1) We have audited the attached Balance Sheet of Shricon Industries
Limited as at March 31, 2012 and also the Profit & Loss Account of the
Company for the year ending March 31, 2012 annexed thereto. These
financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit. Our audit is conducted based
on the books of account produced before us and information is
explanation given to us during the course of our audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3) As required by the Companies (Auditor''s Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4) Further to our comments in the Annexure referred to above, we report
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
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 such
c) The Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and the Profit & Loss Account
dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956.
Unless stated otherwise in the notes to accounts which form part of
e) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read with the accounting
policies and notes thereon, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012 and
ii) In the case of the Profit and Loss Account, of the Loss of the
Company for the year ended on that date.
iii) In the case of Cash Flow Statement of the cash flow for the year
ending on that date.
5) On the basis of the written representations received from the
Directors as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2012, from being appointed as a Director in terms clause (g)
of sub-section (1) of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in Paragraph of my report of even date on the accounts of
Shricon Industries Limited for the year ended March 31, 2012.
1. In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, during the period under review the Company has
not acquired assets required in the day to day operations of the
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
2. In respect of its inventories:
a) As explained to us, company has a system to physically verify the
inventories at regular intervals, whereas Company does not purchased
any inventory during the year and at the end of the year company does
not possess any inventory.
b) In our opinion and according to the information and explanation
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) The company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the books and
3. (a) The Company does not have any transaction of sales and purchase
from the parties listed in the register maintained under section 301 of
the companies act 1956. The Company has not granted any loans to
Companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods. During the course of our audit no major weakness has been
observed in the internal controls.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
with in the meaning of Section 58A and 58AA of the Companies Act, 1956
and the rules framed there under.
6. The Company has an internal audit system, which in our opinion, is
commensurate with the size and nature of its business.
7. As informed to us, the maintenance of cost records has not been
prescribed by the Central Government u/s 209(1) (d) of the Companies
Act, 1956, in respect of the activities carried on by the Company.
8. a) 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.
b) 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
c) 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 per 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
2009-2010 5,839 5,839 Rectification filed u/s 154
9. The Company has incurred losses during the year under review and
cash loss was incurred during the period under review of this report.
Whereas company has incurred any cash loss in this preceding previous
year as well.
10. According to the information and explanations given to us and the
records examined by us, the Company does not have loans or debenture;
hence question of default in repayment of dues does not arise.
11. The Company has not granted loan or advances on the basis of
security by way of pledge of shares, debenture or other securities.
12. In our opinion and according to the information and explanations
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi/mutual
13. In our opinion, the Company does have investment in shares and
securities of companies, however no such investment were made during
the year, company has maintained proper record showing full particulars
of said investment..
14. According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions.
15. The Company has not obtained any term loan.
16. On the basis of an overall examination of the balance sheet and
cash flows of the Company and the information and explanations given to
us, we report that the Company has not raised any short term funds or
long term funds, therefore question of utilized of any funds raised on
short term basis for long term investments and vice-versa does not
17. The Company has not made any preferential allotment of shares to
parties or companies covered under Section 301 of the Act.
18. The Company has not issued any debentures.
19. The Company has not raised any money through a public issue during
20. Based upon the audit procedures performed and the 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.
For Rahul Singhvi & Associates
Date : May 30, 2012