We have audited the accompanying financial statements of Signet
Industries Limited (The Company) which comprises 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 significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 (the Act) with respect
to the preparation of these standalone 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 (Accounts) Rules, 2014. This Responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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.
Auditor''s Responsibility
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 standard and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under. 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 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, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. 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 standalone
financial statements.
Opinion
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 accounting principles generally
accepted in India, of the state of affairs of the Company as at 31st
March, 2015, and its profit and its 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, 2015 (the
Order) issued by the Central Government of India in terms of sub
section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
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 account and with the returns received from the branches not
visited by us.
d) In our opinion, the aforesaid financial statements comply with the
accounting standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March 2015 taken on records by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of section 164(2) of the
Act.
f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to be best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statement - refer note 27
contingent liabilities and commitments to the financial statement;
ii. The Company did not have any long term contract including
derivative contract for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
Annexure to Independent Auditor''s Report
Referred to in paragraph (1) under the heading of Report on Other
Legal and Regulatory Requirements of our report of even date to the
members of Signet Industries Limited on the financial statements for
the year ended March 31, 2015.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company have been
physically verified by the management during the year, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of its assets. No material discrepancies between the book
records and the physical inventory have been noticed. In our opinion,
the frequency of verification is reasonable.
ii. In respect of its Inventories:
a. The inventories has been physically verified during the year by the
Management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
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. On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii. According to the information and explanations given to us, the
Company has not granted any loan secured or unsecured loans to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. In our opinion provisions
of para 3 clause iii(b) and iii(c) of the order are not applicable to
the company.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have not observed any continuing failure
to correct major weakness in internal control system in respect of
these areas.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
within the meaning of section 73 to 76 or any other relevant provisions
of the Companies Act, 2013 and the rules, framed there under. Hence the
provisions of clause (v) of the Order is not applicable to the company
for the year under audit.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the rules made by the Central Government under sub-section
(1) of Section 148 of the Companies Act, 2013 and are of the opinion
that prima facie the prescribed records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
vii. In respect of Statutory dues :
a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing undisputed statutory dues, including
provident fund, employee''s state insurance, income tax, sales tax,
service tax, wealth tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate
authorities. There were no undisputed statutory dues in arrears, as at
31st March, 2015 for a period of more than six months from the date
they became payable.
b) According to the information and explanations given to us, there are
no dues of sales tax, value added tax, income tax, service tax, duties
of customs, wealth tax, duties of excise which have not been deposited
with appropriate authorities on account of any dispute except as
follows :
Name of the Nature of Related (Amount Forum
Statute Liability Period in Rs.) where dispute is
pending
Income Tax
Act, 1961 Income Tax 2005-06 114883290 ITAT Appeal
To 2011-12
M.P. Value
Added Sales Tax 2008-09 384839 Additional Comm.
Tax Act, 2002 (Appeal)
Custom &
Central Excise Excise Duty 2007-08 2775198 Commissioner
& 2008-09 (Appeal)
Central Sales
Tax 1956 Central 2008-09 1058490 Asst.
Commissioner
Sales Tax Commercial Tax
Maharastra
Value Sales Tax 2010-11 1354672 Joint
Commissioner
Added Tax,
2002 of Sales Tax
M.P. Value
Added Sales Tax 2014-15 142505 Appellate
Authority
Tax Act, 2002 Commercial Tax
Central Sales Central 2010-11 1160021 Dy. Commissioner
Tax 1956 Sales Tax &2011-12 Commercial Tax
c) There has been no delay in transferring amounts, as required to be
transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 1956 (1 of 1956) and rules made there under.
viii. The Company does not have accumulated losses as at 31st March
2015 and it has not incurred cash losses during the financial year
ended on that date and in the immediately preceding financial year.
ix. According to the records of the company examined by us and as per
the information and explanations given to us, the Company has not
defaulted in repayment of dues to a Financial Institutions or Bank or
debenture holders as at 31st March, 2015.
x. The Company has given guarantee for loans taken by Others from Bank.
In our opinion and according to the information and explanations given
to us the terms and condition of the guarantee given are not prima
facie prejudicial to the interest of the company.
xi. In our opinion and according to the information and explanations
given to us, the term loan have been applied for the purposes for which
they were obtained.
xii. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
Place: Indore For ASHOK KHASGIWALA & CO.,
Date: 28th May, 2015 CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CA Avinash Baxi
Partner
M.No. 79722
