| We have audited the accompanying Financial Statements of Satyam Silk
Mills Limited (the "Company") which comprise the Balance Sheet as at
31st March 2014, the Statement of Profit and Loss and the 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 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 Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 (the 'Act') / notified under 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 Sec 133 of the Companies Act, 2013 and Accounting Standard
30, Financial Instruments: Recognition and Measurement issued by the
Institute of Chartered Accountants of India to the extend it does not
contradict any other accounting standard referred to in sub-section
(3C) of section 211 of the Act. 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 misstatements, 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 conducted our audit in
accordance with Standards on Auditing issued by the Institute of
Chartered Accountants of India. These Standards require that we comply
with the ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
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 auditors' judgement, including
assessment of 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 company's internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the 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 aforesaid financial statements give the
information required by 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 Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014.
(b) in the case of the Statement of Profit and Loss, of the profit of
the company for the year ended on that date and
(c) in the case of the Cash Flow Statement, of the cash flows of the
company 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") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we give in
the Annexure a statement on the matters specified in paragraph 4 and 5
of the said Order to the extent applicable to the Company.
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 accounts 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 & Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet and the Statement of Profit &
Loss, Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Act / notified under 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 and
Accounting Standard 30, Financial Instruments: Recognition and
Measurement issued by the Institute of Chartered Accountants of India
to the extent it does not contradict any other accounting standard
referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of the written representations received from the
Directors, as on 31st March, 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 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 The Independent Auditors' Report
(Referred to in Paragraph 1 under "eport on Other Legal & Regulatory
Requirements" section of our report of even date)
In our opinion and according to the information and explanations given
to us and on the basis of relevant records and documents produced for
our verification, we report that:
1. In respect of company's fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(c) None of the fixed asset is disposed off during the year.
2. The Company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firm or other parties covered in the
Register maintained under Section 301 of the Companies Act 1956.
3. There are adequate internal control system commensurate with the
size of the Company and the nature of its business. During the course
of our audit, we have not observed any major weakness in such internal
control system.
4. (a) Transactions which need to be entered into a register maintained
in pursuance of section 301 of the Companies Act, 1956 have been so
entered.
(b) There are no transactions of purchase and sale of goods, materials
and services made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
aggregating during the year to Rupees Five Lacs or more in respect of
each party.
5. The Company has not accepted any deposits from the public during the
year.
6. The Company does not have formal internal audit.
7. In respect of statutory dues :
(a) The company has been regular in depositing undisputed dues in
respect of income tax, sales tax, wealth tax, custom duty, excise duty
and cess and other material statutory dues applicable to it with the
appropriate authorities.
(b) There were no undisputed amounts payable in respect of income tax,
sales tax, wealth tax, custom duty, excise duty and cess and other
material statutory dues in arrears as at March 31, 2014 for a period of
more than six months from the date they became payable.
(c) There are no dues of income tax, sales tax, wealth tax, custom
duty, excise duty and cess, which have not been deposited on account of
any dispute.
8. The Company does not have any accumulated losses. The Company has
not incurred cash losses during the current financial year and in the
immediately preceding financial year.
9. The company has not taken any loan from a bank or financial
institution or borrowed any sum against issue of debentures.
10. The Company has not granted any loans advances on the basis of
security by way of pledge of shares, debentures and other securities.
11. The Company is not a chit fund, nidhi, or a mutual benefit society.
12. In respect of its dealings in shares, securities and other
investments.
(a) The Company has maintained proper records of transactions and
contracts in respect of its dealing in shares, securities, debentures
and other investments.
(b) The aforesaid securities have been held by the Company in its own
name.
13. The Company has not given any guarantee for loans taken by others
from banks and financial institutions during the year.
14. The Company has not availed any term loans during the year.
15. The Company has neither raised any funds during the year nor made
any preferential allotment of shares to parties or companies covered in
the register maintained under section 301 of the Companies Act, 1956.
It has also not issued any debenture or raised any money by public
issues during the year.
16. No fraud by the Company and no material fraud on the Company has
been noticed or reported during the year.
For H.H. Bandukwala & Co.
Chartered Accountants
FRN - 100965W
Mumbai. H.H. Bandukwala
Dated : 29-05-2014 Partner |