To the Members of SORIL Infra Resources Limited
(Formerly Known as Store One Retail India Limited)
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of SORIL InfraResources Limited (Formerly known as Store One Retail India Limited )(hereinafter referred to as "the Holding Company") and its subsidiaries (theHolding Company and its subsidiaries together referred to as "the Group")comprising of the Consolidated Balance Sheet as at 31st March 2017 the ConsolidatedStatement of Profit and Loss the Consolidated Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the consolidated financial statements").
Management's Responsibility for the Consolidated Financial Statements
The Holding Company's Board of Directors is responsible for the preparation of theseconsolidated financial statements in terms of the requirements of the Companies Act 2013(hereinafter referred to as "the Act") that give a true and fair view of theconsolidated financial position consolidated financial performance and consolidated cashflows of the Group in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014 (as amended). The respective Board ofDirectors of the companies included in the Group are responsible for maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Group and for preventing and detecting frauds and other irregularities;the selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the consolidated financial statements that give a true and fair view andare free from material misstatement whether due to fraud or error which have been usedfor the purpose of preparation of the consolidated financial statements by the Directorsof the Holding Company as aforesaid.
Our responsibility is to express an opinion on these consolidated financial statementsbased on our audit. While conducting the audit we have taken into account the provisionsof the Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder.
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 consolidated financial statements are free from material misstatement. An auditinvolves performing procedures to obtain audit evidence about the amounts and thedisclosures in the consolidated financial statements . The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe consolidated financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the HoldingCompany's preparation of the consolidated financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Holding Company's Board ofDirectors as well as evaluating the overall presentation of the consolidated financialstatements. We believe that the audit evidence obtained by us in terms of their reportsreferred to in sub-paragraph (a) of the Other Matters paragraph below is sufficient andappropriate to provide a basis for our audit opinion on the consolidated financialstatements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid consolidated 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 of the consolidated state of affairs ofthe Group as at 31st March 2017 and their consolidated profit and their consolidatedcash flows 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 based on the comments in the auditors' reports of the Holding company subsidiarycompanies we give in the Annexure a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report to the extent applicable that:(a) We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit of the aforesaidconsolidated financial statements. (b) In our opinion proper books of account as requiredby law relating to preparation of the aforesaid consolidated financial statements havebeen kept so far as it appears from our examination of those books and the reports of theother auditors.
(c) The Consolidated Balance Sheet the Consolidated Statement of Profit and Loss andthe Consolidated Cash Flow Statement dealt with by this Report are in agreement with therelevant books of account maintained for the purpose of preparation of the consolidatedfinancial statements.
(d) In our opinion the aforesaid consolidated financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 (as amended).
(e) On the basis of the written representations received from the directors of theHolding Company as on 31st March 2017 taken on record by the Board of Directors of theHolding Company none of the directors of the Group companies is disqualified as on 31stMarch 2017 from being appointed as a director in terms of Section 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 to our separate reportin Annexure A'.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. Asdetailed in Note 25 to the consolidated financial statements the company has disclosedthe impact of pending litigations on its financial position; ii. The Group did not haveany material foreseeable losses on long-term contracts including derivative contracts.iii. There were no amounts which were required to be transferred to the Investor Educationand Protection Fund by the Holding Company and its subsidiary companies. iv. The Companyhas provided requisite disclosures in the consolidated financial statements as to holdingsas well as dealings in Specified Bank Notes during the period from 8th November 2016 to30th December 2016 and these are in accordance with the books of accounts maintained bythe Company. Refer Note 32 of the aforesaid consolidated financial statements.
| ||For Agarwal Prakash & Co. |
| ||Chartered Accountants |
| ||Firm's Registration No : 005975N |
| ||Vikas Aggarwal |
|Gurugram ||Partner |
|May 26 2017 ||Membership No.: 097848 |