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Shrenik Ltd.

BSE: 538441 Sector: Others
NSE: SHRENIK ISIN Code: INE632X01030
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Shrenik Ltd. (SHRENIK) - Auditors Report

Company auditors report

To The Members of SHRENIK LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SHRENIK LIMITED ("theCompany") which comprise the Balance Sheet as at 31 March 2019 and the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management 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 the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance 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) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial controls with reference tofinancial statements 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 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 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments; theauditor considers 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 anopinion on whether the Company has in place an internal financial controls with referenceto financial statements and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements gives 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 of the state of affairs of the Company as at 31stMarch' 2019 and its Profit and its Cash Flows 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 statement on the mattersspecified 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 ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet and the Statement of Profit and Loss andCash Flow Statement for the Year ended dealt with by this Report are in agreement with thebooks of account. d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e) On the basis of the written representations receivedfrom the Directors as on 31st March 2019 taken on record by the Board of Directors noneof the Director is disqualified as on 31st March 2019 from being appointed as a Directorin terms of Section 164 (2) of the Act. f) With respect to the adequacy of the Internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in "Annexure B". Ourreports express an unmodified opinion on the adequacy and operating effectiveness of theCompany's internal financial controls over financial reporting. g) With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us. i) The Company does not haveany pending litigations which would impact its Financial Position ii) The Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses on iii) The Company is not required to transfer any amounts tothe Investors Education and

Protection Fund.

For Singhi & Co Chartered Accountants Firm Registration No: 302049E

Sunil C. Bohara

Partner Membership No : 103395

Date : 30 May 2019

Place : Ahmedabad

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

(The Annexure Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' Section of our report of even date)

1. In respects of its Fixed Assets :

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

b. All the assets have been physically verified by the management during the year andthere is a regular program of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such verification and same matched with balance in the books of accounts

c. Title deeds of all the Immovable properties of the Company are in the name of Mr.Shrenik S

Vimawala a proprietor of the erstwhile Proprietorship Firm M/s. Shree ShyamCorporation. Immovable Properties have been transferred to the Company on account ofconversion of the Company from proprietorship to Partnership Firm to Private Company andthen to Limited Company under Companies Act 2013. Details of the Property is attached asAnnexure-I

Leasehold Land property is in the name of the Company.

2. In respect of its inventories: a. The inventories have been physicallyverified during the year by the management.

b. In our opinion the frequency of verification is reasonable and no materialdiscrepancies were noticed on physical verification.

3. In our opinion and according to the information and explanation given to us theCompany has not granted any loans secured or unsecured to Companies Firms LimitedLiability Partnerships or other parties covered in the Register maintained under Section189 of the Act. Accordingly the provisions of Clause 3 (iii) (a) to (c) of the Order arenot applicable to the Company and hence not commented upon.

4. In our opinion and according to the information and explanation given to us theCompany has complied with the provision of Section 185 & 186 of the Act with respectto the Loans Investment & Guarantees made.

5. In our opinion and according to the information and explanation given to us theCompany did not receive any deposit covered under Sections 73 to 76 of the Companies Actand the rules framed there under with regard to deposits accepted from the public duringthe year.

6. In our opinion and according to the information and explanations given to usthe Central Government has not prescribed for maintenance of cost records underSub-Section (1) of Section 148 of the Companies Act in respect of the products.

7. The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales Tax Service Tax Custom Duty Excise Duty GST & other statutory duesapplicable to it with appropriate authorities.

According to the information and explanations given to us and the records of theCompany examined by us there are no dues of Income Tax Sales Tax Service Tax Duty ofCustoms Duty of Excise

st

Value Added Tax and Cess as at March 31 2019 which have not been deposited on accountof dispute except for the following:

Name of the statute The Income Tax Act 1961 Nature of Dues Income Tax Amount (R) 252078120 Period to which it relates AY 2016-17 Forum where dispute is Pending Commissioner of Income Tax- Appeal

8. In our opinion and according to the information and explanations provided by theManagement the Company has not defaulted in repayment of loans or borrowings to FinancialInstitutions Banks or Government or dues to Debenture Holders.

9. Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not raised monies by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of Clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

10. According to the information and explanation given to us no material fraud bythe Company or on the

Company by its officers or employees has been noticed or reported during the course ofour audit.

11. According to the information and explanation given to us and based on ourexamination of the record of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite mandate by the provision of Section 197 readwith Schedule V of the Act.

12. In our opinion and according to the information and explanations given to usthe Company is not a

Nidhi Company. Accordingly paragraph 3(xii) of the Order is not applicable.

13. According to the information and explanation given to us and based on ourexamination of the record of the Company transaction with the related parties are incompliance with Sections 177 & 188 of the Act where applicable and details of suchtransaction have been disclosed in the financial statements as required by the applicableaccounting standards.

14. Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not made private placement of shares during theyear under review. Accordingly the provisions of Clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.

15. According to the information and explanation given to us and based on ourexamination of the record of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.

16. The Company is not required to be registered under Section 45 IA of the ReserveBank of India Act

1934 and accordingly the Provisions of Clause 3 (xvi) of the Order are not applicableto the Company and hence not commented upon.

For Singhi & Co Chartered Accountants Firm Registration No: 302049E

Sunil C. Bohara t

Partner Date : 30 May 2019

Place : Ahmedabad

Membership No : 103395

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in Paragraph 2(f) under ‘Report on Other Legal and Regulatoryrequirements' of our

report of even date)

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 SHRENIKLIMITED ("the Company") as of 31 March 2019 in conjunction with our audit of thefinancial 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'). Theseresponsibilities 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.

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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 to 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 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 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

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.

Opinion

In 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 31st March 2019based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Singhi & Co Chartered Accountants Firm Registration No: 302049E

Sunil C. Bohara Partner Membership No : 103395

th

Date : 30 May 2019

Place : Ahmedabad

.