Mar 31, 2018
Report on the Standalone Indian Accounting Standard (Ind AS) Financial Statements
We have audited the accompanying standalone Ind AS financial statements of AKSH OPTIFIBRE LIMITED (âthe Companyâ), which comprises the Balance Sheet as at 31st March, 2018, Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement & the Statement of Change in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters in section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation & presentation 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 flows & change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (âInd ASâ) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other accounting principles generally accepted in India.
This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ 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 matterâs which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give 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 Companyâs 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 31st March, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Other Matter
The audited standalone financial statements for the year ended 31st March 2017, were audited by another firm of chartered accountants, vide their unmodified audit report dated 13th November 2017, whose report has been furnished to us by the management and which has been relied upon by us for the purpose of our audit of the standalone financial statements. Our audit report is not qualified in respect of this matter.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion proper books of account as required by law relating to preparation of the standalone Ind AS financial statements have been kept by the Company so far as it appears from our examination of those books;
c) The standalone Ind AS financial statement 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 Ind AS specified under Section 133 of the Act as applicable;
e) On the basis of written representations received from the directors as on 31st March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the companyâs internal financial controls over financial reporting.
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements -Refer Note 40 to the standalone financial Ind AS statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The reporting on disclosure relating to Specified Bank Notes is not applicable to the Company for the year ended 31st March, 2018.
i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) According to the information and explanation given to us, fixed assets except the assets installed at customer premises have been physically verified by the management during the year. No material discrepancies were noticed on such verification. In our opinion, frequency of physical verification of fixed assets is reasonable.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. According to the information & explanation given to us, physical verification of inventory has been conducted at reasonable intervals by the management during the year except for goods in transit. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the book of accounts.
iii. According to the information & explanation given to us, the Company has granted unsecured loans to its three wholly owned subsidiaries, covered in the register maintained under Section 189 of Companies Act 2013.
(a) In our opinion, the rate of interest and other terms and conditions on which the loan has been granted to its subsidiaries, covered in the register maintained under Section 189 of the Act was not, prima facie, prejudicial to the interest of the Company.
(b) In respect of loans granted to subsidiaries covered under section 189 of the Act, the terms of arrangement for payment of principal and interest are payable on demand. Accordingly, the provisions of paragraph 3 (iii) (b) of the Order are not applicable to the Company.
(c) In respect of the aforesaid advances, as per the information made available to us, there is no overdue amount as at year end.
iv. According to the information & explanation given to us, in respect of loans, investments, guarantees and security, the Company has complied with the provisions of section 185 and I86 of the Companies Act, 2013, to the extent applicable.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public as mentioned in the directives issued by Reserve Bank of India and provisions of sections 73 to 76 of the Companies Act, 2013 or any other relevant provisions of the Act and the rules framed thereunder.
vi. 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 sub section (1) of section 148 the Companies, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.
vii. (a) According to the information and explanations given to us and according to the books and records produced before us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employeesâ state insurance, income tax, sales tax, Goods & Service Tax, service tax, custom duty, excise duty, Cess and other material statutory dues applicable to it.
According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, Goods & Service Tax, Service Tax, sales tax, custom duty, excise duty and Cess were in arrears, as at 31st March, 2018 for a period of more than six months from the date they became payable.
(B) According to the information and explanations given to us, there are no dues of income tax or Goods & Service Tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute except of the following amounts: -
Name of |
Nature of Dues |
Disputed amount |
Period to which |
Forum where |
the Statute |
(Rs. in Lakhs) |
amount relates |
dispute is pending |
|
CUSTOMS |
||||
Customs Act, 1962 |
Duty, Interest & Penalty |
7.39 |
2000-01 & 2013-14 |
CESTAT, New Delhi |
EXCISE |
||||
Central Excise Act, 1944 |
Excise duty, Interest & Penalty |
13.81 |
2003-05 |
CESTAT, New Delhi |
Central Excise Act, 1944 |
Excise duty |
32.79 |
2011-12 |
Assistant Commissioner, Bhiwadi |
Central Excise Act, 1944 |
Excise duty |
22.35 |
2010-11 |
Assistant Commissioner, Bhiwadi |
SERVICE TAX |
||||
Finance Act, 1994 |
Service tax & Interest |
31.20 |
November 2006 to August 2008 |
Honâble High Court, Jaipur |
Finance Act, 1994 |
Service tax |
0.91 |
January 2011 to November 2011 |
Assistant Commissioner, Bhiwadi |
Finance Act, 1994 |
Service tax |
3.14 |
October 2013 to September 2014 |
Commissioner of Central Excise (Appeals) |
INCOME TAX |
||||
Income Tax Act, 1961 |
Income Tax |
91.01 |
A.Y 2010-11 |
CIT (Appeals), Alwar (Rajasthan) |
Income Tax Act, 1961 |
Income Tax |
1.71 |
A.Y 2015-16 |
CIT (Appeals), Delhi |
PROVIDENT FUND |
||||
Provident Fund Act |
Provident Fund |
7.60 |
2004-05 |
Honâble High Court, Jaipur |
viii. 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, Government or debenture holders.
ix. According to the information and explanations given to us and our examination of the records of the Company, the term loans have been applied for the purposes for which they were obtained. The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments).
x. 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 course of our audit.
xi. According to the information and explanations given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
xii. According to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, the provisions of paragraph 3 (xii) of the Order are not applicable to the Company.
xiii. According to the information and explanations given to us and our examination of the records of the Company, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Ind AS Financial Statements as required by the applicable Indian Accounting Standards.
xiv. 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 under audit.
xv. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of paragraph 3 (xv) of the Order are not applicable to the Company.
xvi. According to the information and explanations given to us, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of AKSH OPTIFIBRE LIMITED (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 âGuidance Noteâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, 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. 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 auditorâs judgement, cluding 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs 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 companyâs 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 to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on 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 B G G & ASSOCIATES
Chartered Accountants
FRN 016874N
CA Alok Kumar Bansal
Place : New Delhi Partner
Date : May 30, 2018 Membership No. 092854
Mar 31, 2015
We have audited the accompanying Standalone Financial Statements of
AKSH OPTIFIBRE LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these Standalone Financial Statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matter's which are required to be included in the audit report under
the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the Financial Statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the Standalone Financial Statements.
The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the Standalone
Financial Statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the Company's preparation of the Standalone Financial
Statements that give true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an
adequate internal financial controls system over financial reporting
and the 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 Company's
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone
Financial Statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone Financial
Statements, give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. Further, as required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid Standalone Financial Statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its Standalone Financial Statements  Refer Note
25 to the Standalone Financial Statements.
ii. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE
As stated in Para 1 'Report on Other Legal and Regulatory Requirements'
in Our Auditors' report on even date, the following statement is based
on the comment in the Auditors report on Standalone Financial
Statement.
1 (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanation given to us fixed
assets except the assets installed at customer premises have been
physically verified by the management during the year. No material
discrepancies were noticed on such verification. In our opinion,
frequency of physical verification of fixed assets is reasonable.
2 (a) During the year, The Inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us. the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c ) In our opinion and according to the information and explanation
given to us and on the basis of our examination of the records, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt with in the book of accounts.
3 (a) The Company has granted unsecured loan to its subsidiaries,
covered in the register maintained under Section 189 of Companies Act,
2013 ('the Act').
(b) In respect of loans granted to subsidiaries covered under section
189 of the Act, the terms of arrangement for payment of principal and
interest are payable on demand. Accordingly, paragraph 3(iii)(a) is not
applicable to the Company.
(c) In respect of the aforesaid advances, as per the information made
available to us, there is no overdue amount exceeding Rupees One Lac as
at year end.
4 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 with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any major weakness in internal controls.
5 In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from public to
which the directives issued by Reserve Bank of India and provisions of
sections 73 to 76 of the Companies Act, 2013, including rules framed
there under, apply. Further, no order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any other tribunal.
6 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 sub section (1) of section 148 the Companies, 2013 and we
are of the opinion that prima facie the prescribed accounts and records
have been made and maintained.
7 (a) According to the information and explanations given to us and
according to the books and records produced before us, the Company is
regular in depositing with appropriate authorities 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 Any Other Statutory Dues with the Appropriate
Authority, as Applicable to it.
(b) According to the information and explanations given to us, there
are no dues of Income Tax or Sales Tax or Wealth Tax or Service Tax or
Duty of Customs or Duty of Excise or Value Added Tax or Cess which have
not been deposited on account of any dispute except of the following
amounts:-
Name of the
Statute Nature of Dues Disputed
amount (Rs. In lacs)
SALES TAX
Sales Tax Act Sales Tax Demand 41.63
Sales Tax Act MVAT Demand 7.85
CUSTOM
Customs Act, 1962 Duty, Interest & 408.97
Penalty
EXCISE
Central Excise Excise Duty, 84.38
Act, 1944 Interest & Penalty
Central Excise Excise Duty 32.79
Act, 1944
Central Excise Excise Duty 22.35
Act, 1944
SERVICE TAX
Finance Act, 1994 Service Tax 7.50
Finance Act, 1994 Service Tax 0.54
Finance Act, 1994 Service Tax 0.42
Finance Act, 1994 Service Tax 219.85
& Interest
Finance Act, 1994 Service Tax 0.91
Finance Act, 1994 Service Tax 1.94
PROVIDENT FUND
Provident Fund Act Provident Fund 7.60
Name of the Statute Period to which Forum where dispute
amount is pending
relates
SALES TAX
Sales TaxAct 2000-01 & 2001-02 Hon'ble High Court
Jaipur
Sales Tax Act 2007-08 Joint Commissioner
of Sales
Tax (Appeals), Mumbai
CUSTOM
Customs Act 1962 2005-06 & CESTAT
2008-09
EXCISE
Central Excise 2003-05 & CESTAT
Act 1944 2000-01
Central Excise 2011-12 Assistant Commissioner
Act 1944 Bhiwadi
Central Excise 2010-11 Commissioner (Appeals)
Act 1944 2004-05 Hon'ble High
Court, Jaipur
SERVICE TAX
Finance Act 1994 2005-06 Commissioner of
Central
Excise (Appeals),
Jaipur
Finance Act 1994 2005-06 Deputy Commissioner
Finance Act 1994 2004-06, CESTAT
2009-10 &
2011-12
Finance Act 1994 2010-11 Assistant
Commissioner,
Bhiwadi
Finance Act 1994 2014-15 Commissioner (Appeals)
PROVIDENT FUND
Provident Fund Act 2004-05 Hon'ble High
Court, Jaipur
(c) According to information and explanation given to us, Company has
transferred to investor education and protection fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made there under has been transferred to such fund within time
8 In our opinion, the accumulated losses of the Company are not equal
to or more than fifty percent of its net worth as at year end and also
the Company has neither incurred cash losses during the financial year
covered by our audit nor in the immediately preceding financial year.
9 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 debenture holders.
10 According to the information and explanations given to us, the terms
and condition on which Company has given the guarantee for loans taken
by subsidiary from banks and financial institutions are not prejudicial
to the interest of the Company.
11 In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were raised.
12 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 P.C. BINDAL & CO.
Chartered Accountants
Firm Registration No. 003824 N
CA .K.C. GUPTA
Place : New Delhi Partner
Date : May 30, 2015 Membership No: 088638
Mar 31, 2014
We have audited the accompanying financial statements of AKSH OPTIFIBRE
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility of financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the companies Act 1956 ("the
Act") 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 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Act 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 written representations received from the 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) of section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per information & explanation given to us fixed assets except
the assets installed at customer premises have been physically verified
by the management during the year. No material discrepancies were
noticed on such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) During the year, the Company has not disposed off Substantial fixed
assets. According to the information and explanation given to us, we
are of the opinion that the going concern status of the Company is not
affected.
(ii) (a) During the year, the inventory has been physically verified by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c ) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the Company has granted unsecured loan to one of its wholly owned
subsidiary. The maximum amount involved during the year was Rs.
14,174.60 lacs and the closing balance of loan given to such party was
Rs. 8,501.07 lacs.
(b) According to the information and explanations given to us, in our
opinion, the other terms and conditions on which loans have been
granted to 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.
(c) As per the information made available to us, the aforesaid advance
granted by the Company is repayable on demand.
(d) In respect of the aforesaid advances, there is not overdue amount
as at year-end.
(e) According to the information and explanations given to us, the
Company has taken unsecured loans from three parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 311.75 lacs and the
closing balance of loan taken from such parties was Rs. 200 lacs.
(f) According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on which
unsecured 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) According to the information and explanations given to us, the
payments of the principal amount and interest of the aforesaid loan are
regular.
(iv) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory, fixed assets, sale of goods and services.
During the course of our audit, we have not observed any major
weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements need to 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 referred to in section 301 of the Companies Act, 1956 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 to
which provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply. No order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal.
(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) According to the information and explanations given to us and
according to the books and records examined by us, the Company is
generally regular in depositing undisputed statutory dues in respect of
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues were in arrears, as at 31st March, 2014 for a
period of more than six months from the date they become payable.
(c) According to the information and explanations given to us. and the
records of the Company examined by us , dues of Income Tax, Sales Tax ,
Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have
not been deposited on account of disputes and the forum where the
dispute are pending as under :
Name of the
Dues / Name Disputed Amount Period to Which Forum Where
of the Statute (Rs. in lacs) Amount Relates Dispute is Pending
Sales Tax
Rajasthan
Sales Tax 71.12 1996-97,1998-99, Hon''ble High Court
Jaipur
Demand 2000-01 and 2001-02
MVAT Demand 7.85 2007-08 Joint Commissioner
of Sales Tax
(Appeals), Mumbai
Customs/ Excise Duty
Customs Act, 1962 360.91 2005-06 CESTAT
Customs Act,
1962 48.06 2008-09 CESTAT
Central Excise
Act, 1944 84.38 2003-05 CESTAT
Central Excise
Act, 1944 3.37 2000-01 CESTAT
Central Excise
Act, 1944 22.35 2010-11 Commissioner
(Appeals)
Central Excise
Act, 1944 0.31 2011-12 Commissioner
(Appeals)
Service Tax
Finance Act, 1994 7.50 2004-05 Hon''ble High
Court, Jaipur
Finance Act, 1994 0.54 2005-06 Commissioner
of Central
Excise
(Appeals), Jaipur
Finance Act, 1994 0.64 2004-06 CESTAT
Finance Act, 1994 31.20 2009-10 CESTAT
Finance Act,
1994 188.01 2011-12 CESTAT
Finance Act, 1994 0.91 2010-11 Assistant
Commissioner,
Bhiwadi
Finance Act,
1994 0.42 2005-06 Deputy
Commissioner
Provident Fund
Provident Fund Act 7.60 2004-05 Hon''ble High
Court, Jaipur
(x) In our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. The Company has not incurred any
cash losses during the current year and in the immediately preceding
financial year.
(xi) Bonds of $ 13 Mn and $ 1Mn were due for redemption on 8th January,
2013 and 5th February, 2013 respectively having maturity value of
equivalent to Rs. 7,603.40 lacs has been redeemed / paid on $1.50 Mn on
16th May, 2013, $2.50 mn on 21st May, 2013, $ 0.50 Mn on 23rd May, 2013
and $ 9.50 Mn on 27th June, 2013.
(xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund / Society are not applicable
to the Company.
(xiv)In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) In our opinion, the terms and conditions on which the Company has
given the guarantee for loans taken by subsidiary Company 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 raised.
(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-term
investment.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of share to parties covered
in the register maintained under section 301 of the Act.
(xix)According to the information and explanations given to us, during
the year the Company has issued 0% Unsecured Foreign Currency
Convertible Bonds of US$ 1,000 each aggregating to US$ 3.792 Million
equivalent to Rs. 2,272.17 lacs and accordingly, the provisions of
clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable to the Company.
(xx) According to the information and explanations given to us, the
Company had not raised any money by way of public issue during the
year.
(xxi) Based on the audit procedures performed and 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 P. C. Bindal & Co.
Firm Registration No. : 003824N
Chartered Accountants
CA. K. C. Gupta
Place of Signature: New Delhi Partner
Date: 26th May, 2014 Membership Number: 088638
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of AKSH OPTIFIBRE
LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility of financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per information & explanation given to us fixed assets except
the assets installed at customer premises have been physically verified
by the management during the year. No material discrepancies were
noticed on such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) During the year, the company has disposed off some portion of Land
and Building. According to the information and explanation given to us,
we are of the opinion that the sale of the said part of Land & Building
has not affected the going concern status of the company.
(ii) (a) During the year, the inventory has been physically verified by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c ) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the Company has granted unsecured loan to one of its wholly owned
subsidiary. The maximum amount involved during the year was
Rs.13,758.89 Lacs and the closing balance of loan given to such party
was Rs.13,758.89 Lacs.
(b) According to the information and explanations given to us, in our
opinion, the other terms and conditions on which loans have been
granted to 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.
(c) As per the information made available to us, the aforesaid advance
granted by the company is repayable on demand.
(d) In respect of the aforesaid advances, there is no overdue amount as
at year-end.
(e) According to the information and explanations given to us, the
Company has taken unsecured loans from four parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 927.55 Lacs and the
closing balance of loan taken from such parties was Rs 311.75 Lacs.
(f) According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on which
unsecured 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) According to the information and explanations given to us, the
payments of the principal amount and interest of the aforesaid loan are
regular.
(iv) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchases of inventory, fixed assets, sale of goods and services.
During the course of our audit, we have not observed any major
weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements need to entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered ; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 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 to
which provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply. No order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal.
(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,
1956 and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained.
(ix) (a) According to the information and explanations given to us and
according to the books and records examined by us, the Company is
generally regular in depositing undisputed statutory dues in respect of
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues were in arrears, as at 31st March, 2013 for a
period of more than six months from the date they become payable.
(c) According to the information and explanations given to us. and the
records of the Company examined by us , dues of Income Tax, Sales Tax ,
Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have
not been deposited on account of disputes and the forum where the
dispute are pending as under :
Name of the
Dues/ Name Disputed
Amount Period to Which Forum Where
of the Statute (Rs. in Lacs) Amount Relates Dispute is Pending
Sales Tax
AP VAT Demand 179.99 2005-06 The Commercial Tax
Officer, Hyderabad
AP VAT Demand 2.46 2006-07 The Commercial Tax
Officer, Hyderabad
Delhi VAT 0.54 2007-08 Commissioner
(Appeals), Delhi
Rajasthan Sales
Tax Demand 71.12 1996-97,1998-99, Hon''ble High
Court Jaipur
2000-01 & 2001-02
MVAT Demand 7.85 2007-08 Joint Commissioner
of Sales Tax
(Appeals), Mumbai
Customs/ Excise Duty
Customs Act, 1962 360.91 2005-06 CESTAT
Customs Act, 1962 48.06 2008-09 CESTAT
Central Excise Act, 1944 92.14 2003-05 CESTAT
Central Excise Act, 1944 3.37 2000-01 CESTAT
Central Excise Act, 1944 32.79 2011-12 Additional
Commissioner
Central Excise Act, 1944 0.31 2011-12 Commissioner
(Appeals)
Service Tax
Finance Act, 1994 7.50 2004-05 Hon''ble High
Court, Jaipur
Finance Act, 1994 5.54 2004-05 Commissioner of
Central Excise
(Appeals), Jaipur
Finance Act, 1994 0.64 2004-06 CESTAT
Finance Act, 1994 75.53 2006-08 Assistant
Commissioner,
Bhiwadi
Finance Act, 1994 31.20 2009-10 CESTAT
Finance Act, 1994 201.33 2011-12 CESTAT
Finance Act, 1994 0.42 2005-06 Deputy
Commissioner
Provident Fund
Provident Fund Act 7.60 2004-05 Hon''ble High
Court, Jaipur
(x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The Company has not incurred any
cash losses during the current year and in the immediately preceding
financial year.
(xi) Bonds of $ 13 mn and $ 1mn were due for redemption on 8th January
2013 and 5th February, 2013 respectively having maturity value of
equivalent to Rs. 7,603.40 Lacs. Pursuant to RBI approval for
extension in due dates for repayment of FCCB''s, the Company is in
process of redemption of FCCB''s.
(xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii)In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund / Society are not applicable
to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
(xvi) According to the information and explanations given to us, the
Company has not availed any term loan during the year under audit.
(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-term
investment.
(xviii)According to the information and explanations given to us, the
Company has not made preferential allotment of share to parties covered
in the register maintained under section 301 of the Act.
(xix)According to the information and explanations given to us, during
the period covered by our audit report, the Company has issued 1%
Unsecured Foreign Currency Convertible Bonds of $ 1000 each aggregating
to $ 1.205 Million equivalent to Rs. 613.10 Lacs and accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 (as amended) are not applicable to the Company.
(xx) According to the information and explanations given to us, the
Company had not raised any money by way of public issue during the
year.
(xxi) Based on the audit procedures performed and 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 P. C. Bindal & Co.
Firm Registration No. : 003824N
Chartered Accountants
CA. K. C. Gupta
Place of Signature: New Delhi Partner
Date: 17th May, 2013 Membership Number: 088638
Mar 31, 2011
1. We have audited the attached balance sheet of Aksh Optifibre
Limited as at 31st March, 2011 and. also the 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
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of account as required by the law have
been kept by the company, so far as appears from our examination of
those books ;
iii) The balance sheet, profit & loss account, and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with this report comply with the accounting
standards referred to in section 211(3C) of the Companies Act, 1956;
v) On the basis of the written representations received from the
directors as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956 ;
vi) Attention is invited to the note 16 of schedule "L" regarding the
opinion framed by the Company for non provision of investments and
outstanding dues with one of its subsidiary.
vii) Subject to our comments in para (vi) above and their consequential
effects on the net assets or operations (if any), quantum of which can
not be ascertained, based on our audit on financial statement and to
the best of our information and according to the explanations given to
us, the said accounts read together with the Notes to Accounts-
Schedule "L" give the information required by the Companies Act, 1956
in the manner so required andgive a true and fair view in conformity
with accounting principles generally accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2011;
b) In the case of Profit & Loss Account, of the loss of the company for
the year ended on that date; and
c) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
TO THE MEMBERS OF AKSH OPTIFIBRE LIMITED FOR THE YEAR ENDED ON 31st
MARCH. 2011
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per information & explanation given to us fixed assets except
the assets installed at customer premises have been physically verified
by the management during the year. No material discrepancies were
noticed on such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) During the year, the company has not disposed off substantial /
major part of fixed assets.
(ii) (a) During the year, the inventory has been physically verified by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical
verification of inventories followed by the management are reasonable
and adequate in relation to the size of the company and the nature of
its business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the company has granted interest free unsecured loan to two wholly
owned subsidiaries. The maximum amount involved during the year was
Rs. 10927.06 lacs and the closing balance of loan given to such parties
was Rs. 10927.06 lacs.
b) According to the information and explanations given to us, in our
opinion, the other terms and conditions on which loans have been
granted to 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.
c) As per the information made available to us, the aforesaid advance
granted by the company is repayable on demand.
d) In respect of the aforesaid advances, there is no overdue amount as
at year-end.
(e) According to the information and explanations given to us, the
company has taken unsecured loans from five parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.. 2955.35 lacs and the
closing balance of loan taken from such parties was Rs. 885.85 lacs.
(f) According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on which
unsecured 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) According to the information and explanations given to us, the
payments of the principal amount and interest of the aforesaid loan are
regular.
(iv) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchases of inventory, fixed assets, sale of goods and services.
During the course of our audit, we have not
observed any major weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements need to entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered ; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 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 to
which provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply. No order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us and
according to the books and records examined by us, the Central
Government has not prescribed any specific Cost records for the company
under clause (d) of Sub-section (1) of Section 209 of the Companies
Act, 1956.
(ix) (a) According to the information and explanations given to us and
according to the books and records examined by us, the company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales" Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues were in arrears, as at 31st March, 2011 for a
period of more than six months from the date they become payable except
Rs.3.92 Lacs relating to sales tax, 0.66 lacs to relating to service
tax, and 0.35 lacs to relating to TDS.
(c) According to the information and explanations given
to us. and the records of the Company examined by us , dues of Income
Tax, Sales Tax , Wealth Tax, Service Tax, Custom Duty, Excise Duty and
Cess which have not been deposited on account of
disputes and the forum where the dispute are pending as under :
Name of the Statute Nature of Dues Amount
(Rs.in lacs)
AP Vat Act Sales Tax Demand 181.01
Provident Fund Act Provident Fund 7.60
DVAT Act Sales Tax Demand 209.64
Name of the Statute Year to which Forum where
Amount Relates dispute is pending
AP Vat Act 2005-06 Honble High Court,
Hyderabad
Provident Fund Act 2004-05 Honble High Court,
Jaipur
DVAT Act 2007-08 Commissioner
(Appeals)
(x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The Company has incurred cash loss
during the year covered by our audit and also in the immediately
preceding financial year.
(xi) Bonds of $ 1 mn having maturity value of $ 1.205mn equivalent to
Rs. 541 lacs issued in pursuant of the redemption of FCCBs amounting $
1 mn redeemable as on 29th January, 2010 are still outstanding as on
the balance sheet date.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund / Society are not applicable
to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing or trading in shares,
securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has given corporate guarantee for securing working capital
facilities sanctioned to its wholly owned subsidiary i.e. Aksh
Technologies Limited amounting to Rs. 6,055 lacs. In our opinion
issuance of such guarantee is not prejudicial to the interest of the
company.
(xvi) According to the information and explanations given to us, the
company has not availed any term loan during the year under audit.
(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-term
investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of share to parties 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 year.
(xx) According to the information and explanations given to us, the
company had not raised any money by way of public issue during the
year.
(xxi) Based on the audit procedures performed and 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 P.C. BINDAL & CO.
Chartered Accountants
FRN: 003824N
CA.K.C. GUPTA
Partner
Membership No: 088638
Place : New Delhi
Date : 21.05.2011
Mar 31, 2010
1. We have audited the attached balance sheet of Aksh Optifibre
Limited as at 31st March, 2010 and also the 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
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) In our opinion, proper books of account as required by the law have
been kept by the company, so far as appears from our examination of
those books ;
iii) The balance sheet, profit & loss account, and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with this report comply with the accounting
standards referred to in section 211(3C)of the Companies Act, 1956 ;
v) On the basis of the written representations received from the
directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g)of sub section (1) of section 274 of the Companies Act, 1956;
vi) Subject to above, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts read
together with the Notes to Accounts-Schedule "N" give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with accounting principles generally
accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March, 2010;
b) In the case of Profit & Loss Account, of the loss of the company for
the year ended on that date; and
c) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per information & explanation given to us fixed assets except
the assets installed at customer premises have been physically verified
by the management during the year. No material discrepancies were
noticed on such verification. In our opinion, the frequency of physical
verification of fixed assets is reasonable.
(c) The Company has transferred its manufacturing division to its
wholly owned subsidiary from the appointed date of April 1, 2009 and
accordingly has transferred all fixed assets except land & building
pertaining to manufacturing division. According to the information and
explanation given to us, we are of the opinion that the transfer of
such fixed assets to its wholly owned subsidiary company has not
effected the going concern status of the company.
(ii) (a) During the year, the inventory has been physically verified by
the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the company has granted interest free unsecured loan to one wholly
owned subsidiary. The maximum amount involved during the year was Rs.
89.70 lacs and the closing balance of loan given to such party was Rs.
89.70 lacs.
b) According to the information and explanations given to us, in our
opinion, the other terms and conditions on which loans have been
granted to 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.
c) As per the information made available to us, the aforesaid advance
granted by the company is repayable on demand.
d) In respect of the aforesaid advances, there is no overdue amount as
at year-end.
(e) According to the information and explanations given to us, the
company has taken unsecured loans from two parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.1,933.25. lacs and the
closing balance of loan taken from such parties was Rs. 1,933.25 lacs.
(f) According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on which
unsecured 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) According to the information and explanations given to us, the
payments of the principal amount and interest of the aforesaid loan are
regular.
(iv) In our opinion and according to the information and
. explanation given to us, there is an adequate internal
control system commensurate with the size of the company and the nature
of its business for the purchases of inventory, fixed assets, sale of
goods and services. During the course of our audit, we have not
observed any major weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements need to entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered ; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 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 to
which provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply. No order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal.
(vii) In our opinion, the company has an in-house internal audit system
commensurate with the size and nature of its business.
(viii) As the Company has transferred the manufacturing division to its
wholly owned subsidiary and is now operating in service sector,
accordingly clause 4(viii) of Companies (Auditors Report) Order,
2003(as amended) regarding maintenance of cost records under section
209 (1) (d) of the Companies Act, 1956 is not applicable.
(ix) (a) According to the information and explanations given to us and
according to the books and records examined by us, the company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues were in arrears, as at 31st March, 2010 for a
year of more than six months from the date they become payable except
Rs.3.92 Lacs relating to sales tax, 0.66 lacs to relating to service
tax.
(c) According to the information and explanations given to us and the
records of the Company examined by us , dues of Income Tax, Sales Tax ,
Wealth Tax,
(x) In our opinion, the accumulated losses of the company are not more
than fifty percent of its net worth. The Company has incurred cash loss
during the year covered by our audit and also in the immediately
preceding financial year.
(xi) Based on our audit procedures and on the basis of information and
explanations given by the management, FCCBs amounting to $ 6.25mn were
due for redemption on 29th January, 2010. Pursuant to RBI approval,
FCCBs aggregating $ 5.25 mn having maturity value of $ 6.328 mn
equivalent to Rs. 2,946 lacs were redeemed by issuing fresh FCCB in
exchange thereof on 5th February, 2010. Bonds of $ 1 mn having maturity
value of $ 1.205mn equivalent to Rs. 541 lacs are outstanding as on the
balance sheet date.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund / Society are not applicable
to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing or trading in shares,
securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has given corporate guarantee for securing working capital
facilities sanctioned to its wholly owned subsidiary i.e. Aksh
Technologies Limited amounting to Rs. 6,055 lacs. In our opinion
issuance of such guarantee is not prejudicial to the interest of the
company.
(xvi)According to the information and explanations given to us, the
company has not availed any term loan during the year under audit.
(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-term
investment.
(xviii)According to the information and explanations given to us, the
company has not made preferential allotment of share to parties covered
in the register maintained under section 301 of the Act.
(xix) According to the information and explanations given to us, during
the year the company has issued 1% Unsecured Foreign Currency
Convertible Bonds of US$ 1,000 each aggregating to US$ 6.328 Million
equivalent to Rs. 2,946 lacs and accordingly, the provisions of clause
4(xiv) of the companies (Auditors Report) order, 2003(as amended) are
not applicable to the company.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi)Based on the audit procedures performed and information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the course of our audit.
ForP.C.BINDAL&CO.
Chartered Accountants
CA.K.C. GUPTA
Partner
Membership No. : 088638
FRN: 003824N
Place: New Delhi
Date : 17.05.2010