Spica Hydraulics Private Limited

Independent Auditors’ Report

To the members of
SPICA HYADRAULICS PRIVATE Limited

Report on the Financial Statements:

We have audited the accompanying financial statements of Spica Hydraulics Private Limited
(U31401KA2006PTC038272) (“the Company”), which comprise the Balance Sheet as at 31 st March, 2018, the
Statement of Profit and Loss, the 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 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 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.

Auditors’ 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 the audit report under the provisions of the Act and the Rules made there under.

We conducted our 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.
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, 2018, and its profit and its cash flows for the year ended on that date.

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Spica Hydraulics Private Limited

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, we give in the Annexure a
statement on the matters specified in paragraph 3 and 4 of the Order.

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 purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it
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 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 the written representations received from the directors as on 31 stMarch, 2018 taken
on record by the Board of Directors, none of the directors is disqualified as on 31 stMarch, 2018 from
being appointed as a director in terms of Section 164 (2) of the Act.

f) Reporting on Internal Financial Control over financial reporting of the Company is not applicable for
the Company.

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 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 on its financial position in its financial
statements.
ii. The Company does not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses.
iii. During the year the Company was not required to transfer any amount to Investor Education
and Protection Fund.
iv. The Company has provided requisite disclosures in the financial statements as to holdings as
well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th
December, 2016. Based on audit procedures and relying on the management representation
we report that the disclosures are in accordance with books of Account maintained By the
Company and as produced to us by the Management. Refer Note No. 12 of Notes to Financial
statements.
.
For M/s P. G. Bhagwat
Chartered Accountants,
Firm Registration No. 101118W
Place: Belgaum
Date:16.08.2017 NIKHIL M. SHEVADE
Partner
Membership No. 217379

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Spica Hydraulics Private Limited

Annexure A to the Auditors’ Report

(Referred to in paragraph 1 of our report on Other Legal and Regulatory Requirements, of our report of even date
to the financial statement of the Company)

(i) (a) The Company has maintained proper records showing full particulars including quantitative details
and situation of fixed assets.
(b) The Fixed assets have been physically verified during the year and reconciled with the book records.
According to information and explanations given to us and records produced to us for our
verification, the discrepancies, in our opinion, were not material and the same have been properly
dealt with in the books of account.
( c) The Company does not hold any immovable property.

(ii) (a) The physical verification of inventory including stock with third parties have been conducted at
reasonable intervals by management during the year. In respect of inventory lying with third parties,
these have substantially being confirmed by them.
(b) The Company is maintaining proper records of inventory. The discrepancies noticed on verification
between the physical stocks and the book records were not material.

(iii) According to information and explanations given to us, the Company has not granted any loans, secured or
unsecured to the companies, firms or other parties covered in the register maintained under section 189 of
the Companies Act, 2013. Accordingly, the reporting under Clause 3(iii)(a) and (b) and (c) of the Companies
(Auditor’s Report) Order, 2016, is not applicable.

(iv) In our opinion, and according to the information and explanation given to us, The Company has not
granted any loans, or provided any guarantees for security to the parties covered u/s 185.

(v) According to information and explanations given to us, the Company has not accepted any deposits from
public within the meaning of sections 73,74,75 & 76 of the act. Accordingly, the reporting under Clause
3(v) of the Companies (Auditor’s Report) Order, 2016, is not applicable.

(vi) Maintenance of cost records has not been specified by the Central Government under Sub-section (i) of
Section 148 of the Companies Act, 2013 and the rules prescribed there under.

(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax,
Wealth Tax, Custom Duty, Service Tax, Excise Duty, Cess and other material statutory dues applicable
to it.
(b) According to the information and explanations given to us, there are no dues of income tax, sales
tax, wealth tax, service tax, customs duty, excise duty and cess, which have not been deposited on
account of any dispute.
(viii) In our opinion and according to the information and explanations given to us, the Company neither has
borrowed funds from financial institutions or banks or Government nor has issued debentures as at the
Balance Sheet date, the provisions of clause 3 (VIII) of the order are not applicable to the Company.

(ix) The Company has not raised any money by way of initial public offer or further public offer (including
debt instruments) and term loans. Accordingly, the provision of clause 3 (ix) of the order are not
applicable to the Company.

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Spica Hydraulics Private Limited

(x) During the course of our examination of the books and records of the Company, carried out in accordance
with the generally accepted auditing practice in India and accordingly to the information and explanation
given to us, we have neither come across any instance of fraud by the Company or on the Company by its
officers or employees, notice or reported during the year, nor have being informed of any such case by
the management.

(xi) As the Company is not a Public Company and the section 197 read with schedule V of the Company Act
2013 is not applicable to it. The provision of clause 3 (xi) of the order are not applicable to the Company.

(xii) As the Company is not a Nidhi Company on the Nidhi rules, 2014 are not applicable to it, The provision of
clause 3 (xii) of the order are not applicable to the Company.

(xiii) All transactions with related parties are in compliance with section 177 & 188 of the Companies Act,
2013. The details of such related parties transaction have been disclosed in the financial statements as
required under Accounting Standards 18, related party disclosures specify under section 133 of the Act,
read with rule 7 of Companies rules 2014.

(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year under the review. Accordingly the provision of clause 3 (xiv) of
the order are not applicable to the Company.

(xv) The Company has not entered into any non cash transaction to its Directors or person connected with
him. Accordingly the provision of clause 3 (xv) of the order are not applicable to the Company.

(xvi) The Company is not required to register under section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly the provision of clause 3 (xvi) of the order are not applicable to the Company.

For M/s P. G. Bhagwat

Chartered Accountants,
Firm Registration No.
101118W
Place: Belgaum
Date:
NIKHIL M.SHEVADE
Partner
Membership No. 217379