To the Members
Smilax Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Smilax Industries Limited ("the
Company"), which comprises the Balance Sheet as at March 31,2015, the Statement of
Profit and Loss and the Cash flow statement for the year ended, and a summary of the
significant accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
The companys 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 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 the maintenance of adequate records in accordance with the
provision of the Act for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and application appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of 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 Act, the Accounting and Auditing
standards and matters which are required to be included in 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 sec
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 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 financial control relevant to the Companys preparation of the
financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on whether the company has in place an adequate internal financial control over
financial reporting and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by 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.
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, its Loss and its cash flows for the year ended on the date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies(Auditors Report) Order, 2015 (the Order) issued by the
Central Government of India in terms of sub-section(11) of section 143 of the Act, we give
in the annexure a statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. 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 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, 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 Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement 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 written representations received from the directors as on 31st
March 2015 and 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.
f. With respect to the other matters 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 does not have any pending litigations which would impact its financial
position.
ii. The Company does not have any long term contracts including derivatives contracts
for which there were any material foreseeable losses.
iii. There were no amounts which are required to be transferred to the Investor
Education and protection fund by the company
|
For P.MURALI & Co, |
|
Chartered Accountants |
|
Firm Regn No: 007257S |
| Place: Hyderabad |
|
| Date : 30-05-2015 |
Sd/- |
|
Partner |
Annexure to the Auditors Report (referred to in paragraph 1 of our Report of even date
to the Members of Smilax Industries Limited for the year ended March 31,2015
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that,
(I) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets of the company have been physically verified
by the Management at reasonable intervals and no material discrepancies between the book
records and the physical inventory have been noticed on such verification.
(c) The Company has not disposed off substantial part of the Fixed Assets during the
year.
(ii) (a) The Company has no inventory; hence this clause is not applicable.
(iii) (a) According to the information and explanations given 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. Therefore, requirements of
clauses (iii-b),(iii-c), (iii-d),of paragraph 4 of the order are not applicable.
(e) According to the information and explanations given to us, the company has not
taken any loans secured or unsecured from Companies, Firms or other parties covered in the
register maintained under Section 189 of the Companies Act 2013.
(f) As the Company has not taken any loans, the clause of whether the rate of interest
& other terms and conditions on which loans have been taken from parties listed in the
register maintained under Section 189 is prejudicial to the interest of the Company, is
not applicable.
(g) As no loans are taken by the Company, the clause of repayment of interest &
principal amount to parties is not applicable to the Company.
(iv) In our opinion and according to the information and explanation given to us, there
are adequate internal control systems commensurate with the size of the company and the
nature of its business, with regard to purchase of fixed assets. There is no continuing
failure by the Company to correct any major weaknesses in internal control.
(v) (a) In our opinion and according to the information and explanations given to us,
since no contracts or
arrangements referred to in Section 189 of the Companies Act, 2013, have been made by
the Company in respect of any party in the financial year, the entry in the register U/s
189 of the Companies Act, 2013 does not arise.
(b) According to the information and explanations given to us, as no such contracts or
arrangements made by the Company, the applicability of the Clause of charging the
reasonable price having regard to the prevailing market prices at the relevant time does
not arise.
(vi) The company has not accepted any deposits from the public and hence the
applicability of the clause of directives issued by the Reserve Bank of India and
provisions of Section 73 of the Companies Act and Companies (Acceptance of Deposits)
Rules, 1975, does not arise.
(vii) In our opinion and as per information and explanations given to us, the company
has an internal audit system commensurate with its size and nature of its business.
(viii) We have broadly verified the books of account and records maintained by the
Company pursuant to the order made by the Central Government of India for the maintenance
of cost records 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.
(ix) (a) The company is regular in depositing undisputed statutory dues including
Provident Fund, Investors
Education and Protection Fund, Employee State Insurance, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty and Cess and other applicable statutory dues
with the appropriate authorities during the year. According to information and
explanations given to us there are no arrears of statutory dues as at 31st
March, 2015, which were outstanding for a period of more than 6 months from the date they
became payable.
(b) According to the information and explanation given to us, there are no dues of
income-tax, wealth- tax, sales-tax and cess which have not been deposited on account of
any dispute.
(x) The company has accumulated losses as at the end of the financial year and the
Company has incurred cash losses during the current financial year covered by our audit
and in the immediately preceding financial year.
(xi) According to the records of the Company has not taken any loans from Banks or
Financial Institutions. Hence this clause of repayment of dues to financial Institutions
or Banks or Debenture Holders and default payment therein is not applicable to the
Company.
(xii) According to the information and explanations given to us, the company has not
granted any loans and advances on the basis of security by way pledge of shares,
debentures and other securities and hence the applicability of the clause regarding
maintenance of adequate document in respect of loans does not arise.
(xiii) The company is not a chit fund or nidhi / mutual benefit fund / society.
Therefore, the provisions of clause 4 (xiii) of the said Order are not applicable to the
company.
(xiv) According to the information given to us, the company is not dealing in or
trading in shares, securities, debentures and other instruments, accordingly the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order, 2003, are not
applicable to the Company.
(xv) According to the information and explanations given to us, the company has not
given guarantees for loans taken by others from banks or financial institutions, and hence
the applicability of this clause regarding terms and conditions which are prejudicial to
the interest of the Company does not arise.
(xvi) According to the information and explanations given to us, no term loans were
raised during the year.
(xvii) According to the information and explanation given to us, and on an overall
examination of the balance sheet, we report that no funds raised on short term basis have
been used for long term investment by the company.
(xviii) The company has not made any preferential allotment of shares to parties and
companies covered in the register maintained under Section 189 of the Act during the year
and hence the applicability of the clause regarding the price at which shares have been
issued and whether the same is prejudicial to the interest of the Company does not arise.
(xix) According to the information and explanation given to us, the Company does not
have any debentures and hence the applicability of the clause regarding the creation of
security or charge in respect of debenture issued does not arise.
(xx) According to information and explanation given to us, the Company has not raised
money by way of public issues during the year; hence the clause regarding the disclosure
by the management on the end use of money raised by public issues is not applicable.
(xxi) According to the information and explanation given to us by the management, we
report that no fraud on or by the company has been noticed or reported during the course
of our audit.
|
For P.MURALI & Co, |
|
Chartered Accountants |
|
Firm Regn No: 007257S |
| Place: Hyderabad |
|
| Date : 30-05-2015 |
Sd/- |
|
Partner |
+91-9892691696
