Home  »  Company
Enter the first few characters of Company and click 'Go'
Sorry, unable to find the company details of Ahlcon parenterals india

Search NSE/BSE Listed Company Details By Alphabets

 
Subscribe now to get personal finance updates in your inbox!
Auditor Report of Ahlcon Parenterals (India) Ltd. Company
Home  »  Company  »  Ahlcon Parenter.  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Ahlcon Parenterals (India) Ltd.

Mar 31, 2015

Report on the Financial Statements

1. We have audited the accompanying financial statements of Ahlcon Parenterals (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31st, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements to give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting standards and matters which are required to be included in the audit report.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances, 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 the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

8. 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 March31, 2015, and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by 'the Companies (Auditor's Report) Order, 2015, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order"), 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 Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

10. As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) On the basis of the written representations received from the directors as on March 31, 2015 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) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:

i) The Company has disclosed the impact of pending litigations as at March 31st, 2015 on its financial position in its financial statements- Refer note no. 25 to the financial statements.

ii) The Company did not have any long-term contracts including derivative contracts, for which there were any material foreseeable losses.

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2015

Annexure to Independent Auditors' Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to the members of Ahlcon Parenterals (India)Limited on the financial statements as of and for the year ended March 31, 2015

i. (a) The Company is maintaining 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 in a phased manner and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

ii. (a) The management has conducted physical verification of inventory at reasonable intervals.

(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 in inventory were noticed on physical verification.

iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Therefore, the provisions of Clause 3(iii), (iii)(a) and (iii)(b) of the said Order are not applicable to the Company.

iv. In our opinion, and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and 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, we have neither come across, nor have been informed of, any continuing failure to correct major weaknesses in the aforesaid internal control system.

v. The Company has not accepted any deposits from the public within the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. Refer Note no 43 to the financial statements.

vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Govt. for the maintenance of Cost Records under sub section 1 of section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have however, not made a detailed examination of these records.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees' state insurance, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities except for delay in depositing income tax dues (TDS) in some cases.

(b) According to the information and explanations given to us, no undisputed statutory dues, including provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, were outstanding at the year end, for a period more than six months from the date they become payable with the appropriate authorities.

(c) According to the information and explanations given to us and the records of the Company examined by us, the dues outstanding of income-tax, wealth-tax, sales tax, service-tax, duty of customs, duty of excise, value added tax and cess which have not been deposited on account of any dispute as at March 31, 2015 are stated below:-

NATURE OF NATURE OF DUES AMOUNT (Rs.) STATUTE

Central Excise Excise Duty on Physician Sample 592,854/-

Central Excise Service Tax on Foreign 1,25,000/- based services Stay Received on Rs. 6,25,000/-

Central Excise Cenvat Credit on Photocopy of bill of entry 6,19,875/-

Penalty on above 6,19,875/-

Central Excise Modvat Reversed on Packing 1,04,170/- Material destroyed

Central Excise Service Tax Input outward freight 1,79,002/-

Central Excise Penalty on above 1,79,002/-

Central Excise Service tax input on transport service 1,13,189/-

Central Excise Penalty on Above 1,13,189/-

Central Sale Tax Demand against non submission 23,761/- of the foms

Entry Tax Demand for entry Tax 15,31,347/-

Central Exise Wrongly availed exemption 74,859/-

Central Exise Renting of motor vehicle 41,344/-

Central Exise Freight and Documentation 7,69,646/- charge Export

CENVAT Credit Wrongly taken CENVAT credit 1,708,352/- on professional charges to IC

Central Exise Cenvat Credit on flowing ineligible 2,20,244/- input service

Sales Tax C Form liability 1,57,731/-

NATURE OF STATUTE PERIOD TO WHICH FORUM WHERE DISPUTE IS AMOUNT RELATES PENDING

Central Excise April 05 to March, 06 Customs, Excise and Service Tax appellate Tribunal, New Delhi

Central Exise April 06 to August 09 Customs, Excise and Service Tax appellate Tribunal

Central Exise April 09 March 10 Joint Commissioner, Jaipur

-do-

Central Exise April 06 to March, 07 Commissioner Appeal,Bhiwadi

Central Exise April 06 to March, 07 Commissioner Appeal,Jaipur

Central Exise April 06 to March, 07 Commissioner Appeal,Jaipur

Central Exise April 06 to March, 07 Rajasthan High Court

Central Exise April 06 to March, 07 Commissioner Appeal,Jaipur

Central Sales Tax April 07 to March, 12 Sale Tax Asst. Commissioner, Bhiwadi

Entry Tax April 07 to March, 14 High Court Rajasthan

Central Exise April 13 to March, 14 Superitendent of Excise, Bhiwadi

Central Exise April 13 to March, 14 Superitendent of Excise, Bhiwadi

Central Exise April 13 to March, 14 Superitendent of Excise, Bhiwadi

CENVAT Credit April 14 to March, 15 Asst. Commissioner, Bhiwadi

Central Exise April 13 to March, 14 Superitendent of Excise, Bhiwadi

Sales Tax April 13 to March, 14 Sale Tax Asst. Commissioner, Bhiwadi (d) The amount required to be transferred to Investor Education and Protection Fund has been transferred within the stipulated time in accordance with the provisions of the Companies Act, 2013 and the rules made thereunder.

viii. The Company has no accumulated losses as at the end of the financial year and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

ix. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date.

x. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions.

xi. Based on the audit procedures applied by us & according to the information & explanations provided by the management, the term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

xii. 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 on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.

For ARUN K GUPTA & ASSOCIATES

Chartered Accountants

Firm Registration No. – 000605N

(GIREESH KUMAR GOENKA)

Partner

M. No- 096655

Place: New Delhi

Dated: 28.05.2015


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Ahlcon Parenterals (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and 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 Balance Sheet, of the state of affairs of the company as at 31st March, 2013

b) In the case of Statement Profit & 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, 2013, and taken on record by the Board of Directors, 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 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 referred to in paragraph 3 of our report of even date Ahlcon Parenterals (India) Limited

1. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The management during the year has physically verified the fixed assets and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its business. In our opinion the company has not

disposed of any substantial part of its fixed assets during the year and the going concern status of the company is not affected.

2. The management has conducted physical verification of inventory at reasonable intervals.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. The Company is maintaining proper records of inventory except for work in progress, which has been determined on the physical verification at the year–end. No material discrepancies in inventory were noticed on physical verification.

3. i. As informed to us, the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

ii. As informed to us, the Company has not taken any loan, from companies, firms or other parties covered in the register maintained under section 301 of the companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control 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. Accordingly the issue of continuing failure to correct major weakness in internal control in these areas does not apply.

5. According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under Section 301 of Companies Act 1956 have been made at a prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

6. The Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956 and the rules made there under.

7. In our opinion, internal audit system of the company is commensurate with the size and nature of its business.

8. We have broadly reviewed the books of account 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 Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however not made a detailed examination of the records.

9. i. According to the records of the company, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income–Tax, Sales–Tax, Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, there are no undisputed amounts payable in respect of Wealth Tax, Sales Tax, Service Tax, Customs duty and Excise duty outstanding, as at 31st March 2013 for a period of more than six months from the date they became payable except for Entry Tax (Rajasthan) Rs. 96,917/– for F.Y 2007–08, Rs. 1,33,668/– for F.Y 2008–09 Rs. 2,51,496/– for F.Y. 2009–10 Rs. 1,89,805/– for F.Y. 2010–11, Rs. 6,92,615/– for F.Y 2011–12, Rs. 6,03,135/– for F.Y 2012–13 and Income Tax of Rs. 2,26,864/–, Rs. 1,04,936/– , Rs. 10,200/–, Rs. 86,260/–, Rs. 15589/– respectively for F.Y. 2000–02, F.Y. 2002–03, F.Y. 2007–08, F.Y. 2008–09, F.Y. 2009–10.

ii. According to the records of the Company, the dues outstanding of Income Tax, Sales Tax, Customs Duty, Wealth Tax, Excise Duty and Cess on account of any dispute are as under:

NATURE OF NATURE OF DUES AMOUNT (Rs.) STATUTE

Central Excise Excise Duty on Physician Sample 16,67,708/–

Central Excise Service Tax on Foreign based 9,01,021/– services Penalty on above

9,01,021/– Interest on above

5,000/–

Central Excise Cenvat Credit on Photocopy of bill 6,19,875/– of entry Penalty on above

6,19,875/–

Modvat Reversed on Packing Central Excise 1,04,170/– Material destroyed

Central Sales Tax Service Tax Input outward freight 1,79,002/–

Central Sales Tax Demand against non 3,10,561/– submission of Forms

Name PERIOD TO WHICH FORUM WHERE DISPUTE IS AMOUNT RELATES PENDING

Central Excise April 05 to March, 06 Customs, Excise and Service Tax appellate Tribunal, New Delhi

Central Excise April 06 to August 09 Customs, Excise and Service Tax appellate Tribunal, New Delhi

–do–

–do–

Central Excise 2009–2010 Joint Commissioner, Jaipur –do–

Central Excise April 06 to March, 07 Commissioner Appeal, Bhiwadi

2006–2007 Commissioner Appeal

Central Excise 2009–2010 Commercial Tax Officer, Bhiwadi, Rajasthan

10. 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.

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions or bank.

12. According to the information and explanation given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information and explanation given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and Societies.

14. The Company has not dealt / traded in shares, securities, debentures and other investments.

15. We have been informed that the company has not given any guarantee for loans taken by others from bank & financial institutions.

16. Based on information and explanations given to us by the management the term loans were applied for the purpose for which loans were obtained.

17. According to the information & explanation given and on the basis of overall examination of balance sheet of the company in our opinion no short term funds have been used for long term investments during the year.

18. During the year the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act.

19. During the period covered by our audit, the Company has not issued any debentures.

20. The company has not raised any money through a public issue during the year.

21. Based upon the audit procedures performed by us for expressing our opinion on these financial statements and as per information & explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For ARUN K. GUPTA & ASSOCIATES

Chartered Accountants

Firm Registration No. 000605N

Sachin Kumar

Place: New Delhi Partner

Dated: 14.05.2013 M.NO. 503204


Mar 31, 2011

1. We have audited the attached Balance Sheet of Ahlcon Parenterals (India) Ltd., 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 have conducted our audit in accordance with the 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(as amended) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, 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 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;

(iv) In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on 31st March 2011 and taken on record by the Board of Directors, we report that none of the directors 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;

(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 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:

(a) in the case of the balance sheet, of the state of affairs of the company as at 31st March 2011;

(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.

ANNEXURE TO THE AUDITORS' REPORT (REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE) AHLCON PARENTERALS (INDIA) LIMITED

1. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The management during the year has physically verified the fixed assets and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its business. In our opinion the company has not disposed of any substantial part of its fixed assets during the year and the going concern status of the company is not affected.

2. The management has conducted physical verification of inventory at reasonable intervals. 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. The Company is maintaining proper records of inventory except for work in progress, which has been determined on the physical verification at the year-end. No material discrepancies in inventory were noticed on physical verification.

3. i. As informed to us, the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

ii. As informed to us, the Company has not taken any loan, from companies, firms or other parties covered in the register maintained under section 301 of the companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control 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. Accordingly the issue of continuing failure to correct major weakness in internal control in these areas does not apply.

5. According to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered into the register maintained under Section 301 and exceeding the value of five lakh rupees.

6. The Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956 and the rules made there under.

7. In our opinion, internal audit system of the company is commensurate with the size and nature of its business.

8. We have broadly reviewed the books of account 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 Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however not made a detailed examination of the records.

9. i. According to the records of the company, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-Tax, Sales-Tax, Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, there are no undisputed amounts payable in respect of Wealth Tax, Sales Tax, Service Tax, Customs duty and Excise duty outstanding, as at 31st March 2011 for a period of more than six months from the date they became payable except for Entry Tax (Rajasthan) Rs.1,93,835/- for F. Y 2007-08, Rs.2,67,336/- for F. Y 2008- 09, Rs.5,02,992/- for F.Y. 2009-10 and Rs.1,99,097/- for F.Y. 2010-11 and Income Tax of Rs.2,26,864/-, Rs.1,04,936/- , Rs.43,334/-respectively for F.Y. 2000-01, F.Y. 2002-03 & F.Y. 2004-05.

ii. According to the records of the Company, the dues outstanding of Income Tax, Sales Tax, Customs Duty, Wealth Tax, Excise Duty and Cess on account of any dispute are as under:

nature of statute nature of dues amount (Rs.) Period TO Which amount Forum Where dispute is Pending relates

Central Excise Act, Cenvat Credit not available on 5,20,647/- April 04 to March 05 Customs, Excise and Service tax 1944 inputs appellate Tribunal (New Delhi)

-do- Penalty on above 5,20,647/- -do- -do-

-do- Cenvat Credit not available on 5,35,897/- April 06 to Sept. 06 Customs, Excise and Service tax inputs appellate Tribunal (New Delhi)

-do- Penalty on above 10,000/- -do- -do-

-do- Cenvat Credit not available on 2,51,144/- April 05 to March 06 Commissioner (Appeal) Bhiwadi inputs

-do- Interest on above 60,139/- -do- -do-

-do- Penalty on above 2000/- -do- -do-

-do- Excise Duty Demand 195,329/- F.Y. 2008-09 Tribunal (New Delhi)

-do- Penalty on above 195,329/- -do- -do-

-do- Penalty on above 16,000/- -do- Ast. Commissioner Bhiwadi

-do- Excise duty demand 149,586/- FY 04-05 to 07-08 Commissioner (Appeal) Jaipur

-do- Penalty on above 5000/- -do- -do-

-do- Service tax on GTA 113,189/- April 05 to Sept. 05 Rajasthan High Court, Bench Jaipur

-do- Penalty on above 113,189/- -do- -do-

-do- Service tax cenvat credit 901,021/- April 06 to Aug. 09 Commissioner (Appeal) Jaipur reversed during excise audit

-do- Penalty on above 1,15,342/- -do- -do-

-do- Penalty on above 5000/- -do- -do-

10. 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 proceeding financial year.

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions or bank.

12. According to the information and explanation given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information and explanation given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and Societies.

14. The Company has not dealt / traded in shares, securities, debentures and other investments.

15. We have been informed that the company has not given any guarantee for loans taken by others from bank & financial institutions.

16. Based on information and explanations given to us by the management the term loans were applied for the purpose for which loans were obtained.

17. According to the information & explanation given and on the basis of overall examination of balance sheet of the company in our opinion the company has utilized short term fund of Rs 102 lacs for long term purposes.

18. During the year the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19. During the period covered by our audit, the Company has not issued any debentures.

20. The company has not raised any money through a public issue during the year.

21. Based upon the audit procedures performed by us for expressing our opinion on these financial statements and as per information & explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For ARUN K. GUPTA & ASSOCIATES

Chartered Accountants

SACHIN KUMAR

Partner

Place : New Delhi M.NO. 503204

Dated : 14.05.2011 Firm Registration No. 000605N







 
Subscribe now to get personal finance updates in your inbox!