The Members of
Shalimar Productions Limited
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Shalimar ProductionsLimited ("the Company") which comprise the Balance Sheet as at March 31 2018the Statement of Profit & Loss including the statement of Other Comprehensive Incomethe Statement of Cash Flow and the Statement of Changes in Equity for the year then endedand a summaryof significant accounting policies and other explanatory information for theyear ended on that date.
Management's Responsibility for the Ind AS 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 preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS)specified undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended.
This responsibility also includes maintenance of adequate accounting records inaccordance 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 the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.
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 thereunder.
We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing issued by the Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement. An audit involves performing procedures to obtainaudit evidence about the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Ind AS financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS financial statements that give a trueand fair view 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 bythe Company'sDirectors as well as evaluating the overall presentation of the Ind AS financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe manner so required 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 March31 2018 its Statement of Profit & Loss including other comprehensive income itsStatement of Cash flow and the changes in equity for the year ended on that date.
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 Act we give in the Annexure "B" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. 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 bylaw have been kept by theCompany so far as it appears from our examination of those books;
(c) The Balance Sheet Statement of Profit & Loss including the Statement of OtherComprehensive Income the Statement of Cash Flow and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules 2015 asamended;
(e) On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of section 164 (2) ofthe Act; Except Mr.Pankaj Dave who has been disqualified as per list issued by Ministryof Corporate Affairs in the month of September 2017.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these Ind AS financial statements and theoperating effectiveness of such controls refer to our separate Report in "AnnexureA" to this report;
(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 impact its financialposition
ii. The Company does not have any long-term contracts including derivative contractsfor 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.
For S C Mehra& Associates
ICAI Firm Registration Number: 106156W
CA Suresh Mehra
Membership Number: 039730
Place of Signature: Mumbai
Annexure A to Independent Auditors' Report
Referred to in paragraph [2(f)] of the Independent Auditors' Report of even date to themembers of Shalimar Productions Limited on the Ind AS financial statements for the yearended March 31 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection143 of the Companies Act 2013 ("The Act")
1. We have audited the internal financial controls over financial reporting of ShalimarProductions Limited 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
2. 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 Act.
3. Our responsibility is to express an opinion on the Company's internal financialcontrols overfinancial reporting based on our audit. We conducted our audit in accordancewiththe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedundersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols bothapplicable to an audit of internal financial controls and both issued by theICAI. Those Standards and the GuidanceNote require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financialreporting was established andmaintained and if such controls operated effectively in all materialrespects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyofthe internal financial controls system over financial reporting and their operatingeffectiveness.Our audit of internal financial controls over financial reporting includedobtaining anunderstanding of internal financial controls over financial reportingassessing the risk that amaterial weakness exists and testing and evaluating the designand operating effectiveness ofinternal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the
assessment of the risks of material misstatement of the financialstatements whetherdue to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovidea basis for our audit opinion on the Company's internal financial controls systemoverfinancial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation offinancial statements for external purposes in accordance withgenerally accepted accountingprinciples. Acompany's internal financial control overfinancial reporting includes those policies and procedures that pertain to the maintenanceof records that in reasonable detailaccurately and fairly reflect the transactions anddispositions of the assets of the company; provide reasonable assurance that transactionsare recorded as necessary to permit preparationof financial statements in accordance withgenerally accepted accounting principles and thatreceipts and expenditures of the companyare being made only in accordance withauthorizations of management and directors of thecompany; and provide reasonableassurance regarding prevention or timely detection ofunauthorized acquisition use ordisposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financialreporting includingthe possibility of collusion or improper management override ofcontrols material misstatementsdue to error or fraud may occur and not be detected. Alsoprojections of any evaluation of theinternal financial controls over financial reportingto future periods are subject to the risk that theinternal financial control overfinancial reporting may become inadequate because of changes inconditions or that thedegree of compliance with the policies or procedures may deteriorate.
8. In our opinion to the best of our information and according to explanation given tous the Company has in all material respects an adequate internal financialcontrolssystem over financial reporting and such internal financial controls overfinancialreporting were operating effectively as at March 31 2018 based on theinternalcontrol over financial reporting criteria established by the Company consideringtheessential components of internal control stated in the Guidance Note on Audit ofInternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants ofIndia.
For S C Mehra& Associates
Firm's Registration No. 106156W
CA Suresh Mehra
Membership Number: 039730
Place of Signature: Mumbai
Annexure B to Independent Auditors' Report
Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of Shalimar Productions Limited on the financial statements as of and for the yearended March 31 2018
i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Management ina phased manner designed to cover all the items over a period of three years which inour opinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
ii. As explained to us the inventories were physically verified during the year atreasonable intervals and no material discrepancies were noticed on physical verification.
iii. The Company has not grantedany loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3(iii) (iii)(a) (iii)(b) and(iii)(c) of the said Order are not applicable to the Company.
iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186. Therefore theprovisions of Clause 3(iv) of the said Order are not applicable to the Company.
v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.
vi. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.
vii. (a)According to the information and explanations given to us and the records ofthe Company examined by us in our opinion undisputed statutory dues including providentfund employees' state insurance income-tax service tax and cess have been regularlydeposited with the appropriate authorities. There is no arrears of outstanding statutorydues as on the last day of the financial year concerned for a period of more than sixmonths from the date they became payable.
(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income-tax service-tax value added tax orGST which have not been deposited on account of any dispute.
viii. According to the records of the Company examinedby us and the information andexplanationgiven to us the Company has not defaulted inrepayment of loans or borrowingsto any financialinstitution or bank. The Company does not have any loans from Government.Further theCompany has not issued any debenture.
ix. In our opinion and according to the information and explanations given to us nomoneys raised by way of initial public offer or further public offer (including debtinstruments) and no term loans has been taken during the year.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.
xi. The Company has not paid/ provided for managerial remuneration during the yearhence requisite approvals mandated by the provisions of Section197 read with Schedule V tothe Act is not required.
xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
xiv. The Company has not made preferential allotment of shares during the year underreview. Hence the requirements of Section 42 of Companies Act 2013 are not applicable tothe Company.
xv. The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.
| ||For S C Mehra& Associates |
| ||FRN: 106156W |
| ||Chartered Accountants |
| ||Sd/- |
| ||CA S C Mehra |
|Place: Mumbai ||Partner |
|Date: May 29 2018 ||Membership No.039730 |