We have audited the accompanying financial statements of M/s Superior
Industrial Enterprises Limited, New Delhi which comprise the Balance
Sheet as at 31st March 2015, Statement of Profit and Loss and the cash
flow statement for the year ended, and a summary of significant
accounting policies and other explanatory information. These Financial
statements are the responsibility of the Company''s management. Our
responsibility is to express our opinion on these financial statements
based on our audit.
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 and presentation 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 the assets of the
Company and for preventing and detecting fraud 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 that 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 thereunder.
We have conducted our audit in accordance with the auditing specified
under Section 143(10) of the Act. Those standards require that we
comply with ethical requirement and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatements.
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 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 includes
evaluating the appropriates 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 reasonable basis for our audit 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:
In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2015;
a) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date;
b) In the case of the Cash Flow Statement, of the 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 in terms of Section 143(11) of
the Companies Act, 2013, we enclose in Annexure a statement on the
matters specified in the paragraph 3 & 4 of the said order to the
extent applicable to the company.
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
purpose of 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 examination of the books
of account made available to us.
c) The Balance Sheet, Statement of Profit & Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
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 written representation received from the Directors
as on 31.03.2015 taken on record by the Board of Directors, we report
that none of the directors are disqualified as on 31.03.2015 from being
appointed as director in terms of clause (g( of Sub Section (2) of
Section 164 of the companies Act, 2013.
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:
i. Company has not made provision for gratuity and leave encashment
which is on payment basis-Refer Note No.28 (d).
ii. During the year Company has charged depreciation on Fixed Assets on
SLM Method as per Schedule II of Companies Act, 2013. In yester Year
Company charged depreciation on fixed assets as per rate mentioned in
Income tax Act, 1961. This change has resulted understatement of net
profit to the extent of Rs. 1, 89,964/- Hence deviation is being
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
The annexure referred to in our Independent Auditor''s Report to the
member of Superior Industrial Enterprises Limited, New Delhi for the
year ended march 31st, 2015, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets except vehicles.
(b) The assets have been physically verified by the management during
the year in our opinion the frequency of physical verification being
conducted from time to time by the company appears to be reasonable
having regard to the size of the company and nature of such assets. No
significant discrepancy was noticed in the regard.
2. (a) Inventory of raw materials, stores, finished goods and packing
material have been physically verified by the management during the
year. Frequency of verification is reasonable and the procedures of
physical verification of such inventories followed by management are
adequate in relation to the size of company and nature of its business.
(b) Company is maintaining proper records of inventory and the
discrepancies noticed during the physical verification between physical
stock and book records are not material and the same have been properly
3. Company has not granted loans to parties listed in the register
maintained u/s 189 of the Companies Act, 2013; hence this provision is
not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of business with
regard to purchase of inventory, fixed assets and with regard to sale
of goods. We have not observed any major weakness in the internal
control system during course of the audit.
5. Provision regarding acceptance of Public Deposit with directive
issued by RBI along with Section-73 to 76 of Companies Act, 2013 is not
applicable to the company as no such deposits accepted.
6. We have reviewed the books of account maintained by the company
pursuant to the order made by the Central Government for the
maintenance of cost records under section 148(I) of the Companies Act,
2013 and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
7. a) The Company is regular in depositing wit appropriate authorities
undisputed statutory dues including PF, ESI, TDS, Sales Tax, Entry Tax,
Service Tax and Excise Duty except sometimes there have been delay in
b) No amount was in arrears for a period more than 6 months as regards
undisputed amount payable in respect of statutory dues.
c) According to the information and explanation given to us, provision
regarding the amounts which were required to be transferred to the
investor education and protection fund in accordance with the relevant
provision of the Companies Act, 1956 and rules there under is not
applicable as no fund exist.
8. In our opinion the accumulated losses of the company are not more
than fifty percent of its net worth and have not incurred cash losses
in the financial year covered by our audit and in the immediately
preceding financial year.
9. In our opinion company has not defaulted in repayment of dues to
financial institution or bank during the year.
10. The company has given corporate guarantees to the Bankers for loan
raised by M/s Hal Offshore Limited its Group Company under the same
management. The terms and condition of the same are not prima facie
prejudicial to the interest of the company.
11. Provision regarding end use of term loans is not applicable as no
such loan raised by the company except Car Loan for Honda Car raised &
utilized for purchase of aforesaid Car during the year.
12. During the course of our examination of the Books and Records of
the company, carried out in accordance with
the generally accepted audit practices in India and according to the
information and explanation given to us we have neither come across
instances of any fraud on or by the company, noticed or reported during
the year nor have we been informed of such cases by management.
Place: 1372, Kashmere Gate, FOR KAMAL & COMPANY
Delhi - 110006
Date: 26th Day of May, 2015 CHARTERED ACCOUNTANTS
MEMBERSHIP NO. 012738