| Report on the Financial Statements
We have audited the accompanying financial statements of SIMRAN FARMS
LIMITED, INDORE (MP.) which comprise 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 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 Section 134(5) of the Companies Act, 2013 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 of 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 Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the 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. 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 financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2015
b) In the case of Profit & Loss Account of the profit for the year
ended on that date
c) In the case of Cash Flow Statement of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor's Report) order, 2015 issued
by the central government of India in terms of subsection (11) of
Section 143 of the Act, we give in the annexure a statement on the
matters specified in the Paragraph 3&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.
(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 accounts.
(d) In our opinion, the 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 and taken on record 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 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 Para 7(b) of
Annexure to the Auditors Report.
ii. The Company did not have any long term contracts including
derivative contracts for which there were any 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.
Annexure to the Auditor's Report
The Annexure referred to in our report to the members of Simran Farms
Limited for the year ended 31st March 2015. We report that:
1. (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Management has physically verified the fixed assets at
reasonable intervals during the year and on the basis of the
explanations given to us, no discrepancies were noticed on such
verification.
2. (a) In our opinion, physical verification of inventories has been
conducted at reasonable interval by the management of the company.
(b) In our opinion, the procedure of physical verification of stocks
followed by the management is 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
inventories and the discrepancies noticed on verification between the
physical stock and book and book records were not significant and the
same have been properly dealt with in the books of accounts.
3. (a) The Company has not granted any loan to any company, firms or
other party covered under section 189 of the Companies Act, 2013.
(b) There was no overdue amount more than one lacs by borrower as there
is no stipulation regarding repayment of Loan Amount.
4. In our opinion and according to the information and explanations
given to us, and on such checks carried out during the course of Audit,
there are adequate internal control procedures commensurate with the
size of the Company and nature of its business, for the purchase of
stores, raw material, including components, plant and machinery,
equipments, other assets, and for the sale of goods. During the course
of our audit, no major weakness has been observed in the internal
controls.
5. The Company has not accepted any deposits from public and hence
this clause is not applicable.
6. The Central Govt. has not prescribed the maintenance of cost
records under Section 148(1) of the Act, for any of the services
rendered by the Company or goods produced or sold by the Company.
7. (a) According to the information and explanations given to us and
the books and records examined by us, the Company has been regular in
depositing undisputed statutory dues including Provident Fund, Sales
Tax and other statutory dues applicable to it with the appropriate
authorities.
(b) According to the information and explanations given to us and as
per records of the Company, the dues of Sales Tax, Income Tax, Wealth
Tax, Service Tax, Excise Duty, Cess which have not been deposited on
account of dispute are as follows:
Name of the Nature of dues Amount
(In Lacs) Forum where
dispute
Statute is pending
Income Tax
Act, 1961 Income Tax Demand 12.21 Madhya Pradesh
High Court
Income Tax
Act, 1961 Income Tax Demand 11.50 Commissioner of
Income Tax
(A.Y. 2010-2011) (Appeals)
(c) According to the information and explanations given to us no such
amounts is there which was required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 and rules there under.
8. The Company has been registered for more than 5 years and has no
accumulated losses at the end of the year, which is 50% of its net
worth. The Company has incurred cash losses in the previous year but
not in the current year.
9. The company had not defaulted in repayment of dues to a financial
institution or bank.
10. The Company has not given any guarantee for loan taken by others
from Banks and Financial Institutions.
11. Based on information and explanations given to us by the
management, term loans taken in earlier years were applied for the
purpose for which the loans were obtained. No new term loan was
obtained during the year.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
Place: Indore For KHANDELWAL KAKANI & Co.
Chartered Accountants
Date: 29.05.2015 FRN: 001311C
CA V.K. KHANDELWAL
PARTNER
M No. 070546 |