We have audited the accompanying standalone financial statements of
Hydro S&S Industries Limited (''the Company''), which comprise the
balance sheet as at 31 March 2015, the statement of profit and loss 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 STANDALONE 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 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.
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.
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, 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 standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31 March 2015 and its losses 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
(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 standalone 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 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
(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 note 25 of the
ii. the Company did not have long-term contracts including derivative
contracts for which there were any material foreseeable losses; and
iii. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT OF EVEN DATE
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
b) These fixed assets have been physically verified by the management
at the end of the financial year which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
ii) (a) As explained to us, inventories held by the Company were
physically verified during the year at reasonable intervals by the
(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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s 189 of the Act.
iv) a) In our opinion and according to the information and explanations
given to us, there exists and adequate internal control systems
commensurate with the size of the Company and nature of its business
with regard to the purchase of inventories and fixed assets and for the
sale of goods and services.
b) In our opinion and according to the information and explanations
given to us, there is no continuing failure to correct major weaknesses
in internal control system of the Company.
v) The Company has not accepted any deposits from the public during the
year to which the directives issued by the Reserve Bank of India and
the provisions of sections 73 to 76 or any other relevant provisions of
the Companies Act and the rules framed there under are applicable.
vi) The maintenance of cost records has not been prescribed by the
Central Government under sub-section 1 of Section 148 of the Companies
vii) According to the records of the Company,
(a) The Company is regular in depositing undisputed statutory dues
including provident fund, employee''s state insurance, income tax, sales
tax, wealth tax, service tax, duty of customs, duty of excise, value
added tax, cess and any other statutory dues applicable to it, with the
appropriate authorities during the year.
(b) there are no dues of income tax or sales tax or wealth tax or
service tax or duty of customs or duty of excise or value added tax or
cess which have not been deposited on account of any dispute except the
following pending in appeals:
(i) Income tax of Rs. 19.47 lakhs before the first appellate authority
(ii) Customs duty of Rs. 26.78 lakhs before the first appellate
(iii) Sales tax of Rs. 56.87 before the first appellate authority and
(iv) Central Excise and Service tax before the first appellate
authority Rs. 14.07 lakhs.
(c) The Company is required to transfer amounts of Rs. 2,61,261 to
investor education and protection fund under the relevant provisions of
the Companies Act, 2013 and the same has been transferred to the said
fund within time.
viii) The Company has accumulated losses at the end of the financial
year i.e. 31.03.2015 which is more than fifty percent of its net worth.
The Company has incurred cash losses in this financial year ended
31.03.2015 and also in the immediately preceding financial year ended
ix) On the basis of records produced, the Company has not defaulted in
repayment of the dues to bank. The Company has not availed borrowing
facilities from financial institutions and debenture holders.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
xi) As per records produced and information and explanations given, the
term loans have been applied for the purpose for which these term loans
xii) On the basis of the audit procedures carried out by us and
information and explanations given by the management, we state that no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For P. SRINIVASAN & Co.,
(Firm Registration No. : 004054S)
Place : Chennai CA. P. SRINIVASAN
Date :28th May 2015 Partner
Membership No. : 02090