| 1. We have audited the accompanying standalone financial statements of
"Sybly Industries Limited", which comprise the Balance Sheet as at
March 31, 2015, the Profit and Loss Statement, and 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
2. 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 and presentation of these standalone
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
3. Our responsibility is to express an opinion on these standalone
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.
4. 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.
5. 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 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.
6. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
7. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements subject to the
remark as contained in notes forming part of accounts particularly Note
No.29 regarding non confirmation of balances; previous year
expenditures; & non-disclosure of outstanding of small scale
undertakings and read significant accounting policies and other notes
forming part of the accounts appearing thereon, give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) In the case of the Profit and Loss Account, of the PROFIT for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
8. 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 paragraphs 4 and 5 of the Order,
to the extent applicable.
9. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and 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, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards specified
under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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 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 as referred to in Note
19 to the financial statements;
ii. the Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses; and
iii. there were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE
Annexure to the Independent Auditor's Report to the members of Sybly
Industries Limited on the accounts of the company for the year ended
31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) The assets have been physically verified by the management during
the year according to the 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. The discrepancies noticed on such physical
verification were not material.
(ii) (a) The inventories of the company at all its locations (except
stocks lying with third parties and in transit, confirmation/subsequent
receipts have been obtained in respect of such inventory) have been
physically verified by the management during the year at reasonable
intervals.
(b) 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) The Company is maintaining proper records of Inventory. The
discrepancies between the physical stocks as compared to book records
were not material.
(iii) (a) The Company has not granted any Loans, secured or unsecured
to Companies, Firms or Other Parties covered in the Register maintained
under Section 189 of the Companies Act, 2013 (the Act). Accordingly,
paragraph 3(iii)(b) & (c) of the 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 system commensurate
with the size of the Company and the nature of its business for the
purchases of Inventory, Fixed Assets and for the sale of goods. During
the course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
covered under Section 73 to 76 of the Companies Act, 2013.
(vi) As informed by the management, the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 148 of the Companies Act,
2013 are maintained. We have, however, not made a detailed examination
of the said records with a view to determine whether they are accurate
or complete as the company is getting a cost audit conducted from a
qualified person in this regard and will submit Cost Audit Report to
the Central Government.
(vii) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Investor Education Protection Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
Cess, Value Added Cess and other material statutory dues applicable to
it.
According to the information and explanation given to us, no undisputed
amounts payable in respect of statutory dues including Provident Fund,
Employees State Insurance, Investor Education Protection Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
Cess, Value Added Cess and other material statutory dues applicable to
it, were in arrears, as at 31st March, 2015 for a period of more than
six months from the date they became payable.
(b) According to the information and explanation given to us, there are
no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax,
Excise Duty and Cess, which have not been deposited on account of any
dispute. However, there are certain disputed cases, the details of
which are given below:
Nature of
Statute Nature
of Dues Amount (Rs.) Period to which Forum where
amount relates dispute is
pending
Income Tax Act Demand 39,776/- A.Y. 1998-99 ITAT
Income Tax Act Demand 2,43,034/- A.Y. 2001-02 ITAT
Income Tax Act Demand NIL A.Y. 2012-13 CIT
(viii) The Company has some accumulated losses as at the end of
financial year. The company has not incurred cash losses during the
financial year covered by our audit and 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 a
financial institution, bank or debenture holders.
(x) As we are informed the company has not given guarantees for loans
taken by others from banks or financial institutions.
(xi) In our opinion, the term loans have been applied for the purpose
for which they were obtained
(xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For V. S. Gupta & Co.,
Chartered Accountants,
(Firm Registration No. 00724C)
Sd/-
Place : Meerut (CA Hemant Kumar Gupta)
Dated : : 30th May, 2015 Partner
(Membership No. : 071580) |