Of SOLID CARBIDE TOOLS LIMITED
To The Auditors of;
SOLID TOOLS CARBIDE LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of SOLID CARBIDE TOOLS LIMITED,
("the company"), which comprise the Balance Sheet as at 31 March 2017, the
Statement of Profit and Loss, and a summary of significant accounting policies and other
explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters 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 the maintenance of adequate accounting 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 of
appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of internal financial control, 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 the audit report under the
provisions of the Act and the Rules made thereunder. 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
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 true and fair view in order to design audit procedures that
are appropriate in the circumstances. 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;
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2017;
b) in the case of the Statement of Profit and Loss, of the profit for the year ended on
that date; and
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
as amended, 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" a statement on the matters
specified in paragraphs 3 and 4 of the Order.
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 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 written representations received from the directors as on March 31,
2017 taken on record by the Board of Directors, none of the directors is disqualified as
on March 31, 2017 from being appointed as a director in terms of Section 164 (2) of the
Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in
g. 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 separate annexure of this report.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
FOR KRIPLANI MILANI & CO
Chartered Accountants
Firm Reg. No. 130416W
Sd/-
BHARAT R KRIPLANI
PARTNER
Membership No. 134969
Place: Mumbai
Dated: 29th May, 2017
"Annexure A" to the Independent Auditors Report
Referred to in paragraph 1 under the heading Report on Other Legal & Regulatory
Requirement of our report of even date to the financial statements of the Company for the
year ended March 31, 2017:
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically verified by the
management in a phased periodical manner, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. According to the information
and explanation given to us, no material discrepancies were noticed on such physical
verification.
(ii) In respect of its inventories:
Due to suspension of the business at the factory, the management could not conduct
physical verification of inventory during the year. Hence we are unable to comment on the
procedure of physical verification of inventory.
(iii) According to the information and explanations given to us, the Company has not
granted loans, secured or unsecured, to companies, firms, or other parties covered in the
Register maintained under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the
Company has not granted loans, made investments and provided guarantees and securities the
provisions of Sections 185 and 186 of the Companies Act, 2013. Therefore, the provisions
of Clause (iv) of paragraph 3 of the CARO 2016 are not applicable to the Company.
(v) According to the information and explanations given to us, the Company has not
accepted any deposit from the public. Therefore, the provisions of Clause (v) of paragraph
3 of the CARO 2016 are not applicable to the Company.
(vi) As informed to us, the maintenance of Cost Records has not been specified by the
Central Government under sub-section (1) of Section 148 of the Act, in respect of the
activities carried on by the company.
(vii) In respect of undisputed statutory dues including Provident Fund, Employees
State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess, and other material statutory dues:
a) The company has not deducted the TDS on certain payments made which are liable for
TDS deduction as per the provisions of Income Tax Act. However, the company has made the
provision for TDS, which will be paid in due course.
b) According to the information and explanations given to us, undisputed amounts
payable in respect of TDS Provisions made as explained in point (a) above, were
outstanding as at March 31, 2017 for a period of more than six months from the date of
becoming payable.
c) According to the information and explanation given to us, there are no dues of
income tax, sales tax, service tax, duty of customs, duty of excise, value added tax
outstanding on account of any dispute.
(viii) The Company has taken overdraft facility from bank for which the outstanding
amount is Rs.7,32,830/ - as on 31st March, 2017. It is on-going and the Company
has not defaulted in any payment to the bank.
(ix) According to the information and explanations given by the management, the Company
has not raised any money by way of initial public offer/further public offer/debt
instruments and term loans hence, reporting under clause 3 (ix) is not applicable to the
Company and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and according to the information and explanations
given by the management, we report that no fraud by the Company or no material fraud on
the Company by the officers and employees of the Company has been noticed or reported
during the year.
(xi) According to the information and explanations given by the management, the
managerial remuneration has not been provided. Therefore, the provisions of Clause (xi) of
paragraph 3 of the CARO 2016 are not applicable to the Company.
(xii) . In our opinion, the Company is not a nidhi company. Therefore, the provisions
of clause 3 (xii) of the order are not applicable to the Company and hence not commented
upon.
(xiii) . According to the information and explanations given by the management,
transactions with the related parties are in compliance with Section 177 and 188 of
Companies Act, 2013 where applicable and the details have been disclosed in the notes to
the financial statements, as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures and hence reporting under
clause (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
directors or directors of its holding, subsidiary or associate company or persons
connected with them and hence provisions of Section 192 of the Companies Act, 2013 are not
applicable.
(xvi) In our opinion, the company is not required to be registered under section 45 IA
of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi)
of the Order are not applicable to the Company and hence not commented upon.
FOR KRIPLANI MILANI & CO
Chartered Accountants
Firm Reg. No. 130416W
Sd/-
BHARAT R KRIPLANI
PARTNER
Membership No. 134969
Place: Mumbai
Dated: 29th May, 2017
"Annexure B" to the Independent Auditors Report of even date on the
Standalone Financial Statements of SOLID CARBIDE TOOLS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Solid
Carbide Tools Limited ("the Company") as of March 31, 2017 in conjunction with
our audit of the standalone financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on "the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India." These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2017, based on
"the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India".
FOR KRIPLANI MILANI & CO
Chartered Accountants
Firm Reg. No. 130416W
Sd/-
BHARAT R KRIPLANI
PARTNER
Membership No. 134969
Place: Mumbai
Dated: 29th May, 2017
+91-9892691696
