Independent Auditors' Report on Financial Statements To The Members of SVC ResourcesLimited Report on the Financial Statements
We have audited the accompanying financial statements of SVC Resources Limited(the Company') which comprise the Balance Sheet as at March 31 2017 the Statementof Profit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the preparation of these financialstatements in terms of the requirements of the Companies Act 2013 (the Act') thatgive a true and fair view of the financial position financial performance and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014. The respective Board of Directors of the Companyare responsible for maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the respective assets of the Company and forpreventing and detecting frauds and other irregularities; the 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 ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error which have been used for the purpose of preparation of thesefinancial statements by the Board of Directors of the Company.
Our responsibility is to express an opinion on these financial statements based on ouraudit. While conducting the audit we have taken into account the provisions of the Actthe accounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under. We conductedour audit in accordance with the Standards on Auditing specified under Section 143(10) ofthe Act. Those standards require that we comply with ethical requirements and plan andperform 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 the disclosures in the financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation and presentation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial control system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Board of Directors as well as evaluating the overallpresentation of the financial statements.
Basis for Disclaimer of Opinion
So far as information and explanations given to us the Old Management of the Companywas removed in an Extraordinary General Meeting held on January 11 2014 and supported bythe an order of the Company Law Board Delhi dated April 4 2014.
Thereafter the Old Management did not hand over books of accounts statutory recordsminutes books bank statements subsidiary details and any other records/documents to theNew Management. Since then the New Management of the Company is engaged in a legal battlewith the Old Management. As such the Company does not have books of accounts or any otherrecords. In this regard the Company had filed petition with the Company Law Board Delhi.The case was decided in favor of the New Management on June 4 2015. However the NewManagement is yet to receive the books of accounts and other records of the company fromthe Old Management.
We have not been able to access the books of accounts and other records of the company;the elements making up the Balance Sheet and the Statement of Profit and Loss and CashFlow.
Disclaimer of Opinion
Because of the significance of the matters described in the Basis of Disclaimer ofOpinion paragraph we have not been able to obtain sufficient appropriate audit evidenceto provide a basis for an audit opinion. Accordingly we do not express an opinion on thefinancial statements.
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 Section 143 (11) of the Act basedon the comments in the auditors' report of the Company we give in the Annexure astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
2. As required by Section 143 (3) of the Act we report to the extent applicablethat:
a. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we have sought but not obtained any of the information and explanations whichto the best of our knowledge and belief were necessary for the purposes of our audit ofthe financial statements.
b. Due to the effects of the matter described in the Basis for Disclaimer of Opinionparagraph we do not express an opinion on whether proper books of account as required bylaw relating to preparation of the financial statements have been kept.
c. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph we are able to opine on whether the Balance Sheet theStatement of Profit and Loss and the Cash Flow Statement dealt with by this Report are inagreement with the relevant books of account maintained for the purpose of preparation ofthe financial statements. d. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph we do not express an opinion on whether the financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7of the Companies (Accounts) Rules 2014. e. On the basis of the writtenrepresentations received from the
Directors of the Company as on March 31 2017 taken on record by the Board ofDirectors of the Company none of the Directors of the Company is disqualified as on March31 2017 from being appointed as a Director in terms of Section 164 (2) of the Act. f.With respect to the other matters to be included in the Auditors'
Report in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014:i. Due to the effects of the matter described in the Basis for
Disclaimer of Opinion paragraph we do not express an opinion on whether the Companyhas disclosed the impact of pending litigations on the financial position in its financialstatements as of March 31 2017. ii. Due to the effects of the matter described in theBasis for
Disclaimer of Opinion paragraph we do not express an opinion on whether the Companyhas made provisions in its financial statements as required under the applicable law oraccounting standards for material foreseeable losses on long term contracts. iii. Due tothe effects of the matter described in the Basis for
Disclaimer of Opinion paragraph we do not express an opinion on whether there has beenany delay in transferring amounts required to be transferred to the Investor Educationand Protection Fund by the Company
| ||For M/s Jain & Jain |
| ||Chartered Accountants |
| ||Firm Registration No. 103869W |
|Place: Mumbai || |
|Date: May 25 2017 || |
| ||CA Praful V. Shah |
| ||Partner |
| ||Membership No.103921 |