We have audited the accompanying financial statements of Suraj
Industries Ltd (the Company), which comprise the Balance Sheet as at
March 31, 2015, Statement of Profit & Loss and Cash Flow Statement for
the year ended on that date and a summary of 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 to give a true and fair
view of the financial position, financial performance and cash flow 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 includesmaintenance 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 judgment 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
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken in to account the
provisions of the Act and the Rules made thereunder including the
Accounting Standards and matters which are required to be included in
the audit report. We conducted our audit in accordance with the
Standards on Auditing specified under section 143(10) of the Act and
other applicable authoritative announcement issued by the Institute of
Chartered Accountants of India. Those Standards and pronouncements
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 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, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Audit Opinion
1. Attention is drawn to note no 1(a) and Note 15 of the Balance sheet
to the effect that these accounts have been prepared without following
the going concern assumption on the closure & cessation of the two
business segments by the company and disposal of major assets of these
discontinued segments in preceding years.
2. Company has a sum of Rs 6.38lacs as recoverable advances on account
of sales tax and income tax refunds, which in view of long time lag, in
our opinion, are not realisable and should have been written off.
Therefore, the profit of the year and current assets are shown more by
Rs 6.38lacs and deficit in Statement of profit & loss account is shown
less to that extent.
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 the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit & Loss, of the loss for the
year ended on that date; and
c) in 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 of India in terms
of sub-section (11) of section 143 of the Act,and on the basis of such
checks of the books and records of the Company as we consider
appropriate and according to the information and explanations given to
us, we enclose in the Annexure, a statement on the matters specified in
paragraphs 3 and 4 of the said order.
2. As required by section 143(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
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 those
books;
(c) The Balance Sheet , the Statement of Profit & Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
accounts;
(d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph, in our opinion, the Balance Sheet, the
Statement of Profit and Loss, and the Cash Flow statement comply with
the Accounting Standards specified in 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 March31, 2015 and taken on record by the Board of Directors, we
report that none ofthe Directors is disqualified as on March 31,2015
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 knowledge and belief
and according to the information and explanations given to us-
(i) The Company has disclosed the impact of pending litigations as at
March31, 2015 on its financial position in its financial statements.
(ii) The Company has made provision as at March 31, 2015, as required
under theapplicable law or accounting standards, for material
foreseeable losses, if any, onlong term contracts including derivative
contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended March 2015
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
for the year ended March 31, 2015)
1. a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b) During the year, Fixed assets of the Company have been physically
verified by the management which, in our opinion, is reasonable having
regard to the size of the company and the nature of its fixed assets.
As mentioned to us no material discrepancies were noticed by the
management on such verification.
2. Since there is no inventory as at the end of the year with the
company hence clause relating to physical verification and maintaining
of proper records of inventory is not applicable for the year.
3. The company has not granted any loan secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purpose of purchase and sale of goods, material, fixed
assets and services. During the course of our audit, on random test
check basis, no major weakness has been noticed in the internal
controls in respect of these areas.
5. The Company has not accepted any deposits from the public within
the meaning of Sections 73 and 74 of the Act and the rules framed there
under to the extent notified.
6. Pursuant to the rules made by the Central Government for the
maintenance of cost records in respect of the Vanaspati segment, under
section 148 of the Act. We are of the opinion that, prima facie, the
prescribed accounts and records, relating to materials, labour and
other items of cost, have not been made and maintained for the year as
there was no manufacturing activity for the year under review.
7. a) According to the information and explanations given
to us and the records of the Company examined by us, we are of the
opinion that the Company is regular in depositing the undisputed
statutory dues including Investor Education Protection Fund, Employees''
State Insurance, Income Tax, Sales Tax, VAT, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other statutory dues applicable to
it.
b) According to the records of the company and information and
explanations given to us, there are no dues of Sales Tax, Income Tax,
Custom Duty, Service Tax, Wealth Tax, Excise Duty and Cess on account
of any dispute.
8. The company has accumulated losses of Rs. 817.56lacs (Rs.
816.67Lacs in Previous year), which are more than fifty percent of its
net worth as at March 31st 2015. It has incurred cash loss of Rs
0.56lacs during the current year (Rs0.87lacs during the previous year).
9. According to the records of the Company examined by us and the
information given to us, we are of the opinion that the company has not
defaulted in repayment of dues to banks. However, there are no dues
payable to financial institutions or debenture holders.
10. Based on our audit procedure and on the information and
explanations given to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
11. In our opinion and according to the information and explanation
provided to us, the term loans have been applied, on an overall basis
for the purpose for which they were obtained.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation provided to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor have been informed of any such case by the management.
For Satendra Rawat & Co.
Chartered Accountants
FRN- 008298C
(CA. SatendraRawat)
Partner
Membership No.- 074126
Date : 29.05.2015
Place : New Delhi
