Report on Financial Statements:
We have audited the accompanying financial statements of SIRISLIMITED,
Hyderabad, which comprise the Balance sheet as at 31st March, 2015, the Statement of
Profit and Loss and Cash flow statements for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements:
The Companys Board of Directors are responsible for the matters stated in Section
134(5) of the Companies Act, 2013 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 Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the company and for preventing
and detecting the 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.
Auditors 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 Companies Act, the accounting and
auditing standards and matters which are required to be included in the audit reportjjnder
the provisions of the Companies 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 Companies 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
auditors judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud of error. In making those risk assessments, the
auditor considers internal financial control relevant to the Companys preparation of
financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not forthe purpose of expressing an opinion
on whether the company has in place an adequate internal financial controls system over
financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Companys 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.
Basis for Qualified Opinion:
I Considering the fire accident in the factory in the month of April 08resulted in
closure of the factory and there is erosion in the value of the machinery basing on the
revaluation by the Lenders Engineer during that year and suspension of operations, we are
unable to express our opinion whether the company canbe considered as"going
concern" onthe date ofthe Balance sheet
II. Note No:33 of notes forming part of accounts, on the concurrence pending from the
respective supply creditors for amounts aggregating to Rs.
49331905,for the credit backs from their accounts duringthe year 2006-07.
III. Note No:42 of notesforming part ofaccounts, regardingconfirmation/ reconciliation
of balances andconsequential adjustment if any therefrom; IV. No Provision for bonus has
been made for the year ended 31st March 2015, thereby , overstatement of profit and
understatement of Liabilities to that extent.
V. Note No. 30 of notes forming part of accounts, regarding non-fulfilment of export
obligation if any and its consequential liability thereon is not ascertainable onthe date
of Balance sheet.
VI. Note No. 31 of notes forming part of accounts, regarding Non-provision of the
estimated liability as at the date of Balance Sheet towards retirement gratuity and
up.-wvSi?9Ci leave salaries and gratuity in respect of some of the employees who had
retired andthe consequential impact thereof on the profit for the year, cannot therefore
be arrived as at 31st March 2015, pending quantification of such liability by the
management.
VII. Note No. 30 of notes forming part of accounts, regarding availability of
information about the parties registered under MSMED Act 2006, and its consequential
liability and interest due thereon to the respective parties are not ascertainable as on
the date of Balance Sheet.
VIII. The company has given interest free unsecured loans to the concerns in whom the
directors/relatives of the directors are interested (Refer Note No.40 of notes forming
part of accounts) thereby contravening the provisions of Section 185 of the Companies Act
2013.
Consequently, we are unable to determine any adjustments to these amounts were
necessary.
Qualified Opinion: In our opinion and to the best of our information and according to
the explanations given to us, the effect of the matters described in the above para on
"Basis for Qualified Opinion", 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 Indiaia.ln the case of the Balance
Sheet, of the state of affairs of the Company as at March 31, 2015;b.ln 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 bythe Companies (Auditors Report) order,2015 issued bythe Central
Government of India in terms of subsection (11) of section 143of the Act we give in the
annexure a statement on the matters specified in paragraphs 3and4.
2) AsrequiredbySection143(3)of the Companies Act,were port that:
a) We have sought and except the matters described in the Basis for Qualified Opinion
paragraph, obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit.
b) Except for the possible effects of the matter described in the Basis for Qualified
Opinion paragraph above, 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 and the Statement of Profit and Loss and the cash flow deal with
by this Report are in agreement with the books of account;
d) Except for the possible effects of the matter described in the Basis for Qualified
Opinion paragraph above, in our opinion, the aforesaid financial statements comply with
the Accounting Standards specified under Section 133 of the Companies Act, read with Rule
7of the Companies (Accounts) Rules, 2014;
e) The matters described in Basis for Qualified Opinion paragraph above, in our
opinion, may have an adverse effect on the functioning of the company.
f) In view of default by the company in repayment of its debentures and interest
thereon, in our opinion the directors of the company are as at 31st March 2009
disqualified in terms of clause (b) of sub section (2) of section 164 of the s. Companies
Act 2013from being appointed as Directors in other Companies as per the Letter
No.17/63/2003 CL V .Government of India , Ministry of Finance , dated 6lhAugust ,2003.
g) The qualification relating to the maintenance of accounts and other matters
connected therewith are as stated in the Basis for Qualified Opinion paragraph above. h)
With respect to the other matters to be included in the Auditors 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. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note 27 of notes forming part of Accounts;
ii. The company has no long term and derivative contracts for which there were no
material foreseeable losses and;
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
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For Brahmayya & Co |
|
Chartered Accountants |
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Firm Regn. No. : 000513S |
| Date: 27th November, 2015 |
|
| Place : Viiayawada |
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ICA:Memb. No.: 200523 |
Annexure to the Independent Auditors Report:
TheAnnexure referredto in Paragraph 1under the heading of "Report on other Legal
andRegulatory Requirements" of our report of even date, to the members of SIRIS
Limited, Hyderabad for the year ended 31 March 2015. We report that: 1.1 The companys
fixed asset register is yet to be updated as at the date of Balance sheet under report.
1.2 The FixedAssets of the company have not been physically verified by the management
during the year under report.
2 The operations of the Company are suspended, and no Inventory is being maintained by
the Company, hence ,the applicability of clause (ii) (a),(b),(c) of the
Companies(Auditors Report Order,2015) does not arise during the year under report.
3.1 The company has granted an amount of Rs.6,60,79,3367- Unsecured interest free loans
to three Companies covered in the register maintained under Section 189 of the Companies
Act 201S.There were no stipulations for recovery of the said loan from the related
parties. We are of theopinion that the loans given to the Companies in which the
relatives of the Director are interested are prima facie prejudicial to the interest of
the company on account of the following reasons: (a) Interest free Loan (b) no covenants
with regard to the repayment of the loan.
4. In our opinion and according to the information and explanations given to us, the
companys internal control procedures with regard to purchases of inventory, fixed assets
and for sale of services ,need to be improved to make them adequate for and commensurate
with the size of the company and the nature of its business. However, we are of the
opinion that there were no major weaknesses in the said system that continued t o remain
without correction.
5. The company has not accepted any deposits from the public during the year under
report in accordance with the provisions of Section 73, 74 & 76 of the Companies Act
2013 and the Rules made thereunder,
6. The Company is not covered by the Rules made by the Central Government for,
maintenance of Cost Records under Section 148 (1) of the Companies Act,2013.
7.1 According to the information and explanations given to us, no undisputed amounts
payable in respect of Provident Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty
of customs, value added tax,cess and other material statutory dues were in arrears as at
31st March 2015for a period of more than six months from the date they became payable
except the following.
| Name of the statute |
Nature of the dues |
Amount Rs. |
Period to which the amount relates from |
Date of Payment |
| Provident Fund Act |
Employers and employees contribution |
39,72,257 |
August 2009 |
NIL |
7.2 According to the information and explanations given to us, there were no amounts of
Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax, Service Tax that have
been deposited on account of any dispute bythe company except the following:
| Name of the statute |
Nature of the dues |
Amount Rs. |
Period to which the amount relates |
Forum where dispute is pending |
| AP Sales Tax Act |
Sales Tax |
1,08,64,796 |
1998-1999 |
S.T.A.T., Hyd |
8. According to the Information and Explanation given to us, the amounts which were
required to be transferred to the Investor Education and Protection Fund in accordance
with relevant provisions of the Companies Act 1956 and rules there under have been
transferred to such fund with in time.
8. The companys accumulated losses has exceeded fifty percent of its net worth on the
date of the Balance sheet under report. The company has not incurred cash loss during the
year under report and it incurred cash loss during the immediate preceding previous year.
9. According to the records of the company examined by us, and the information and
explanations given to us, the company has not obtained any term loans from banks and
financial institutions during the year and there were no such loans outstanding at the
date of Balance sheet. Hence the reporting requirement under clauses (IX)of the order does
not arise during the year.
10. In our opinion, and according to the information and the explanations given to us,
the company has not given any guarantee for loans taken by others from banks or financial
institutions during the year under report.
11. n I our opinion, and according to the information and explanations given to us, the
company has not raised any term loans during the year under report.
12. During the course of our examination of the books and records of the company,
carried out in accordance with the generally accepted audited practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud on or by the company, noticed or reported during the year, nor
have we been informed of any such case by the management.
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For Brahmayya & Co |
|
Chartered Accountants |
|
Firm Regn. No.: 000513S |
| Date : 27th November, 2015 |
|
|
(TV. Ramana) |
| Place : Vijayawada |
Partner |
|
ICAI Memb. No.: 200523 |
+91-9892691696
