Mar 31, 2015
1 We have audited the accompanying financial statements of ADITYA BIRLA
CHEMICALS (INDIA) LIMITED("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information
Management's Responsibility for the Financial Statements
2 The management and Board of Directors of the Company are 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 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 frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; 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
3 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
4 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 controls 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 management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion
Opinion
6. 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, its profit and its cash flows for the year ended on
that date. Report on Other Legal and Regulatory Requirements
7 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 sectionl43 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
8 As required by section 143(3) of the Act, we further 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, Statement of Profit and Loss, and 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
applicable 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 March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act
f In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements. Refer Note B-36 of the
financial statements
(ii) The Company assesses periodically the foreseeable losses on all
its long term contracts. As at end of the year under report there were
no such foreseeable losses. The company did not have any derivative
contracts as at the date of Balance Sheet
(iii) There has been no delay in transferring sums, required to be
transferred, to the Investor Education and Protection Fund by the
Company
Annexure referred to in paragraph 7 Our Report of even date to the
members of ADITYA BIRLA CHEMICALS (INDIA) LIMITED on the accounts of
the company for the year ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
(i) (a) The Company has generally maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets;
(b) As explained to us, fixed assets have been physically verified by
the management at periodic intervals which in our opinion is reasonable
having regard to the size of the company and the nature of its assets.
As informed to us no material discrepancies were noticed on such
verification;
(ii) (a) The physical verification of inventories has been conducted at
periodic intervals by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business;
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification
(iii) The company has not granted any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under section 189 of the Act. Hence the requirement of
clause (iii) (a) and (iii)(b) of paragraph 3 of the Order are not
applicable to it
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventories, fixed assets and for the sales of
goods/services. Further, on the basis of our examination of the books
and records of the Company and according to the information and
explanations given to us, no major weakness in the internal control
system pertaining to these areas has been noticed or reported
(v) The Company has not accepted any deposits from the public. Hence
clause (v) of paragraph 3 of the Order is not applicable to it
(vi) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under sub-section (1) of Section 148 of
the Act and are of the opinion that, prima facie, the prescribed
accounts and records have been maintained
(vii) (a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is
regular in depositing with the appropriate authorities the undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Value Added Tax, Duty
of Custom, Duty of Excise, Cess and other statutory dues as applicable
to the Company;
(b) According to the information and explanations given to us and based
on the records of the company examined by us, the following dues of
Income Tax, Wealth Tax, Service Tax,Value Added Tax, Sales Tax, Duty of
Customs,Duty of Excise, Cess which have not been deposited on account
of disputes:
Name of the Nature Period
Statute of dues
Income Tax Act 1961 Income AY 2007-08 , AY 2008-09,
Tax and AY 2010-11
Interest
AY 2002-03 AY 2006-07 &
AY 2009-10
Sales Tax / Trade Tax Sales Tax AY 2010-11
FY 2009-10, FY 2010-11
UP Tax on Entry of
Goods Entry Tax FY 2006-07 to FY 2011-12
into Local Area Tax,
2007
Central Excise
Act 1944 Cenvat and FY 2000-01 to 2006-07,
Penalty FY 2008-09 to FY 2012-13
(FY 1998-1999,1996-2000,
2007-2008)
FY 2004-2008
FY 2006-07
Sec 94 of Finance Service Tax FY 2005-06 & FY 11-12
act 1994 and Penalty FY 2006-2007
FY 2005-07
Name of the Statute Amount Forum where dispute is
(Rs in pending
Lac)
Income Tax Act 1961 696.12 CIT (Appeals) and Petition u/s 154
8.44 CIT (Appeals)
Sales Tax/ Trade Tax 7.03 Office of the Additional
Commissioner(A), Mirzapur
40.61 The Joint Commissioner of
Commercial Taxes (Appeal), Ranchi
UP Tax on Entry of Goods
into Local Area Tax, 2007 212.75 Supreme court Delhi
Central Excise Act, 1944 869.23 CESTAT, New Delhi
8.13 CESTAT High Court
525.70 CESTAT, Kolkata
12.78 AC, Central Excise, Mirzapur
Sec 94 of Finance
act 1994 159.11 CESTAT, New Delhi
25.11 CESTAT, New Delhi
105.02 CESTAT, Kolkata
(c) The Company has transferred the required sums to the Investor
Education and Protection Fund during the year within time as prescribed
by the relevant provisions of the Companies Act, 1956 and rules made
there under
(viii) The Company has no accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year
(ix) Based on our audit procedures and as per the information and
explanations given, we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institution or bank
(x) In our opinion, and according to the information and explanations
given to us, the company has given guarantee to a bank favoring its
overseas subsidiary which has not yet availed credit facilities against
the said guarantee; in our opinion, terms of such guarantee are not,
prima facie, prejudicial to the interest of the company
(xi) Based on information and explanations given to us, the term loans
were applied by the Company during the year for the purposes for which
the loans were obtained
(xii) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management of the Company
For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Place: Mumbai Hasmukh B Dedhia
Date: May 13, 2015 (Partner) F-033494
Mar 31, 2014
1. We have audited the accompanying financial statements of ADITYA
BIRLA CHEMICALS (INDIA) LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2014, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. 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") (which continue to be applicable
in respect of Section 133 of the Companies Act, 2013 in terms of per
General Circular 15/2013 dated September 13, 2013 issued by the
Ministry of Corporate Affairs). 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.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
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
4. 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. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion Opinion.
6. 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 India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) 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
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 4 and 5 of the Order.
8. 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
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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the applicable Accounting Standards
referred to in subsection (3C) of section 211 of the Act;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act;
Annexure referred to in paragraph 7 of the Our Report of even date to
the members Aditya Birla Chemicals (India) Limited on the accounts of
the company for the year ended 31st March, 2014
(i) (a) The Company has generally maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets
(b) The Company has a program for phased physical verification of all
its fixed assets which in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification
(c) The Company has not disposed off substantial part of its fixed
assets during the year
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year
(b) The procedures of physical verification of inventory followed by
the managements are reasonable and adequate in relation to the size of
the Company and the nature of its business
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification
(Hi) The Company has neither taken nor granted any Loans, secured or
unsecured from/ to companies, firms or other parties covered in the
register maintained under section 301 of the Act. Accordingly, clause
(iii)(b) to (iH)(g) of paragraph 4 of the order are not applicable to
company for the year
(iv) In our opinion and according to the information and explanations
given, there is adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
Further, on the basis of examination of the books and records of the
Company and according to the information and explanations given, and as
per checking carried out in accordance with the auditing standards
generally accepted in India, neither we have observed nor have we been
reported of any continuing failure to correct major weakness in the
internal control system relating to these areas
(v) Based on the audit procedures appHed and according to the
information and explanations given, there are no contracts or
arrangements referred to in section 301 of the Act that need to be
entered in the register maintained under that section. Hence clause
(v)(b) of para 4 of the Order is not applicable
(vi) The Company has not accepted any deposits from public to which the
provisions of sections 58A, 58AA or any other relevant provisions of
the Act and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposits accepted from the pubHc applies
(vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and nature of its business
(viii) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the rules made by the Central Government for
the maintenance of cost records unde section 209(1)(d) of the Act and
are of the opinion that, prima facie, the prescribed accounts and
records have been maintained
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess, and other material statutory dues applicable to it.
There were no arrears as at March 31, 2014 for a period exceeding six
months from the date they became payable
(b) According to the information and explanations given, there are no
dues of sales-tax, income-tax, wealth-tax, service tax, custom duty,
excise duty and cess, which have not been deposited on account of any
dispute except as under:
Name of Statute the Nature of dues Period
Income Tax Act 1961 Income Tax and AY 2002-03 & 2006-07
Interest AY 2007-08
AY 2008-09, 2009-10 & 2010-11
Sales Tax/ Trade Tax Sales Tax FY 2003-04
FY 2007-08 and FY 2008-09
UP Tax on Entry of Entry Tax FY 2006-07 to FY 2011-12
Goods into Local
Area Tax, 2007
Central Excise Act Cenvat and FY 1995-96, 1999-2000, 2000-01
1944 Penalty 2005-06, 2006-07 & 2007-08
FY 1996-97 to FY 2000-01
FY 2004-2008
FY 2006-07
FY 2007-08 to FY 2012-13
Sec 94 of Finance Service FY 2005-06 & 2006-07
act 1994 Tax and Penalty Fy 2004-2008
Amount Forum where dispute is
Name of the Statute (Rs in Lac) pending
Income Tax Act 1961 5.10 CIT (Appeal), Ranchi
197.02 CIT (Appeals) and Petition
u/s 154
502.44 CIT(Appcal), Ranchi
Sales Tax / Trade Tax 10.86 Allahabad High Court
7.33 Office of the Additional
Commissioner (A), Mirzapur
Up Tax on Entry of Goods 212.75 Supreme court, New Delhi
into Local Area Tax 2007
603.82 CESTAT, New Delhi
Central Excise Act 1944 8.06 High Court, Allahabad
525.70 CESTAT, Kolkata
12.78 AC, Central Excise, Mirzapur
168.48 JC/Commissioner of CE
Allahabad
Sec 94 Finace act 1994 184.66 CESTAT, New Delhi High
Court, Allahabad
105.02 CESTAT, Kolkata
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year
(xi) Based on our audit procedures and as per the information and
explanations given, we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institution or bank
(xii) According to the information and explanations given, the Company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities
(viii) In our opinion, the Company is not a chit fund or a nidihi/
mutual benefit fund/ Society. Therefore, the provisions of clause
4(xiii) of para 4 of the Order are not applicable to the Company
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of para 4 of the Order are not applicable
to the Company
(xv) According to the information and explanations given, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions
(xvi) Based on information and explanations given to us, the term loans
were applied by the Company during the year for the purposes for which
the loans were obtained
(xvii) According to the information and explanations given and on an
overall examination of the balance sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment
(xviii) During the year the Company has not made preferential allotment
of shares to parties and companies covered in the register maintained
under section 301 of the Act
(xix) The Company has not issued any debentures during the year
(xx) The Company has not raised any money through a public issue during
the year
(xxi) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have been informed of any such instance by the Management.
For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Place: Mumbai Hasmukh B Dedhia
Date: May 07, 2014 (Partner) F-033494
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of ADITYA
BIRLA CHEMICALS (INDIA) LIMITED ("the Company")'' which comprise the
Balance Sheet as at March 31'' 2013'' the Statement of Profit and Loss
and Cash Flow Statement for the year then ended'' and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. 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"). 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.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedural 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. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion. Opinion
6. 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 India:
a) In the case of the Balance Sheet'' of the state of affairs of the
Company as at March 31'' 2013;
b) In the case of the Profit and Loss Account'' of the profit for the
year ended on that date; and
c) 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
7. As required by the Companies (Auditor''s Report) Order'' 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act'' we give in the Annexure a
statement on the matters Specified in paragraphs 4 and 5 of the Order.
8. 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
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'' Statement of Profit and Loss'' and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion'' the Balance Sheet'' Statement of Profit and Loss''
and Cash Flow Statement comply with the applicable Accounting Standards
referred to in subsection (3C) of section 211 of the Act;
e. on the basis of written representations received from the directors
as on March 31'' 2013'' and taken on record by the Board of Directors'' we
report that none of the directors is disqualified as on March 31'' 2013''
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act;
Annexure referred to in paragraph 7 of the Our Report of even date to
the members Aditya Birla Chemicals (India) Limited on the accounts of
the company for the year ended 31st March'' 2013
(i) (a) The Company has generally maintained proper records showing
full particulars'' including quantitative details and situation of fixed
assets
(b) The Company has a program for phased physical verification of all
its fixed assets which in our opinion'' is reasonable having regard to
the size of the Company and the nature of its assets. As informed'' no
material discrepancies were noticed on such verification
(c) The Company has not disposed off substantial part of its fixed
assets during the year
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year
(b) The procedures of physical verification of inventory followed by
the managements are reasonable and adequate in relation to the size of
the Company and the nature of its business
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification
(Hi) The Company has neither taken nor granted any Loans'' secured or
unsecured from/ to companies'' firms or other parties covered in the
register maintained under section 301 of the Act. Accordingly'' clause
(Hi)(b) to (iH)(g) of paragraph 4 of the order are not applicable to
company for the year
(iv) In our opinion and according to the information and explanations
given'' there is adequate internal control system commensurate with the
size of the Company and the nature of its business'' for the purchase of
inventory and fixed assets and for the sale of goods and services.
Further'' on the basis of examination of the books and records of the
Company and according to the information and explanations given'' and as
per checking carried out in accordance with the auditing standards
generally accepted in India'' neither we have observed nor have we been
reported of any continuing failure to correct major weakness in the
internal control system relating to these areas
(v) Based on the audit procedures appHed and according to the
information and explanations given'' there are no contracts or
arrangements referred to in section 301 of the Act that need to be
entered in the register maintained under that section. Hence clause
(v)(b) of para 4 of the Order is not applicable
(vi) The Company has not accepted any deposits from public to which the
provisions of sections 58A'' 58AA or any other relevant provisions of
the Act and the Companies (Acceptance of Deposits) Rules'' 1975 with
regard to the deposits accepted from the pubHc applies
(vii) In our opinion'' the company has an internal audit system
commensurate with the size of the company and nature of its business
(viii) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(l)(d) of the Act and
are of the opnion that'' prima facie'' the prescribed accounts and
records have been maintained.
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund'' Investor Education and Protection Fund'' Employees'' State
Insurance'' Income-Tax'' Sales-Tax'' Wealth- Tax'' Service Tax'' Custom
Duty'' Excise Duty'' Cess'' and other material statutory dues applicable
to it. There were no arrears as at March 31'' 2013 for a period
exceeding six months from the date they became payable
(b) According to the information and explanations given'' there are no
dues of sales-tax'' income-tax'' wealth-tax'' service tax'' custom duty''
excise duty and cess'' which have not been deposited on account of any
dispute except as under:
Name of the Nature Period
Statute of dues
Income Tax
Act 1961 Income AY 2002-03 & 2006-07
Tax and
Interest AY 2007-08
AY 2008-09'' 2009-10 & 2010-11
Sales Tax/
Trade Sales FY 1989-90'' 1990-91 & Tax Tax
2003-04
AY 2005-06
UP Tax on
Entry of
Good; Entry FY 2006-07 to FY 2011-12
into Local
Area Tax'' 2007 Tax
Central
Excise Act
1944 Cenvat and FY 1995-96''1999-2000''
Penalty 2005-06 & 2007-08
FY 1996-97 to FY 2000-01
FY 2000-01 to FY 2006-07
FY 2004-2008
FY 2006-07
Sec 94 of
Finance Service FY 2005-06 & 2006-07
act 1994 Tax and
Penalty
Name Amount Forum where dispute is
(Rs in pending
Lac)
Income Tax
Act 1961 5.10 CIT (Appeal)'' Ranchi
197.02 CIT (Appeals) and
Petition u/s 154
502.44 CIT(Appcal)'' Ranchi
Sales Tax/
Trade 13.79 Allahabad High Court
26.69 Office of the Joint
Commissioner (A)'' Mirzapur
UP Tax on
Entry of
Good; 217.52 Supreme court
58.64 CESTAT'' New Delhi
4.53 High Court'' Allahabad
561.00 CESTAT'' New Delhi
525.70 CESTAT'' Kolkata
7.38 AC'' Central Excise'' Mirzapur
164.32 CESTAT'' New Delhi
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year
(xi) Based on our audit procedures and as per the information and
explanations given'' we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institution or bank
(xii) According to the information and explanations given'' the Company
has not granted any loans and advances on the basis of security by way
of pledge of shares'' debentures and other securities
(xiii) In our opinion'' the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore'' the provisions of clause
4(xiii) of para 4 of the Order are not applicable to the Company
(xiv) In our opinion'' the Company is not dealing in or trading in
shares'' securities'' debentures and other investments. Accordingly'' the
provisions of clause 4(xiv) of para 4 of the Order are not applicable
to the Company
(xv) According to the information and explanations given'' the Company
has not given any guarantee for loans taken by others from banks or
financial institutions
(xvi) Based on information and explanations given to us'' the term loans
were applied by the Company during the year for the purposes for which
the loans were obtained
(xvii)According to the information and explanations given and on an
overall examination of the balance sheet of the Company'' we report that
no funds raised on short-term basis have been used for long-term
investment.
(xviii)During the year the Company has not made preferential allotment
of shares to parties and companies covered in the register maintained
under section 301 of the Act
(xix) The Company has not issued any debentures during the year
(xx) The Company has not raised any money through a public issue during
the year
(xxi) During the course of our examination of the books and records of
the company'' carried in accordance with the auditing standards
generally accepted in India'' we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have been informed of any such instance by the Management
For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Place: Mumbai Hasmukh B Dedhia
Date: May 08'' 2013 (Partner) F-033494
Mar 31, 2012
1 We have audited the attached Balance Sheet of Aditya Birla Chemicals
(India) Limited (here-in-after referred to as 'the Company') as at
March 31, 2012, and also the Statement of Profit and Loss and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit
2 We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion
3 As required by the Companies (Auditor's Report) Order, 2003
(here-in-after referred to as "the Order") issued by the Central
Government of India in terms of Section 227 (4A) of the Companies Act,
1956, (here-in-after referred to as "the Act") we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order
4 Further to our comments in the Annexure referred to above, we report
that:
i We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii 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;
iii The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
applicable accounting standards referred to in section 211 (3C) of the
Act;
v On the basis of the written representations received from the
directors as on March 31, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of section
274 (1)(g) the Act;
vi In our opinion and to the best of our information and according to
the explanations given to us, they said accounts 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, 2012 ;
b in the case of the Statement of Profit and Loss of the profit of the
Company for the year ended on that date; and
c in the case of Cash Flow statement, of the cash flows of the Company
for the year ended on that date Annexure referred to in paragraph 3 of
our Auditor's Report of Aditya Birla Chemicals (India) Limited of even
date
(i) (a) The Company has generally maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets
(b) The Company has a program for phased physical verification of all
its fixed assets which in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification
(c) The Company has not disposed off substantial part of its fixed
assets during the year
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year
(b) The procedure of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification
(iii) The Company has neither taken for granted any Loans, secured or
unsecured from/ to companies, firms or other parties covered in the
register maintained under section 301 of the Act. Accordingly, clause
(iii)(b) to (iii)(g) of paragraph 4 of the order are not applicable to
company for the year
(iv) In our opinion and according to the information and explanations
given, there is adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
Further on the basis of examination of the books and records of the
Company and according to the information and explanations given, and as
per checking carried out in accordance with the auditing standards
generally accepted in India, neither we have observed nor have we been
reported of any continuing failure to correct major weakness in the
internal control system relating to these areas
(v) Based on the audit procedures applied and according to the
information and explanations given, there are no contracts or
arrangements referred to in section 301 of the Act that need to be
entered in the register maintained under that section. Hence clause
(v)(b) of para 4 of the Order is not applicable
(vi) The Company has not accepted any deposits from public to which the
provisions of sections 58A, 58AA or any other relevant provisions of
the Act and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposits accepted from the Public applies
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business
(viii) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(1)(d) of the Act and
are of the opinion that, prima facie, the prescribed accounts and
records have been maintained
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-Tax, Sales-Tax, Wealth-Tax, Service Tax, Custom Duty,
Excise Duty, Cess, and other material statutory dues applicable to it.
There were no arrears as at March 31, 2012 for a period exceeding six
months from the date they became payable
(b) According to the information and explanations given, there are no
dues of sales-tax, income- tax, wealth-tax, service tax, custom duty,
excise duty and cess, which have not been deposited on account of any
dispute except as follows:
Name of the Nature of dues Period Amount Forum where
Statute (Rs. in
lacs) Dispute is
pending
Income Tax
Act 1961 Income tax and AY 1998-99 & 3.83 Referred to
AO by
Interest 2000-01 ITAT Ranchi
AY 2002-03 & 5.10 CIT (Appeal),
Ranchi
2006-07
AY 2005-06 19.80 ITAT, Ranchi
AY 2007-08 197.02 CIT (Appeals)
and
Petition u/s
154
AY 2008-09 & 360.66 CIT(Appeal),
Ranchi
2009-10
Sales Tax /
Trade Tax Sales Tax FY 1989-90, 13.79 Allahabad
High Court
1990-91 &
2003-04
AY 2005-06 26.69 Office of
the Joint
Commissioner(A),
Mirzapur
UP Tax on
Entry Entry Tax FY 2006-07
to 217.52 Supreme court
of Goods
into FY 2011-12
Local Area
Tax, 2007
Central
Excise
Act 1944 Cenvat and
Penalty FY 1995-96, 58.64 CESTAT,
New Delhi
1999-2000,
2005-06 &
2007-08
FY 1996-97 to 4.53 High Court,
Allahabad
FY 2000-01
FY 2000-01
to 561.00 CESTAT, New
Delhi
FY 2006-07
FY 2006-07 7.38 AC, Central
Excise,
Mirzapur
Sec 94 of
Finance
act 1994 Service Tax
and Penalty FY 2005-06 & 164.32 CESTAT, New
Delhi
2006-07
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year
(xi) Based on our audit procedures and as per the information and
explanations given, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institution or bank
(xii) According to the information and explanations given, the Company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of clause
4(xiii) of Para 4 of the Order are not applicable to the Company
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of Para 4 of the Order are not applicable
to the Company
(xv) According to the information and explanations given, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions
(xvi) Based on information and explanations given to us, the term loans
were applied by the Company during the year for the purposes for which
the loans were obtained
(xvii) According to the information and explanations given and on an
overall examination of the balance sheet of the Company, we report that
no funds raised on short-term basis have been used for long- term
investment
(xviii) During the year the Company has not made preferential allotment
of shares to parties and companies covered in the register maintained
under section 301 of the Act
(xix) The Company has not issued any debentures during the year
(xx) The Company has not raised any money through a public issue during
the year
(xxi) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have been informed of any such instance by the Management
For and on behalf of
Khimji Kunverji & Co.
Chartered Accountants
Firm Registration No. 105146W
Dated : May 11, 2012 Hasmukh B Dedhia
Place : Mumbai Partner (F-033494)
Mar 31, 2010
1 We have audited the attached Balance Sheet of Aditya Birla Chemical
(India) Limited as at March 31, 2010, and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit
2 We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion
3 As required by the Companies (Auditors Report) Order, 2003
(hereinafter referred to as "the Order") issued by the Central
Government of India in terms of Section 227 (4A) of the Companies Act,
1956, (hereinafter referred to as "the Act") we enclose in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said
Order
4 Further to our comments in the Annexure referred to above, we report
that:
i We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii 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.;
iii The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and with the audited returns from the branches;
iv In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the applicable
accounting standards referred to in section 211 (3C) of the Act.
v On the basis of the written representations received from the
directors as on March 31, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of section
274 (l)(g) the Act.
vi In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by tine 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, 2010 ;
b in the case of the Profit and Loss account, of the profit of the
Company for the year ended on that date; and c in the case of Cash Flow
statement, of the cash flows of the Company for the year ended on that
date
Annexure referred to in paragraph 3 of our Auditors Report of Aditya
Birla Chemicals (India) Limited of even date
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets
(b) The Company has a program r n phased physical verification of all
its fixed assets which in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification
(c) The Company has not disposed off substantial part of its fixed
assets during the year
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year
(b) The procedure of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification
(iii) The Company has neither taken nor granted any Loans, secured or
unsecured from/ to companies, firms or other parties covered in the
register maintained under section 301 of the Act. Accordingly, clause
(iii)(b) to (iii)(g) of paragraph 4 of the order are not applicable to
company for the year
(iv) In our opinion and according to the information and explanations
given, there is adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
Further on the basis of examination of the books and records of the
Company and according to the information and explanations given, and as
per checking carried out in accordance with the auditing standards
generally accepted in India, neither we have observed nor have we been
reported of any continuing failure to correct major weakness in the
internal control system relating to these areas
(v) Based on the audit procedures applied and according to the
information and explanations given, there are no contracts or
arrangements referred to in section 301 of the Act that need to be
entered in the register maintained under that section. Hence clause
(v)(b) of para 4 of the Order is not applicable
(vi) The Company has not accepted any deposits from public to which the
provisions of sections 58A, 58AA or any other relevant provisions of
the Act and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposits accepted from the public applies
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business
(viii) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(l)(d) of the Act and
are of the opinion that, prima facie, the prescribed accounts and
records have been maintained
(ix) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, IncomeÃTax, Sales-Tax, Wealth-Tax, Service Tax, Custom Duty,
Excise Duty, Cess, and other material statutory dues applicable to it.
There were no arrears as at March 31, 2010 for a period exceeding six
months from the date they became payable
(b) According to the information and explanations given, there are no
dues of sales-tax, income- tax, wealth-tax, service tax, custom duty,
excise duty and cess, which have not been deposited on account of any
dispute except as follows:
Name of the Nature of dues Period Amount
Statute (in lacs)
Income Tax Act
1961 Income tax and AY 1998-99 1.29
Interest
AY 2000-01 2.54
AY 2002-03 2.27
AY 2005-06 19.80
AY 2007-08 197.02
Ranchi
Industrial
Area Land Revenue Tax FY 2004-05 to 12.13
Development
Authority 2009-10
(RIADA), Ranchi
Name of the Forum where
Statue Dispute is pending
Income Tax Act 1961 Referred to AO by
IT AT Ranchi
Referred to AO by
IT AT Ranchi
CIT(Appeal), Ranchi
IT AT, Ranchi
CIT (Appeals) and
Petition u/s 154
Ranci Industrial Development Officer, RIADA
Area Development
Authourity (RIADA>,
Ranchi
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year
(xi) Based on our audit procedures and as per the information and
explanations given, we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institution or bank
(xii) According to the information and explanations given, the Company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of clause
4(xiii) of para 4 of the Order are not applicable to the Company
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of para 4 of the Order are not applicable
to the Company
(xv) According to the information and explanations given, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions
(xvi) Based on information and explanations given to us, the term loans
were applied by the Company during the year for the purposes for which
the loans were obtained
(xvii) According to the information and explanations given and on an
overall examination of the balance sheet of the Company, we report that
no funds raised on short-term basis have been used for long- term
investment
(xviii) During the year the Company has not made preferential allotment
of shares to parties and companies covered in the register maintained
under section 301 of the Act
(xix) The Company has not issued any debentures during the year
(xx) The Company has not raised any money through a public issue during
the year
(xxi) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have been informed of any such instance by the Management
For and on behalf of
Khimji Kunverji & Co.
Chartered Accountants
Firm Registration No. 105146W
Place : Mumbai Hasmukh B Dedhia
Dated : April 30, 2010 Partner (F-033494)