We have audited the accompanying financial statements of SOUTHERN LATEX
LIMITED (the Company), which comprise the Balance Sheet as at
31/03/2015, 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 is 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 (Accounts) 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 judgments
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
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 31/03/2015, and its Profit and it''s cash flows for the year ended on
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors'' Report) Order,2015(the Order)
issued by the Central Government of India in terms of sub section (11)
of section 143 of the Companies Act, 2013. We give in the Annexure A
statements on the matters specified in paragraphs 3 and 4 of the order,
to the extent applicable.
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
(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.
(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 31/03/2015 taken on record by the Board of Directors,
none of the directors is disqualified as 31/03/2015 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 the best of our information and
according to the explanations given to us:
1. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
2. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
3. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(1) In Respect of Fixed Assets
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management at
reasonable intervals; No material discrepancies were noticed on such
verification. Though company have sold the substantial part of fixed
assets, its does not affect the normal course of business operation.
(2) In Respect of Inventory
(a) Physical verification of inventory has been conducted at reasonable
intervals by the management.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
(3) Loans and advances to parties covered under section 189
The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the registered maintained
under Section 189 of the Companies Act 2013.
(4) Internal Control in reference to Purchase of Inventory and Fixed
Assets and whether there is continue failure of Internal control
In our opinion and according to the information and explanations given
to us there are adequate internal control system commensurate with the
size of the company and the nature of its business for the purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of audit We have not observed continuing failure to
correct major weaknesses in internal control system.
(5) Rules followed while accepting Deposits
No deposits within the meaning of Sections 73 to 76 or any other
relevant provision of the Act and rules framed there under have been
accepted by the Company.
(6) Maintenance of cost records
The Company is not required to maintain cost records pursuant to the
Rules made by the Central Government for the maintenance of cost
records under sub-section (l) of section 148 of the Companies Act.
(7) According to the information and explanations given to us in
respect of statutory dues
(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident fund, Investor education
protection fund, Employees'' state insurance, Sales tax, Wealth tax,
Service tax, Custom duty, Excise duty, Cess and other material
statutory dues applicable to it and to regularise the payment of TDS.
According to the records of the Company, there were interest free sales
tax loans outstanding as on 31st March 2015 for the period of more than
six months from the date they became payable.
(b) According to the information and explanation given to us, no
undisputed amounts payable Income tax, as at 31st March, 2015 for a
period of more than six months from the date they became payable except
in the case of Sale Tax dispute for Rs.113 Lacs
(c) The company is not required to be transferred to Investor education
and protection fund during the year. Since, there is no unclaimed and
unpaid dividends, deposits and debentures etc.,
(8) Company which has been registered for a period less than five years
and accumulated losses are more than 50% of Net worth, Reporting of
The company''s accumulated losses at the end of the financial year are
less than fifty percent of its net worth and it has not incurred cash
losses in the current and immediately preceding financial year.
(9) Default in Repayment of Loans taken from Bank or Financial
The company has not defaulted in repayment of dues to financial
institution or bank.
(10) Terms for Loans and Advances from Banks or Financial Institutions
prejudicial to the interest of the company
According to the information and explanations given to us, the company
has not given any guarantee for loans taken by others from bank or
(11) Application versus purpose for which Loan Granted
The company did not have any term loans outstanding during the year.
(12) Reporting of Fraud During the Year- Nature and Amount
According to the information and explanation given to us, no fraud on
or by the company has been noticed or reported during the year.
FOR KANNAN AND ALAMELU
Place : CHENNAI Reg No. :009087S
Date : 30/05/2015 A.K.ALAMELU
Membership No : 206906