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Sharika Enterprises Ltd.

BSE: 540786 Sector: Others
NSE: N.A. ISIN Code: INE669Y01014
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NSE 05:30 | 01 Jan Sharika Enterprises Ltd
OPEN 40.50
PREVIOUS CLOSE 40.50
VOLUME 3000
52-Week high 64.80
52-Week low 34.60
P/E 19.38
Mkt Cap.(Rs cr) 44
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 40.50
CLOSE 40.50
VOLUME 3000
52-Week high 64.80
52-Week low 34.60
P/E 19.38
Mkt Cap.(Rs cr) 44
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sharika Enterprises Ltd. (SHARIKAENTERPR) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SHARIKA ENTERPRISES PRIVATE LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of SHARIKAENTERPRISES PRIVATE LIMITED ('the Company') which comprise the balance sheet as at 31March 2017 the statement of profit and loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withAccounting 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 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 oLliei 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 are 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 and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account tire provisions of the Act the accounting and auditingstandards and matters which are requited to be included in the audit report under theprovisions of the Act and tire Rules made thereunder. We conducted our audit in accordancewith the Standards on Auditing issued by the Institute of Chartered Accountants of Indiaas specified 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 aboutwhether tire 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 financial;T statements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on die standalone financial statements.

Opinion

In our opinion and to die best of our information and according to the explanationsgiven to us die standalone financial statements give the information required by die Acthi the manner so required and give a true and fan view in conformity with the accountingprinciples generally accepted hi India of the stale of affairs of die Company as at 31March 2017 its Profit and its cash flows for die 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 Sprtion (11) of the Section 143of the Act we give hi the Annexure 1 a statement on die matters specified in paragraphs3 and 1 of the Order.

2. As required by seeliun 143(3) of the Act we report that:

a. We have sought and obtained all die 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 by law have been kept by dieCompany so far as appears from our examination of those books;

c- The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by diis Report are in agreement 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 read with Rule 7 of theCompanies (Account) Rules 2014;

e. On die basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 from being appointed as a director in terms of section 164 (2) of theAct;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 2" 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. Tire Company did 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 InvestorsEducation and Protection Fund by the Company.

iv. The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8lh November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company.

For WDK & Associates

Chartered Accountants FRN- 016389N

Dheeraaj Wadhwa

Partner

Membership Number: 091143

Place: New Delhi

Date: 19-07-2017

Annexure-1 to the Auditors' Report

Annexure referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' section of our Independent Auditors Report of even date

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) Some of the fixed assets were physically verified by the management during the yearand no material discrepancies were noticed on such verification.

c) According to the information and explanations to us and on the basis of ourexamination of the records of the company the title deed of the immovable property isheld in the name of the company.

ii) a) The Management has physically verified the inventory during tire year hr ouropinion frequency of tire verification is reasonable.

b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to tire size of the company and tire nature of itsbusiness.

c) The company is maintaining proper records of inventories. Tire discrepancies noticedon physical verification of inventories as compared to book records needs to bereconciled.

iii) a) According to the information axrd explanations to us the company has grantedloans to bodies corporate covered in the register maintained under section 189 of theCompanies Act 2013 ('the Act').

(b) Tire terms of arrangements do not stipulate any repayment schedule and tire loansare repayable on demand. Accordingly paragraph 3(iii) (b) of the Order is not commentedupon in respect of repayment of tire principal amount.

(r) In thp absenrp of any stipulated repayment nrhrdnlr wr mi-mot comment on Lheoverdue amounts of more than rupees one lakh in respect of the loans granted to the bodiescorporate listed in the register maintained under section 189 of the Act.

iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of tire Act with respectto the loans and investments made. The loans given are to the wholly owned SubsidiaryCompany and no fresh investments are made during tire year.

v) The Company has not accepted any deposits from the public.

vi) To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under section 148 (1) of the Companies Act 2013for tire products and services of the Company.

a) The Company its depositing though whh delays ui tew instances with appropriateauthorities undisputed statutory dues including provident fund income tax sales taxwealth tax service tax duty of customs value added tax cess and other materialstatutory dues applicable to it.

b) According to tine information and explanations given to us no undisputed amountspayable in respect of provident fund income tax (except amount payable on account of latefiling fees for TDS returns) sales tax wealth tax service tax duty of customs valueadded tax cess and other material statutory dues were outstanding at the end of theyear for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us there are no materialdues of income tax sales tax wealth tax duty of customs and cess which have not beendeposited with the appropriate authorities on account of any dispute.

vii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of dues to a financial institutionor bank taken in the form of Term Loan or Cash Credit/ Over Draft Facilities. The Companydid not have any debentures and government dues in the nature of loan during die year.

ix) According to the information and explanations given by the given by the managementthe Company has not raised any money by way of initial public offer/further publicoffer/debt instruments. The Term Loans or Cash Credit/Over Draft facilities taken fromBank or financial institutions were applied for lire purpose they were raised.

x) Based upon the audit procedures performed for die purpose of reporting the hue andfan- view uf Ihe financial statements and according to the information and explanationsgiven to us no material fraud by the company or no fraud/material fraud on the company bythe officers and employees of die Company has been noticed or reported during the year.

xi) According to the information and explanations given by die management theprovisions of Section 197 read with Schedule V of the Act is not applicable to the companyand hence reporting under clause 3 (xi) are not applicable and hence not commented upon.

xii) In our opinion the Company is not a Nidhi company. Therefore the provisions ofthe clause (xii) of the order are not applicable to die company and hence not commentedupon.

xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in die financialstatements as required by the applicable accounting standards.

xiv) According to die information and explanations given to us and on an overallexamination of the balance sheet die company has not made any preferential allotment orpiivate placement of shares or fully or partly convertible debentures during die year.

XV) According to the information and explanations given by the management the Companyhas not entered into any non- cash transactions with directors or persons connected withhim the explanation given to us the provisions of section 45-IA of the Reserve Bank ofIndia Act 1934 are not applicable to the Company.

For WDK & Associates

Chartered Accountants FRN- 016389N

Dheeraaj Wadhwa

Partner

Membership Number: 091143

Place: New Delhi

Date: 19-07-2017

Annexure - B to the Audilurs' 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 internal financial controls over financial reporting of SI-IARIKAENTERPRISES PRIVATE LIMITED ("the Company") as of 31 March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 (TCAT). 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 fraud-; and errors the accuracy and rmiqilfiuneyy of theaccounting records and Ihe timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

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 deamodto be prescribed undei set linn 143(10) of the Companies Act 2013 to lire extentapplicable to an audit uf internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. • Those Standards and die Guidance Note require that we comply with ediicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 tiieir operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing die 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 die auditor's judgment including the assessment of die risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve drat die audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of Lhe assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of tire inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcunlrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of die 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 widi die policies or procedures may deteriorate.

Opinion

In our opinion die 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 dieinternal control over- financial reporting criteria established by die Company consideringthe essential components of internal control staled in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For WDK & Associates

Chartered Accountants FRN- 016389N

Dheeraaj Wadhwa

Partner

Membership Number: 091143

Place: New Delhi

Date: 19-07-2017