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Sky Industries Ltd.

BSE: 526479 | NSE: | Series: NA | ISIN: INE765B01018 | SECTOR: Textiles - Manmade

BSE Live

Oct 20, 16:00
84.25 0.45 (0.54%)
Volume
AVERAGE VOLUME
5-Day
7,156
10-Day
11,404
30-Day
5,515
2,179
  • Prev. Close

    83.80

  • Open Price

    82.05

  • Bid Price (Qty.)

    83.00 (100)

  • Offer Price (Qty.)

    84.50 (2)

NSE Live

Dec 27, 11:22
NT* 0.00 (0.00%)
Volume
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  • Prev. Close

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Sky Industries is not listed on NSE

Annual Report

For Year :
2015 2014 2013 2011 2010 2009 2008 2007 2006

Auditor's Report

We have audited the accompanying financial statements of SKY INDUSTRIES LIMITED, which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow statement for the year then ended, and a summary of significant accounting policies and other explanatoryinformation. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performanceof the Companyinaccordance 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 tofraudorerror. Our responsibility is to express an opinion on these financial statements based on our audit. We 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 disclosuresin 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 management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidencewe have obtainedissufficient and appropriate toprovide abasis for our audit opinion. The company has not provided for diminution in the value of investments in its subsidiary of Rs. 35,60,515/- as at the year end as required by paragraph 19 of Accounting Standards (AS) 13 Accounting for Investments issued by the Institute of Chartered Accounts of India. This has resulted in understatement of loss for the current year and overstatementof ReservesbyRs. 35,60,515/-. 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 India subjecttoabove paragraph: a) in the case of the Balance Sheet,of the stateof affairsof the Company asatMarch 31, 2013; and b) in the case of the Profit and Loss Account,of theLOSSfor the year ended onthat date; c) in the case of the Cash Flow statement,of the Cash Flows for the year endedon that date. 1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs4and 5of the Order. 2. Asrequiredbysection 227(3)of the Act,wereportthat: a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposeof our audit; b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examinationof those books c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the booksof account. d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards subjecttoabove note referredtoinsubsection (3C)of section 211 of the Companies Act, 1956; e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in termsof clause (g) of sub-section (1)of section 274of the Companies Act, 1956. AnnexuretoIndependent AuditorsReport Referred to in paragraph 1 under the heading of Report on Other Legal and Regulatory Requirements of our report of even date 1. InregardtoFixed Assets - (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. (b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticedonsuch verification. (c) Inour opinion the company has not disposed off major partof its Fixed Assets during the year. 2. In regard to inventories - (a) The inventories (Excluding stock with 3rd party and material in-transits) have been physically verified during the year by the managementat reasonable intervals. (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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No major material discrepancy was noticed on physical verification of stocks by the management as compared tobook records. 3. (a) The Company has not granted any loans, secured, unsecured loans to the companies, firm or other parties covered in the register maintained under section 301 of the Act. Therefore the provision of clause 4(iii)(b),(c) and (d) of the said order are not applicableto the company. (b) The Company has taken interest free loans from 4 parties covered in the register maintained under Section 301 of the Companies Act, 1956. The total amountof such loans received and outstandingasof 31st March 2013isRs.5,26,73,865/-. (c) The terms and conditions on which loans have been taken by the Company are not prejudicial to the interest of the company. (d) As no terms of repayment have been specified, we are unable to comment whether the payment of principal is regular in respectof loans takenbythe company; 4. In our opinion and according to the information and explanations given to us, the internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories, fixed assets and sale of goods and services need to be strengthened. During the course of our audit, we have not observed a continuing failureto correct major weaknessesininternal controls 5. (a) The transactions made in pursuance of contracts of arrangements, that need to be entered into the register maintained under Section 301of the Companies Act, 1956 have been recordedinthe register; (b) In our opinion and according to the information and explanations given to us, these transactions 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 each party during the year have been made at prices which are prima facie reasonable having regardto the prevailing market pricesatthe relevant time. 6. In our opinion and according to the information and explanations given to us, the company has accepted deposits from shareholders without issue of advertisement and at an interest rate higher the prescribed limits. The company has not maintained adequate liquid assets. Hence the company has contravened the provisions of Section 58A, 58AA ofthe Companies Act, 1956andtherulesframed there under. 7. Inouropinion, the internal audit system is not commensurate with the sizeof the Company and the natureof its business. 8. The company has not maintained cost records as prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 in respect of its products / activities. 9 (a) The Company has been generally regular in depositing undisputed dues of Provident Fund, Employees State Insurance, Income Tax, Profession Tax, except CST of Rs.3,32,870/-, Entry Tax of Rs. 49,242/- & Income Tax of Rs. 33,22,504/- outstanding for more than six months,as at31st March 2013. (b) Details o dues o ales Tax,ExciseDuty&Service Tax which have not been deposited as on 3 March 2013 on account of disputes are given below Nature of Dues Amount in Rs. Period for which Forum where dispute dispute relates is pending Income Tax 114896 Asst year 2009-10 CIT(A) Gujarat VAT 3208752 2006-07 & 2007-08 Commissioner of Sales Tax CST 125149 2006-2007 Commissioner of Sales Tax Cess 3683521 1998-99 & 1999-00 Supreme Court of India 10. The Company does not have accumulated losses at the end of the financial year but it has not incurred cash losses in the current financial year but incurred cash loss in immediately preceding the financial year. 11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders. 12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security byway of pledge of shares, debentures and other securities. 13. The Company is not a chit fund or a nidhi /mutual benefit fund/society Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company. 14. The Company is not dealing or trading in shares, securities, debentures or other investments and hence the requirements of Para 4(xiv) are not applicable to the Company. 15. According to the information and explanations given to us, the Company has given a guarantee for loan taken by a subsidiary of Rs. 2.5 crore from a bank. The terms and conditions thereof are prima facie not prejudicial to the interest of the company 16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year. 17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 3 March, 2013, we report that no funds raised on short-term basis have been used for long-term investment by the Company. 18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made preferential allotment of shares during the year to the parties and companies covered in the Register maintained under Section 301 of the Companies Act 1956. 19. The Company has no outstanding debentures during the period under audit. 20. The Company has not raised any money by public issue during the year. 21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management. For and on behalf of Sd/- Thanawala & Company [ V.K. Thanawala ] Chartered Accountants Proprietor Firm Reg. No. 110948W Membership No. 15632 Place : Mumbai Dated : 30/05/2013