We have audited the accompanying financial statements of S R K
INDUSTRIES LIMITED (''The Company'') which comprise the Balance Sheet as
at 31March,2014,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
The Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance 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 have conducted our audit in
accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants Of 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 are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 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 the
Management, as well as evaluating the overall presentation of the
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our 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 the accounting principles generally accepted in
1. In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2014;
2. In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date.
3. 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
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order''), as amended, by the Companies (Auditor''s Report) (Amendment)
Order 2004, issued by the Central Government of India in terms of
Section 227(4A) of the Act, we give in the Annexure a statement on the
matters specified in Paragraphs 4 and 5 of the said Order
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
b. In our opinion, proper books of accounts, as required by law, have
been kept by the Company, so far as appears from our examination of
those books of the Company.
c. The Balance Sheet, Statement of Profit & Loss Account and Cash Flow
Statement dealt with by the report are in agreement with the books of
accounts of the Company.
d. In our opinion, the Balance Sheet, Statement of Profit & Loss
Account and Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Companies Act, 1956.
e. On the basis of written representations received from the directors
of the Company as on 31st March 2014, and taken on record by the Board
of Directors, none of the directors are disqualified as on 31st March
2014, from being appointed as a Director in terms of Section 274(1) (g)
of the Companies Act, 1956.
Annexure referred to in paragraph 1 under the heading Report on other
legal and regulatory requirements of our report of even date
1. a) The Company has maintained proper record showing full
particulars, including quantitative details and situation of its fixed
b) Some of the fixed assets were physically verified by the management
during the year in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable interval. We were informed that no discrepancies
were noticed on such verification.
c) No Substantial Part of Fixed Assets has been disposed during the
2. The Company is not maintaining any inventory. Accordingly, the
provisions of clause 4(ii) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
3. a) According to the information and explanations given to us, the
Company has not granted any unsecured loans to a director and other
parties listed in the register maintained under Section 301 of the
Companies Act, 1956.
b) According to the information and explanations given to us, the
Company has taken unsecured loans from companies the directors and
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. The maximum amount involved and the year-end
balances of such loans aggregates to Rs. 74.53 lacs & Rs 67.63 Lacs,
c) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to the purchase of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
5. a) According to the information and explanations given to us, we
are of the opinion that the register maintained under Section 301 of
the Companies Act, 1956 includes records of all relevant transactions.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lacs in
respect of any party during the year have been at prices which are
reasonable having regard to prevailing market prices at the relevant
6. According to the information and explanations given to us, the
company has not accepted any deposit from the public to which
provisions of Section 58A of the Companies Act 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 apply.
7. The Company did not have a formal internal audit system during the
year under review. However, the Company has explained that its
internal control procedures involve reasonable internal checking which,
in our opinion, is considered adequate under the circumstances.
8. To the best of our knowledge and according to the information given
to us, the maintenance of cost records has not been prescribed by the
Central Government under Section 209(1) (d) of the Companies Act, 1956
is not applicable to the Company.
9. a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees'' state insurance, income
tax, sales tax, wealth tax, customs duty, excise duty, cess and other
material statutory dues applicable to it.
c) According to the information and explanations given to us, there are
no dues of sale tax, income tax, customs duty, wealth tax, excise duty,
and cess, which have not been deposited on account of any dispute.
10. The company does not have any accumulated losses as on 31st March
2014 and has not incurred any cash losses during the financial year and
in the immediately preceding financial year.
11. The Company has not taken any loans from financial institutions
and banks during the year.
12. Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The Company is not a chit fund, nidhi or mutual benefit
14. During the year, the Company does not have any transactions in
respect of dealing and trading in shares, securities, debentures and
other investments. All shares, debentures and other securities held as
investments by the company have been held by the Company in its own
15. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. No term loans have been raised during the year.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
the no funds raised on short-term basis have been used for long-term
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Act. However, the face value of each equity shares of Rs
10/- per share has been split to two equity shares of face value of Rs
5/- each. Necessary compliances in this regard have been obtained.
19. The company has not issued any debentures. Hence, the requirement
of clause (xix) of paragraph 4 of the Order is not applicable to the
20. The Company has not raised any money by public issue during the
21. During the checks carried out by us, any fraud on or by the
Company has not been noticed or reported during the year under report.
VASU & CO.
FRN No. 315042E
Dated : 29.5.2014