| We have audited the accompanying financial statements of Shree Steel
Wire Ropes Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be Included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit/loss and its cash flows for the
year ended on that date.
Emphasis of Matter
In respect on Long term Loans and advances given to 2 unrelated
parties, we have to state that in our opinion company has not taken any
security for such advances, which was essential, and interest amount or
FY. 2014 - 2015 is not received till signing the balance sheet. An
opinion can be formed that the Company is also changing its nature of
business. Total amount outstanding on the balance sheet date are Rs.
3,25,00,000/- which is 43.54% of Share capital and Free Reserves and
81.96% of free Reserves. As per explanation received from the
management, they state that, the surplus fund has been invested in
open market in the form of advances to earn high rate of interest, and
the high rate of interest will be earned only when the company takes
the risk of advancing loan without any security. Further management has
assured that the advances are though unsecured but should be considered
as good, there is no contingency in there recoverability.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act 2013, we give in
the Annexure a statement on the matters specified 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 and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
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 Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position, subject to Serial no. vii ( c) of Caro
2015.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31st March 2015, we report that:
I (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the Fixed Assets were physically verified by the management
during the year. We are informed that no material discrepancies were
noticed on such verification.
ii) (a) As explained to us, the management at regular intervals during
the year has physically verified inventories;
(b) in our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business;
(c) The company has maintained proper records of inventories. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records;
iii)* The company has not granted any loan secured or unsecured to
Companies, Firms or other parties covered in the register maintained
under section 189 of the Companies Act 2013. Consequently requirement
of clauses (iii,a) and (iii,b) of paragraph 3 of the order are not
applicable.
iv) There is an adequate internal control system commensurate with the
size of the company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our Audit we have not observed any continuing
failure to correct major weaknesses in internal control system.
v) In our opinion and according to information and explanation given to
us, the Company has complied with the provisions of section 73 to 76 of
the Act, for acceptance of deposits. No order has been passed by
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any court or any other tribunal.
vi) The Company has not liable for maintaining Cost accounts and Cost
records as per applicability condition laid down under the Companies
(Cost Records and Audit) Rules, 2014 read with Section 148 (1) of the
Companies Act, 2013.
vii) According to the information and explanations given to us, in
respect of statutory and other dues.
(a) The company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employee's State Insurance, Income Tax,
Sales Tax, Cess and any other statutory dues with the appropriate
authorities.
(b) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of income tax, wealth tax,
excise duty, customs duty and cess were in arrears, as at 31.03.2015
for a period of more than six months from the date they became payable
except as stated above
(c) The disputed statutory dues aggregating to Rs.4,11,024/-, that have
not been deposited on account of matters pending before appropriate
authorities are as under.
Sr.
No. Name of the Statute Nature of Dues Forum where
dispute is
pending Amount
1) Income Tax
Act, 1961 Income Tax
(A.Y. 1999-2000) CIT(A)-
VII(Mumbai) 94,891/-
2) Maharashtra
Value Sales Tax Deputy
Commissioner
of 72,383/-
Added Tax
Act, 2002 FY. 2008 -
2009 Sales Tax
Appeal 010
3) Central
Sales Tax Sales Tax Deputy
Commissioner
of 2,43,750/-
Act 1956 FY. 2008 -
2009 Sales Tax
Appeal 010
(d) According to the information and explanation given to us the amount
which were required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred any cash losses in the
financial year and in the immediately preceding financial year.
ix) Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to any Bank. The company
has not taken any loans from financial institution and debenture
holders.
x) The company has not given any guarantee for loan taken by others
from bank or financial institution.
xi) In our opinion, the company has not taken any new term loan during
the year.
xii) In our opinion and according to the information and explanation
given to us, no fraud on or by the company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
FOR M/S. N.D. MEHTA ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 106266W
Sd/-
NAGIN D. MEHTA.
PLACE: MUMBAI [PROPRIETOR]
DATED: 29th May' 2015 MEMBERSHIP NO. 033258 |