We have audited the accompanying financial statements of SAMKRG PISTONS
AND RINGS LIMITED (The company) [and in which are incorporated
the Branch at VISAKHAPATNAM.], which comprise the balance sheet as at
31st March, 2015, the statement of profit and loss, the cash Flow
statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The company''s Board of Directors are responsible for the matters
stated in section 134(5) of the companies Act, 2013 (The Act)
with respect to the preparation of these 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 (Accounting ) Rules , 2014 .This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgment 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 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
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. 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 financial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 31st march 2015, and its profit and loss and its cash flows for year
ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
a) Note 2-contingent liabilities- to the financial statements which,
describes the pending uncertainty related to the outcome of the appeal
filed with ADC(CT) WITH REGARDS TO THE ENTRY TAX BY the company .
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
As required by section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanation
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
those books at Head office and at Branch at Visakapatnam.
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 accounts maintained at head office and at Branch at
d. in our opinion, the aforesaid financial statements comply with
accounting standards specified under section 133 of the Act, with Rule
7 the companies (accounting ) Rules , 2014.
e. on the basis of the written representation received from the
directors as on 31st march 2015, taken on record by the board of
directors, none of the directors is disqualified as on 31st march 2015,
from being appointed as a directors in terms of section 164 (2) of the
f. With respect to the adequacy of the internal financial controls over
financial reporting of the company and the operating effectiveness of
such controls, to our separate report in Annexure A.
g. With respect to the matters to be included in the auditor''s
reporting 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 litigation on its
financial position in its financial statements -Refer Note 2-
contingent liabilities to the financial statements;
ii. There has been delay of three months in transferring amounts,
required to be transferred, to the investor Education and protection
fund by the company. REFER NOTE -10 to the financial statements.
ANNEXURE TO AUDITORS REPORT (AS PER CARO 2015) (STATEMENT REFERRED TO
IN PARAGRAPH 1N OF REPORT OF EVEN DATE) IN RESPECT OF ITS FIXED ASSETS
1. (a) The company has maintained proper records showing the full
particulars quantitative details And situation of fixed assets.
(b) The company has program for phased physical verification of all its
fixed assets which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification.
IN RESPECT OF ITS INVENTORIES
2. (a) The management has conducted physical verification of the
finished goods at reasonable intervals.
(b) The procedure of physical verification of stock followed by
management are considered reasonable and adequate in relation to the
size of the company and the nature of its business.
(c) on the physical verification of stock as compared to book records
no material discrepancies were noticed. The company is maintaining
proper records of inventory.
(d) on the basis of our examination of stock, we are satisfied that the
valuation of stock is fair and in accordance with normally accepted
IN RESPECT OF THE LOANS SECURED OR UNSECURED GRANTED OR TAKEN BY THE
COMPANY TO/FROM COMAPANIES, FIRMS OR OTHER PARTIES IN THE REGISTER
MAINTAINED SEC 301 OF THE COMPANIES ACT.
3. According to the information and explanations given to us, The
company had repaid all the unsecured loans taken from the directors and
INTERNAL CONTROL SYSTEM
4. In our opinion and according to the information and explanation of
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regards to purchases of stores, spares parts including
components, plants and machinery, equipment and other assets and for
sale of the goods.
5. We have broadly reviewed the books of accounting to materials,
labour and other item of cost maintained by the company pursuant to the
rules made by the central Government for the maintenance of the cost
records under section 148 (1) of the companies Act, 2013 and are of the
opinion that, prime facie, the prescribed records and accounts have
been maintained by the company. we have, however , not made a detailed
examination of the records with a view to determine whether they are
accurate and complete.
6. (a) The provident fund and employees state insurance dues have been
regularly deposited with the appropriate authorities.
(b) According to the information and explanation given to us the
company does not have undisputed amount payable in respect of income
Tax, wealth Tax , Excise Duty and customs Duty outstanding for a period
more than six month from then date they become payable. In respect of
sales Tax (Entry Tax) there is disputed amount of 22.47 lacs not
deposited with sales Tax department. The company had filed an appeal
with ADC (CT) PUNJAGUTTA DIVISION HYDERABAD AGAINST CERTAIN points in
the order of the of the assessment year 2002-03.
Sl. NAME OF THE NATURE OF AMOUNT IN FORUM WHERE DISPUTE
NO STATUE DUES LACS IS PENDING
1 SALES TAX ACT ENTRY TAX 22.47 ADC(CT)
In this regard please refer to the point 2-CONTINGENT LIABILITIES. to
the other information to the NOTES TO THE ACCOUNTS. We are of the
opinion that as and when the demand is raised after hearing of the
case, the same will be accounted and settled since the period of the
case is beyond the stipulated period.
There has been delay of three months in transferring amounts, required
to be transferred, to the investor Education and protection fund by the
company. REFER NOTE -10 to the financial statements
7. The company has no accumulated losses at the end of the financial
year and, has not incurred any cash losses in the financial year under
report and in the immediately preceding financial year.
8. In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to
financial institution /banks. The company has not issued any
9. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
10. According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
For M/s.RAVI & KESHAV
Place : Hyderabad Proprietor
Date : 25-05-2015 M NO 17489