To the Members of SHIVA SUITINGS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SHIVA SUITINGSLIMITED ("the Company") which comprises the Balance Sheet as at March 312017 the Statement of Profit and Loss and Cash Flow Statement for the year then 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 Section 134(5) of the Companies Act 2013 (" the Act") with respect to the 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 also includes maintenance of adequate accounting recordsin accordance with the provisions of the act for safeguardingofthe assets of the companyfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; Making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementswhether due to fraud or error.
Our responsibility is to express an opinion on these 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 to 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 issued by the Institute of Chartered Accountantsof India as specified under section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan andperform the audit to obtain reasonableassurance about whether the 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 selecteddepend 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 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 but not for the purpose of expressing an opinionon whether the company has in place an adequate internal financial system over financialreporting and the operating effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the company's Directors as well as evaluating the overallpresentation 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2017;
(b) In the case of statement of Profit and Loss of the Profit for the yearended on that date; and
(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat 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 1 a statement on the matters specified in paragraphs 3and 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 bestofour 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 theCompany so far as it appears from our examination of those books;
c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified undersection 133 of the Act read with rule 7 of theCompanies (Accounts) rules2014;
e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164(2) of theAct;
f) We have audited internal financial controls over financial reporting (IFCoFR) of thecompany as of 31st March2017 in conjunction with our audit of financialstatement of the Company for the year ended on that date and our report dated 29thMay2017 as per Annexure II expressing our unmodified opinion on adequacy and operatingeffectiveness of the internal financial control over financial reporting.
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) Amendment Rules2017 in ouropinion and to the best of our information and according to the explanations given to us;
i) The company does not have any pending litigations which have any impact on itsfinancial position in its financial statements.
ii) The company does not have any long term contracts including derivative contractsfor which there were any material foreseeable losses
iii) The Company has not transferred following amounts which were required to betransferred to the Investor Education and Protection Fund the details are as under:-
|Nature of Amount ||Period ||Rs. |
|Debenture Interest ||FY 2006-07 ||7571/- |
iv) The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with of booksof accounts maintained by the company. Refer Note 25 to the financial statements.
For V.K. Beswal& Associates
Firm Registration No.101083W
Membership Number 154778
Date: 29th May 2017
Annexure I to the Auditor's Report even date CARO 2016:
1. According to the information and explanations received by us from the management weare of the opinion that the question of commenting on maintenance of proper records offixed assets physical verification and any substantial sale does not arise since thecompany had no fixed assets as on 31st March 2017 or at any time during thefinancial year ended 31st March 2017.
2. In respect of Inventories:
As explained to us physical verification of inventory has been conducted during theyear at reasonable intervals by the management. In our opinion the procedures of physicalverification of inventories followed by the management are reasonable and adequate inrelation to the size of the company and nature of its business and in our opinion andaccording to the information and explanation given to us the Company is maintainingproper records of its inventories and no material discrepancies were noticed on physicalverification.
3. The company has not granted any loans secured or unsecured to the companies firmsor other parties covered in the register maintained under Section 189 of the companiesAct 2013.
4. The Company has not granted loans normade Investments guarantees and securitiesduring the year and hence comments under this clause are not called for.
5. According to the information and explanations given to us the Company has notaccepted any deposits from public.
6. As informed to us the Central Government has not prescribed the maintenance of Costrecords under section 148 of the Companies Act 2013 for any of the activities of thecompany.
7. In respect of Statutory Dues:
(a) According to record of the Company produced before us the Company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax wealth tax servicetax customs duty excise duty cess and other statutory dues applicable to it.
(b) According to the information and explanations given no undisputed amounts payablein respect of Income-Tax sales tax wealth tax service tax customs duty exciseduty/cess were outstanding as at 31.03.2017 for a period of more than six months from thedate they became payable except as under:
|Nature of Amount ||Period ||Rs. |
|Debenture Interest ( Investor Education and Protection Fund) ||FY 2006-07 ||7571/- |
(c) According to the records of the company there are no dues of Income-Tax sales taxwealth tax service tax customs duty excise duty/cess which have not been deposited onaccount of any dispute.
8. As per the information and explanations given to us the company has not obtained anyloan from any financial institution or bank and issued debentures.
9. According to the records of the Company the Company has no outstanding moneysraised by way of initial public offering and the company has not taken any term loans.
10. 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.
11. According to the records of the Company the company has not paid any ManagerialRemuneration nor has been provided for. Hence comments under this clause are not calledfor.
12. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company is not aNidhiCompany. Hence in our opinion the requirements of para3 (xii) of the Order do notapply to the company.
13. According to the records and information and explanations given to us the Companyhas not undertaken any transaction with related parties. Hence comments under this clauseare not called for.
14. The company has not made any preferential allotment or private placement of sharestherefore comments under this clause are not called for.
15. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company has notentered into any non-cash transaction with directors or persons connected with him and noprovisions of section 192 have been contravened.
16. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act1934.
For V.K. BESWAL & ASSOCIATES
Firm Registration No.: 101083W
Membership Number 154778
Date :29th May 2017
Independent Auditor's report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
1. In conjunction with our audit of the standalone financial statements of SHIVASUITINGS LIMITED ("the Company") as of and for the year ended 31 March 2017we have audited the internal financial controls over financial reporting (IFCoFR) of thecompany of as of that date.
Management's Responsibility for Internal Financial Controls
2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountant of India. These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of thecompany's business including adherence to company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Act.
3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2)provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 Financial Reporting
7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountant of India.
For V.K BESWAL & ASSOCIATES
Membership Number 154778
Firm Registration No:101083W
Date:29th May 2017