We have audited the attached Balance sheet of S.R.K.INDUSTRIES LIMITED
as on 31.03.2012 and the Profit and Loss account for the year ended on
that date annexed there to and Cash Flow Statement for the year ended
on that date. These Financial Statements are the responsibility of the
Company''s Management. My responsibility is to express opinions on
these financial statements based on my audit.
1. I conducted my audit in accordance with Auditing Standards
generally accepted in India. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and Disclosure in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement
presentation. I believe that my audit provides a reasonable basis for
2. As required by the Companies (Auditor''s Report) Order 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act,1956. I enclose in the annexure hereto
a statement on the matters specified in paragraphs 4 and 5 of the said
3. Further to my comments in the Annexure referred to in paragraph 2
I report that:
a) I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purposes of my
b) In my opinion, proper books of account, as required by law, have
been kept by the Company, so far as appears from my examination of
c) The Balance sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In my opinion the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in sub-section (3C) of section 211 of the
Companies Act, 1956.
e) In my opinion, and based on information and explanations given to
me, none of the directors are disqualified as on 31s,March 2012 from
being appointed as directors in terms of clause (g)of sub-section (1)
of section 274 of the Companies Act 1956.
f) In my opinion and to the best of my information and according to the
explanations given to me, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India.
i) in so far as it relates to Balance Sheet, of the state of affairs of
the Company as at 31stMarch 2012
ii) in so far as it relates to the Profit and Loss Account, of the
''Profit'' of the Company for the year ended on that date, and
iii) in so far as it relates to the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
Referred to in Paragraph 2 of my report of even date
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 me, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in my opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In my opinion, the Company has disposed of its fixed assets during
the year, The Company''s going concern concept was not affected after
2 In respect of its inventories:
a. As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
b. In my opinion and according to the information and explanations
given to me, the procedures of physical verification of inventories
followed by the management at 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 me, there was no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3 In respect of loans, secured or unsecured, granted or taken by the
Company to / from Companies, or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956
a. The Company has not granted any loans to other companies during the
b. Since the Company has not granted loans to other Companies, the
question of Prima facie prejudicial rate of interest, repayment of
Principal and interest, and overdue of loan does not arise.
c. The Company has not taken any loans from other Companies during the
4 In my opinion and according to the information and explanations given
to me, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of inventory, fixed assets and also for the sale of goods. During the
course of my audit, I have not observed any major weaknesses in
5 In respect of transactions covered under section 301 of the Companies
a. In my opinion and according to the information and explanations
given to me, there are no transactions made in pursuance of contracts
or arrangements that needed to be entered into in the register
maintained under section 301 of the Companies Act, 1956.
b. In my opinion and according to the information and explanations
given to me, there are no transactions in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 aggregating during the year to Rs 5,00,000
(Rupees Five lakhs Only) or more.
6 The Company has not accepted any deposits from the public.
7 The Company does not have a separate internal audit system. However,
in my opinion, the existing internal Control procedures are adequate
having regard to the size and nature of the business of the Company.
8 The Central Government has not prescribed maintenance of cost records
under section 209(1 )(d) of the Companies Act, 1956.
9 In respect of statutory dues, undisputed statutory dues with regard
to Employees'' State Insurance, the Company has not deposited
regularly with the appropriate authorities due to the severe financial
crisis faced by the Company.
10 The Company has accumulated losses and has not incurred cash loss
during the financial year covered by my audit and has not incurred cash
loss in the immediately preceding financial year.
11 Since the Company has not availed any loans during the year, the
question of repayment does not arise.
12 In my opinion and according to the information and explanation given
to me, no loans and advances have been granted by the company on the
basis of security by way of pledge of Shares and Securities.
13 In my opinion, the Company is not a chit fund or a nidhi /mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14 In my opinion and according to the information and explanation given
to me, the Company is not dealing or trading in shares, securities,
debentures and other investments.
15 In my opinion and according to the information and explanation given
to me, the Company has not given any guarantees for loans taken by
others from banks or financial institutions.
16 The Company has not raised any new term loans during the year.
17 The Company has not used the short term loans for long term
investments and vice versa.
18 During the year, the company has not made any preferential allotment
of shares to parties and Companies.
19 The Company has not issued debentures; therefore the question of
creation of securities does not arise.
20 The Company has not raised any money by way of public issue during
21 In my opinion and according to the information and explanations
given to me, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
B.COM, GRAD.C.W.A. F.C.A
Place: Coimbatore M. No. 210367