To,
The members of,
SURYODAYA INVESTMENT & TRADING COMPANY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SURYODAYA INVESTMENT &
TRADING COMPANY LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2017, the Statement of Profit and Loss, Cash Flow Statement 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 matters stated in Section 134(5) of The Companies
Act, 2013 ("the Act") with respect to the preparation and presentation 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 maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting 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 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
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 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. 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
We draw attention to:
1. Note no. 1(iv) of financial statements regarding Gratuity and Leave Encashment being
accounted for on cash basis. The same is not in line with Accounting standard 15
"Employee Benefits" issued by the Institute of Chartered Accountants of India.
The impact thereof on the profit and liabilities of the company is not ascertained.
2. The Company has not recognized and accounted for the Deferred Tax Liability/Asset
(amount not ascertained) in accordance with Accounting Standard 22 "Accounting for
Taxes on Income" issued by the Institute of Chartered Accountants ofIndia.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, except for the effect of the matter described in the Basis for Qualified
Opinion paragraph, 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 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 loss 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 by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of the section 143
of the Act, we give in the Annexure A statement on the matters specified in
paragraphs 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 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 the written representations received from the directors as on 31st
March, 2017 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 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 Annexure B.
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 does not have any pending litigations which would impact its financial
position.
ii. the Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. there are no amounts which are required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. the company did not have any holdings or dealings in Specified Bank Notes during
the period from 8th November, 2016 to 30th December, 2016 - Refer
Note 25.
For KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No. 105049W
(CHIRAG DOSHI)
PARTNER
Membership No.119079
Place: Mumbai
Date: May 30, 2017
Annexure A to the Auditors Report
Annexure A referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of Independent Auditors Report to the members of SURYODAYA
INVESTMENT & TRADING COMPANY LIMITED ("the Company") for the year ended
March 31, 2017. We report that:
1. The Company does not have any fixed assets. Accordingly, paragraph (i) of the Order
are not applicable
2. The activities of the Company and the nature of its business do not involve the use
of inventory. Accordingly, paragraph 3 (ii) of the Order is not applicable.
3. a) The Company has granted loans to various parties covered in the register
maintained under section 189 of the Companies Act, 2013. The maximum amount involved
during the year was Rs. 7,08,17,498/- and the year-end balance of loans granted to such
parties was Rs. 7,08,17,498/-.
b) As per the information and explanation given to us, the loans granted are repayable
on demand and no repayment schedule is stipulated.
c) In view of b) above, there is no overdue amount in respect of the loans given by the
company.
d) The Company has taken unsecured loans from parties covered in the register
maintained under section 189 of the Companies Act, 2013. The maximum amount involved
during the year was Rs. 12,48,800/- and the year end balance of loans granted to such
parties was Rs. 12,48,800.
e) As per the information and explanation given to us, the loans granted are repayable
on demand and no repayment schedule is stipulated.
4. In our opinion and according to the information and explanations given to us, the
Company has, in respect of loans, investments, guarantees, and security provisions,
complied with section 185 and 186 of the Companies Act, 2013.
5. The Company has not accepted any deposits during the year from the public within the
meaning of the provisions of Section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules made thereunder.
6. We are informed that no cost records are required to be maintained by the Company
under Section 148(1) of the Companies Act, 2013.
7. In respect of statutory dues:
(a) According to the information and explanations given to us, the Company has been
generally regular in depositing undisputed statutory dues including Provident Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Value Added Tax, Cess and other material statutory dues wherever applicable,
with the appropriate authorities.
(b) According to the information and explanation given to us, there are no cases of
nondeposit of disputed Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Value Added Tax and Cess with the appropriate authority except in respect of income
tax demand for the Assessment Year 1991-92 and 1997-98 under dispute before ITAT/High
Court amounting to Rs. 45,65,969/- (P.Y. Rs. 45,65,969/-) on account of any dispute.
8. The Company has not borrowed any amounts from banks, financial institutions or by
issue of debentures. Accordingly paragraph 3 (viii) of the Order is not applicable.
9. As per information given to us, no money was raised by way of initial public offer
or further public offer (including debt instruments) nor have any fresh tem loans been
taken by the company during the year. Hence the provisions of clause (ix) are not
applicable to the company.
10. Based upon the audit procedures performed and information and explanations given by
the management, we report that no fraud on the Company or by the Company has been noticed
or reported during the course of our audit.
11. According to the information and explanation given to us and the books of accounts
verified by us, the Managerial remuneration has been paid or provided in accordance with
the requisite approvals mandated by the provisions of section 197 read with schedule V to
the Companies Act.
12. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Therefore, paragraph 3 (xii) of the Order is not
applicable.
13. All transactions with related parties are in compliance with section 177 and 188 of
Companies Act, 2013 and the details have been disclosed in the Financial Statements as
required by the applicable accounting standards.
14. According to the information and explanation given to us and based on our
examination of the records of the Company, the Company during the year has not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures, hence the provision of paragraph 3 (xiv) are not applicable to the company.
15. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him. Therefore, paragraph 3 (xv) of
the Order is not applicable.
16. According to the information and explanations given to us, the Company is not
required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No. 105049W
(CHIRAG DOSHI)
PARTNER
Membership No.119079
Place: Mumbai
Date: May 30, 2017
Annexure B to the Independent Auditors Report
Annexure B referred to in paragraph 2 (f) under the heading of "Report on Other
Legal and Regulatory Requirements" of Independent Auditors Report to the members of SURYODAYA
INVESTMENT & TRADING COMPANY LIMITED ("the Company") for the year ended
March 31, 2017.
We have audited the internal financial controls over financial reporting of SURYODAYA
INVESTMENT & TRADING COMPANY LIMITED ("the Company"), as of March 31,
2017, in conjunction with our audit of the 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 the 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 control system over financial reporting and their operating
effectiveness. Our audit of internal financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk
that 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 judgment, 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 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 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 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 criterial established by the Company considering
the essential components of internal control stated in Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
For KHANDELWAL JAIN & CO.
Chartered Accountants
Firm Registration No. 105049W
(CHIRAG DOSHI)
PARTNER
Membership No.119079
Place: Mumbai
Date: May 30, 2017.
+91-9892691696
