Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of AKAR AUTO INDUSTRIES LTD., AKAR AUTO INDUSTRIES LTD. (Formerly known as AKAR TOOLS LTD.) ("the Company"), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including other Comprehensive Income), the Cash Flow Statement and the Statement of Changes 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
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 IND AS financial statements, that give a true and fair view of the financial position, financial performance (including other Comprehensive Income), cash flow and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; 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
Our responsibility is to express an opinion on these Standalone IND AS 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 of the Standalone IND AS financial statements 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 Standalone IND AS financial statements are free from material misstatement.
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 auditors'' 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 controls 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 the Company''s Directors, as well as evaluating the overall presentation of the standalone IND AS 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 IND AS financial statements.
Opinion
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, of the state of affairs of the Company as at 31 March 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and Changes in Equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub section(11) of section 143 the Act, and 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", a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit except for confirmation from debtors and creditors.
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 (including other Comprehensive Income), the Cash Flow Statement and the Statement of Changes 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 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 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 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 "Annexure B" to this report.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements -Refer Note31 to the standalone IND AS financial statements.
ii. The Company did not have any long-term contracts including derivatives contract 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- Refer Note 40 to the standalone IND AS financial statements.
iv. The reporting on disclosure relating to specified bank notes is not applicable to the company for the year ended 31st March 2018.
Annexure "A"
To the Independent Auditors'' Report of even date on the Standalone Ind As Financial Statements of AKAR AUTO INDUSTRIES LTD.
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the Company''s Standalone IND AS Financial Statement as of and for the year ended March 31, 2018.
We report that:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets under which fixed assets are verified in a phased manner during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business. No material discrepancies were noticed on such verification.
(c) Based on our audit procedure performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the company except in case of merged unit''s lease hold land costing Rs. 0.32 Lakhs which is yet not transferred in the name of the company in the records of M.I.D.C. for which the Company is in the process of getting it registered in its name.
(ii) The management has conducted physical verification of inventory at reasonable intervals, except material in transit and stocks lying with third parties and in bonded warehouses, which are verified with reference to the certification obtained and/or subsequent clearing of goods. In our opinion, the frequency of physical verification is reasonable. No material discrepancies were noticed on physical verification between the physical stock and book records.
(iii) In our opinion, and according to information and explanation given to us, the Company has granted loan, secured or unsecured to companies, firms, or other parties covered in the register maintained under Section 189 of the Act.
a. The terms and conditions of the grant of such loans are not prejudicial to the company''s interest.
b. The schedule of repayment of principal and payment of interest has been stipulated and the repayment or receipts are regular.
c. In respect of the aforesaid loans, there is no amount which is overdue for more than 90 days.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, and advances given, making investments and providing guarantees, and securities provided by it, as applicable.
(v) The Company has not accepted any deposits during the year from the public within the meaning of the provisions of Section 73 to 76 or any other provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014 to the extent notified, with regard to deposits accepted from the public.
(vi) The maintenance of cost record has been specified by the Central Government under Section 148 (1) of the Act. We have broadly reviewed the cost records maintained by the company pursuant to the companies (Cost Record and Audit)Rules, 2014, as amended and prescribed by the Central Government under sub-section(1) of Section 148 of the Act, and are of the opinion that, prima facie, that prescribed cost record have been made and maintained. We have, however, not mode a detailed examination of the cost record with a view to determine whether they are accurate or complete.
(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 generally regular in depositing undisputed statutory dues including Provident Fund, Investors'' Education And Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax including Value Added Tax, Wealth Tax, Service Tax, Goods and Service Tax, Entry tax, Duty Of Customs, Duty Of Excise, Cess and other material statutory dues as applicable to each of them respectively, with the appropriate authorities ,there were no arrears of undisputed outstanding statutory dues as at the year-end for a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, wealth tax, Service tax, duty of customs, duty of excise, value added tax and cess on account of any dispute, the amount involved and the forum where disputes are as follows :-
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Unpaid (Rs. in Lacs) |
Income Tax Act 1961 |
Income Tax |
Chief Commissioner of Income Tax |
A.Y.1999-2000 A.Y.2000-2001 A.Y.2001-2002 A.Y.2002-2003 A.Y.2003-2004 A.Y.2004-2005 |
0.44 5.35 10.72 3.26 13.65 4.16 |
Income Tax |
Assessing officer for |
A.Y.2005-2006 |
9.99 |
|
rectification |
A.Y.2006-2007 |
0.50 |
||
A.Y.2007-2008 |
1.81 |
|||
A.Y.2008-2009 |
2.63 |
|||
A.Y.2011-2012 |
14.38 |
|||
A.Y.2012-2013 |
13.48 |
|||
Income Tax |
TRIBUNAL |
A.Y.2010-2011 |
2.00 |
|
Income Tax |
Commissioner of Income |
A.Y.2014-2015 |
83.00 |
|
Tax (Appeals) |
||||
Income Tax (TCS) |
Commissioner of Income |
A.Y. 2012-13 to |
8.46* |
|
Tax (Appeals) |
A.Y. 2018-19 |
|||
Income Tax |
Income Tax officer (TDS) |
A.Y.2008-2009 |
3.71 |
|
(TDS) |
A.Y.2009-2010 |
7.85 |
||
A.Y.2011-2012 |
0.26 |
|||
A.Y.2012-2013 |
0.48 |
|||
A.Y.2013-2014 |
2.34 |
|||
A.Y.2014-2015 |
2.20 |
|||
A.Y.2015-2016 |
4.31 |
|||
A.Y.2016-2017 |
1.40 |
|||
A.Y.2017-2018 |
0.62 |
|||
A.Y.2018-2019 |
2.55 |
|||
Finance Act, 1994/ |
Service Tax |
Commissioner of Appeals, |
Aug-2012 to |
23.61 |
Central Goods & |
Central Goods & Service |
June -2017 |
||
Service Tax Act, |
Tax,(Formerly Central |
|||
2017 |
Excise, Customs and |
|||
Service Tax) |
*Above amounts is Net of H 1.5 Lac paid under deposits against the TCS matter.
(viii) According to the records of the Company examined by us and information and explanations given to us, the Company has not defaulted in repayment of dues to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.
(ix) The company did not raise money by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) In our opinion and according to the information and explanations given to us, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company; accordingly, provisions of Clause 3 (xii) of Companies (Auditor''s Report) Order, 2016 are not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures, during the year.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with term. Therefore, the provisions of Clause 3(xv) of Companies (Auditor''s Report) Order, 2016 are 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 the Independent Auditor''s Report of even date on the Standalone IND AS Financial Statements of AKAR AUTO INDUSTRIES LTD.
Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AKAR AUTO INDUSTRIES LTD. ("the Company") as of March, 31st 2018 in conjunction with our audit of the standalone IND AS financial statements of the Company for the year ended on that date
Management''s Responsibility for Internal Financial Controls
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 (the ICAI). 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 the 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 Companies Act, 2013.
Auditor''s Responsibility
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 Standards on Auditing issued by the 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, and the guidance note on internal financial controls over financial reporting (the guidance Note) issued by the ICAI. Those standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
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 judgement, including the assessment of the risks of material misstatement of the standalone IND AS financial statements, whether due to fraud or error.
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
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 standalone 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 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 financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
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
In our opinion, 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 March 31,2018, 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 JAJU & KABRA
Chartered Accountants
(FRN 140398W)
Sd/-
(RAHUL JAJU)
Place : Aurangabad PARTNER
Dated : 30th May, 2018 Membership No.164021
Mar 31, 2016
Independent Auditor''s Report
TO THE MEMBERS OF AKAR TOOLS LTD.
Report on the Standalone Financial Statements
1. We have audited the accompanying financial statements of Akar Tools Limited, ("the Company"), which comprise the Balance Sheet as at 31st March
2016, 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
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, 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 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; 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 standalone financial statements based on our Audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
5. We conducted our audit in accordance with the Standards of 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 auditors'' 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 controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 standalone financial statements.
Opinion
8. 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 31 March 2016, 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 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure I, 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 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 it appears from our examination of those books;
c. the Standalone Financial Statements 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 (as amended);
e. on the basis of written representations received from the directors as on 31st March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 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 "Annexure 2" to this report.
g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. as detailed in Note 28 to the standalone financial statements, the Company has disclosed the impact of pending litigations on its financial position;
ii. the Company did not have any long-term contracts including derivatives contract for which there were any material foreseeable losses; and
iii. there has been a delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. [See Annexure 1 (VII) (c) and Note No.37]
Re: AKAR TOOLS LIMITED ("the Company")
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets under which fixed assets are verified in a phased manner during the year, 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) Based on our audit procedure performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the company except in case of merged unit''s lease hold land costing Rs. 0.32 lacs which is yet not transferred in the name of the company in the records of M.I.D.C. for which the Company is in the process of getting it registered in its name.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year, Inventories lying with third parties have been confirmed by them as at March 31, 2016 and no material discrepancies were noticed on such physical verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a) and 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the provisions of sections 185 and 186 of the Act in respect of loans and advances given, investments made and guarantees, and securities given to parities covered under the respective sections have been complied with by the company.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) 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 sub-section (1) of Section 148 of the Act in respect of company''s products 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 cost records with a view to determine whether they are accurate or complete.
(vii) (a) The Company is regular in depositing
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, with the appropriate authorities except Rs. 6.42 Lacs which is outstanding as on 31st March 2016 on account of dividend Distribution Tax. Except as above, there were no arrears of undisputed outstanding statutory dues as at the year-end for a period of more than six months from the date they become payable.
(c) A Sum of Rs. 0.97 lacs is outstanding on account of outstanding dividend payable as on
(b) The dues outstanding in respect of income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess on account of any dispute, the amount involved and the forum where disputes are as follows :-
Statute |
Nature of Dues |
Amount (Rs. in lakhs) |
Amount paid under protest (Rs in Lakhs) |
period to which the amount relates |
Forum where dispute is pending |
Income Tax Act 1961 |
Income tax and interest |
0.44 |
- |
A.Y. 1999-2000 |
CCIT |
Income tax and interest |
5.34 |
- |
A.Y. 2000-2001 |
CCIT |
|
Income tax and interest |
10.72 |
- |
A.Y. 2001-2002 |
CCIT |
|
Income tax and interest |
3.26 |
- |
A.Y. 2002-2003 |
CCIT |
|
Income tax and interest |
13.65 |
- |
A.Y. 2003-2004 |
CCIT |
|
Income tax and interest |
4.16 |
- |
A.Y. 2004-2005 |
CCIT |
|
Income tax and interest |
0.50 |
- |
A.Y. 2006-2007 |
CIT (A) |
|
Income tax and interest |
1.81 |
- |
A.Y. 2007-2008 |
CIT (A) |
|
Income tax and interest |
2.07 |
- |
A.Y. 2010-2011 |
CIT (A) |
|
Maharashtra Vat Act |
Sales Tax and interest |
19.64 |
- |
A.Y. 2003-2004 |
Comm. Of ST |
31.03.2016 related to FY 2007-08 required to be transferred to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 2013 and rules made there under within time.
(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.
(ix) The company did not raise money by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) In our opinion, managerial remuneration has been provided in accordance with the requisite approvals mandated by the provisions of section 197 of the Act read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company, Accordingly, Clause 3 (xii) of the order is not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance with sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
(xv) The Company has not entered into any non-cash transactions with directors or persons connected with term.
(xvi) The Company is not required to be registered under section 45IA of the Reserve Bank of India Act, 1934.
We have audited the internal financial controls over financial reporting of Akar Tools Limited ("the Company") as of March,31st 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Annexure 2 to the Independent Auditor''s Report of even date on the Standalone Financial Statements of Akar Tools Limited
Report on the Internal Financial Controls under Clause(i) of Sub Section 3 of Section 143 of the Companies Act,2013 ("the Act")
TO THE MEMBERS OF AKAR TOOLS LTD.
Management''s Responsibility for Internal Financial Controls
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. 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 the 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 Companies Act, 2013.
Auditor''s Responsibility
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 on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the institute of Chartered Accountants of India. Those standards and the Guidance Note require that we comply with 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.
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. Out 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 financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
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 financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
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
In our opinion, 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 March 31,2016, 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 A.K. BAGADIA & CO.
CHARTERED ACCOUNTANTS
(A K BAGADIA)
PROPRIETOR
Place : Aurangabad MEMBERSHIP NO.30520
Dated : 30th May, 2016 (FRN 100846W)
Mar 31, 2015
1. We have audited the accompanying financial statements of Akar Tools
Ltd, ("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 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, 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 (as amended). This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act; safeguarding the assets of the Company;
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, 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.
5. We conducted our audit in accordance with the Standards of Auditing
specified
6. 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 materia misstatement.
7. 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 auditors' 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 controls relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overal presentation of the 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
financial statements.
Opinion
9. 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 31 March 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
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
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 it appears from our examination of
those books;
c. the financial statements 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 (as amended);
e. on the basis of written representations received from the directors
as on 31 March 2015 and taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March 2015 from being
appointed as a director in terms of Section 164(2) of the Act; and
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 information and
according to the explanations given to us
i. as detailed in Note 28 to the financial statements, the Company has
disclosed the impact of pending itigations on its financial position,
ii. the Company did not have any long-term contracts including
derivatives contract for which there were any material foreseeable
losses; and
iii. there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEHURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE
MEMBERS OF AHAR TOOLS LTD ON THE FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31ST MARCH, 2015
Based on the audit procedures performed for the purpose of I reporting
a true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets under which fixed assets are verified in a phased manner
during the year, 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 management has conducted physical verification of
inventory at reasonable intervals during the year.
(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 between physical inventory and book records were
noticed on physical verification.
(iii) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act.
Accordingly, the provisions of clauses 3(iii)(a) and 3(iii)(b) of the
Order are not applicable
(iv) In our opinion, 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 During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas
(v) The Company has not accepted any deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)
Rules, 2014 (as amended), accordingly, the provisions of clause 3(v) of
the Order are not applicable.
(vi) To the best of our knowledge and belief, the Centra Government has
specified maintenance of cost records under sub-section (1) of Section
148 of the Act, in respect of Company's products. Accordingly, the
provisions of clause 3(vi) of the Order are applicable.
(vii) (a) The Company is regular in depositing 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,
with the appropriate authorities except Rs.57.58 Lacs which is
outstanding as on 31st March 2015. Further, 5.99 of undisputed amount
payable in respect thereof were outstanding at the year-end for a
period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax, sales-tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax and
cess on account of any dispute, the amount involved and the forum where
disputes are as follows :-
Statute Nature of Dues Amount
(Rs.in Amount paid
lacs) under Protest
(Rs in Lacs)
Income Tax Act Income tax and interest 0.44 -
1961
Income tax and interest 5.34 -
Income tax and interest 10.72 -
Income tax and interest 3.26 -
Income tax and interest 13.65 -
Income tax and interest 4.16 -
Income tax and interest 28.42 -
Income tax and interest 1.81 -
Income tax and interest 2.07 -
Maharashtra Sales Tax and interest 19.64 -
Vat Act
Statute Period to which Forum where dispute
the amount is pending
relates
Income Tax Act 1961 A.Y. 1999-2000 CCIT
A.Y. 2000-2001 CCIT
A.Y. 2001-2002 CCIT
A.Y. 2002-2003 CCIT
A.Y. 2003-2004 CCIT
A.Y. 2004-2005 CCIT
A.Y. 2006-2007 CIT (A)
A.Y. 2007-2008 CIT (A)
A.Y. 2010-2011 CIT (A)
Maharashtra Vat Act A.Y. 2003-2004 Comm. Of ST
(c) A Sum of Rs.0.95 lacs related to FY 2006-07 has been transferred to
the Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder within time
(viii) In our opinion, the Company has no accumulated losses at the end
of the financial year and it has not incurred cash losses in the
current and the immediately preceding financial year.
(ix) In our opinion, the Company has not defaulted in repayment of dues
to any financial institution or a bank or to debenture-holders during
the year.
(x) The Company has not given any guarantees for loans taken by others
from banks or financial institutions Accordingly, the provisions of
clause 3(x) of the Order are not Applicable,
(xi) The Company did not have any term loans outstanding during the
year. Accordingly, the provisions of clause 3(xi) of the Order are not
applicable,
(xii) No fraud on or by the Company has been noticed or reported during
the period covered by our audit
For A.K. BAGADIA & CO
CHARTERED ACCOUNTANTS
(AK BAGADIA)
PROPRIETOR
MEMBERSHIP NO. 30520
(FRN 100846W)
Place: Aurangabad
Dated: 30th May, 2015
Mar 31, 2014
1 We have audited the accompanying financial statements of AKAR TOOLS
LIMITED (the "Company") which comprise the Balance Sheet as at March
31, 2014 and the Statement of Profit & Loss and Cash Flow Statement for
the year then ended. And a summary of significant accounting policies
and other explanatory information, which we have signed under reference
to this report.
Management''s Responsibilities for the Financial Statements:
2 The Company''s Management is responsible for 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 auditing standards referred to in sub-section (3C)
of section 211 of the Companies Act, 1956 of India (the "Act"), read
with the General Circular 15/2013 dated 13th September, 2013 of the
Mnistry of Corporate Affairs in respect of Section 133 of the Companies
Act, 2013. 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.
Auditors'' Responsibility:
3 Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standard on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4 An audit involves performing procedures to obtain audit evidence,
about the amount and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statement, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management as well as evaluating the overall
presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
6 In our opinion and to the best of our information and according to
the explanation given to us, the accompanying financial statements give
the information required by the Act in the manner so required and give
true and fair view in conformity with the 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, 2014.
ii) in the case of the Profit & Loss Account of the profit of the year
ended on that date.
iii) in the case of the Cash Flow Statement of the cash flow of the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004''
issued by the Central Government of India under Sub-section (4A) of
section 227 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 enclosed in the
Annexure a statement on the matter specified in paragraphs 4 and 5 and
said 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 accounts 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
(d)In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956: read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013;
(e)On the basis of the written representation received from directors
as on 31st March 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st march 2014, from being
appointed as a director in terms of clause (g) of sub section (1) to
Section 274 of the Act.
Annexure to auditors'' report
(Referred to in paragraph 7 of Auditors'' Report of even date to the
members of AKAR TOOLS LIMITED on the financial statements of the
company for the year ended 31st March, 2014.)
i. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year but there is 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 material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed any substantial part
of its fixed assets.
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, no material
discrepancies were noticed on verification between the physical stocks
and the book records.
iii. a) The company has granted unsecured loans to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. The maximum amount outstanding during the year
was Rs. 78.99 lakhs. The year end balance is Rs. 68.55 lakhs.
(b) In our opinion, the rate of interest wherever applicable, and other
terms and conditions of such loans are not, prima facie, prejudicial to
the interest of the company.
(c) The parties have repaid the principal amounts as stipulated and
have also been regular in the payment of interest to the company,
wherever payable.
(d) There is no overdue amount in excess of Rs. 1 lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The company has not taken unsecured loan from any party covered in
the register maintained under section 301 of the Companies Act, 1956.
(f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(g) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business, with regard to purchase of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements 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 explanations
given to us, the transactions 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 and explanations
given to us, the company has not accepted any deposits from public
within the meaning of sections 58A and 58AA and other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
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 account relating to
materials, labour and other items of cost 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 not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
ix. (a) According to the information and explanation given to us and
the records of the Company examined by us, in our opinion the company
is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education fund,
employees'' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty and other material statutory dues
applicable to it, except Rs. 19.17 Lacs which is outstanding on account
of Dividend Distribution Tax.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
(b) According to the information and explanations given to us, in cases
of disputed demands in respect of income tax, sales tax, wealth tax,
service tax, customs duty and excise duty and cess, the amounts
involved and the forum where disputes are pending are mentioned in
notes of accounts.
x. In our opinion, the company has no accumulated losses. Further,
the company has not incurred cash losses during the financial year
covered by our audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debentures holders.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
xiv. In our opinion, the company is not dealing in or trading in shares
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
xv. In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied, on an overall basis, for
the purpose for which they were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
xviii. According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
company had not issued any debentures during the period covered by our
audit report.
xx. The Company had not raised any money by way of public issue, 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
material fraud on or by the Company, noticed or reported during the
year, nor have been informed of any such case by the management.
For A K BAGADIA & CO.
CHARTERED ACCOUNTANTS.
(FRN 100846W)
Place: Aurangabad (A K BAGADIA)
Dated: 30th May, 2014. PROPRIETOR.
MEMBERSHIP NO.30520.
Mar 31, 2013
Report on Financial Statement:
1 We have audited the accompanying financial statements of AKAR TOOLS
LIMITED (the "Company") which comprise the Balance Sheet as at March
31, 2013 and the Statement of Profit & Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information, which we have signed under reference
to this report.
Management''s Responsibilities for the Financial Statements:
2 The Company''s Management is responsible for 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 auditing standards referred to in sub-section (3C)
of section 211 of the Companies Act, 1956 of India (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.
Auditors'' Responsibility:
3 Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standard on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4 An audit involves performing procedures to obtain audit evidence,
about the amount and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statement, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
6 In our opinion and to the best of our information and according to
the explanation given to us, the accompanying financial statements give
the information required by the Companies Act, 1956 in the manner so
required and give true and fair view in conformity with the 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 of the year
ended on that date.
iii) in the case of the Cash Flow Statement of the cash flow of the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
7 As required by the Companies (Auditor''s Report) Order, 2003, as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004''
issued by the Central Government of India under Sub-section (4A) of
section 227 of the Companies Act,1956,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
enclosed in the Annexure a statement on the matter specified in
paragraphs 4 and 5 and said Order.
8 As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion proper books of accounts 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
(d) 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 Act.
(e) On the basis of the written representation received from directors
as on 31st March 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st march 2013, from being
appointed as a director in terms of clause (g) of sub section (1) to
Section 274 of the Act.
i. (a) The company has maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is 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 material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed any substantial part
of its fixed assets.
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, no material
discrepancies were noticed on verification between the physical stocks
and the book records.
iii. (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) In our opinion, the rate of interest wherever applicable, and other
terms and conditions of such loans are not, prima facie, prejudicial to
the interest of the company.
(c) The parties have repaid the principal amounts as stipulated and
have also been regular in the payment of interest to the company,
wherever payable.
(d) There is no overdue amount in excess of Rs. 1 lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The company has taken an unsecured loan from one party covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 46.35 Lacs and the
year-end balance of such loan was Nil.
(f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(g) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business, with regard to purchase of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements 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 explanations
given to us, the transactions 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 and explanations
given to us, the company has not accepted any deposits from public
within the meaning of sections 58A and 58AA and other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
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 account relating to
materials, labour and other items of cost 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 not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. (a) According to the information and explanation given to us and
the records of the Company examined by us, in our opinion the company
is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education fund,
employees'' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty and other material statutory dues
applicable to it, except Rs. 15.13 Lacs which is outstanding on account
of Dividend Distribution Tax.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
(b) According to the information and explanations given to us, in cases
of disputed demands in respect of income tax, sales tax, wealth tax,
service tax, customs duty and excise duty and cess, the amounts
involved and the forum where disputes are pending are mentioned in
notes of accounts.
x. In our opinion, the company has no accumulated losses. Further,
the company has not incurred cash losses during the financial year
covered by our audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debentures holders.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
xiv. In our opinion, the company is not dealing in or trading in shares
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
xv. In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied, on an overall basis, for
the purpose for which they were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
xviii.According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
company had not issued any debentures during the period covered by our
audit report.
xx. The Company had not raised any money by way of public issue 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
material fraud on or by the Company noticed or reported during the year
nor have been informed of any such case by the management.
For A K BAGADIA & CO.
CHARTERED ACCOUNTANTS.
(FRN 100846W)
Place: Aurangabad (A K BAGADIA)
Dated: 29th May, 2013. PROPRIETOR.
MEMBERSHIP NO.30520.
Mar 31, 2012
We have audited the attached Balance Sheet of AKAR TOOLS LIMITED as at
31st March, 2012 and also the statement of Profit & Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These Financial statements are the responsibility of the
Companies management. Our responsibility is to express an opinion on
the financial statements based on our audit.
We have conducted our audit in accordance with the auditing standards
generally accepted in India. These 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 managements, as well as evaluating, the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
In accordance with the provisions of Section 227 of the Companies Act,
1956, we report that;
(1) As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India under Sub- section (4A) of section
227 of the Companies Act,1956,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 enclosed
in the Annexure a statement on the matter specified in paragraphs 4 and
5 and said Order.
(2) Further to our comments in the Annexure referred to 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 our
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 those
books .
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the accounting standards referred to in
sub-section 3(c) of section 211 of the Companies Act,1956.
e) On the basis of the written representation received from directors
as on 31st March 2012 and taken on record by the Board of Directors, we
report that the none of the directors is disqualified as on 31st march
2012, from being appointed as a director in terms of clause (g) of sub
section (1) to Section 274 of the Companies Act 1956,and
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts, read together with the
significant accounting policies in schedule '1 & 2' and notes appearing
there on, give the information required by the Companies Act, 1956 in
the manner so required and give true and fair view in conformity with
the 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 of the year
ended on that date.
iii) in the case of the Cash Flow Statement of the cash flow of the
year ended on that date.
i. (a) The company has maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is 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 material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed of any substantial
part of its fixed assets.
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, no material
discrepancies were noticed on verification between the physical stocks
and the book records.
iii. (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) In our opinion, the rate of interest wherever applicable, and other
terms and conditions of such loans are not, prima facie, prejudicial to
the interest of the company.
(c) The parties have repaid the principal amounts as stipulated and
have also been regular in the payment of interest to the company,
wherever payable.
(d) There is no overdue amount in excess of Rs. 1 lakh in respect of
loans granted to companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
(e) The company has taken an unsecured loan from one party covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 55.47Lacs and the
year-end balance of such loan was Nil.
(f) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956 are not, prima facie, prejudicial to the interest of the
company.
(g) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
iv. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business, with regard to purchase of inventory and fixed assets and
with regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the company.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements 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 explanations
given to us, the transactions 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 and explanations
given to us, the company has not accepted any deposits from public
within the meaning of sections 58A and 58AA and other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
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 account relating to
materials, labour and other items of cost 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.
ix. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education fund, employees' state insurance, income tax, sales
tax, wealth tax, service tax, custom duty, excise duty and other
material statutory dues applicable to it, except Rs. 10.75Lacs which
is outstanding on account of Dividend Distribution Tax.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
(b) According to the information and explanations given to us, in cases
of disputed demands in respect of income tax, sales tax, wealth tax,
service tax, customs duty and excise duty and cess, the amounts
involved and the forum where disputes are pending are mentioned in
notes of accounts.
x. In our opinion, the company has no accumulated losses. Further,
the company has not incurred cash losses during the financial year
covered by our audit and the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debentures holders.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
xiv. In our opinion, the company is not dealing in or trading in shares
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
xv. In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
xvi. In our opinion, the term loans have been applied for the purpose
for which they were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short- term basis have been used for
long-term investment.
xviii. According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
company had not issued any debentures during the period covered by our
audit report,.
xx. The Company had not raised any money by way of public issue,
during the year.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For A K Bagadia & Co.
Chartered Accountants
FRN 100846W
A K Bagadia
Place : Mumbai Proprietor
Dated : 30th August, 2012 Membership No. 30520
Mar 31, 2010
We have audited the attached Balance Sheet of AKAR TOOLS LIMITED as at
March 31, 2010 and also the Profit & Loss Account for the year ended on
that date annexed thereto, both of which we have signed under reference
to this report. These Financial statements are the responsibility of
the Companies management .Our responsibility is to express an opinion
on the financial statements based on our audit.
We have conducted our audit in accordance with the auditing standards
generally accepted in India. These 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 managements, as well as evaluating, the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
In accordance with the provisions of Section 227 of the Companies Act,
1956, we report that;
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India under Sub-section (4A) of section
227 of the Companies Act, 1956, 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 enclosed
in the Annexure a statement on the matter specified in paragraphs 4 and
5 and said Order.
2. Further to our comments in the Annexure referred to above, we
report that;
a) We have obtained all the informations 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 accounts 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the accounting standards referred to in
sub-section 3(c) of section 211 of the Companies Act, 1956.
e) On the basis of the written representation received from Directors
as on March 31, 2010 and taken on record by the Board of Directors, we
report that the none of the Directors is disqualified as on March 31,
2010, from being appointed as a Director in terms of clause (g)of sub
section (1) to Section 274 of the Companies Act 1956,and
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts, read together with the
significant accounting policies in schedule 18 and notes appearing
there on, give the information required by the Companies Act, 1956 in
the manner so required and give true and fair view in conformity with
the principles generally accepted in India.
i) in the case of the balance sheet of the state of affairs of the
Company as at March 31, 2010.
ii) in the case of Profit & Loss Account, of the profit for the year
ended on that date;
iii) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
Annexure to the Auditors Report
i) a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) We are informed that the company has formulated a program, of
physical verification of all the fixed assets over a period of three
years which, in our opinion, is reasonable having regards to size of
the Company and nature of its assets. Accordingly, the physical
verification of the fixed assets has been carried out by management
during the year and no material discrepancies were noticed on such
verification.
c) During the year the Company has not disposed off major part of its
fixed assets.
ii) a) As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year, the frequency
of such verification is reasonable.
b) As per information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, 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 notices on verification between the physical stocks and
the book records were not material.
iii) a) According to the information and explanation given to us, the
Company granted and taken unsecured loans, to/from companies, firms and
other parties covered in the register maintained under Section 301 of
the companies Act, 1956.
b) The rate of interest and other terms and conditions of loans or by
the Company, secured or unsecured, are prima facie not prejudicial to
the interest of the Company.
c) The payment of the principal and interest amount, wherever
applicable is regular.
d) The reasonable steps has been taken by the Company for
recovery/payment of the principal and interest in case of overdue
amount is more than one lac.
iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for purchases of inventory, fixed assets and for sale of
goods. 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 cross nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control procedures.
v) a) According to the information and explanation given to us, we are
of the opinion that the transactions that need to be entered in 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 exceeding the values of Rs. 5 lacs in respect of
any party during the year, have been made at prices which are
reasonable having regard to the prevailing market prices.
vi) The Company has not accepted any deposits from public during the
year as defined under Section 58A /and 58AA of the Companies Act, 1956
read with the provisions of the Companies (Acceptance of Deposit) Rule,
1975.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We are informed that the maintenance of cost record has not been
prescribed by the Central Government under Section 209 (1) (d) of
Companies Act, 1956 in respect of this Company.
ix) a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing undisputed statutory dues including
provident fund, employees state insurance, income tax, sales tax,
wealth tax, custom duty, excise duty, cess and other material statutory
dues as applicable with the appropriate authorities. According to the
information and explanations given to us, there were no undisputed
amounts payable in respect of provident fund, employees state
insurance, income tax, sales tax, wealth tax, custom duty, excise duty,
cess and other statutory dues as at March 31, 2010 for a period of more
than six months from the date they become payable.
b) According to the information and explanations given to us and
records of the Company, examined by us, the particulars of sales tax,
excise duty and income tax dues as at March 31, 2010 which have not
been deposited on account of disputes pending, are mentioned in
"Schedule 18-Notes on Accounts".
x) The Company has no accumulated loss at March 31, 2010 and it has not
incurred any cash losses in the financial year ended on that date or in
the immediately preceding financial year.
xi) According to the records of the Company examined by us and the
information given to us, the Company has not default in repayment of
dues to any financial institution or bank or debenture holders as at
the balance sheet date.
xii) Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provision of any special statute applicable to chit
fund/nidhi/mutual benefit fund/ societies are not applicable to the
Company.
xiv) The Company is not dealing/ trading in shares, securities,
debentures and other investments.
xv) In our opinion and according to the information and explanation
given to us, the terms & conditions of guarantee given by the Company
for loans taken by others from banks and/ or financial institutions are
not prima facie prejudicial to the interest of the Company.
xvi) In our opinion and according to the information and explanation
given to us, on an overall basis, the term loans have been applied for
the purpose for which they were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis have been used for long terms
investments and no long term funds have been used to finance short term
assets except æ permanent working capital.
xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the registered maintained under
Section 301 of the Companies Act, 1956 during the year.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by public issue during the
year.
xxi) During the courses 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 instances of
material fraud on or by the Company, noticed or reported during the
year, nor we have been informed of any such case by management.
For Hemant J. Vora & Co.
Chartered Accountants
Firm Registration No. 113079W
CA. H. J. Vora
Proprietor
Membership No.: 46326
Place: Aurangabad
Dated: August 21, 2010