We have audited the accompanying financial statements of M/s Superior
Industrial Enterprises Limited, New Delhi (the Company), which
comprise the Balance Sheet as at 31 March 2014, the Statement of Profit
and Loss and the Cash Flow Statement of the Company for the year then
ended, and a summary of significant accounting policies and other
Management''s Responsibility for the Financial Statements
Management is responsible for 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act) read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013. 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 to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accor- dance
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 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. 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 evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) 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, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure
statement on the matters specified in paragraphs 4 and 5 of the said
(2) As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
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 those
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
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
except Accounting Policy Note No.28 (d) on gratuity and leave
encashment which is on payment basis
e. On the basis of written representation from the Directors as on
31.03.2014 and taken on record by the Board of Directors, we report
that none of the directors are disqualified as on 31.03.2014 from being
appointed as director in terms of clause (g (of Sub Section (1) of
Section 274 of the companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us the accounts read together with our report
on CARO Annexure point no. 1(c) on Depreciation along with the notes
thereon and particularly note No.28(c) on the valuation of stock given
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view:
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEAPING OF REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE ON
ACCOUNTS OF M/S SUPERIOR INDUSTRIAL ENTERPRISES LIMITED. NEW DELHI FOR
THE YEAR ENDED MARCH 31ST. 2014
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 phys- ical 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.
(c) Company has not provided yearly depreciation as per company''s Act
but provided the same as per rates specified by Income Tax act, 1961 in
continuation of past practice
2. (a) Inventory of raw materials, stores, finished goods and packing
material have been physically verified by the man- agement 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. The provision regarding granting of loan or raising loan from
parties listed in the Register maintained u/s 301 of the Companies Act,
1956 is not applicable as no such loans granted/accepted from such
parties during the year.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control pro- cedures
commensurate with the size of the company and nature of business with
regard to purchase of inventory, fixed assets and with regard to sale
5. According to information and explanation given to us transactions
entered into with group''s company those are required to be entered in
the Register maintained u/s 301 of the companies Act, 1956 have been
entered in such register. Company has made Sales to Group Company M/s
Moon Beverages Limited covered under section 301 of Companies Act, 1956
at the normal selling price applicable to all customers of the company.
6. The company has not invited any deposits from Public falling under
section 58A and 58AA of Companies Act, 1956 read with the companies
(Acceptance of Deposits) Rule 1975.
7. In our opinion present system of internal audit in the company is
adequate and is commensurate with the size and nature of business.
8. We have broadly 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 209(1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including PF, ESI, TDS, Sales
Tax, except sometimes there have been delay.
(b) No amount was in arrears for a period more than 6 months as regards
undisputed amount payable in respect of Sales Tax/Income tax/T.D.S. etc
except sale tax appeal for financial year 2006-07 and Income Tax appeal
for the assessment year 2002-03 which are pending.
(c) According to the information and explanation given to us, there are
no dues of Sales Tax, Income Tax, which have not been deposited on
account of any dispute.
10. Provision regarding default in repayment of loans to financial
institution is not applicable as no such loan raised during the year.
11. Provision regarding maintenance of adequate records for pledge of
shares, debentures and other securities is not applicable to this
company as no such loans granted by the company.
12. In our opinion company is not a chit fund or Nidhi/Mutual benefit
company; hence Clause 4 (XIII) of the Companies (Auditors Report) order
2003 is not applicable to this company.
13. In our opinion company is not dealing or trading in shares,
securities, debenture & other investments, except for 3 par- ties
listed under section 301 of companies Act, 1956 hence the provisions of
Clause 4 XIV of the Companies (Auditor''s Report) order 2003 are not
applicable to this company.
14. 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.
15. Provision regarding end use of loans is not applicable as no such
loan raised by the company.
17. The provision regarding preferential allotment of shares to parties
and companies covered in the Register maintained u/s 301 is not
applicable, as the company has made no such preferential allotment
during the year.
18. The provisions regarding information on debenture issued and
securities created are not applicable to this company as no such
transaction has taken place during the year.
19. The Provision regarding end use of public issue money is not
applicable as there was no public issue during the year.
20. During the course of our examination of the Books and Records of
the company, carried out in accordance with the gener- ally accepted
audit practices in India and according to the information and
explanation given to us we have neither come across instances of
material fraud on or by the company, noticed or reported during the
year nor have we been informed of such cases by management.
21. According to the information and explanations given to us and on
over all examination of the Balance Sheet of the Com- pany, we report
that we have not found short term funds been used for long term
investment. No long term founds have been used to finance short term
assets, except permanent working capital.
For KAMAL AND COMPANY
(Kamal K. Gupta)
Mem. No. - 012738
Place : 1372, Kashmere Gate, Delhi-110006
Dated : This 24th day of May 2014