| We have audited the accompanying financial statements of Saboo Sodium
Chloro Ltd. ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss, and the Cash Flow
Statement for the year ended on that date, and a summary of the
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 sub-section 5 of Section 134 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 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.
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 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 sub-section 10 of Section 143 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 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 said accounts 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 31st March 2015;
(b) in the case of profit and loss account, of the profit for the year
ended on that date except as appearing in clause 2(g) below; 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 & Regulatory Requirement
1. As required by the Companies (Auditor's Report) Order, 2015 ('the
Order'), issued by the Central Government of India in exercise of
powers conferred by sub-section 11 of section 143 of the Act, we
enclose in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by sub-section 3 of Section 143 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.
(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 March 31, 2015 taken on record by the Board of
Directors, none of the Directors are disqualified as on March 31, 2015
from being appointed as a Director in terms of sub-section 2 of Section
164 of the Act.
(f) The company has not complied with the mandatory AS-15 on Retirement
Benefits (see note 1.9 on accounting policies)
(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:
1. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 34 to the
financial statements;
2. Provision has been made in the financial statements, as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including
derivatives contracts - nil
3. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in our report of even date)
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of two years. In accordance with this programme, a
portion of the fixed assets has been physically verified by the
management during the year and no material discrepancies have been
noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets.
ii. (a) The inventory, except goods-in-transit, has been physically
verified by the management during the year. In respect of inventory
lying with third parties, these have substantially been confirmed by
them. In our opinion, the frequency of such verification is reasonable.
(b) The procedures for the 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) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. The Company has granted unsecured loans to companies, firms or
other parties covered in the register maintained under Section 189 of
the Act. As per information and explanation given by the management,
the loans or advances so granted are on demand and the principal amount
outstanding on 31st March, 2015 was Rs.70705623/- (see note 33 also).
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and sale of goods and
services. In our opinion and according to the information and
explanations given to us, there is no continuing failure to correct
major weakness in internal control system.
v. The Company has not accepted any deposits from the public in
accordance with the provisions of sections 73 to 76 of the Act and the
rules framed there under.
vi. We have broadly reviewed the records maintained by the Company
pursuant to the rules prescribed by the Central Government for
maintenance of cost records under subsection 1 of Section 148 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. However, we have not made a
detailed examination of the records.
vii. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Employees' State Insurance,
Income tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise
duty, Value added tax, Cess, Professional tax and other material
statutory dues have been regularly deposited during the year by the
Company with the appropriate authorities. According to the information
and explanations given to us, no undisputed amounts payable in respect
of Provident Fund, Employees' State Insurance, Income tax, Sales tax,
Wealth tax, Service tax, Customs duty, Excise duty, Value added tax,
Cess, Professional tax and other material statutory dues were in
arrears as at March 31, 2015 for a period of more than six months from
the date they became payable
(b) According to the information and explanations given to us, there
are no material dues of Income tax, Wealth tax, Sales tax, Value added
tax, Service tax, Customs duty, Excise duty and Cess which have not
been deposited with the appropriate authorities on account of any
dispute other than those mentioned in annexure I below:
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company there is no
amount required to be transferred to Investor Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made there under
viii. The Company does not have any accumulated losses at the end of
the year but has incurred cash losses during the year and in the
immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any financial
institution or debentures holders during the year.
x. According to the information and explanations given to us, the terms
and conditions on which the Company has given guarantee for loan taken
by others from bank are not prejudicial to the interest of the Company.
The Company has not given any guarantees for loan taken by others from
financial institutions.
xi. In our opinion and according to the information and explanations
given to us, the Company has raised a term loan of Rs.4.85 crores
against its existing solar plant at Rajgarh. There being no specific
covenant from bank for utilization of term loan in a particular manner
no comment is required to be made on the same.
xii. According to the information and explanations given to us, no
instances of material fraud on or by the Company has been noticed or
reported during the course of our audit.
Annexure I
Name of the
Statute Nature of
dues Amount Amount Period Appeal Status
Demanded Deposited
Income Tax
Act, 1961 Income Tax Nil* Nil AY 08-09 Pending before
Hon'ble ITAT
*Though this year there are no tax implications in this year but in the
subsequent years it may have tax implication to the tune of appx.
Rs.50.00 lacs
Jaipur, May,29th, 2015 For N. Kataria &
Associates
Chartered Accountants
Firm Reg. No.014941C
(Nikhilesh Kataria, FCA)
Proprietor
Membership No.079048 |