The Members of TIRUPATI SARJAN LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of TIRUPATI SARJANLIMITED ("the Company") which comprise the Balance Sheet as at March 312019 the Statement of Profit and Loss Cash Flow Statement for the year then ended and asummary of the 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 Section134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance cash flows in accordance with the accounting principlesgenerally acceptedin India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding theassets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accountingpolicies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internalfinancialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to thepreparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatementwhether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which arerequired to beincluded in the audit report under the provisions of the Act and the Rules made thereunderand the Order under section 143(11)of the Act.
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) ofthe Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance aboutwhether the standalone financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements.The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalonefinancial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevantto the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that areappropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness ofthe accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalonefinancial statements.
Basis For Qualified Opinion
The Company has not made provision for Gratuity Expense and Leave Encashment in itsbooks which constitutes a departure from Accounting Standard 15 "EmployeeBenefits" referred to in Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. Thus the company has overstated the profit to that extent amountbeing not ascertained.
In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid standalone financial statements give the information required bythe Act in the manner so required and give a true and fair as per the accountingprinciplesgenerally accepted in India of the state of affairs of the Company as at March 312019 and its profit itscash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 bestof our 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 the Statement of Profit and Loss the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards (INDAS) prescribed under section 133 of the Act read withRule 7 of the Companies(Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as onMarch 31 2019 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2019 from being appointed as a director in terms ofSection 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 ourseparate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols 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) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has pending litigations its impact on financial position is as perpoint no. 7(6) of Annexure B to the Independent Auditors Report.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been No delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. Based on audit procedures and representations provided to us by the management wereport that the disclosures are in accordance with the books of accounts maintained by thecompany and as produced to us by the Management.
v. The disclosures regading details of specified bank notes held and transacted during8 November 2016 to 30 December 2016 have not been made since the requirement does notpertain to financial year ended 31st March 2018.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
|For SWETA PATEL & ASSOCIATS |
|CHARTERED ACCOUNTANTS |
|CA SWETA H PATEL |
|Place : AHMEDABAD |
|Date : 30/05/2019 |
Annexure "A" to the Independent Auditor's Report
(Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of TIRUPATISARJAN LIMITED ("the Company") as of March 31 2019 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The board of directors of the Company 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 Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the standards on auditing prescribed under Section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. Thosestandards and the guidance note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively 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 judgement including the assessment of the risks ofmaterial misstatement in 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 control 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
(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(iii) 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.
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 of 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 and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2019 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
|For SWETA PATEL & ASSOCIATES |
|CHARTERED ACCOUNTANTS |
|FRN : 139165W |
|CA SWETA H PATEL |
|Place : Ahmedabad |
|Date : 30/05/2019 |
ANNEXURE - B Report under the Companies (Auditor's Report) Order 2016
Referred to in of our report of even date
In terms of the information and explanations sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that -
1 (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us all the assets have been physically verified by the managementonce during the year which in our opinion is reasonable having regard to the size ofthe company and the nature of its assets. No material discrepancies were noticed on suchverification (c) The title deeds of immoveable properties included in the Property Plantand Equipment as disclosed in Note 3 to the financial statement are held in the name ofthe company.
2. As explained to us the inventory has been physically verified at reasonableintervals during the year by the management. In our opinion the frequency of verificationis reasonable. The discrepancies noticed on verification between the physical stocks andthe book records were not material. The discrepencies have been properly dealt with in thebooks of accounts)
3. The company had granted loan to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Act.
(a) The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest. (b) No Schedule of repayment of principal and payment of interest hasbeen stipulated.
(c) No Schedule of repayment of principal and payment of interest has been stipulatedand therefore the question of overdue amounts does not arise. Though Company has informedthat the reasonable steps have been taken for recovery of the principal and interest.
4. In respect of loans investments guarantees and security the provisions of section185 and 186 of the Companies Act 2013 have been complied with.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits in contravention of Directives issued by ReserveBank of India and the provisions of section 73 to 76 or any other relevant provisions ofthe Act and the rules framed there under where applicable. No order has been passed bythe Company Law Board or National Company Law Tribunal or Reserve Bank of India or anycourt or any other tribunal.
6. We have broadly reviewed the books of accounts and records maintained by the companypursuant to the rules prescribed under section 148(1) of the Act for maintenance of costrecords in respect of companies Services and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of records.
7. (a) According to the records of the company the company is generally regular indepositing with appropriate authorities undisputed statutory dues including InvesterEducation protections fund income tax sales tax service tax Good and service tax andother material statutory dues applicable to it.
According to the information and explanations given to us undisputed amounts payablein respect of income tax wealth tax service tax sales tax that were in arrears as at31-Mar-2019 for a period of more than six months from the date they became payable aregiven below.
|Name of the Statute ||Amount (Rs.) ||Period to which amount relates |
|Professional Tax ||330939/- ||For the F. Y.2018-19 |
|Professional Tax ||826510/- ||For the F. Y. 2017-18 |
|TDS Payable ||13856948/- ||For the F. Y. 2018-19 |
|Service Tax Payable ||1807672/- ||For the F. Y. 2017-18 |
|Dividend Distribution Tax ||2015519/- ||For the F.Y. 2016-17 |
(b) According to the information and explanations given to us the dues of income taxand Service tax that have not been deposited with appropriate authorities on account ofany dispute and the forum where the disputes are pending are given below. (Rs.in lacs)
|Name of the Statute ||Assessment Year ||Original Demand ||Demand Out standing as on 31-3-19 ||Remarks |
|Income Tax ||2006-07 ||Nil ||Nil ||During the course of assessment Company's claim U/s. 80 IA / 80 IB was restricted and the first Appellate authority allowed the claim in favour of the Company. The Ahmadabad tribunal has also allowed the matter in favor of the company. The department has chosen to appeal the same in Gujarat High Court. |
|Income Tax ||2012-13 ||5.31 ||Nil ||The demand has been raised during the assessment proceedings and confirmed by the Commissioner ((Appeal). The Company has filed an Appeal with Income Tax Appellate Tribunal. ITAT has set aside file to AO for Verifications. |
|Service Tax ||2007-13 ||239.44 ||221.48 ||The demand has been raised and the Company has filed an Appeal with CESTAT after paying the 7.5% of the Demand duty. |
|Service Tax ||Oct-11 to Sept -12 ||75.95 ||75.95 ||The demand has been raised and the Company has filed an Appeal with CESTAT after paying 7.5% of the demand duty. |
8. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion the company has not defaulted in repayment of dues toa financial institution bank Government or dues to debenture holders
9. The company has not raised moneys by way of initial public offer or further publicoffer (including debt instrument). However the moneys were raised by way of term loanswhich were applied for the purposes for which those were raised.
10. Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the course of our audit thatcauses the financial statements to be materially misstated.
11. The Managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.
12. The company is not a Nidhi Company hence this clause is not applicable.
13. Based upon the audit procedures performed and according to the information andexplanations given to us All transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements etc. as required by the applicable accountingstandards.
14 The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
15. The company has not entered into any non-cash transactions with directors orpersons connected with him.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934
|For SWETA PATEL & ASSOCIATES |
|CHARTERED ACCOUNTANTS |
|CA SWETA H PATEL |
|Place : Ahmedabad |
|Date : 30-05-2019 |