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Auditor Report of Sarthak Industries Ltd.
Mar 31, 2025
We have audited the accompanying financial statements of Sarthak Industries Limited ("the Companyâ), which comprise the balance
sheet as at 31st March 2025 and the statement of Profit and Loss (including other comprehensive income), statement of changes in
equity and statement of cash flows for the year then ended and notes to the financial statements, including a summary of material
accounting policies and other explanatory information.
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 accounting principles generally
accepted in India, of the state of affairs of the company as at 31st March, 2025, and its profit (including other comprehensive income), the
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013.
Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions
of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of
the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
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Key Audit Matters |
Auditor''s Response |
|
Evaluation of uncertain tax positions The Company operates in multiple jurisdictions and is |
Our audit procedures include the following substantive procedures: ⢠Obtained understanding of key uncertain tax positions; and ⢠We along with our internal tax experts - Read and analysed select key correspondences, external Discussed with appropriate senior management and Assessed management''s estimate of the possible outcome |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises
the information included in the Annual Report but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during
the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ)
with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial
performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted
in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules 2015, as amended. 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 frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 statement that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
a. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
b. Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls with reference to financial statement in place and the
operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
d. Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
e. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure A a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
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 purposes 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 except for the matters stated in the paragraph g(vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.
c. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in
Equity and the Statement of Cash Flow 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 Companies (Indian Accounting Standards) Rules 2015, as amended.
e. On the basis of the written representations received from the directors as on 31st March, 2025 taken on record by the Board
of Directors, none of the directors is disqualified as on 31st March, 2025 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 âAnnexure Bâ.
g. With respect to the other matters to be included in the Auditorâs 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
34 to the financial statements;
ii. The Company did not have any long term contract including derivative contract for which there were any material
foreseeable losses.
iii. There has been no amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (A) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned
or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any
other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate
Beneficiariesâ) by or on behalf of the Company or
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(B) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the
Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether
recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate
Beneficiariesâ) by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and
(C) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come
to our notice that has caused us to believe that the representations under sub clause (iv) (A) and (iv) (B) contain any
material mis-statement.
v. The company has not declared or paid dividend during the year hence provision of Section 123 of the Act not applicable.
vi. Based on our examination which included test checks, the company has used an accounting software for maintaining its
books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year
for all relevant transactions recorded in the software except that stock register maintained manually and register for property
plant and equipment maintained in software which has no audit trail feature. Further, during the course of our audit we did
not come across any instance of audit trail feature being tampered with.
As reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail is applicable
from 1st April 2024, As per information and explanation given to us the audit trail of previous year has been preserved by the
company as per the statutory requirements for record retention.
h. With respect to the matter to be included in the Auditorsâ Report under Section 197(16) of the Act. In our opinion and
according to the information and explanations given to us, the remuneration paid by the Company to its directors during the
current year is in accordance with the provisions of Section 197 read with Schedule V to the Act.
For Ashok Khasgiwala& Co. LLP
Chartered Accountants
(Firm Reg. No. 000743C/C400037)
CA Ashok Khasgiwala
Partner
Date: 29th May, 2025 M. No. 070288
Place: Indore UDIN: 25070288BMINZL2784
Mar 31, 2024
Sarthak Industries Limited Report on the Financial Statements
Opinion
We have audited the accompanying financial statements ofSarthak Industries Limited (âthe Companyâ), which comprise the balance sheet as at 31st March 2024 and the statement of Profit and Loss (including other comprehensive income), statement of changes in equity and statement of cash flows for the year then ended and notes to the financial statements, including a summary of material accounting policies and other explanatory information.
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 accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 2024, and its profit (including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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Key Audit Matters |
Auditor''s Response |
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Evaluation of uncertain tax positions The Company operates in multiple jurisdictions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct and indirect tax matters. These involve significant management judgment to determine the possible outcome of the uncertain tax positions, consequently having an impact on related accounting and disclosures in the financial statements. |
Our audit procedures include the following substantive procedures: ⢠Obtained understanding of key uncertain tax positions; and ⢠We along with our internal tax experts - Read and analysed select key correspondences, external legal opinions / consultations by management for key uncertain tax positions; Discussed with appropriate senior management and evaluated management''s underlying key assumptions in estimating the tax provisions; and Assessed management''s estimate of the possible outcome of the disputed cases |
Information Other than the Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Corporate Governance and Shareholder''s Information, but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015, as amended. 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 frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b. Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statement in place and the operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
d. Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
e. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
The comparative financial information of the Company for the year ended 31st March 2023 are based on the financial statements audited by the predecessor auditor whose report for the year ended 31st March, 2023 dated 30.05.2023 expressed a unmodified opinion on those financial statements.
Our opinion on the financial statements above is not modified in respect of these matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure A a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
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 purposes 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 except for the matters stated in the paragraph g(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
c. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flow 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 Companies (Indian Accounting Standards) Rules 2015, as amended.
e. On the basis of the written representations received from the directors as on 31st March, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024 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 âAnnexure Bâ.
g. With respect to the other matters to be included in the Auditorâs 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 34 to the financial statements;
ii. The Company did not have any long term contract including derivative contract for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (A) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Company or
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(B) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and
(C) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (iv) (A) and (iv) (B) contain any material mis-statement.
v. The company has not declared or paid dividend during the year hence provision of Section 123 of the Act not applicable.
vi. Based on our examination which included test checks, the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwareexcept that stock register maintained manually and Register for property plant and equipment maintained in excel sheet and has no audit trail. Further, during the course of our audit we did As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1,2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31,2024.
h. With respect to the matter to be included in the Auditorsâ Report under Section 197(16) of the Act, In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 read with Schedule V to the Act.
For Ashok Khasgiwala& Co. LLP Chartered Accountants
(Firm Reg. No. 000743C/C400037)
CA Ashok Khasgiwala Partner
Date: 29th May, 2024 M. No. 070288
Place: Indore
UDIN: 24070288BKILMN7736
Mar 31, 2015
We have audited the accompanying financial statements of Sarthak
Industries Limited ("The Company") which comprises the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's 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 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 judgment 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.
Auditor's 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 standard and matters which are required to be included in
the 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 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 auditor's 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 Company's
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
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 Company's 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 accounting principles generally
accepted in India, of the state of affairs of the Company as at 31st
March, 2015, and its profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's 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
purposes 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
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 and with the returns received from the branches not
visited by us.
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 2015 taken on records 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 to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to be 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 statement - refer note 27
contingent liabilities and commitments to the financial statement;
ii. The Company did not have any long term contract including
derivative contract for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date to the
members of Sarthak Industries Limited on the financial statements for
the year ended March 31, 2015.
i. In respect of its Fixed Assets :
a. The Company is maintaining 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 during the year, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of its assets. No material discrepancies between the book
records and the physical inventory have been noticed. In our opinion,
the frequency of verification is reasonable.
ii. In respect of its Inventories:
a. The inventories has been physically verified during the year by the
Management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, 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. On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii. According to the information and explanations given to us, the
Company has not granted any loan secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act, 2013. Hence the provisions of para 3 clauses
iii (a) and iii (b) of the said 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 systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have not observed any continuing failure
to correct major weakness in internal control system in respect of
these areas.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits within the meaning
of section 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules, framed there under. Hence the provisions of
para 3 clause (v) of the Order is not applicable to the company for the
year under audit.
vi. We have broadly reviewed the cost records maintained by the
Company pursuant to the rules made by the Central Government under
sub-section (1) of Section 148 of the Companies Act, 2013 and are of
the opinion that prima facie the prescribed records have been
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
vii. In respect of Statutory dues :
a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion the Company is
generally regular in depositing undisputed statutory dues including
provident fund, employee's state insurance, income tax, sales tax,
service tax, wealth tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate
authorities. There were no undisputed statutory dues in arrears, as at
31st March, 2015 for a period of more than six months from the date
they became payable except professional tax of Rs. 15440.
b) According to the information and explanations given to us, there are
no dues of sales tax, value added tax, income tax, service tax, duties
of customs, wealth tax, duties of excise have not been deposited with
appropriate authorities on account of any dispute except detailed as
under :
Name of the Nature of Amount Period to
Statute Dues Involved which
Rs. amount
relates
Cental Sales Tax Sales Tax 729731 2009-10 &
Act, 1956 2010-11
Bombay Sales Tax Sales Tax 9231996 2001-02
Act, 1959
Bombay Sales Tax Sales Tax 18631908 2002-03
Act, 1959
Competition MRT 38974489 2007-08 to
Commission of Practice 09-10
India
M.P. Vat Act, 2002 Sales Tax 313051 2011-12
Name of the Forum where dispute is pending
Statute
Cental Sales Tax MP Commercial Tax Appellate Board
Act, 1956
Bombay Sales Tax Maharastra Sales Tax Tribunal Mumbai.
Act, 1959
Bombay Sales Tax Maharastra Sales Tax Tribunal Mumbai.
Act, 1959
Competition Competition Appellate Tribunal, New
Commission of Delhi
India
M.P. Vat Act, 2002 Dy. Comm. of Comm. Tax (Appeals)
c) There has been no delay in transferring amounts, as required to be
transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 1956 (1 of 1956) and rules made there under.
viii. The Company have accumulated losses of Rs. 40955462 as at 31st
March 2015. It has not incurred cash losses during the financial year
under audit, however it had incurred cash losses in the immediately
preceding financial year.
ix. According to the records of the company examined by us and as per
the information and explanations given to us, the Company has not
defaulted in repayment of dues to a Financial Institutions or Banks or
debenture holders as at 31st March, 2015.
x. The Company has given guarantee for loans taken by Others from
Bank. In our opinion and according to the information and explanations
given to us the terms and condition of the guarantee given are not
prima facie prejudicial to the interest of the company.
xi. In our opinion and according to the information and explanations
given to us, the company has not obtained any term loan during the
year.
xii. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing 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 such case by the management.
For ASHOK KHASGIWALA & CO.,
CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CA Avinash Baxi
Place : Indore Partner
Date : 30th May, 2015 M.No. 79722
Mar 31, 2014
We have audited the accompanying financial statements of Sarthak
Industries Limited ("The Company") which comprise the Balance Sheet as
at 31st March, 2014 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s 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 and the cash flows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 (''the Act'') read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013.
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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with 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 depends on the auditor''s 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 company''s 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 entity''s
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 accompanying financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with accounting principles generally
accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
ii. in the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2003 (as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, 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 purposes 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the returns received from the branches not visited by
us;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting standards referred
to in Section 211 (3C) of the Companies Act, 1956 read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors,
as on 31st March, 2014 and taken on record by the Board of Directors
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.
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. 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. The fixed assets have been physically verified by the management
during the year and there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its fixed assets. No material discrepancies were
noticed on such verification.
c. During the year, the Company has not disposed off a substantial part
of fixed assets and we are of the opinion that the going concern status
of the company is not affected.
ii. In respect of its Inventories:
a. The Inventories have been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
b. In our opinion, 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. In our opinion, the Company is maintaining proper records of
inventory. As explained to us, there were no material discrepancies
noticed on physical verification of inventories as compared to the book
records.
iii.
a. According to the information and explanations given to us, and in
our opinion the Company has not granted any loan secured or unsecured
to company, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Hence the provisions of
clauses iii(b), iii (c) and iii(d) of the said Order are not applicable
to the company.
b. According to the information and explanations given to us, and in
our opinion the Company has not taken any loan secured or unsecured
from company, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Hence the provisions of
clauses iii(f) and iii(g) of the said Order are not applicable to the
company.
iv. In our opinion and according to the information and explanations
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 purchases of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system in respect of these areas.
v.
a. According to the information and explanations given to us, we are of
the opinion that the company has no contracts or arrangements that need
to be entered into the register maintained under section 301 of the
Companies Act, 1956.
b. In our opinion provisions of clause (V) (b) of paragraph 4 of the
Companies (Auditor''s Report) Order, 2003, is not applicable to the
Company.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from public to
which the provisions of section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under Section 209 (1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee''s state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other statutory dues applicable to it. There were no arrears, as at
31st March, 2014 for a period of more than six months from the date
they became payable.
b) In our opinion and according the information and explanation given
to us, the statutory dues of income tax, sales tax, service tax,
customs duty, excise duty and cess which have not been deposited with
appropriate authorities on account of any disputes are as under :
Name of the Nature of Amount Period to
Statute Dues Involved which
Rs. amount relates
Bombay Sales Tax Sales Tax 998913 1998-99
Act, 1959
Bombay Sales Tax Sales Tax 9231996 2001-02
Act, 1959
Bombay Sales Tax Sales Tax 18631908 2002-03
Act, 1959
Competition MRT 38974489 2007-08 to
Commission of Preactice 09-10
India
Central Sales Tax Sales Tax 204859 2009-10
Act, 1956
Central Sales Tax Sales Tax 524872 2010-11
Act, 1956
Name of the Statute Forum where dispute is pending
Bombay Sales Tax Act, 1959 Maharastra Sales Tax Tribunal Mumbai.
Bombay Sales Tax Act, 1959 Asst. Commissioner of Sales Tax
Bombay Sales Tax Act, 1959 Dy.Commissioner of Sales Tax (Appeal)
Competition Commission of Competition Appellate Tribunal, New Delhi
India
Central Sales Tax Act, 1956 MP Commercial Tax, Appellate Board
Central Sales Tax Act, 1956 Deputy Commissioner of Sales Tax (Appeal)
x. The company have accumulated losses of Rs. 41168516 as at 31st March
2014. The company has incurred cash losses during the year under audit,
however not incurred any cash loss in the immediately preceding
financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank. The company has not issued any
debenture.
xii. In our opinion and 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 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. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
xv. The Company has given guarantee for loans taken by Others from
Bank. In our opinion and according to the information and explanations
given to us the terms and condition of the guarantee given are not
prima facie prejudicial to the interest of the company.
xvi. The company has not raised any term loan during the year under
audit.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that no funds raised on short term basis have been utilised
for long term purposes.
xviii. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act during the year.
xix. The Company has not issued any debenture.
xx. The Company has not raised money by public issues during the year.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
Place : Indore For ASHOK KHASGIWALA & CO.,
Date : 30th May 2014 Chartered Accountants
(Firm Reg. No. 0743C)
CA Avinash Baxi
Partner
M. No. 79722
Mar 31, 2013
Report on the Financier Statements
Vve have audited the accompanying financial statement of Sarthak
Industries Limited ("The Company")which comprise the Balance Sheet as
at 31st March, 2013 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other'' explanatory Information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a hue and fair view of foe financial position,
financial performance and the cash flows of the Company in accordance
wfth the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 {/the Act*). 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit We conducted our audit in accordance with
Standards on Auditing issued by the Institute of Chartered Accountants
of India. Those standards require that wd 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 depends on the auditor''s 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 company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting poHcles. used and
the reasonableness cf the accounting estimates made by management, as
weS .tji evaluating the overall presentation of the financial
statements. -
We believe that the audit evidence we hav» 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 accounting principles generally accepted in
India:
i, in the case of the Balance Sheet, of the sta.e of affairs of the
Company as at 31" March, 2013;
it'', in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date."
Report on Other Legal a''nd Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2003 (as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, 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 purposes 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the returns received from the branches not visited by
us;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash flow Statement comply with the Accounting standards referred to in
Section 211 (3C) of the Companies Act, 1956;
e) On the basis of written representations received from the directors,
as on 31a March, 2013 and taken on record by the Board of Directors
none of the directors is disqualified as on 31sl March, 2013 from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956.
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. 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. The fixed assets have been physicaUy verified by the management
during the year and there ts a regular program of verification which,
in our opinion, is reasonable having regard* to the size of the Company
and the nature of its fixed assets. No material discrepancies were
noticed on such verification.
c. During the year, the Company has not disposed off a substantial part
of fixed assets. and we are of the opinion that the going concern
status of the company is not affected.
it In respect of its Inventories:
a. The Inventories have been physically verified by the management. In
our opinion the frequency of verification Is reasonable.
b. In our opinion, 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. In our opinion, the Company is maintaining proper records of
inventory. As explained U. us, there were no material discrepancies
noticed on physical verification of Inventories as compared to the book
records.
Hi.
a. According to the information and explanations given to us, and in
our opinion the Company has not granted any loan secured or unsecured
to company, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1958. Hence the provisions of
clauses 11(b), iii (c) and iii(d) of the Order are not applicable to
the company.
b. According to the information and explanations given to us, and in
our opinion the Company has taken loan from one company covered in the
register maintained under section 301 of the Companies act, 1956. The
maximum amount Involved during the year under audit was Rs. 82644651
and as at the end of the year was Nil.
c. In our opinion and according to the information and explanations
given to us. the rate of interest and other terms and conditions are
not prima facte prejudicial to the interest of the Company,
d. In respect of these loans, there is no stipulation as to the
payment of principal amount and interest. Hence, we have not commented
on whether the payment of principal amount and interest are regular:
h/.. In our opinion and according to the information and explanations
given to us, ihere we adequate internal control systems'' commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During th& course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system in respect of these areas.
V.
a, According to the information and explanations given to us, we are of
the opinion that the company has no contracts or arrangements that need
to be entered into the register maintained under section 301 of the
Companies Act, 1956.
b. In our opinion provisions of clause (V) (b) of paragraph 4 of the
Companies (Auditor''s Report) Order, 2003, is not applicable to the
Company.
vi. In our opinion and according to the information and explanations
given to us. Jhe Company has not accepted any deposits from public to
which the provisions of section 58A. 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply.
vii. In our opinion, the Company has an Internal audit system
commensurate with .the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under Section 209 (1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee''s state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other statutory dues applicable to It. There were no arrears, as at
31 * March, 2013 for a period of more than six months from the date
they became payable.
b) In our opinion and according the information and explanation given
to us, the statutory dues which have not been deposited with
appropriate authorities on account of any disputes are as under:
Name of the Nature of Amount Period to Forum where dispute Is
pending
Statute Dues Involved which
Rs. amount
relates
Bombay Sales
Tax Sales Tax 998913 1998-99 Maharastra Sales Tax
Tribunal Mumbai.
Act, 1959
Bombay Sales
Tax Sales Tax 9231996 2001-02 Asst. Commissioner of
Sales Tax
Act, 1959
Bombay Sales
Tax Sales Tax 18631908 2002-03 Dy.CommlssJoner of
Sales Tax (Appeal)
Act, 1959
Competition MRT 38974489 2007-08
to Competition Appellate
Tribunal, New
Commission of Preactice 09-10 Delhi
India
x. The company does not have accumulated losses as at 31rt March 2013.
The company has not Incurred cash losses during the year under audit
and in the immediately preceding financial year.
xi. in our opinion and according to the information and explanations
given to us, the Company iras not defaulted in repayment of dues to any
financial institution or back. The company has not issued any
debenture.
xii. In our opinion and 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 of pledge of shares, debentures and other
securities. *
xia. In our opinion, the Company is not a chit fund or a nidht /mutual
benefit fund/society. Therefore, the provisions of clause 4 (xii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xiv. tn our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
xv. The Company has given guarantee for loans taken by Others from
Bank. In our opinion and according to the information and explanations
given to us the terms end condition of tf» guarantee given are not
prima facie prejudicial to the Interest of the company.
xvL The company has not raised any term loan during the year under
audit
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that no funds raised on short term baste have been utilised
for long term purposes.
xvffi. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
Companies covered Jn the register maintained under section 301 of the
Act during the year.
xfec The Company has not issued any debenture.
xx. The Company has not raised money by public issues during the year.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices fe» India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management
Place: indore For ASHOK KHASGIWALA & CO.;
Date: 30th May,2013 Chartered Accountants.
CA Avinash Baxi
Partner
M.No. 079722
Mar 31, 2012
1. We have audited the attached Balance Sheet of SARTHAK INDUSTRIES
LIMITED ,as at 31st March, 2012, the Statement of Profit & Loss and
also the cash flow statement for the nine months period ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order 2003(as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, we enclose in
the annexure a statement on the matters specified in paragraph 4 and 5
of the said Order.
4. Further to our comments in the Annexure referred to above, 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 accounts as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us ;
c) The Balance Sheet, the Statement of Profit & Loss and 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 & Loss
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in section 211(3C) of the Companies
act, 1956.
e) On the basis of written representation received from the
director's as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub- section (1) Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, said accounts, read with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
accounting principles generally accepted in India ;
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) in the case of the Statement of Profit & Loss, of the Profit for
the nine months period ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
nine months period ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date
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. The Fixed Assets have been physically verified by the management
during the period under audit and there is a regular program of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its fixed assets. As informed, no
discrepancies were noticed on such verification.
c. During the period , the company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
II) In respect of Inventories:
a. The management has conducted physical verification of inventory at
reasonable intervals during the period under audit.
b. The procedures of physical verification of inventory 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. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
III) (a) According to information and explanation given to us, the
Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties covered in the register maintained
under section 301 of the Act., hence provisions of the clauses (iii)
(b), (c) and (d) of the Order, are not applicable.
(b) According to information and explanation given to us, the company
has taken loan from one company covered in the register maintained
under section 301 of the Companies act, 1956. The maximum amount
involved during the period under audit and the period end balance of
loan taken from such party was Rs. 8,26,44,651.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima facie prejudicial to the interest of the Company.
(d) In respect of these loans, there is no stipulation as to the
payment of principal amount and interest. Hence, we have not commented
on whether the payment of principal amount and interest are regular.
IV) In our opinion and according to the information and explanations
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 purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system in respect of these areas.
V) a. According to the information and explanations given to us, we are
of the opinion that the company has no contracts or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956.
b. In our opinion provisions of clause (V) (b) of paragraph 4 of the
Companies ( Auditor's Report) Order, 2003, is not applicable to the
Company.
VI) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from public to
which the provisions of section 5 8 A, 58AA or any other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules,
1975 apply.
VII) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII) We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the Companies (Cost Accounting
Records) Rules 2011 prescribed by the Central Government under Section
209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima
facie the prescribed cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
IX) (a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employee's state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues as applicable to it. There
were no arrears as at 31st March, 2012 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us,
particulars of dues of sales tax, income tax, customs duty, wealth tax,
service tax, excise duty and cess which have not been deposited with
appropriate authorities on account of any disputes pending , are as
under :
Name of the
statute Nature of the Period of
which Amount in Forum where dispute
disputed dues the amount Rupees in pending
Relates
Bombay Sales
Tax Act, 1959 Sales tax 1998-99 998913 Maharastra Sales
Tax Tribunal
Mumbai.
Bombay Sales
Tax Act, 1959 Sales tax 2001-02 9231996 Asst. Commissioner
of Sales Tax
Bombay Sales
Tax Act, 1959 Sales tax 2002-03 18631908 Dy.Commissioner
of Sales Tax
(Appeal)
Competition
Commission
of India MRT Preactice 2007-08
to 09- 38974489 Competition
Appellate
Tribunal,
10 New Delhi
X) The company has no accumulated losses as at 31st March, 2012 and it
has not incurred any cash losses during the period covered by our audit
and the immediately preceding financial year.
XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank or financial institution. The company has not issue any
debentures.
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 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. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to
the company.
XIV) In our opinion and according to information and explanation given
to us, the Company has no dealing in or trading in shares, debentures
and other securities. investments. Therefore, the provisions of clause
4 (xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
XV) According to the information and explanations given to us, and the
representations made by the management, the company has not given any
guarantee for loan taken by others from any bank or financial
Institution.
XVI) The company has not raised any term loans during the period under
audit.
XVII) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
XVIII) The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956 during the period covered by our audit.
XIX) According to the information and explanations given to us, the
company has not issued any debenture.
XX) The company has not raised any money by public issues during the
period under audit.
XXI) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and accordingly to the information
and explanations given to us, we have not come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.
Chartered Accountants
(Firm Reg. No. 0743C)
CA Avinash Baxi
Place : Indore Partner
Dated : 4th September,2012 M. No.79722
Mar 31, 2010
1. We have audited the attached Balance Sheet of SARTHAK INDUSTRIES
LIMITED ,as at 31st March, 2010, the Profit & Loss Account and also the
cash flow statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003(as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, we enclose in
the annexure a statement on the matters specified in paragraph 4 and 5
of the said Order.
4. Further to our comments in the Annexure referred to above, 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 accounts as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us ;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in section 211(3C) of the Companies act, 1956.
e) On the basis of written representation received from the directors
as on 31st March,2010 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of sub-
section (1) Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, said accounts subject to note no. 17 of
the schedule O for non filing of form no. 5 for increase in authorized
capital and corresponding non provision of registration fees Rs. 100000
and Stamp duty Rs. 40000 which has resulted in increase in profit and
current assets by equal amount, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with accounting principles generally accepted in
India ;
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; ii) in the case of the Profit and Loss
Account, of the Profit for the year ended on that date; and iii) in the
case of the Cash Flow Statement, of the cash flows for the year ended
on that date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 3 of our report of even date
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. The Fixed Assets have been physically verified by the management
during the year and there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its fixed assets. As informed, no discrepancies were
noticed on such verification.
c. During the year, the company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
II) In respect of Inventories:
a. The management has conducted physical verification of inventory at
reasonable intervals during the year.
b. The procedures of physical verification of inventory 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. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
III) (a) According to information and explanation given to us, the
Company has not granted any loans, secured or unsecured, to the
companies, firms or other parties covered in the register maintained
under section 301 of the Act., hence provisions of the clauses (iii)
(b), (c) and (d) of the Order, are not applicable.
(b) According to information and explanation given to us, the company
has not taken loan secured or unsecured, from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies act, 1956. Hence provisions of the clauses (iii)(f) and
(iii)(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 are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system in respect of these areas.
V) a. According to the information and explanations given to us, we are
of the opinion that the company has no contracts or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956.
b. In our opinion provisions of clause (V) (b) of paragraph 4 of the
Companies ( Auditors Report) Order, 2003, is not applicable to the
Company.
VI) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from public to
which the provisions of section 58A, 58AA or any other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules,
1975 apply.
VII) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII) We are informed that the Central Government has not prescribed
the maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956, for the year under review, accordingly the
provisions of clause 4(viii) of the Companies (Auditors Report )
Order, 2003, is not applicable.
IX) (a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues as applicable to it. There
were no arrears as at 31st March, 2010 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us,
particulars of dues of sales tax, income tax, customs duty, wealth tax,
service tax, excise duty and cess which have not been deposited with
appropriate authorities on account of any disputes pending , are as
under :
Name of the statute Nature of the Period of which
disputed dues the amount
relates
Bombay Sales Tax Act, 1959 Sales tax 1998-99
Bombay Sales Tax Act, 1959 Sales tax 2001-02
Bombay Sales Tax Act, 1959 Sales tax 2002-03
Name of the Statue Amount in Forum where dispute
Rupees in pending
Bombay Sales Tax Act, 1959 998913 Maharastra Sales Tax Tribunal
Mumbai.
Bombay Sales Tax Act, 1959 9231996 Asst. Commissioner of Sales Tax
Bombay Sales Tax Act, 1959 18631908 Dy.Commissioner of Sales Tax
(Appeal)
X) The company has no accumulated losses as at 31st March , 2010 and it
has not incurred any cash losses during the financial year covered by
our audit and the immediately preceding financial year.
XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank . The company has not issue any debentures.
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 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. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
XIV) In our opinion and according to information and explanation given
to us, the Company has no dealing in or trading in shares, debentures
and other securities. investments. Therefore, 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, and the
representations made by the management, the company has given guarantee
for loan taken by others from bank. However the terms and conditions
whereof are not prejudicial to the interest of the company.
XVI) The company has not raised any term loans during the year under
audit.
XVII) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
XVIII) The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
XIX) According to the information and explanations given to us, the
company has not issued any debenture.
XX) The company has not raised any money by public issues during the
year.
XXI) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, and accordingly to the
information and explanations given to us, we have not come across any
instance of material fraud on or by the Company, noticed or reported
during the year, nor have we been informed of such case by the
management.
For ASHOK KHASGIWALA & CO.
Chartered Accountants
(firm reg. no. 0743C)
CA Avinash Baxi
Place : Indore Partner
Dated : 4th September, 2010 M. No.79722
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