Sri Krishna Constructions (India)

To the members of Sri Krishna Constructions (India) Limited
 
 Report on the Standalone Financial Statements
 
I have audited the accompanying standalone financial statements of Sri Krishna Constructions (India)
Limited (“the Company”), which comprise the Balance Sheet as at 31st March, 2016, the Statement
of Profit and Loss and 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 Standalone 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 and presentation of these
standalone financial statements that give a true and fair view of the financial position and financial
performance 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
 
Auditor’s Responsibility
 
My responsibility is to express an opinion on these standalone financial statements based on my
audit.
 
I 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
there under.
 
I conducted my 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.
 
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
audit opinion on the standalone financial statements.
 
Opinion
 
In my opinion and to the best of my information and according to the explanations given to me, the
aforesaid standalone 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, 2016, 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, 2016 (“the Order”) issued
by the Central Government of India in terms of sub-section (11) of section 143 of the Act, I give in the
Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
 
2.    As required by Section 143 (3) of the Act, I report that:
 
a.    I have sought and obtained all the information and explanations which to the best of my knowledge
and belief were necessary for the purposes of my audit;
 
b.    In my opinion, proper books of account as required by law have been kept by the Company so far as
it appears from my examination of 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 books of account;
 
d.    In my opinion, the aforesaid standalone 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, 2016
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from
being appointed as a director in terms of Section 164 (2) of the Act.
 
f.    With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to my separate Report in “Annexure
B”; and
 
g.    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 my opinion and to the best of my information
and according to the explanations given to me:
 
i)    the Company does not have any pending litigations which would impact its financial position
 
ii)    the Company did not have any long term contracts including derivative contracts for which there
were any material foreseeable losses
 
iii)    There were no amounts which were, required to be transferred, to the Investor Education and
Protection Fund by the Company
 
Annexure - A to the Auditors’ Report
 
The annexure referred in Independent auditor’s report to the members of the Company on the
standalone financial statements for the year ended 31 March, 2016, I report that;
 
1.    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; and no
material discrepancies were noticed on such verification. In my opinion, interval of physical verification is
reasonable having regard to the size of the company and the nature of its assets.
 
c)    According to the information and explanation given to me and on the basis of verification of
records of the company, the title deeds of immovable properties are held in the name of the company
 
2.    Physical verification of inventory in the form of Land has been conducted at reasonable intervals
by the management and no material discrepancies were noticed on physical verification
 
3.    The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability
Partnerships or other parties covered in the register maintained under section 189 of the Companies Act,
accordingly paragraph 3(iii) of the Order is not applicable.
 
4.    According to the information and explanation given to us, the company has complied with the
provisions of section 185 & section 186 of the Companies Act, in respect of the loan and investment made.
 
5.    During the year The company has not accepted any deposits from the public.
 
6.    Maintenance of cost records has not been specified by the Central Government under sub-section (1)
of section 148 of the Companies Act,
 
7.    a) According to the information and explanation given to us and based on our verification of books
of
 
account, Generally the Company is regular in depositing undisputed statutory dues including provident
fund, employees’ state insurance, income-tax, professional tax and any other statutory dues with the
appropriate authorities and there are no arrears of statutory dues as at the last day of the financial year
concerned for a period of more than six months from the date they became payable, except tax deducted at
source.
 
b) There were no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty
of excise or value added tax or cess which have not been deposited on account of any dispute.
 
8.    According to the information and explanation given to us, the Company has not defaulted in
repayment of dues to a financial institution or bank.
 
9.    According to the information and explanation given to me, the Company has applied moneys raised by
way of initial public offer (listed in SME segment) and term loans for the purpose raised.
 
10.    According to the information and explanation given to me, no fraud by the company or fraud on the
company by its officers or employees has been noticed or reported during the year.
 
11.    According to the information and explanation given me, managerial remuneration has been paid or
provided in accordance with the requisite approvals mandated by the provisions of section 197 read with
Schedule V to the Companies Act;
 
12.    According to the information and explanation given to me, the company is not a Nidhi Company,
Accordingly paragraph 3(ix) of the Order is not applicable
 
13.    According to the information and explanation given to me, transactions with the related parties
are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details such
transactions have been disclosed in the Financial Statements as required by the applicable accounting
standards
 
14.    According to the information and explanation given to me, the Company has not made any
preferential allotment or private placement of shares or fully or partly convertible debentures during the
year
 
15.    According to the information and explanation given to me, the Company has not entered into any
noncash transactions with directors or persons connected with him. Accordingly paragraph 3 (xv) of the Order
is not applicable
 
16.    The company is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934
 
For Suthar & Co
 
Chartered Accountants
 
Firm’s Registration No. 013840S
 
Berulal Suthar
 
Proprietor
 
Membership No. 224990
 
Place : Bangalore
 
Date: 28th May, 2016