| We have audited the accompanying financial statements of Sita Shree
Food Products Limited, which comprise the Balance Sheet as at March 31,
2015, and the Statement of Profit and Loss and Cash Flow Statement for
the year ended, and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of director 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 statements, financial performance and cash flow
of the company in accordance with the accounting principles generally
accepted in India, including the accounting standards specifies in
section 133 of the act, read with rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provisions of the
act for safeguarding the assets of the company and for preventing and
detecting fraud & other irregularities; selection and application of
appropriate accounting policies; making judgment and estimates that are
reasonable and prudent; and design, implementation and maintenance of
internal financial control, that were operating effectively for
ensuring the accuracy and completeness of accounting records, relevant
to the preparation and presentation of 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, 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 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 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 of the
financial statements that give true and fair view 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
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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Profit and Loss Account, of the profit/ loss 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, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereinafter referred to the "Order"), and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, 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 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 section 133 of the Companies Act, 2013, read with rule 7 of the
Companies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of sub-section (2) of section 164 of
the Companies Act, 2013.
f. With respect to the other matters included in the auditor's report
and to best of our information and according to the explanation given
to us.
1) The company has disclosed the impact of pending litigation on its
financial position in its financial statements.
2) The company has made provisions, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
3) There has been no delay in transferring amounts, required to be
transferred, to the investor's education and protection fund by the
company.
1.1. The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
1.2. All the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancies were
noticed on such verification.
2.1. The inventories have been physically verified at reasonable
intervals by the management.
2.2. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
2.3. In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification of
inventory as compared to book records.
3. As informed to us, 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, 2013.
Accordingly, the sub-clauses (a) and (b) are not applicable to the
company.
4. 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, 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.
5. According to the information and explanations given to us, the
Company has not accepted any deposits in terms of directives issued by
Reserve Bank of India and the provisions of Sections 73 to 76 or any
other relevant provisions of the Companies Act, 2013 and the rules
framed there under.
6. We have broadly reviewed the books of account maintained by the
Company pursuant sub-section (1) of Section 148 of the Companies Act,
2013 and are of the opinio n that prima facie, the prescribed accounts
and records have been made and maintained.
7. The company is generally regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise,
Value Added Tax, Cess and any other statutory dues with the appropriate
authorities and we have been informed that there are no arrears of
outstanding statutory dues as at the last day of the financial year
under audit for a period of more than six months from the date they
became payable.
7.2. According to the information and explanations given to us, there
are no material dues of wealth tax, and cess which have not been
deposited with the appropriate authorities on account of any dispute.
However, according to information and explanations given to us, the
following dues of income tax, and entry tax and sales tax have not been
deposited by the Company on account of disputes:
Name of Statute Nature Amount Period to Forum
of Dues (in Rs.) which where
amount dispute is
relates pending
Income Tax
Act, 1961 Income Tax 8,06,93,640/- A.Y. 2012-13 CIT
(Appeals) -
II,Indore
Madhya Pradesh
VAT VAT 11,90,410/- A.Y. 2008-09 M. P.
Commercial
Kshetra
Me Mal Ke Tax Tri-
bunal
Pravesh Par
Kar Adhiniyam, Board,
Bhopal.
1976 & Madhya
Pradesh VAT
Act,2002
7.3. According to the information and explanations given to us, the
Company has transferred the amount of Rs. 6,000.00/- lying in the
Refund Account for the year 2008-09 after expiry of Seven (7) years
from the date of transfer to the Investor Education and Protection
Fund.
8. The Company has no accumulated losses at the end of the financial
year under audit. The company has not incurred cash losses during the
financial year covered by audit and in the immediately preceding
financial year.
9. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank.
10. 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, the terms and conditions whereof are
prejudicial to the interest of the Company.
11. As per our verification of books and records and explanation given
to us the Company has not taken any new Term Loan during the year
except a car loan for purchase of car.
12. Based upon the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year of our audit.
For: M.K.SHAH & ASSOCIATES
CHARTERED ACCOUNTANTS
(Regn.No.002077C)
Date: 30th May 2015 (M.K.SHAH)
PROPRIETOR
M.NO. 400-71199 | 