| We have audited the accompanying financial statements of Sainik Finance
& Industries Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2015, 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
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 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 standalone
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.
Report on Other Legal and Regulatory Requirements
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.
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. 2013
(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) There is no pending litigation which would have its impact on
financial statement of the company.
(ii) The Company has made provision, where ever required as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on the long term contract and company has
not entered in any derivative contracts under audit.
(iii) There are no amounts required to be transfer to the Investor
Education and Protection Fund by the company.
Annexure to the Auditors' Report
THE ANNEXURE REFERRED TO IN OUR REPORT TO THE MEMBERS OF SAINIK FINANCE
& INDUSTRIES LIMITED (THE COMPANY) FOR THE YEAR ENDED 31ST MARCH, 2015.
WE REPORT THAT:
S.No. Particulars Auditors Remark
(i) (a) whether the company is maintaining
proper records showing full Yes
particulars, including quantitative
details and situation of fixed assets;
(b) whether these fixed assets have
been physically verified by the Yes
management at reasonable intervals;
whether any material discrepancies
were noticed on such verification
and if so, whether the same have
been properly dealt with in the books
of account;
(ii) (a) whether physical verification of
inventory has been conducted at Yes
reasonable intervals by the
management;
(b) are the procedures of physical Yes
verification of inventory followed
by the management reasonable and
adequate in relation to the size
of the company and the nature of
its business. If not, the inadequacies
in such procedures should be reported;
(c) whether the company is maintaining
proper records of inventory and Yes
whether any material discrepancies
were noticed on physical verification
and if so, whether the same have been
properly dealt with in the books
of account;
(iii)Whether the company has granted any
loans, secured or unsecured to Yes
companies, firms or other parties
covered in the register maintained under
section 189 of the Companies Act. If so,
(a) whether receipt of the principal
amount and interest are also regular; and Yes
(b) if overdue amount is more than rupees
one lakh, whether reasonable steps Yes
have been taken by the company for
recovery of the principal and interest;
(iv) is there an adequate internal control Yes, there is adequate
system commensurate with the size of internal control system
the company and the nature of its according to the size
business. Whether there is a continuing of company.
failure to correct major weaknesses
in internal control system.
(v) in case the company has accepted No, the company has
deposits, whether the directives not accepted any public
issued by the Reserve Bank of deposit as per directive
India and the provisions of issued by Reserve Bank
sections 73 to 76 or any other of India and other
relevant provisions of the authorities.
Companies Act and the rules
framed there under,
where applicable, have been
complied with" If not, the
nature of contraventions
should be stated; If an 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, whether the
same has been complied with or not"
(vi) where maintenance of cost records The Central
has been specified by the Central Government has not
Government under sub-section (1) prescribed the
of section 148 of the Companies maintenance of cost
Act, whether such accounts records under section
and records have been made and 148(1) of the Act,
maintained; to the Company.
(vii)(a) is the company regular in
depositing undisputed statutory
dues including provident fund, Yes
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
if not, the extent of the arrears
of outstanding statutory dues as
at the last day of the
financial year concerned for a
period of more than six months
from the date they became payable,
shall be indicated by the auditor.
(b) in case dues of income tax or No
sales tax or wealth tax or service
tax or duty of customs or duty
of excise or value added tax or cess
have not been deposited on account
of any dispute, then the amounts
involved and the forum where dispute
is pending shall be mentioned.
(A mere representation to the concerned
Department shall not constitute a dispute).
(c) whether the amount required to No amount is required
be transferred to Investor Education to be transferred to
and Protection Fund in accordance Investor Education and
with the relevant provisions of Protection Fund.
the Companies Act, 1956 (1 of 1956)
and rules made there under has been
transferred to such fund within time.
(viii)whether in case of a company which The Company has no
has been registered for a period accumulated losses as
not less than five years, its at 31st March, 2015
accumulated losses at the end of and it has not incurred
the financial year are not less any cash losses in the
than fifty per cent of its net financial year ended
worth and whether it has incurred on that date or in the
cash losses in such financial year immediately preceding
and in the immediately preceding financial year.
financial year;
(ix) Whether the company has defaulted No, the company does
in repayment of dues to a financial not have any loan from
institution or bank or debenture bank or financial
holders. If yes, the period and institution or debenture
amount of default to be reported; holders.
(x) whether the company has given any No, the Company has
guarantee for loans taken by not provided guarantee
others from bank or financial of any type of loans
institutions, the terms and taken by others.
conditions whereof are prejudicial
to the interest of the company;
(xi) whether term loans were applied The company has not
for the purpose for which the obtained any term loan.
loans were obtained;
(xii)whether any fraud on or by the No material fraud on or
company has been noticed or by the Company has
reported during the year; If been noticed.
yes, the nature and the amount
involved is to be indicated.
For KUMRA BHATIA & CO.
Chartered Accountants
Firm's registration number: 002848N
(P. K. Bhatia)
Place : New Delhi Partner
Dated : 23rd May' 2015 M. No. 81174
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