| We have audited the accompanying financial statements of SHRICON
INDUSTRIES LIMITED ('the Company') which comprise the Balance Sheet as
at 31 March, 2014 and the Statement of Profit and Loss for the year
then ended and a summary of significant accounting policies arid other
explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flow of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ('the Act') read with the General Circular
15/2013 dated 13 Sept. 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 amount and disclosers 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 control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtain fiie & and
appropriate to provide a basis for audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(i) in the case of the Balance Sheet, of the state of the affairs of
the Company as at 31 March, 2014; (ii) in the case of the Statement of
Profit and Loss, of the loss for the year ended on that date; and
Report on Other Legal and Regulatory Requirement
1. As required by the Companies (Auditor's Report) Order. 2003 ('the
Order') as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books;
c) the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account;
d) in our opinion, the Balance Sheet and Statement of Profit and Loss,
comply with the Accounting Standards referred to in sub- section (3C)
of Section 211 of the Companies Act,1956 read with the General Circular
15/2013 dated 13 Sept. 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013.; and on the basis of
written representations received from the directors as on 31 March,
2014, and taken on record by the Board of Directors, none of the
Directors are disqualified as on 31 March, 2014, from being appointed
as s Director in terms of clause (g) of sub-section (1) of Section 274
of the Companies Act 1956.
ANNEXURE TO THE AUDITORS' REPORT
[Referred to in Paragraph 3 of Auditors" Report of even date to the
members of Shricon Industries Limited on the financial statements for
the year ended 31st March, 2014]
1. In respect of its Fixed Assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, during the period under review the Company has
not acquired assets required in the day to day operations of the
company.
(c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
2. There is no inventory with the Company
3. (a) According to the information and explanations given to us, the
company has not granted loans, unsecured, to trusts, covered in the
register maintained u/s 301 of the companies Act, 1956.
(b) According to the information and explanation given to us, the
company has taken unsecured loans from Director "Om Prakash Maheshwari"
covered in the register maintained under section 301 of the Companies
Act, 1956 and In respect of the said loans, the maximum amount
outstanding at any time during the year was Rs. 78.43/- Lakhs and the
year-end balance is Rs.78.43 Lakhs (including interest of Rs. 6.37
Lakhs).
(c) In our opinion and according to the information and explanation
given to us the rate of interest and other term and conditions of the
loans taken by the Company, are not prima facie prejudicial to the
interest of the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of fixed assets. During the course of
the audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in the register maintained under Section 301 of
the Companies Act, 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value lakhs in respect of any
party during the year, have been made at prices which are ifefeonlible
having regard to the prevailing market prices at the relevant time.
6. According to the information and explanations given to us, the
Company has not Welcome any deposit from the public and hence reporting
compliance under the provisions of 58A and section 58AA of the
Companies Act, 1956 and rules framed there under and the directives of
the Reserve Bank of India does not arise.
7. The company has an internal audit system commensurate with its size
and nature of its business.
8. To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub section (1) of section 209 of the Companies Act 1956
9. In respect to statutory dues :
i. As explained to us, the Company is not liable to deposit Provident
Fund, Investor Education Fund and Protection Fund, Employees State
Insurance, Wealth Tax, Custom Duty, Excise Duty. The Company is regular
in depositing Income Tax.
ii. According to the information and explanations given to us, there is
no undisputed amounts payable in respect of Income Tax, State's Value
Added Tax, Custom Duty, Excise Duty and cess, which is outstanding as
at the year end for a period of more than six months from the date they
become payable.
iii. According to the information and explanations given to us, there
are no dues on account of Income Tax, Wealth Tax, Custom Duty, Excise
Duty and cess outstanding on account of any dispute. However company
has paid taxes as per order passed u/s 153A and 143(3) of the income
tax act 1961, and the same are disputed and matters are laying the
appeal. Details of the same are as under;
A.Y. Demand Income Tax Paid Matter before
2005-2006 21,427 21,427 Rectification filed u/s 154
2006-2007 2,52,102 2,52,102 Rectification filed u/s 154
2007-2008 4,49,702 4,49,702 Rectification filed u/s 154
2008-2009 42,592 42,592 CIT (A) against order u/s 153A r.w
143(3)
2009-2010 5,839 5,839 Rectification filed u/s 154
10. The Company has no accumulated losses as at 31st March, 2014 and it
has not incurred any cash losses in the financial year ended on that
date and in the immediately preceding financial year.
11. According to the information and explanations given to us, in our
opinion the Company has not defaulted in the repayment of dues to any
financial institutions or bank as at the balance sheet date. The
Company has not issued any debentures.
12. Based on examination of documents and records made available to us
and on the basis of information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit Therefore, the provisions of clause 4 (xiii) of The Order are
not applicable to the|rompany.
14. In our opinion and according to the information and explanations
given to us, the Company has not dealing and trading in shares;
securities, debentures, and other investments.
15. Based on examination and on the basis of information and
explanations given to us, the company has not given any guarantee for
loans taken by others from banks or financial institutions.
16. On the basis of information and explanations given to us, in our
opinion, the company has taken unsecured loan from director and applied
for the purpose for which the loans were obtained.
17. Based on examination of documents and records made available and
on the basis of information and explanations given to us the company
has not used funds raised on short term basis for long term investment
vice versa.
18. During the year, the company has not made preferential allotment
of shares to parties or companies covered in the register maintained
under section 301 of The Act.
19. The company has not issued any debentures during the period.
Hence, reporting on paragraph 4(xix) of the Order pertaining to
creation of security or charge for debentures does not arise.
20. The company has not raised any money through a public issue during
the period: accordingly, paragraph 4(xx) of the Order is not applicable
to the company.
21. Based upon the audit procedures performed and on the basis of
information and explanations given to us by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
For Harish Davani & Co
Chartered Accoutants
FRN NO: 005313C
Place: Kota Partner Mukesh Mishnani
Date: May 30, 2014 Partner
MRN : 409601
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