To the Members of
SYBLY INDUSTRIES LIMITED
REPORT ON THE AUDIT OF STANDALONE FINANCIAL STATEMENTS Opinion
1. We have audited the accompanying financial statements of"Sybly IndustriesLimited" which comprise the Balance Sheet as at March 31 2019 and theStatement of Profit and Loss for the period 1 st April 2018 to 31stMarch 2019 the Cash Flow Statement and the Statement of Changes in Equity for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to the explanationsgiven to us the financialstatements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Indian Accounting Standards(IndAS') specified under Section 133 of the Act a) In the case of the Balance Sheet of thestate of affairs of the Company as at March 31 2019; b) In the case of the Profit andLoss Account of the Loss for the period ended on that date and c) In the case of CashFlow Statement for the cash flows for the year ended on that date. d) And the changes inequity for the year ended on that date.
Basis for Opinion
2. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the
Companies Act 2013. Our responsibilities under those Standards are further describedin the Auditor's Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are provisions of the Companies Act 2013 and the Rules thereunderrelevanttoourauditof thefinancial and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.
Key Audit Matters
3. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Information other than the financial statements and auditors' report thereon
4. The Company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Business Responsibility Report but does notinclude the financial statements and our auditor's report thereon.
Our opinion on the financialstatements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
5. The company's Board of Directors are responsible for the matters in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the Accounting Principlesgenerally accepted in India including Accounting Standards specified in under Section 133of the Act. This responsibility includes the maintenance of adequate accounting records inaccordance with the provision of the act for safeguarding the assets of the company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgment and estimates arereasonable and prudent and design implementation and maintenance of internal controlthat were operating efficiently for ensuring the accuracy and completeness of accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing thecompany's ability to continue as a going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to cease theoperations or has no realistic alternative but to do so those Board of Directors are alsoresponsible for overseeing the financial reporting process.
Auditor's Responsibility for the Audit of Standalone Financial Statements
6. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and Regulatory Requirements
7. 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 a statement on the matters specifiedin paragraphs3 & 4 of the Order to the extent applicable .
8. 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 purpose of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books c) The standalone financial statements dealt with by thisReport are in agreement with the books of accounts. d) In our opinion the aforesaidstandalone financial statements comply with Ind AS specified under Section 133 of the
Companies Act 2013. e) On the basis of written representations received from thedirectors as on March 31 2019 and taken on record by the
Board of Directors none of the directors is disqualified as on March 31 2019 frombeing appointed as a director in terms of Section 164(2) of the Act. f) With respect tothe adequacy of internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate report in"Annexure B"; and g) With respect of the other matters to be included in theAuditor's report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of the information and according to the explanationsgiven to us: i. the Company does not have any pending litigations which would impact itsfinancial position. ii. the Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses. iii. therewere no amounts which required to be transferred to Investor Education and ProtectionFund.
Place : MEERUT Dated : 30th May 2019
ANNEXURE - A
Annexure to the Independent Auditor's Report to the members of Sybly Industries Limitedon the accounts of the Company for the year ended 31st March 2019
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) The assets have been physically verified by the management during the yearaccording to the regular program of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its fixed assets. Thediscrepancies noticed on such physical verification were not material.
(c) According to the information and explanations given to us and on the basis of ourexaminations of the records of the Company the title deeds of immovable properties areheld in the name of the company.;
(ii) (a) The inventories of the company at all its locations (except stocks lying withthird parties and in transit confirmation/ subsequent receipts have been obtained inrespect of such inventory) have been physically verified by the management during the yearat reasonable intervals. (b) The Company is maintaining proper records of Inventory. Thediscrepancies between the physical stocks as compared to book records were not material.(iii) The Company has not granted any Loans secured or unsecured to Companies FirmsLimited Liability Partnership or Other Parties covered in the Register maintained underSection 189 of the Companies Act 2013 (the Act). Accordingly paragraph 3(iii) (a) (b)& (c) of the Order are not applicable to the Company.
(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 the Companies Act 2013with respect to the loans and investments made. (v) In our opinion and according to theinformation and explanations given to us The Company has not accepted any deposits fromthe public covered under Section 73 to 76 of the Companies Act 2013.
(vi) As informed by the management the books of account relating to materials labourand other items of cost maintained by the company pursuant to the Rules made by theCentral Government for the maintenance of Cost Records under Section 148 of the CompaniesAct 2013 are maintained. We have however not made a detailed examination of the saidrecords with a view to determine whether they are accurate or complete as the company isgetting a cost audit conducted from a qualified person in this regard and will submit CostAudit Report to the Central Government.
(vii) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Employees State Insurance Investor EducationProtection Fund Income Tax Sales Tax Wealth Tax Service Tax Custom Duty Excise DutyCess Value Added Cess and other material statutory dues applicable to it.
According to the information and explanation given to us no undisputed amounts payablein respect of statutory dues including Provident Fund Employees State Insurance InvestorEducation Protection Fund Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty Cess Value Added Cess and other material statutory dues applicable to itwere in arrears as at 31st March 2019 for a period of more than six months from the datethey became payable.
(b) According to the information and explanation given to us there are no dues ofSales Tax Custom Duty Wealth Tax Service Tax Excise Duty GST and Cess which have notbeen deposited on account of any dispute. (xiii) In our opinion and according to theinformation and explanations given to us the company has not defaulted in repayment ofdues to a financial institution bank Government or debenture holders.
(ix) In our opinion moneys raised by way of initial public offer or further publicoffer (including debt instruments) and term loans have been applied for the purpose forwhich they were obtained.
(x) According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and on the basis of ourexaminations of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act.
(xii) In our opinion the company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Companies (Auditor's Report) Order 2016 are not applicable to thecompany. (xiii) According to the information and explanations given to us and on the basisof our examinations of the records of the Company transactions with the related partiesare in compliance with Sections 177 and 188 of Companies Act 2013 where applicable andthe details have been disclosed in the Financial Statements as required by the applicableaccounting standards.
(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.
(xv) According to the information and explanations given to us and on the basis of ourexaminations of the records of the Company the company has not entered into any non-cashtransactions with directors or persons connected with him. (xvi) The company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.
|Place : MEERUT |
|Dated : 30th May 2019 |
ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT
To the Members of
SYBLY INDUSTRIES LIMITED
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 Sybly Industries Limited"as of 31st March 2019 inreportingof" conjunction with our audit of the standaloneInd AS financial 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 financialreporting 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.
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 extent applicable to an audit of internalfinancial controls of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 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.
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 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 Accountants of India.
|Place : MEERUT |
|Dated : 30th May 2019 |