| We have audited the accompanying financial statements of SRINIVASA
HATCHERIES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and 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 flows 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 September 13, 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 amounts and 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
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, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control. 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 obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statement 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;
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated September 13, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS' REPORT
Referred to in Paragraph 3 of our Report of even date:
1. a) The company has generally maintained proper records showing
particulars, including quantitative details and situation of fixed
assets;
b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in a phased verification
programme, which, in our opinion, is reasonable, looking to the size of
the Company and the nature of its business. According to the
information and explanations given to us, discrepancies noticed on
physical verification have been properly dealt with in the books of
account;
c) During the year, the Company has not disposed off any substantial
part of its fixed assets so as to affect its going concern.
2. a) As explained to us, inventories have been physically verified
during the year by the management. Inventories lying with outside
parties have been confirmed by them at the close of the year;
b) The procedures explained to us, which are followed by the management
for physical verification of inventories, are, in our opinion,
reasonable and adequate in relation to the size of the Company and the
nature of its business;
c) On the basis of our examination of the inventory records of the
Company, we are of the opinion that, the Company is maintaining proper
records of its inventory. Discrepancies, which were noticed on physical
verification of inventory as compared to book records, have been
properly dealt with in the books of account.
3. (a) The company has granted loan to one party (previous year - two
parties) covered in the register maintained under section 301 of the
Companies Act, 1956. In respect of said loans, the maximum amount
outstanding at any time during the year was Rs. 19.62 crores (previous
year Rs. 20.15 crores) and the yearend balance of loan granted was Rs.
19.62 crores (previous year Rs. 17.61 crores).
(b) In our opinion, the rate of interest and other terms and conditions
on which loan have been granted to parties listed in the register
maintained under section 301 of the Companies Act,1956 are not prima
facie prejudicial to the interest of the company.
(c) The associate firm to which loan has been granted has not been
regular in payment of principal and interest thereon and overdue
balance of principal and interest at the end of the year was Rs. 19.62
Crores (previous year - Rs. 17.61 Crores). The Company has initiated
necessary steps for recovery of the loan.
(d) The company had not taken any loan from companies, firms and other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, reporting under clause 4(iii) (b) (c)
& (d) of aforesaid order are not applicable to the Company.
4. In our opinion and according to the information and explanation
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
sale of goods and services.
5. a) On the basis of the audit procedures performed by us, and
according to the information, explanations and representations given to
us, the particulars of all transactions in which directors were
interested, as contemplated under Section 297 and Section 299 of the
Companies Act, 1956, and which were required to be entered in the
register maintained under Section 301 of the said Act, have been so
entered;
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 in respect of any party during the year, have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Section 58A, 58AA of the Companies Act, 1956 or
any other relevant provisions of the Act and the Rules made there
under.
7. In our opinion, the company has the internal audit system
commensurate with its size and nature of business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records u/s 209 (1) (d) of the Companies Act. 1956
and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained. We have not however made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employee's State Insurance,
Income-tax, Sales-tax, Wealth tax, Service tax, Custom duty, Excise
duty, cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears, as at 31st March 2014 for a period of more than six months
from the date they became payable;
10. The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institution, bank or debenture holders.
12. As per the information and explanation given to us the company has
not granted 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 fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
14. In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are
not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. Based on information and explanations given to us and on an
overall examination of the financial statements of the Company, we are
of the opinion that prima facie short term funds have not been used for
long term purpose.
18. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The company has not issued any debentures and hence the provisions
of clause 4(xix) of the Companies (Auditor's Report) Order, 2003 are
not applicable to the Company.
20. According to the information and explanations given to us, the
Company has not raised money by public issues during the year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no significant fraud on or by the
company, has been noticed or reported by the Company during the year.
For S.DAGA & CO.,
Chartered Accountants,
F.No.000669S
SHANTILAL DAGA
Place : Hyderabad Partner
Date : 27.05.2014 Membership No.11617 | 