Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying Standalone Ind AS financial statements of Agarwal Industrial Corporation Limited (âthe Companyâ), which comprises the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (Including Other Comprehensive Income), the Cash Flow Statement and the Statement of Change in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and cash flows and change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under section 133 of the Act.
3. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting the 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
4. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
5. 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 thereunder.
6. We conducted our audit of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
7. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS 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 accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
8. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
9. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the state of affairs of the Company as at 31st March, 2018, and its profit, its cash flows and the change in equity for the year ended on that date.
Report on other Legal and Regulatory Requirements
10. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) 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 considered appropriate and according to the information and explanations given to us, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
11. 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, the Cash Flow Statement and Statement of Change in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian 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, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of 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 has disclosed the impact of pending litigations on its financial position in note no. 33 of its standalone Ind AS financial statements;
ii) The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure A to Independent Auditor''s Report
Referred to as ''Annexure A'' in paragraph 10 of the Independent Auditors'' Report of even date to the members of Agarwal Industrial Corporation Limited on the standalone Ind AS financial statements for the year ended on 31st March, 2018, we report that:
(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 by the management during the year under a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No discrepancies were noticed on such verification.
(c) According to the information and the explanation given to us and the records examined by us, we report that the title deeds of immovable properties are held in the name of the Company as at the Balance Sheet date.
(ii) As explained to us, the inventories were physically verified during the year by the management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has granted interest free unsecured loan to one body corporate being wholly owned subsidiary covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act'').
(a) In respect of aforesaid loan granted, the terms and condition under which such loans are granted are not prejudicial to the interest of the company.
(b) In respect of aforesaid interest free long term loan granted to wholly owned subsidiary by the company, there is no schedule of repayment of principle.
(c) There are no overdue amounts for more than ninety days or more in respect of the loan granted to the body corporate listed in the register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information given to us, the company has not accepted deposits and hence, compliance with the directives issued by Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under with regard to the deposits accepted is not applicable.
(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act in respect of Company''s products/services and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company is regular in depositing with appropriate authorities applicable undisputed statutory dues including employee state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess.
(b) According to the information and explanation given to us, no undisputed amounts payable in respect of employee state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax or cess were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us, details of employee state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax or cess which have not been deposited as on 31st March, 2018 on account of any dispute are as given below:
Name of Statute |
Nature of the dues |
Unpaid disputed Amount (in Lacs) |
Period for which the amount relates |
Forum where dispute is pending |
The Karnataka Tax on Entry of Goods Act, 1979 |
Tax on Entry of Goods |
39.75 |
April 2011 to March 2012 |
The Tribunal has decided the Appeal partially in favor of Company. Final demand notice is not yet received from assessing officer. |
The Karnataka Value Added Tax, 2003 |
Sales Tax Demand |
0.97 |
April 2011 to March 2012 |
|
The Karnataka Tax on Entry of Goods Act, 1979 |
Tax on Entry of Goods Demand |
15.49 |
April 2012 to March 2016 |
JCCT Appeal |
Custom Act |
Penalty under the Custom Act |
6.48 |
April 2013 to March 2014 |
CESAT Appellate Tribunal |
The Income Tax Act, 1961 |
Income Tax Demand |
20.25 |
A.Y. 2003-04 |
Rectification pending before Assessing Officer |
The Income Tax Act, 1961 |
Income Tax Demand |
17.50 |
A.Y. 2004-05 |
Rectification pending before Assessing Officer |
The Income Tax Act, 1961 |
Assessment Dues |
4.97 |
A.Y. 2008-09 |
Commissioner of Income Tax (Appeal) |
The Income Tax Act, 1961 |
Assessment Dues |
23.61 |
A.Y. 2009-10 |
--doâ |
The Income Tax Act, 1961 |
Assessment Dues |
24.89 |
A.Y. 2010-11 |
--doâ |
The Income Tax Act, 1961 |
Assessment Dues |
37.56 |
A.Y. 2011-12 |
--doâ |
The Income Tax Act, 1961 |
Assessment Dues |
35.43 |
A.Y. 2013-14 |
--doâ |
The Income Tax Act, 1961 |
Assessment Dues |
22.39 |
A.Y. 2014-15 |
--doâ |
The Income Tax Act, 1961 |
Income Tax Demand |
147.19 |
A.Y. 2016-17 |
Rectification pending before Assessing Officer |
Central Excise Act |
Excise Duty Demand |
6.78 |
April 2007 to March 2011 |
CESAT Appellate Tribunal |
--do-- |
--do-- |
3.02 |
April 2011 to March 2015 |
--doâ |
--do-- |
Penalty under Central Excise |
1.63 |
April 2011 to March 2015 |
--doâ |
Service Tax |
Service Tax Demand |
12.92 |
April 2010 to March 2015 |
Commissioner of Service tax (Appeal) |
Local Body Tax |
LBT Demand |
11.29 |
Jan to March 2017 |
In response to Writ Petition filed, the Hon. High Court have stayed the Demand. |
(viii) In our opinion and according to the information and explanation given to us, the company has not defaulted in the repayment of loans or borrowings to banks or financial institutions. The Company does not have any borrowings from government and has not issued any debentures.
(ix) The Company has not raise any money by way of initial public offer or further public offer (including debt instruments) or term loans during the year; hence clause 3(ix) of the Companies (Auditors'' Report) Order, 2016 are not applicable to the Company.
(x) 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 explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
(xi) According to the information and explanation give to us and based on our examination of the records of the Company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with the Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company; hence clause 3(xii) of the Companies (Auditors'' Report) Order, 2016 is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with the sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements in note no 41 as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosure specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rule, 2014.
(xiv) The Company has, during the year made preferential allotment of equity shares by conversion of warrants issued during the previous year and current year, after complying with the requirements of section 42 of the Companies Act, 2013 and the amount raised have been used for the purpose for which the funds were raised.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with the directors or the persons connected to its directors; hence clause 3(xv) of the Companies (Auditors'' Report) Order, 2016 is not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure B to Independent Auditor''s Report
Referred to as ''Annexure B'' in paragraph 11(f) of the Independent Auditors'' Report of even date to the members of Agarwal Industrial Corporation Limited on the standalone Ind AS financial statements for the year ended on 31st March, 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. We have audited the internal financial controls over financial reporting of Agarwal Industrial Corporation Limited (âthe Companyâ) as on 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended and as on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âthe Guidance Noteâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls over financial reporting. Those Standards and the Guidance Note require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Ladha Singhal & Associates
Chartered Accountants
(Firm Registration No. 120241W)
Ajay Singhal
(Partner)
M. No. 104451
Place: Mumbai
Dated: 30th May 2018
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Agarwal Industrial Corporation Limited ("the company"), which comprise
the Balance Sheet as at 31 March 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 standalone 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 the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding the assets of the Company and for
preventing and detecting the 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 control,
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 standalone
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
thereunder.
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 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 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 operative
effectiveness of such control. 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 profit and its 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, we give in the Annexure a
statement on the matters specified in paragraphs 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
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 Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone 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 written representations received from the directors
as on 31st March, 2015, 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 to be included in the Auditor's
Report in accordance with Rule 11 of 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
materially impact its financial position;
ii) The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses; and
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
Referred to as Annexure in our Independent Auditors' Report of even
date to the members of Agarwal Industrial Corporation Limited on the
standalone financial statement for the year ended 31st March 2015, we
report that:
(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 by the management
during the year under a regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
verification.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The Company has granted interest free unsecured loan to one
body corporate being wholly owned subsidiary covered in the register
maintained under section 189 of the Companies Act, 2013 ('the Act').
(b) In the case of the loans granted to the body corporate, the terms
of arrangements do not stipulate any repayment schedule and the loans
are repayable on demand.
(c) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the body corporate listed in the
register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods and Services. Further on the basis of our examination of
books and records of the company, and according to information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in
internal controls.
(v) In our opinion and according to the information given to us, the
company has not accepted deposits and hence, compliance with the
directives issued by Reserve Bank of India and the provisions of
sections 73 to 76 or any other relevant provisions of the Act and the
rules framed there under with regard to the deposits accepted is not
applicable.
(vi) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Act in respect
of Company's products/ services and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, the
company is regular in depositing with appropriate authorities applicable
undisputed statutory dues including employee state insurance, income
tax, sales tax, wealth tax, service tax, duty of custom, duty of excise,
value added tax, cess.
According to the information and explanation given to us, no undisputed
amounts payable in respect of income tax, sales tax, wealth tax,
service tax, duty of custom, duty of excise, value added tax or cess
were in arrears as at 31st March, 2015 for a period of more than six
months from the date they became payable.
(b) According to the information and explanation given to us, details of
income tax, sales tax, wealth tax, service tax, duty of custom, duty of
excise, value added tax or cess which have not been deposited as on 31st
March, 2015 on account of any dispute are as given below:
Name of Nature of the Unpaid
Statute dues disputed Amount
(in Lacs)
The Karnataka Tax Tax on Entry of 39.75
on Entry of Goods Goods
Act, 1979
The Karnataka Sales Tax 0.97
Value Added Demand
Tax, 2003
Central Sales Sales Tax 0.93
Tax, 1956 Demand
The Karnataka Tax Tax on Entry of 38.35
on Entry of Goods Goods Demand
Act, 1979
Custom Act Penalty under the 6.48
Custom Act
Income Tax Act Income Tax Demand 20.25
Income Tax Act Income Tax Demand 17.50
Name of Period for Forum where
Statute which the dispute is
amount relates pending
The Karnataka Tax April 2011 to JCCT Appeal
on Entry of Goods March 2012
Act, 1979
The Karnataka April 2011 to JCCT Appeal
Value Added March 2012
Tax, 2003
Central Sales April 2010 to JCCT Appeal
Tax, 1956 March 2011
The Karnataka Tax April 2010 to JCCT Appeal
on Entry of Goods March 2011
Act, 1979
Custom Act April 2013 to CESAT Appellate
March 2014 Tribunal
Income Tax Act A.Y. 2003-04 Rectification
Income Tax Act A.Y. 2004-05 Rectification
(c) According to the information and explanation given to us, there
were no any amount which were required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act,1956 (1 of 1956) and rules made
thereunder.
(viii) In our opinion, the company does not have accumulated losses at
the end of the financial year and have not incurred cash losses during
the financial year and during the immediately preceding financial year.
(ix) In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to any
financial institution or bank. The Company did not have any outstanding
debentures during the year.
(x) As informed to us, the company has not given guarantees for loans
taken by others from banks or financial institutions.
(xi) The term loans were applied for the purpose for which the loans
were obtained by the company.
(xii) According to the information and explanation given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit
For Ladha Singhal & Associates
Chartered Accountants
(Firm Registration No. 120241W)
Ajay Singhal
Place : Mumbai (Partner)
Dated : 30th May 2015 M. No. 104451
Mar 31, 2014
We have audited the accompanying financial statements of Agarwal
Industrial Corporation 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
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
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.
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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. 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
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 Statement of Profit and Loss, 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
1. 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.
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
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 Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
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,
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 Companies Act, 1956;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in our report to the members of Agarwal
Industrial Corporation Limited ("the Company") for the year ended 31st
March, 2014. We report that:
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The assets have been physically verified by the management during
the year under a regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. No material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed off a major part of
the plant and machinery and as such the going concern status of the
company is not affected.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The company has granted interest free unsecured loan to
wholly owned subsidiary covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs.121 Lacs and the year-end balance of
loan granted to such party was Rs. 121 Lacs.
(b) The other terms and conditions of such loan are not prime facie
prejudicial to the interest of the company.
(c) The loan granted is repayable on demand and have been repaid as and
when demanded back.
(d) There is no overdue amount of loan granted to the subsidiary
company listed in the register maintained under section 301 of the
Companies Act, 1956.
(e) The company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods and Services. Further on the basis of our examination of
books and records of the company, and according to information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in
internal controls.
(v) (a) According to the information and explanation given to us, the
transactions that need to be entered into the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transaction made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information explanations given
to us, the company has not accepted any deposits from public within the
meaning of section sections 58A and 58AA of the Companies Act, 1956 and
rules framed there under.
(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 books of accounts maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under clause (d) of sub section (1) of
section 209 of the Act in respect of Company''s products/services and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(ix) (a) The company is regular in depositing the undisputed statutory
dues including Investor Education Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
cess and other material statutory dues applicable to it with the
appropriate authority.
(b) According to the information and explanation giving to us no
undisputed amount payable in respect of above were in arrears, as at
31st March, 2014 for a period of more than six months from the date
they become payable.
(c) According to the information and explanation given to us, details
of sales tax, income tax, custom duty, wealth tax, service tax, excise
duty, cess which have not been deposited as on 31st March, 2014 on
account of any dispute are given below:
Excise Duty, Cess, Which have not been deposited an account of disputes
and the forum where the dispute is pending are as under :
Name of Nature of the Unpaid Period for
Statute dues disputed Amount which the
(in Lacs) amount relates
The Karnataka Tax Tax on Entry of 39.75 April 2011 to
on Entry of Goods Goods March 2012
Act, 1979
The Karnataka Sales Tax 0.97 April 2011 to
Value Added Demand March 2012
Tax, 2003
Central Sales Sales Tax 0.93 April 2010 to
Tax, 1956 Demand March 2011
The Karnataka Tax Tax on Entry of 38.35 April 2010 to
on Entry of Goods Goods Demand March 2011
Act, 1979
Income Tax Act Income Tax Demand 20.25 A.Y 2003-04
Income Tax Act Income Tax Demand 17.50 A.Y. 2004-05
Name of Statute Forum where dispute is pending
The Karnataka Tax JCCT Appeal
on Entry of Goods
JCCT Appeal
Act, 1979
The Karnataka JCCT Appeal
Value Added Tax, 2003
Central Sales JCCT Appeal
The Karnataka Tax JCCT Appeal
on Entry of Goods
Act, 1979
Income Tax Act Rectification
Income Tax Act Rectification
(x) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and the immediately preceding financial year.
(xi) In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank. The Company has not obtained any
borrowing by way of debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute applicable to chit fund or
nidhi/mutual benefit fund/societies are not applicable to the Company.
(xiv) The company is not a dealer or trader in shares, securities,
debentures and other investments.
(xv) As informed to us the company has not given guarantees for loans
taken by others from banks or financial institutions during the year.
(xvi) In our opinion and according to information given to us, the
company has applied the term loan for the purpose for which the loans
were obtained.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanation given to us, the Company has not prima-facie used the funds
raised on short-term basis for long-term investment.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) 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 given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Ladha Singhal & Associates
Chartered Accountants
(Firm Registration No. 120241W)
Ajay Singhal
Place: Mumbai (Partner)
Dated: 30th May 2014. M. No. 104451
Mar 31, 2013
1 We have audited the attached Balancesheet of Agarwal Industrial
Corporation Limited (the Company) asat 31st March, 2013, 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 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 planand
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosure in the financial statements. An audit also includes
assessing the accounting principle sused and significant estimates made
by the management, as well as evaluating the over all 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 (CARO)
issued by the Central Government of India interms of Section 227(4A) of
the Companies Act,1956, we enclosed 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 in paragraphs 3
above, were port 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 the
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as it appears from our examination of
these books;
c) The Balance Sheet and Profit & Loss Accounts and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance sheet and Profit & Loss Account and
cashflow statement dealt with by this report comply with the Accounting
Standards referred in sub-section (3C) of section 211 of the Companies
Act, 1956.
e) On the basis of written representations received from the directors
of the Companies as at 31st March 2013, and taken on record by the
Board of Directors, were port that no director is disqualified as on
31st March 2013 from being appointed as a Director interms of clause(g)
of sub-section(1) of section 274 of the Companies Act,1956; and
f) 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 the Companies Act, 1956 in the manners so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2013.
(ii) In the case of the Profit & Loss Account, 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.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 3 of our Report of even date)
1. Fixed Assets :
a) The Company has maintained proper records showing full particulars,
including quantitative details and situations offixed assets.
b) Fixed assets are physically verified by the management at reasonable
intervals having regard to size of the company and nature of it
sassets. No material discrepancies were noticed during such
verification during year.
c) The company has not disposed off any part offixed assets during the
year and accordingly going concern is not affected.
2. Inventories :
a) As explained to us, physical verification of inventory was carried
out at reasonable intervals by the management.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management, are reasonable and adequate, in relation to
size of the company and the nature of its business.
c) In our opinion, and according to the information and explanation
given to us, the company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt within the books of account.
3. Loans & Advances :
(a) According to the Information and explanations given to us, the
company has granted loans to one subsidiary covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 100 Lacs and the year-end balance
of loans granted to such party was Rs. 100 Lac.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prime facie prejudicial to the interest of the
company.
(c) The loans granted are either re-payable on demand or after the
stipulated period of time.
(d) There is no overdue amount of loans granted to the subsidiary
company listed in the register maintained under section 301 of the
Companies Act 1956.
(e) According to the Information and explanations given to us, the
company has taken interest free, unsecured loan from parties covered in
the register maintained under section 301 of the Companies Act 1956
which has repaid during the year. The maximum amount outstanding during
the year is Rs. 913.45 Lacs and outstanding balance at year end is Nil.
4. Internal Controls :
In our opinion and according to the information and explanations given
to us, the internal control system needs to be strengthened 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,
during the course of Audit, no major weakness has been noticed in the
internal controls.
5. Contracts & Arrangements with parties Covered under Section 301 of
the Act :
a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made inpursuance of contracts and
arrangements entered in the register maintained under section 301of the
Companies Act,1956 and exceeding the value of Rs. 5 Lacs in respec to
fany party during the year, have been made at prices which is prima
facie reasonable having regard to prevailing market prices at the
relevant time.
6. Deposits :
According to the information and explanations given to us the company
has not accepted any deposits from the public to which the directives
issued by the Reserve Bank of India and the provisions of section 58A
and 58AA of the Companies Act,1956 and the rules framed therein.
7. Internal Audit System :
In our opinion, the internal audit functions carried out during the
year by a firm Chartered Accountants appointed by the management have
been commensurate with the size of the Company and nature of its
business.
8. Cost Records :
We have broadly reviewed the books of accounts maintained by Company in
respect of product, where pursuant to the rule made by the Central
Government of India, the maintenance of cost records has been
prescribed under section 209(1)(d) of the Companies Act 1956 and are of
the opinion that, primafacie, the prescribed records have been
maintained. We have not, however made a detailed examination of the
records with a view to determine whether they are accurate or complete.
9. Statutory Dues :
a) According to records of the Company and information and explanation
given to us the company has been regular depositing undisputed
statutory dues including Income-tax, Sales Tax, Custom Duty, Excise
Duty, cess and other material statutory dues applicable to it with
appropriate authorities during the year. According to the information
and explanation giving to us no undisputed amount payable in respect of
above were in arrears, as at 31st March, 2013 for a period of more than
six months from the date they became payable.
b) According to the information and explanations given to us, there
were no dues of sales tax, Income Tax / Customs Duty / Wealth Tax /
Exciseduty / Cess which have not been deposited by the Company on
account any dispute.
c) According to the records of the company, the dues of sales tax,
Income-Tax, Customs, Wealth-Tax, Service Tax,
Excise Duty, Cess, Which have not been deposited an account of disputes
and the forum where the dispute is pending are as under :
Sr.
No. Nature of the Statute Nature of the Dues Amount Pending
Forum Where (Rs. in Lacs)
Dispute is pending
1. Income Tax Act Income Tax Demand 20.25
Rectification
(Ass. Year 2003-04)
2. Income Tax Act Income Tax Demand 17.50
Rectification
(Ass.Year 2004-05)
Other Matters :
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and immediately preceding financial year.
11. On the basis of our examination and according to the information
and explanation given to us, the company has not defaulted in repayment
of dues to any bank or financial institution. The Company has not
obtained any borrowing buy way of debentures.
12. Based on our examination of records & the information and
explanation given to us, the company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion the company is not a chitfund or
anidhi/mutualbenefitfund/society. Therefore, the Provision of clause
4(xiii) of the order are not applicable.
14. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(XIV) of the Order relating to maintenance of
proper records, timely entries and holding investment in own name are
not applicable.
15. According to the information and explanation given to us and
examined by us, the Company has not given any guarantee for loans taken
by others from banks or financial institutions, the terms and
conditions whereof are prejudicial to the interest of the Company.
16. In our opinion and according to the information and explanation
given to us, the company has applied the term loans for the purpose for
which they were obtained.
17. In our opinion, and on the basis of our examination and according
to the information and explanation given to us, and on an overall
examination of the balance sheet of the Company, were port that the
company has not, primafacie used the funds borrowed on short term basis
during the year for long term investment and viceversa.
18. In our opinion considering the nature of activities carried on by
the company during the year, the provision of any special statute
applicable to chit fund! nidhi/mutual benefit fund! societies are not
applicable to it.
19. On the basis of san overall examination of the balance sheet of
the company, in our opinion and according to the information and
explanation given to us, there are no funds on short terms basis which
have been used for long term investment.
20. The company has not made any preferential allotment of shares or
issued debentures or public issue during the year and according clauses
(xviii), (xix) and (xx) of the order are not applicable.
21. To the best of our knowledge and belief and according to
information and explanations given to us, there have been no casesof
fraud on or by the company noticed or reported during the year.
For RASHMI AGRAWAL
Chartered Accountants
RASHMI AGRAWAL
Place : Mumbai Proprietor
Date : 30/05/2013 M.B. No. 104517
Mar 31, 2012
1 We have audited the attached Balance sheet of Agarwal Industrial
Corporation Limited (the Company) as at 31st March, 2012, 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 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 test basis, evidence supporting the amounts and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the 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 (CARO)
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, we enclosed 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 in paragraphs 3
above, 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 the
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as it appears from our examination of
these books;
c) The Balance Sheet and Profit & Loss Accounts and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance sheet and Profit & Loss Account and cash
flow statement dealt with by this report comply with the Accounting
Standards referred in sub-section (3C) of section 211 of the Companies
Act, 1956.
e) On the basis of written representations received from the directors
of the Companies as at 31st March 2012, and taken on record by the
Board of Directors, we report that no director is disqualified as on
31st March 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956; and
f) 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 the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012.
(ii) In the case of the Profit & Loss Account, 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.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 3 of our Report of even date)
1. Fixed Assets :
a) The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b) Fixed assets are physically verified by the management at reasonable
intervals having regard to size of the company and nature of its
assets. No material discrepancies were noticed during such verification
during year.
c) The company has not disposed off any part of fixed assets during the
year and accordingly going concern is not affected.
2. Inventories :
a) As explained to us, physical verification of inventory was carried
out at reasonable intervals by the management.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management, are reasonable and adequate, in relation to
size of the company and the nature of its business.
a) In our opinion, and according to the information and explanation
given to us, the company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3. Loans & Advances :
(a) According to the Information and explanations given to us, the
company has taken interest free, unsecured loan from Parties covered in
the register maintained under section 301 of the Companies Act, 1956
which is repayable on demand. The maximum amount outstanding during the
year is ' 1371.05 Lacs & outstanding balance at year end is ' 913.45
Lacs.
(b) The terms and conditions of loan taken by the company are prime
facie not prejudicial to the interest of the company.
(c) The payments term of the principles amount has been started.
4. Internal Controls :
In our opinion and according to the information and explanations given
to us, the internal control system needs to be strengthened 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,
during the course of Audit, no major weakness has been noticed in the
internal controls.
5. Contracts & Arrangements with parties Covered under section 301 of
the Act :
a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of ' 5 Lacs in respect
of any party during the year, have been made at prices which is prima
facie reasonable having regard to prevailing market prices at the
relevant time.
6. Deposits :
According to the information and explanations given to us the company
has not accepted any deposits from the public to which the directives
issued by the Reserve Bank of India and the provisions of section 58A
and 58AA of the Companies Act, 1956 and the rules framed therein.
7. Internal Audit System :
In our opinion, the internal audit functions carried out during the
year by a firm Chartered Accountants appointed by the management have
been commensurate with the size of the Company and nature of its
business.
8. Cost records :
We have broadly reviewed the books of accounts maintained by Company in
respect of product, where pursuant to the rule made by the Central
Government of India the maintenance of cost records has been prescribed
under section 209(1)(d) of the Companies Act 1956 and are of the
opinion that, prima facie, the prescribed records have been maintained.
We have not, however made a detailed examination of the records with a
view to determine whether they are accurate or complete.
9. Statutory Dues :
a) According to records of the company and information and explanation
given to us the company has been regular depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-tax, Sales Tax,
Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory
dues applicable to it with appropriate authorities during the year.
According to the information and explanation giving to us no undisputed
amount payable in respect of above were in arrears, as at 31st March,
2012 for a period of more than six months from the date they became
payable.
b) According to the information and explanations given to us, there
were no dues of sales tax, Income Tax / Customs Duty / Wealth Tax /
Excise duty/Cess which have not been deposited by the company on
account any dispute.
c) According to the records of the company, the dues of sales tax,
Income-Tax, Customs, Wealth-Tax, Service Tax, Excise Duty, Cess, Which
have not been deposited an account of disputes and the forum where the
dispute is pending are as under:
Sr.
No. Nature of the
Statute Nature of the
Dues Amount
Pending Forum Where
(Rs. in
Lacs)
Dispute is pending
1. Income Tax Act Income Tax Demand 20.25 Rectification
(Ass. Year 2003-04)
2. Income Tax Act Income Tax Demand 17.50 Rectification
(Ass. Year 2004-05)
Other Matters :
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and immediately preceding financial year.
11. On the basis of our examination and according to the information
and explanation given to us, the company has not defaulted in repayment
of dues to any bank or financial institution .The Company has not
obtained any borrowing buy way of debentures.
12. Based on our examination of records & the information and
explanation given to us, the company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the Provision of clause 4(xiii) of the
order are not applicable.
14. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4 (XIV) of the Order relating to maintenance of
proper records, timely entries and holding investment in own name are
not applicable.
15. According to the information and explanation given to us and
examined by us, the Company has not given any guarantee for loans taken
by others from banks or financial institutions, the terms and
conditions whereof are prejudicial to the interest of the Company.
16. In our opinion and according to the information and explanation
given to us, the company has applied the term loans for the purpose for
which they were obtained.
17. In our opinion, and on the basis of our examination and according
to the information and explanation given to us, and on an overall
examination of the balance sheet of the Company, we report that the
company has not, prima facie used the funds borrowed on short term
basis during the year for long term investment and vice versa.
18. In our opinion considering the nature of activities carried on by
the company during the year, the provision of any special statute
applicable to chit fund! nidhi/mutual benefit fund! societies are not
applicable to it.
19. On the basis of san overall examination of the balance sheet of
the company, in our opinion and according to the information and
explanation given to us, there are no funds on short terms basis which
have been used for long term investment.
20. The company has not made any preferential allotment of shares or
issued debentures or public issue during the year and according clauses
(xviii),(xix) and (xx) of the order are not applicable.
21. To the best of our knowledge and belief and according to
information and explanations given to us, there have been no cases of
fraud on or by the company noticed or reported during the year.
For RASHMI AGRAWAL
Chartered Accountants
RASHMI AGRAWAL
Place: Mumbai Proprietor
Date : 27/08/2012 M.B. No.104517
Mar 31, 2011
1 We have audited the attached Balance sheet of Agarwal Industrial
Corporation Limited (the Company) as at 31st March, 2011, 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 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 test basis, evidence supporting the amounts and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the 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 (CARO)
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, we enclosed 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 in paragraphs 3
above, 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 the
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as it appears from our examination of
these books;
c) The Balance Sheet and Profit & Loss Accounts and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance sheet and Profit & Loss Account and cash
flow statement dealt with by this report comply with the Accounting
Standards referred in sub-section (3C) of section 211 of the Companies
Act, 1956.
e) On the basis of written representations received from the directors
of the Companies as at 31st March 2011, and taken on record by the
Board of Directors, we report that no director is disqualified as on
31st March 2011 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956; and
f) 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 the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2011.
(ii) In the case of the Profit & Loss Account, 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.
5 On the basis of the written representation received from the
Directors as on March 31, 2011 taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 3 of our Report of even date)
1. Fixed Assets :
a) The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b) Fixed assets are physically verified by the management at reasonable
intervals having regard to size of the company and nature of its
assets. No material discrepancies were noticed during such verification
during year.
c) The Company has not disposed off any part of fixed assets during the
year and accordingly going concern is not affected.
2. Inventories :
a) As explained to us, physical verification of inventory was carried
out at reasonable intervals by the management.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management, are reasonable and adequate, in relation to
size of the company and the nature of its business.
b) In our opinion, and according to the information and explanation
given to us, the company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3. Loans & Advances :
(a) According to the Information and explanations given to us, the
company has taken interest free, unsecured loan from Parties covered in
the register maintained under section 301 of the Companies Act, 1956
which is repayable on demand. The maximum amount outstanding during the
year is Rs.10.16 Crores & outstanding balance at year end is Rs.
Rs.10.16 Crores.
(b) The terms and conditions of loan taken by the company are prime
facie not prejudicial to the interest of the company.
(c) The payments term of the principles amount has not been started
yet.
4. Internal Controls :
In our opinion and according to the information and explanations given
to us, the internal control system needs to be strengthened 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,
during the course of Audit, no major weakness has been noticed in the
internal controls.
5. Contracts & Arrangements with parties Covered under section 301 of
the Act :
a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs.5 Lacs in respect
of any party during the year, have been made at prices which is prima
facie reasonable having regard to prevailing market prices at the
relevant time.
6. Deposits :
According to the information and explanations given to us the company
has not accepted any deposits from the public to which the directives
issued by the Reserve Bank of India and the provisions of section 58A
and 58AA of the Companies Act, 1956 and the rules framed therein.
7. Internal Audit System :
In our opinion, the internal audit functions carried out during the
year by a firm Chartered Accountants appointed by the management have
been commensurate with the size of the Company and nature of its
business.
8. Cost records :
As explained to us the Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act,1956, for any of the products of the company.
9. Statutory Dues :
a) According to records of the company and information and explanation
given to us the company has been regular depositing undisputed
statutory dues including Income-tax, Sales Tax, Excise Duty, cess and
other material statutory dues applicable to it with appropriate
authorities during the year. According to the information and
explanation giving to us no undisputed amount payable in respect of
above were in arrears, as at 31st March, 2010 for a period of more than
six months from the date they became payable.
b) According to the information and explanations given to us, there
were no dues of sales tax, Income Tax/Excise Duty/ Cess which have not
been deposited by the company on account any dispute.
c) According to the records of the company, the dues of sales tax,
Income-Tax, Service Tax, Excise Duty, Cess, Which have not been
deposited an account of disputes and the forum where the dispute is
pending are as under:
Sr.
No. Nature of
the Statute Nature of
the Dues Amount
Pending Forum Where
(Rs in
Lacs) Dispute is pending
1. Income Tax
Act Income Tax
Demand 20.25 Rectification
(Ass. Year 2003-04)
2. Income Tax
Act Income Tax
Demand 17.50 Rectification
(Ass. Year 2004-05)
Other Matters :
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and immediately preceding financial year.
11. On the basis of our examination and according to the information
and explanation given to us, the company has not defaulted in repayment
of dues to any bank or financial institution .The Company has not
obtained any borrowing buy way of debentures.
12. Based on our examination of records & the information and
explanation given to us, the company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the Provision of clause 4(xiii) of the
order are not applicable.
14. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4 (XIV) of the Order relating to maintenance of
proper records, timely entries and holding investment in own name are
not applicable.
15. According to the information and explanation given to us and
examined by us, the Company has not given any guarantee for loans taken
by others from banks or financial institutions, the terms and
conditions whereof are prejudicial to the interest of the Company.
16. In our opinion and according to the information and explanation
given to us, the company has applied the term loans for the purpose for
which they were obtained.
17. In our opinion, and on the basis of our examination and according
to the information and explanation given to us, and on an overall
examination of the balance sheet of the Company, we report that the
company has not, prima facie used the funds borrowed on short term
basis during the year for long term investment and vice versa.
18. In our opinion considering the nature of activities carried on by
the company during the year, the provision of any special statute
applicable to chit fund! nidhi/mutual benefit fund! societies are not
applicable to it.
19. On the basis of san overall examination of the balance sheet of
the company, in our opinion and according to the information and
explanation given to us, there are no funds on short terms basis which
have been used for long term investment.
20. The company has not made any preferential allotment of shares or
issued debentures or public issue during the year and according clauses
(xviii),(xix) and (xx) of the order are not applicable.
21. To the best of our knowledge and belief and according to
information and explanations given to us, there have been no cases of
fraud on or by the company noticed or reported during the year.
For RASHMI AGARWAL
Chartered Accountants
RASHMI AGARWAL
Place: Mumbai Proprietor
Date : 25/08/2011 M.B. No.104517