| We have audited the accompanying financial statements of M/s. SSK
Lifestyles Limited ("the Company"), which comprises the Balance Sheet
as at March 31,2015, and the Statement of Profit and Loss and Cash Flow
statement for the year ended, and summary of significant accounting
policies and other explanatory information.
Management 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 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 the maintenance of
adequate records in accordance with the provision of the Act for
safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of 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 into account the
provisions of the Act, the Accounting and Auditing standards and
matters which are required to be included in audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
Specified under sec 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 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
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 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 audit opinion on the financial
statements.
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, of the state of affairs of the company as
at 31st March, 2015, and its Loss and its cash flows for the year ended
on the 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, we give in the annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
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 those
books;
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 Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement 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 representations received from the directors
as on 31st March 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2015 from being
appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters 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. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company does not have any long term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which required to be transferred to the
Investor Education and protection fund by the company
Annexure to Independent Auditor's Report
Referred to in paragraph 1 under heading of "Report on other legal and
regulatory requirements" of our report of even date:
(i) a) The Company has sold all the fixed assets and there were no
fixed assets as on 31st March 2015.
b) The Fixed assets have been physically verified by the management
during the year in accordance with a phased program of verification and
no material discrepancies have been noticed on such verification.
(ii) a) The Company has no Inventory as on 31st March, 2015.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion, the company has maintained proper records of
inventories and as explained to us there was no material discrepancy
noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Therefore the provisions
of Clause iii(a), iii(b) and iii(c) of the said order are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods. During the course of the audit we have not observed any major
weaknesses in the internal control system.
(v) In our opinion and according to the explanations given to us, the
company has not accepted any deposits from Public.
(vi) The Central Government has not prescribed the maintenance of cost
record under section 148(1) of the Companies Act, 2013.
(vii) a) According to the records of the company and explanations given
to us and on the basis of our examination of the records of the company,
undisputed statutory dues including provident fund, Income - tax, Value
Added Tax, and other material statutory dues applicable to it have been
regularly deposited with the appropriate authorities. Further, as
explained to us, no undisputed statutory dues were in arrears as at 31st
March 2015 for a period of more than 6 months from the date they become
payable.
b) According to the information and explanation given to us details of
dues of income-tax, wealth- tax, sales tax, custom duty, excise duty
and any other statutory dues, which have not been deposited as on 31st
March 2015 on account of any dispute are given below:
S. No. Name of the statute Amount under dispute not yet
deposited (Rs.)
i Sales Tax 47.24 Lakhs (including Rs. 40.32
Lakhs towards interest)
ii Income Tax 7,78,320
c) According to the information and explanation given to us there were
no amount transferred to investor education and protection fund.
(viii) The company has accumulated losses of Rs.7,09,15,256 as at the
end of the financial year and it accumulated losses are above 50% of
its net worth and the company has incurred cash losses of Rs.23,56,840
during the current financial year covered by our audit and in the
immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanation given to us, we are of the opinion the company did not have
any dues to financial institutions, bankers or debentures holders
during the year.
(x) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions.
(xi) According to the information and explanations given to us, no term
loans were raised during the year.
(xii) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the course of our
audit.
For Ramasamy Koteswara Rao & Co
Chartered Accountants FRN:010396S
Hyderabad, 30th May 2015
SD/-
C V Koteswara Rao
Partner
M.No:028353
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