| We have audited the accompanying financial statements of Solid Carbide
Tools Ltd ('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
thereunder.
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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the
effectiveness of such controls. 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.
Basis for qualified opinion:
As explained in note no. 18 the accounts have been prepared on the
going concern basis. The company's business operations have been
discontinued and the losses have exceeded the 50% of the net worth.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the basis for qualified opinion paragraph above, the
aforesaid financial statements gives the information required by the
Act in the manner so required and gives 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
loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by Companies (Auditors Report) Order 2015 issued by
Central Government of India in terms of sub section 11 of section 143
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the order
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) In the absence of the written representations received from the
directors as on 31st March, 2015, we are unable to report whether any of
the director is prima facie 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 has not evaluated the impact of pending litigations on
its financial position in its financial statements.
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 a delay in transferring amount of Rs 81,927 which
is required to be transferred to the Investor Education and Protection
Fund by the Company
Annexure to the Independent Auditor's Report
(Referred to in paragraph 1 under 'Report on other legal and Regulatory
requirements' section of our report of even date)
(i) a. The Company has not maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
b. As informed fixed assets have not been physically verified by the
management during the year, and hence we are unable to comment on the
discrepancies, if any.
(ii) a. Due to suspension of business at the factory, the management
could not conduct physical verification of inventory during the year.
b. The management has not conducted physical verification of
inventory, hence we are unable to comment on the procedure of physical
verification of inventory.
c. Due to suspension of business at the factory, the management could
not conduct physical verification of inventory during the year. Hence,
we are unable to comment on the maintenance of proper records and
discrepancies between physical and book records.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act. Accordingly, the provisions of
clause 3(iii)(a) and (b) of the Order are not applicable to the
Company.
(iv) In our opinion and according to the information and explanations
given to us, 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 observed that during the
year there are no purchase of raw material, stores, purchase of plant &
machinery, equipment & other assets and sale of goods.
(v) The Company has not accepted any deposits during the year within
the meaning of the provisions of sections 73 to 76 or any other
relevant provisions of the Companies Act and the rules framed there
under.
(vi) To the best of our knowledge and as explained, the Central
Government has not specified the maintenance of cost records under
clause 148(1) of the Companies Act, 2013, for the products/services of
the Company.
(vii) a. According to records of the company and as per the information
and explanation given to us, as the Company's manufacturing activity has
remained suspended during the year, the company during the year has not
incurred any liability towards statutory dues including Investors
Education & Protection Fund, Provident Fund, Employee' State Insurance
dues, Wealth Tax, Service Tax, Custom duty, Excise duty, Sales tax,
Cess.
b. In the absence of information and explanation it was not possible
for us to verify, whether there are any dues outstanding of income tax
or sales tax or wealth tax or service tax or duty of customs or duty of
excise or value added tax or cess on account of any dispute.
c. According to the information and explanations given to us, the
amounts pending 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 is Rs 81,927.
(viii) The accumulated losses of the company at the end of the
financial year are more than fifty percent of its net worth. The
company has incurred cash loss during the financial year covered by our
audit. The company has also incurred cash loss in the immediately
preceding financial year.
(ix) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that
company does not have any outstanding dues to banks and financial
institutions. The company does not have any borrowings by way of
debentures.
(x) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xi) The Company has not taken any Term Loans.
(xii) Based on the audit procedures performed and as per the
information and explanation given by the management we report that no
material fraud on or by the Company has been noticed or reported during
the year.
For BATLIBOI & PUROHIT
Chartered Accountants
ICAI Firm Regn. No.101048W
Paresh Chokshi
Partner
Membership No. 033597
Place: Mumbai
Date : 1 September , 2015
| 