Report on the Financial Statement
We have audited the accompanying financial statements of SHRICON
INDUSTRIES LIMITED (''the Company1) which comprise the Balance Sheet as
at 31 March. 2013 and the Statement of Profit and Loss for the year
then ended and a summary of significant accounting policies and other
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements thot give a true and fair view of the financial position,
financial performance and cash flow 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'']. 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audi'' in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants ot 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 ate free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amount and disclosers 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 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 policies used and
the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the financial
we believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for audit 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 1he accounting principles generally accepted in
(i) in the case of the Balance Sheet, of the state of the affairs of I
he Company as at 31 March, 2013:
(ii) in the case of the Statement of Profit and loss, of the loss for
the year ended on that date: and
Report on Other Legal and Regulatory Requirement
1. As required by the Companies (Auditor''s Report) Order. 2003 [Tne
Order'') as amended, issued by the Central Government of India In terms
of sub-secfion (4A) of section 227 of fhe Act. we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
2. As required by section 227|3) ot the Act, we -eport Ihot:
a) we hove ootoined all the information ond .emanations which to the
nest 01 our knowleage end belief were necessary tor the purpose of our
b) in our opinion proper oooks ot account as required by law have been
kept by trie Company so far as appears tram our examination of those
c) the Balance Sheet and Statement of Profit and Loss dealt with by
this Report ore in agreemem with the books of account:
d) in our opinion, the Balance Sheet and Statement of Profit and Loss,
comply with the Accounting Standards referred to In sob- section [3CJ
of Section 211 of the Companies Act,1956; and
e) on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the Directors are disqualified as on 31 March, 2013. from being
appointed as the Director in terms of clause (g) of sub-section 91) of
Section 274 of the Companies Act 1956.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in Paragraph of my report of even date oon the accounts of
Shricon Industries Limited for the year ended March 31 2013.
1. In respect of its Fixed Assets:
a) The company nas maintained prope- records showing full particulars
including Quantitative details and situation ot fixed assets on Ihe
basts of available information.
b) As explained to us. during the period unaer review Ihe Company has
not acquired assets required in the day to day operations of the
c) in pur opinion, the company nas noi disposed oi substantial part of
fixea assets during the year and the going concern status of Ihe
company is not affected.
2. There is no inventory with the Company
3. (a) According to the information and explanations given to us. the
company has not granted loans, unsecured, to trusts, covered in the
register maintained u/s 30) of the companies Act, 1956.
(b) According to the information and explanation given to us. the
company has token unsecured loans from Director Om Prakash Maheshwari
covered in the regisler maintained under section 30 in the Companies
Act, 1956 and In respect of the said loans, the maximum amount
outslancing at any time during the year was Rs. 69.21/- Lakhs and the
year-end balance is Rs. 69.21 Lakhs (including irteresf of Rs. 5.52 Lakhs}.
(c) in out opinion and according to the information and explanation
given to us the rare of interest and other term and conditions of the
loans taken by the Company, pre not prima focie prejudicial to the
interest of the company.
4. In out opinion and according to the information and explanations
given to us. there are adecuate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of feed -assets. During the course of
the audit. we have not Observed any continuing failure to correct
major weaknesses in internal controls
5- (a) According to the Information and explanations given to us. we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in the register maintained under Section 301 of
the Companies Act. 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us. the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 30) of
the Companies Act. 1956 and exceeding the value of Rs. five lakhs in
respect of any party during the year, have been made at prices which
are reasonable having regard to the prevailing market prices at the
6. According fo the information and explanations given to lis, the
Company has not accepted any deposit from the public and hence
reporting compliance under the provisions of section 58A and Section
58AA of the Companies Act, 1956 and rules framed there under and the
directives of the Reserve Bank of India does not arise.
7, The companv has an internal audit system commensurate with its size
and nalure of its business.
8 To the cesf of our knowledge and as explained. tne Central Government
nos not prescribed maintenance of cost records under clause ,cM of sub
section (1) of action 209 of the Companies Act, 1956
i. As explained to us, the Company is not liable to deposit Provident
Fund Investor Education Fund and Protection Fund, Employees State
Insurance, Wealth Tax, Custom Duty, Excise Duty. The Company is regular
in depositing Income Tax. The Company is regular in depositing Income
ii. According to the information and explanations given to us, there
is no undisputed amounts payable in respect of income Tax, State''s
Value Added Tax, Custom Duty, Excise Duty and Cess, which is
outstanding as at the year end for a period of more than six months
from the date they become payable.
iii. According to the information and explanations given to us, there
are no dues on account of income Tax. Wealth Tax, Custom Duty, Excise
Duty and Cess outstanding on account of any dispute. However company
has paid taxes as pr order passed u/s 153A and 143(3) of the income tax
act 1961, and the same are disputed and matters are laying the appeal.
Details of the same are as under:
A.Y. Demand Income Tax Paid Matter before
2005-2006 21,427 21,427 Rectification filed u/s 154
2006-2007 2,52,102 2,52,102 Rectification filed u/s 154
2007-2008 4,49,702 4,49,702 Rectification filed u/s 154
2008-2009 42,592 42,592 CIT (A) against order u/s
153A R,W 143(3)
2009-2010 5,839 5,839 Rectification filed u/s 154
10. The Company has no accumulated losses as at 31st March. 2013 and it
has not incurred any cash losses in the financial year ended on that
date and in the immediately preceding financail year.
11. According to the information and explainations given to us, in our
opinion the Company has no defaulted in the repayment of dues to any
financial institutions or bank as at the balance sheet date. The
Company has not issued any debentures.
12. Based on examination of documents and records made available to us
and on the basis of information and explanations given to us, the
company has not granted any loans and advavces on the basis of security
by way of pledge of shares, debebtures and other securities.
13. 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 Order are not applicable to the company.
14. In our opinion and according fo the information and explanations
given to us, the Company has maintained proper records of transactions
and contract in respect of dealing and trading in shares, debentures,
and other investments and timely entries have been made therin. The
Company in its own m=name has held all shares, debentures and other
15.Based on examination and on the basis of information and
explanations given to *us, the company has given any guarantee for
loans taken by others from banks or financial institutions.
16. On the basis of information and explainations given to us, in our
opinion, the company has taken unsecured loan from that parent company
and applied for the purpose for which the loans were obtained.
17.Based on examination of documents and records maae available and on
the basis of information and explanations given to us the company has
not used funds raised on short term basis for long term investment vice
18.During the year, the company has not made preferential allotment ot
shares lo parties or companies covered in the register maintained under
section 301 of The Act.
19.The company has not issued any debentures during the period. Hence,
reporting on paragraph 4(xix) of the Oraer pertaining to creation of
security or charge for debentures does not arise.
20.The company has no1 raised any money through a public issue during
the period: accordingly, paragraph 4(xx) of the Order is not applicable
to tne company.
21.Based upon the audit procedures performed and on the basis of
Information and explanations given to us by the management, we report
that no fraud on or by the company hos been noticed or reported during
the course of our audit.
For Harish Dayani & Co.
Date: May 28 2013 MRN : 409601