017 in conjunction with our audit of the standalonefinancial 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'). the seresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 deemed tobe prescribed under section 143(10) of the Companies act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 t o 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 there liability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. Acompany's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the trans act ions anddispositions of the assets of the company; (2) provide reasonable assurance that trans actions are recorded as necessary to permit preparation of financial statements in accordancewith generally accepted accounting principles andthat receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material 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.
I n 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 2017 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.
For MILIND MEHTA & CO.
Chartered Accountants Firm Registration No: 129664W
PROPRIETO R Membership No. 047739
Place : Mumbai Date : 30th May 2017