sindhu resettlement corporation ltd share price Auditors report

Independent AuditorS Report

To

The Members of

The Sindhu Resettlement Corporation Limited

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of The Sindhu Resettlement Corporation Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, and the Statement of Profit and Loss for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENTS 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 of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 1956 (the Act), read with General Circular 08/2014 dated 4 April 2014 issued by the Ministry of Corporate Affairs. 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.

AUDITORS 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 auditors 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 Companys 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 entitys 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 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, 2014 ; and

(b) in the case of the Statement of Profit and Loss of the profit for the year ended on that date;

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1 As required by the Companies (Auditors Report) Order, 2003 ("the Order") 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 and Statement of Profit and Loss dealt with by this Report are in agreement with the books of account;

d In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards notified under the Act, read with General Circular 8/2014 dated 4 April 2014 issued by the Ministry of Corporate Affairs;

e According to the information and explanations given to us and on the basis of written representations received from the directors, other than Shri A.R. Sengupta, Shri Pankaj G. Thacker, Dy. Secretary, Revenue Department, Govt, of Gujarat, and Dy. Chairman Kandla Port Trust, (All Government Directors) (whose written representations have not been received) and which have been taken on record by the Board of Directors, we report that 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.

Place: Gandhidham	For, Khimji Kunverji & Co. (Gandhidham)
	Chartered Accountants
	(Registration No. 105147W)
Date: 25-08-2014	Padamshi L. Shah
	Partner
	Membership No. 005136

ANNEXURE TO INDEPENDENT AUDITORS REPORT

Referred to in paragraph 1 under the heading of "report on other legal and regulatory requirements" of our report of even date

i) (a) In our opinion the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) All the fixed assets have not been physically verified by the management during the year but there is regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were notified on such verification.

(c) In our opinion and according to the information and explanations given to us, no substantial parts of the fixed assets of the Company have been disposed off during the year.

ii) (a) The inventory has been physically verified during the year by the management. In our opinion the frequency

of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. No material discrepancies have been noticed on physical verification of stocks as compared to book records.

iii) (a) The Company has not granted any loans secured/unsecured to firms or other parties covered in the register

maintained under Section 301 of the Companies Act, 1956. Hence clause 4(iii) (b), (c) and (d) of the order are not applicable to the company.

(b) The Company has not taken any loans secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Hence clause 4(iii) (f) and (g) 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 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 sale of goods. During the course of our audit, no major weakness has been noticed in these internal controls.

v) (a) According to the information and explanations given to us and based on examination of relevant records

including an opinion obtained by the Company from an expert, We are of the opinion that Transactions pertaining to the allotment of three plots to the directors have not been entered in the register maintained under section 301 of the Companies Act, 1956.

(b) According to the information and explanations given to us, as the value of transactions required to be entered in register maintained under section 301 of the Companies Act, 1956 does not exceeds the value of Rs. 5 lakhs in respect to each party, the provisions of Clause (v)(b) of the Order is not applicable to the company.

vi) The Company has not accepted/renewed any deposits from the public in terms of the provisions of section 58A and 58AA or any other relevant provisions of the Act. As informed to us no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India, or any Court or any Tribunal.

vii) In our opinion, the Company has an internal audit system, the scope and coverage whereof needs to be strengthened so as to make it commensurate with the size of the company and the nature of its business.

viii) We have broadly reviewed the books of account maintained by the Company in respect of products where pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under section 209 (1)(d) of the Act, and 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.

ix) (a) The Company is generally regular in depositing with the appropriate authorities undisputed statutory dues

including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Cess and any other material statutory dues applicable to it. As informed, Wealth-Tax, Custom Duty and Excise Duty are not applicable to the Company. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at March, 31st 2014 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, the dues in respect of Sales Tax, Income Tax, Cess and other material statutory dues that have not been deposited with the appropriate authorities on account of dispute and the forum where the disputes are pending are given below:

Name of the Statute	Nature of the dues	Period	Amount (?)	Forum, where dispute is Pending
Gujarat Sales Tax Act, 1969	Sales Tax	01.04.90 to 31.03.91	15,344	Sales tax office Gandhidham
Bombay shop and Establishment Act, 1948	Municipality Tax and Education Cess	01.04.79 to 31.03.81	45,888	District Court Gandhidham
Bombay Land Revenue Code 1879	Recovery of Premium	01.01.96 to 31.12.96	29,500,000	Collector, Bhuj
Bombay Land Revenue Code 1879	Recovery of non - agriculture dues	01.04.96 to 31.03.97	480,000	Collector, Bhuj
Bombay Land Revenue Code 1879	Recovery of Ground Rent	01.04.81 to 31.03.94	10,404,553	Collector, Bhuj
Income Tax 1961	Income Tax (Regular demand)	01.04.10 to 31.03.11	3,410	CIT (A), Mumbai

x) The Company has no accumulated losses at the end of the financial year and it has not incurred any cash losses in the current year and in the immediately preceding financial year.

xi) In our opinion and according to information given to us, The Company has neither taken any loans from a financial institution or banks nor issued any debentures. Accordingly the provision of clause 4(xi) of the Order is not applicable to the Company.

xii) According to the information and explanations given to us, the Company has not granted any loan and advance on the basis of security by way of pledge of shares, debentures and other securities.

xiii) In our opinion the Company is not a Chit fund or a Nidhi/mutual benefit fund/society. Accordingly, the provision of clause 4(xiii) of the Order is not applicable to the Company.

xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Order is not applicable to the Company.

xv) 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 during the year. Accordingly, the provision of clause 4 (xv) of the Order are not applicable to the Company.

xvi) According to the information and explanations given to us the Company has not obtained any term loans. Accordingly, the provision of clause 4(xvi) of the Order is not applicable to the Company.

xvii) In our opinion and according to the information and explanations given to us and on the basis of overall examination of the balance sheet of the Company, no funds raised on a short term basis which have been used for long term investments.

xviii) According to the information and explanations given to us, during the year covered under audit, the Company has not made any preferential allotment of equity shares to parties or Companies covered in the register maintained under section 301 of the Act.

xix) The Company has not issued any debentures. Accordingly, the provision of clause 4(xix) of the Order is not applicable to the Company.

xx) The Company has not raised any money through a public issue during the year. Accordingly, the provision of clause 4(xx) of the Order is not applicable to the Company.

xxi) Based upon the audit procedures performed and information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.

	For And On Behalf Of
	Khimji Kunverji & Co. (Gandhidham)
	Chartered Accountants
	(Firm Registration No.105147W)
Place: Adipur (Kutch)	(Padamshi L. Shah)
	Partner
Date: 25-08-2014	Membership No. 005136