Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF ALCHEMIST LIMITED Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ALCHEMIST LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31stMarch, 2016, the Statement of Profit and Loss, the Cash Flow Statement, and a summary of the significant accounting policies and other explanatory information for the year then ended.
Managementâs 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 (âthe Actâ) 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 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.
Basis for Qualified Opinion
The Company has not complied with the provisions of proviso to sub section 2 of Section 55 of the Act as out of the total value of preference shares (including premium) amounting to '' 53.56 lacs redeemed during the year, '' 51.34 lacs has been redeemed otherwise than out of the profits of the Company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purpose of such redemption.
The Company has computed the Depreciation on the tangible fixed assets using straight line method based on the useful life of the assets as prescribed in Schedule II of the Companies Act, 2013 and the management estimates of useful life for tangible and intangible assets not covered by the Schedule II. However, for the assets purchased/commissioned prior to 1st April, 2010, the purchase date of assets has been considered as 1st April, 2010. The same is in violation of Accounting Standard 6-Depreciation Accounting as this treatment not only enhances the useful life of the assets that have already been consumed but has an effect over the depreciation computed. The loss to that extent is under/over stated and similarly the assets, the effect however could not be quantified.
The Company has not made any provision on the export receivables amounting to '' 47363.02 lacs outstanding for more than a year as at the yearend date. The loss to that extent is under stated and similarly the receivables, the effect however could not be quantified.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, 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 testate of affairs of the Company as at 31st March, 2016, and its loss and its cash flows for the year ended on that date.
Emphasis of Matters
a. Attention is invited to note no. 14 and 32 to the standalone financial statements wherein âthe entire Capital advances amounting to Rs, 796.63 lacs have been considered as good and realizable by the Company. The Company has indicated it has undertaken legal action against one party whose outstanding is Rs, 459.80 lacsâ.
It is relevant to note that out of the total capital advances, advances amounting to Rs, 784.06 lacs are outstanding for a period of more than three years. No provision on such capital advances is made.
b. Attention is invited to note no. 42 to the standalone financial statements âThe balances of majority of the Trade Receivables, Trade Payables and Loan & Advances made and received, are subject to confirmation and as such there balances are reflected in the Balance Sheet as appearing in the books, pending reconciliation, the net effect is unascertainableâ.
c. Attention is invited to note no. 50 to the standalone financial statements âThe economic downturn has impacted the international trade operations of the company. Taking cue the company has initiated many cost cutting measures including downsizing and vacation of office premises. During the year the company has vacated some office premises. Since the company had made some leasehold improvements to the same, the company had to take a write off of these leasehold improvements and accordingly has incurred a loss of Rs, 278.49 lacs reflected under Exceptional Items.â
d. Attention is invited to note no. 51 to the standalone financial statements âCompany''s wholly owned foreign subsidiary âAlchemist Enterprise (S) PTE Ltd.â is in the process of winding up. In the process the WOS has stopped operations and closed its bank accounts. A trade receivable of US$ 4.00 lacs standing in its books against which the payment of Rs, 265.33 lacs has been received by Alchemist Limited. Such amount received has been reflected as âClosure proceeds of WOSâ under Other Current Liabilities until the process of winding up of the company is completed.â
e. Attention is invited to note no. 52 to the standalone financial statements âCash in hand includes cash amounting to Rs, 180.54 lacs which was seized by the Income tax authorities during the search and seizure operation u/s 132 of the Income Tax Act, 1961 during the month of June, 2014.â
Our opinion is not qualified in respect of the matters as stated in the Emphasis of Matters paragraph.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, 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) The matters described in the Basis for Qualified Opinion paragraph and Emphasis of Matters paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.
(f) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.
(h) 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.
(i) 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 no.29 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.
Referred to in paragraph 1 under âReport on other Legal and Regulatory Requirements'' section of our report of even date.
We report that:
(i) (a) In our opinion and according to the information and explanations given to us, the Company has maintained
fixed asset register however the same does not specify the quantity and exact location of the fixed assets.
(b) In our opinion and according to the information and explanations given to us, the Company has not physically verified the fixed assets during the year. In our opinion the periodicity of the physical verification is not reasonable having regard to the size of the Company and nature of its assets.
(c) In our opinion and according to the information and explanation given to us, the Company holds valid title for all the immovable properties in the books of the Company except for one land valuing Rs, 55.59 lacs, the title deed of which has not been produced before us for our verification of the same.
(ii) In our opinion and according to the information and explanations given to us, inventories have been physically verified during the year by the management at reasonable intervals except for the work in progress inventory. The material discrepancies noticed have been properly dealt with in the books of accounts.
(iii) According to the information & explanations given to us, the Company has granted loans, secured or unsecured outstanding at year end at Rs, 33.39 lacs to 10 companies covered in the register maintained under section 189 of the Act.
(a) It has been informed to us that the terms of repayment have not been defined, however, they are repayable on the mutual agreement of both the parties involved. Moreover the loans granted are unsecured and interest free, thus the terms of such loans are prejudicial to the interests of the Company
(b) All the loans made are interest free and schedule of repayment are not defined, hence the timeliness of repayment cannot be commented upon.
(c) As mentioned in the above paragraphs, since terms of repayment of loans are not documented, we are unable to comment on the overdue amount.
(iv) The Company has given loans/amount recoverable to/from three parties whose yearend outstanding balance is '' 2.62 lacs and has given corporate guarantee for Rs, 375.00 lacs for loan obtained by one party, in contravention of provisions of Section 185 of the Companies Act, 2013.
Further, the Company has given interest free loans/amount recoverable to/from 15 parties whose yearend outstanding balance is Rs, 80.81 lacs which is in contravention of sub section 7 of section 186 of the Companies Act, 2013 which requires that âNo loan shall be shall be given under this section at a rate of interest lower than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loanâ.
(v) The Company has not accepted deposits. Hence the provisions of Section 73 to 76 or any other relevant provisions of the Act and the rules framed there under are not applicable to the Company.
(vi) We have broadly examined the cost records maintained by the Company specified by the Central Government under sub section (1) of section 148 of the Act and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) Based on our audit procedures and on the information and explanations given by the management, we report
that undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues, to the extent applicable, have generally been regularly deposited with the appropriate authorities, though there have been slight delays in few cases. According to the information and explanations given to us, no statutory dues were outstanding as on 31stMarch, 2016, for a period of more than six months from the date it became payable.
(b) Details of excise duty which has not been deposited as on 31st March, 2016 by the Company on account of dispute is given below:
Name of the Statute |
Nature of the dues |
Forum where pending |
Total Amount involved1 (Rs, in Lacs) |
Amount paid under protest (Rs, in Lacs) |
Period to which amount relates |
Central Excise Act, 1944 |
Excise Duty |
Commissioner of Central Excise Commissioner ate, Chandigarh. |
173.55 |
63.13 |
December, 2007 to September, 2012 |
(viii) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, during the year there have been delays in repayment of dues by the Company to financial institutions, banks or debenture holders. The details of the continuing default as on 31st March, 2016 in repayment of principle and interest is as follows:
Name of Bank - Type of Loan |
Sanction Amount |
Default amount as on 31/03/16 |
Default cleared Amount |
Default cleared date |
Default outstanding as on 10/05/16 |
Punjab National Bank - Project Term Loan |
210000000 |
11364337 |
38,45,524 |
28-04-2016 |
75,18,813 |
UCO Bank - Vehicle Loan |
612000 |
22996 |
12,000 |
12-04-2016 |
10,966 |
UCO Bank - Vehicle Loa |
1143000 |
58342 |
23,000 |
12-04-2016 |
35,342 |
UCO Bank - Vehicle Loa |
716000 |
49198 |
17,000 |
25-04-2016 |
32,198 |
Total |
212471000 |
11494873 |
38,97,524 |
75,97,349 |
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year, therefore, the provisions of para3(ix) of the Order is not applicable to the Company.
(x) Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.
(xi) Based on the audit procedures performed and the information and explanations given to us, we report that the managerial remuneration has been paid or provided in accordance with requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company, therefore, the provisions of para3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, 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 and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him, therefore, the provisions of para3(xv) of the Order is not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We were engaged to audit the internal financial controls over financial reporting of Alchemist Limited (âthe Companyâ) as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs 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 (âICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit conducted 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.
Because of matter described in Disclaimer of Opinion paragraph below, we were not able to obtain sufficient appropriate evidence to provide a basis for an audit opinion on internal financial controls system over financial reporting of the Company.
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.
Disclaimer of Opinion
According to information and explanation given to us, the company is under the process of establishing its internal financial controls over financial reporting on criteria based on or considering the essential components of internal control stated in Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company had adequate internal financial control over financial reporting and whether such internal financial controls were operating effectively as at March 31st, 2016.
We have considered the disclaimer reported in determining the nature, timing and extent of audit tests applied in our audit of the standalone financial statements of the company, and the disclaimer does not affect our opinion on the standalone financial statements of the company.
for N. Kumar Chhabra & Co.
Chartered Accountants
Firm''s Registration Number: 000837N
CA. Ashish Chhabra
Place of Signature: New Delhi Partner
Date:10th May, 2016 Membership Number: 507083
Mar 31, 2015
We have audited the accompanying standalone financial statements of
ALCHEMIST LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement, and a summary of the significant accounting policies and
other explanatory information for the year then ended.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the preparation 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 financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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 financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
standalone financial statements.
Basis for Qualified Opinion
The Company has not complied with the provisions of proviso to sub
section 2 of Section 55 of the Act as out of the total value of
preference shares (including premium) amounting to Rs. 102.20 lacs
redeemed during the year, Rs. 96.84 lacs has been redeemed otherwise
than out of the profits of the Company which would otherwise be
available for dividend or out of the proceeds of a fresh issue of
shares made for the purpose of such redemption. The Company has
advanced as loan an amount of Rs. 13532.17lacs to 16 parties as
interest free unsecured loan, the same is in violation of sub section 7
of Section 186 of the Act. The sub section requires that "No loan
shall be given under this section at a rate lower than the prevailing
yield of one year, three year, five year or ten year Government
Security closest to the tenor of the loan".
The Company has computed the Depreciation on the tangible fixed assets
using straight line method based on the useful life of the assets as
prescribed in Schedule II of the Companies Act, 2013 and the management
estimates of useful life for tangible and intangible assets not covered
by the Schedule II. However, for the assets purchased/commissioned
prior to 1st April, 2010, the purchase date of assets has been
considered as 1st April, 2010. The same is in violation of Accounting
Standard 6-Depreciation Accounting as this treatment not only enhances
the useful life of the assets that have already been consumed but has
an effect over the depreciation computed. The loss to that extent is
under/over stated and similarly the assets, the effect however could
not be quantified.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the
aforesaid standalone financial statements give the information required
by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India,
of the state of affairs of the Company as at 31st March, 2015, and its
loss and its cash flows for the year ended on that date.
Emphasis of Matters
a. Attention is invited to note no. 14 and 33 to the standalone
financial statements wherein "the entire Capital advances amounting
to Rs. 797.92 lacs have been considered as good and realisable by the
Company. The Company has indicated it has undertaken legal action
against one party whose outstanding is Rs. 459.80 lacs".
It is relevant to note that out of the total capital advances, advances
amounting to Rs. 784.86 lacs are outstanding for a period of more than
three years. No provision on such capital advances is made.
b. Attention is invited to note no. 18 to the standalone financial
statements which states that "Trade receivables amounting to Rs.
21468.10 lacs out of the total trade receivables of Rs. 45529.76 lacs
is outstanding for more than six months from the date they became due
for payment".
Attention is also invited to note no. 51 wherein the Company has stated
"The company extends credit from time to time as per market
practices. In respect of export receivables, credit has been extended
for export sales and regular follow up is being done to recover the
amounts from all the parties involved. The management is confident of
recovering all these dues and hence no provision is considered
necessary against these receivables as of now".
c. Attention is invited to note no. 42 to the standalone financial
statements "The balances of majority of the Trade Receivables, Trade
Payables and Loan & Advances made and received, are subject to
confirmation and as such there balances are reflected in the Balance
Sheet as appearing in the books, pending reconciliation, the net effect
is unascertainable".
Our opinion is not qualified in respect of this matters as stated in
the Emphasis of Matters paragraph.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, 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) The matters described in the Basis for Qualified Opinion paragraph
and Emphasis of Matters paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company.
(f) On the basis of the written representations received from two
directors as on 31st March, 2015 taken on record by the Board of
Directors, the two directors are not disqualified as on 31st March,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act. However, since the representation from the balance five
directors have not been provided to us, it is not possible for us to
comment as to whether they are qualified to act as a director in terms
of Section 164(2) of the Act.
(g) The qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the Basis for Qualified
Opinion paragraph above.
(h) 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
no. 30 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 to the Independent Auditors' Report Referred to in paragraph 1
under 'Report on other Legal and Regulatory Requirements' section of
our report of even date. We report that:
(i) (a) In our opinion and according to the information and
explanations given to us, the Company has maintained fixed asset
register however the same does not specify the quantity and exact
location of the fixed assets.
(b) In our opinion and according to the information and explanations
given to us, the Company has formulated a regular program of
verification by which all the assets of Company have been physically
verified. In our opinion the periodicity of the physical verification
is reasonable having regard to the size of the Company and nature of
its assets. However, since the fixed asset register does not specify
the quantity and exact location of fixed assets, the comparison of the
fixed assets identified during physical verification with the fixed
asset register has not been done. Accordingly, variation could not have
been noticed and hence no adjustment was made in the books.
(ii) (a) In our opinion and according to the information and
explanations given to us, inventories have been physically verified
during the year by the management at reasonable intervals except for
the work in progress inventory.
(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 on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories
except for the work in progress inventory. Discrepancies were noticed
on physical verification of stocks by the management as compared to
book records and the same were duly adjusted in the books of accounts.
(iii) (a) According to the information & explanations given to us, the
Company has granted loans, secured or unsecured outstanding at year end
at Rs. 13482.05 to 14 companies covered in the register maintained
under section 189 of the Act.
(b) It has been informed to us that with regard to the loan to
Alchemist Foods Limited, subsidiary of the Company, outstanding at Rs.
12982.61 lacs can be recalled by the Company by giving a prior notice
of at least twelve months, subject to concurrence of the loanee.
However, no documentation to support the claim has been provided to us.
With regard to balance loans it has been informed to us that the terms
of repayment have not been defined, however, they are repayable on the
mutual agreement of both the parties involved. In such circumstances,
we are unable to comment whether receipt of principal is regular.
All the loans made are interest free, hence question of receipt of
interest doesn't arises.
(c) As mentioned in the above paragraph, since no documented loan
agreement was provided, we are unable to comment on the overdue amount.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for the sale of goods and services. During the course of
our audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
(v) The Company has not accepted deposits. Hence the provisions of
Section 73 to 76 or any other relevant provisions of the Act and the
rules framed there under are not applicable to the Company.
(vi) We have broadly examined the cost records maintained by the
Company specified by the Central Government under sub section (1) of
section 148 of the Act and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
however, not made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(vii) (a) Based on our audit procedures and on the information and
explanations given by the management, we report that undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Value Added Tax, Cess and any other statutory dues, to the extent
applicable, have generally been regularly deposited with the
appropriate authorities, though there have been slight delays in few
cases. According to the information and explanations given to us there
was an amount of Rs. 1.79 lacs pertaining to labour cess outstanding as
on 31s March, 2015, for a period of more than six months from the date
it became payable.
(b) Details of excise duty which has not been deposited as on 31s
March, 2015 by the Company on account of dispute is given below:
Name of the Nature of Forum where Total Amount
Statute the dues pending involved*
(Rs. Lacs)
Central Excise Commissioner of 173.55
Excise Act, Duty Central Excise
1944 Commissionerate,
Chandigarh.
Name of the
Statute Amount paid Period to which
under protest amount relates
(Rs. Lacs)
Central
Excise Act,
1944 63.13 December, 2007 to
September, 2012
* Amount as per demand order, not including interest and penalty as not
quantified in the demand order.
(c) According to the information and explanations given by the
management, the amount which was required to be transferred to the
Investor Education and Protection Fund by the Company was transferred
within time.
(viii) The accumulated losses of the Company as at the end of the
financial year are less than fifty percent of the net worth of the
Company. The Company has incurred cash loss during the financial year
covered by our audit but not in the immediately preceding financial
year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that,
during the year there have been delays in repayment of dues by the
Company to financial institutions, banks or debenture holders. The
details of the continuing default as on 31s March, 2015 in repayment of
principle and interest is as follows:
Details of continuing default as on 31st March, 2015 in repayment of
loans and interest:
Sanction Default
amount as Default
cleared
Name of Bank - Type of Loan Amount on 31/03/15 Amount
Punjab National Bank -
Project Term Loan 210000000 8074085 3,986,703
UCO Bank - Vehicle Loan 612000 39177 0
UCO Bank - Vehicle Loan 1143000 81270 0
UCO Bank - Vehicle Loan 716000 61176 0
UCO Bank - Vehicle Loan 529000 42528 0
Total 213000000 8298236 3,986,703
Name of Bank - Type of Loan Default cleared Default outstanding
date as on 28/05/15
Punjab National Bank - Project
Term Loar 19/5/15 4,087,382
UCO Bank - Vehicle Loan - 39,177
UCO Bank - Vehicle Loan - 81,270
UCO Bank - Vehicle Loan - 61,176
UCO Bank - Vehicle Loan - 42,528
Total 4,311, 533
(x) According to the information and explanations given to us, the
Company has given guarantee for loan taken by others from banks or
financial institutions to an extent of Rs. 2761.99 lacs. The terms and
conditions of the guarantees issued except for guarantees amounting to
Rs. 700.00 lacs are not prejudicial to the interest of the Company. The
Company could not have issued guarantees for Rs. 700.00 lacs as the
same is in violation of the requirements of Section 185 of the Act.
(xi) Based on our audit procedures and on the information and
explanation given by the management, we report that the term loans have
been applied for the purpose for which they were raised.
(xii) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For N. Kumar Chhabra & Co.
Chartered Accountants
Firm's Registration Number: 000837N
CA. Ashish Chhabra
Partner
Membership Number: 507083
Place of Signature: New Delhi
Date: 28th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Alchemist
Limited ("the Company") which comprise the Balance Sheet as at March
31,2014, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") 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. 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
materia! 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 entity''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 March 31,2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
Without qualifying our report, we draw attention to the note no. 43 to
the financial statements "The balances of some of the trade
receivables, trade payables and loans & advances made and received, are
subject to confirmation and as such there balances are reflected in the
Balance Sheet as appearing in the books, pending reconciliation, the
net effect is unascertainable,". In view of the same, the impact, if
any, on the financial statements could not be ascertained.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") as amended, 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
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; and
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date. We report that:
(i) (a) In our opinion and according to the information and
explanations given to us, the Company has maintained proper records
showing full particulars including quantitative details and situation
of its fixed assets.
(b) In our opinion and according to the information and explanations
given to us, the Company has formulated a regular program of
verification by which all the assets of Company have been physically
verified. No material discrepancies were noticed on physical
verification conducted by the management during the year as compared
with the book records.
(c) in our opinion and according to the information and explanations
given to us, no substantial part of fixed asset has been disposed
during the year and therefore it does not affect the going concern
status of the company.
(ii) (a) In our opinion and according to the information and
explanations given to us, inventories have been physically verified
during the year by the management at reasonable intervals except for
the work in progress inventory.
(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 on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories
except for the work in progress inventory. No material discrepancy was
noticed on physical verification of stocks by the management as
compared to book records.
(iii) (a) According to the information & explanations given to us, the
Company has granted loans to subsidiary companies namely Alchemist
Foods Limited and Alchemist Hospitality Group Private Limited (Parties
covered in the register maintained under section 301 of the Companies
Act, 1956) for which the maximum amount outstanding during the year was
Rs. 12185.01 Lacs and Rs. 25.16 Lacs respectively and amount
outstanding on 31st March, 2014 was Rs. 12180.26 Lacs and Rs. 25.15
Lacs respectively.
(b) According to the information & explanations given to us, the loans
given by the Company are interest free unsecured loans and the loans
can be recalled by the Company by giving a prior notice of at least
twelve months, subject to concurrence of the loanee. Accordingly the
terms of the loans are prima-facie prejudicial to the interest of the
Company.
(c) According to the information & explanations given to us, there has
been no incidence of default in repayment.
(d) In our opinion and according to the information and explanations
given to us, there is no overdue amount in respect of the loan given by
the Company.
(e) According to the information & explanations given to us, the
Company has taken unsecured loan from KDS Corporation Private Limited
and Technology Parks Limited (Party covered in the register maintained
under section 301 of the Companies Act, 1956) for which the maximum
amount outstanding during the year was Rs. 72555.94 Lacs and Rs.
70460.00 Lacs respectively and amount outstanding on 31st March, 2014
was Rs. 4971.17 Lacs and Rs. 70460.00 Lacs respectively.
(f) According to the information & explanations given to us, the loans
accepted by the Company are interest free unsecured loans. The terms of
repayment with respect to loan from KDS Corporation Private Limited has
not been defined and is repayable on the mutual agreement of both the
parties involved. Loan from Technology Parks Limited is repayable on
service of a minimum notice of 12 months by the lender for a repayment
in excess of Rs. 50.00 Crores, however upon the concurrence of the
Company. Hence terms of both the loans prima-facie are not prejudicial
to the interest of the Company.
(g) According to the information & explanations given to us, there has
been no incidence of default in repayment.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods and services. During the course of our
audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
(v) a) In our opinion and according to the information and explanations
given to us, the transactions made in the pursuance of contracts or
arrangements, that need to be entered into the register maintained
under section 301 ofthe Companies Act, 1956 for the year have been so
entered.
(b) In our opinion and according to the information and explanations
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 aggregating during the year to Rs. 5.00 Lacs or
more in respect of each party have been made at prices which in our
opinion, are reasonable having regard to prevailing market price at
relevant time.
(vi) The Company has not accepted deposits from the public during the
year covered by our audit report. However, the deposits have been
repaid during the year. The Company has complied with all the
provisions of Section 58Aand 58AAof the Act and the rules framed there
under.
(vii) As per information & explanations given by the management, the
Company has a separate internal audit department constituting of
professionals undertaking audit exercises throughout the year.
Accordingly the internal audit system in the Company seems commensurate
with its size and the nature of its business.
(viii) We have broadly examined the books of accounts maintained by the
Company pursuant to the rules by the Central Government for the
maintenance of cost records under section 209 (1 )(d) of the Companies
Act, 1956 and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have however,
not made a detailed examination of the records with a view to determine
whether they are accurate or complete.
(ix) (a) Based on our audit procedures and on the information and
explanations given by the management, we report that 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 to the extent
applicable and any other statutory dues, have generally been deposited
in time with the appropriate authorities, though there have been slight
delays in few cases. According to the information and explanations
given to us there was an amount of Rs. 26884/- pertaining to labour
cess outstanding as on 31st March, 2014, for a period of more than six
months from the date it became payable.
(b) Details of excise duty which has not been deposited as on 31st
March, 2014 by the Company on account of dispute is given below:
Name of Nature of Forum Total Amount
the Statute the dues where pending involved*
(Rs. Lacs)
Central Excise Excise Duty Commissioner 173.55
Act, 1944 of Central Excise
Commissionerate,
Chandigarh.
Name of Amount paid Period to
the Statute under protest which amount
(Rs. Lacs) relates
Central Excise 63.13 December,
Act, 1944 2007 to
September,
2012
* Amount as per demand order, not including interest and penalty as not
quantified in the demand order.
(x) The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that,
during the year there have been delays in repayment of dues by the
Company to financial institutions, banks or debenture holders. The
details of the continuing default as on 31st March, 2014 in repayment
of principle and interest is as follows:
Name of Bank Sanction Default Default Default
-Type of Loan amount amount cleared cleared
as on amount date
31/03/14
Punjab National Bank- 210000000 4484969 4484969 05-04-2014
Project Term Loan
UCO Bank-Vehicle Loan 612000 21222 9017 02-05-2014
12205 27-05-2014
UCO Bank-Vehicle Loan 1143000 50251 15880 02-05-2014
24541 27-05-2014
UCO Bank-Vehicle Loan 716000 41366 9617 02-05-2014
15375 27-05-2014
UCO Bank-Vehicle Loan 529000 28111 - -
Total 213000000 4625919 4571604
Name of Bank Default
-Type of Loan outstanding
as on 29/05/14
Punjab National Bank- -
Project Term Loan
UCO Bank-Vehicle Loan -
UCO Bank-Vehicle Loan 9830
UCO Bank-Vehicle Loan 16374
UCO Bank-Vehicle Loan 28111
Total 54315
(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) The Company is not a chit fund or a nidhi/ mutual benefit
fund/society. Therefore, the provision of clause 4(xiii) of the Order
is not applicable to the Company
(xiv) Based on our audit procedures and on the information and
explanation given by the management, the Company is maintaining proper
records in respect of transactions and contract, in shares, securities,
debentures and other investments and timely entries have been made
therein, The shares and other investments have been held by the company
in its own name.
(xv) According to the information and explanations given to us, the
Company has given guarantees to the tune of Rs. 3597.49 Lacs for loans
taken by others from banks and financial institutions, the terms
whereof are prima-facie not prejudicial to the interest of the Company.
(xvi) Based on our audit procedures and on the information and
explanation given by the management, we report that the term loans have
been applied for the purpose for which they were raised.
(xvii) Based on our audit procedures and on the information and
explanation given by the management, we report that no funds raised on
short-term basis have been used for long-term investment by the
Company.
(xviii) According to the information and explanations given to us, the
Company has not issued shares to parties and companies covered in the
register maintained u/s 301 of the Companies Act, 1956, during the
year. Therefore, the provision of clause 4(xviii) of the Order is not
applicable to the Company.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures during the year.
Therefore, the provision of clause 4(xix) of the Order is not
applicable to the Company.
(xx) During the year, the Company has not raised any money by way of
the public issue. Therefore, the provision of clause 4(xx) of the Order
is not applicable to the Company.
(xxi) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
Sd/-
C.A. Ashish Chhabra
Partner
Membership No. 507083
N. Kumar Chhabra & Co.
Date: 29 May, 2014 Chartered Accountants
Place: New Delhi Firm Registration No. 000837N
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Alchemist
Limited ("the Company") which comprise the Balance Sheet as at March
31, 2013, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
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") as amended, 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
sub-section (3C) of section 211 of the Companies Act, 1956; and
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 TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date. We report that:
(i) (a) In our opinion and according to the information and
explanations given to us, the Company has maintained proper records
showing full particulars including quantitative details and situation
of its fixed assets.
(b) In our opinion and according to the information and explanations
given to us, the Company has formulated a regular program of
verification by which all the assets of Company have been physically
verified. No material discrepancies were noticed on physical
verification conducted by the management during the year as compared
with the book records.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed asset has been disposed
during the year and therefore it does not affect the going concern
status of the company.
(ii) (a) In our opinion and according to the information and
explanations given to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(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 on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
(iii) (a) According to the information & explanations given to us the
Company has granted loans to subsidiary companies namely Alchemist
Foods Limited, Alchemist Infrastructure Private Limited and Alchemist
Hospitality Group Limited (Parties covered in the register maintained
under section 301 of the Companies Act, 1956) for which the maximum
amount outstanding during the year was Rs. 12425.02 Lacs, Rs. 237.50
Lacs and Rs. 1500.00 Lacs respectively and amount outstanding on 31st
March, 2013 was Rs. 9772.66 Lac, Rs. 237.50 Lacs and Rs. 25.00 Lacs
respectively. The Company has taken unsecured loan from KDS Corporation
Pvt. Ltd. (Party covered in the register maintained under section 301
of the Companies Act, 1956) for which the maximum amount outstanding
during the year was Rs. 35237.68 Lacs and amount outstanding on 31st
March, 2013 was Rs 26737.68 Lacs.
(b) The loan taken/given by the company are interest-free and the other
terms and conditions of the loan taken/given by the company from/to
parties covered in registered maintained under Section 301 are not
prima-facie prejudicial to the interest of the Company.
(c) The terms of the repayment for both the loan taken and given have
not been defined and are repayable/receivable on the mutual agreement
of both the parties involved.
(d) In our opinion and according to the information and explanations
given to us, there is no overdue amount in respect of the loan
taken/given by the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed. (v) a) In our opinion and according
to the information and explanations given to us, the transactions made
in the pursuance of contracts or arrangements, that need to be entered
into the register maintained under section 301 of the Companies Act,
1956 for the year have been so entered. (b) In our opinion and
according to the information and explanations 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
aggregating during the year to Rs. 5.00 Lacs or more in respect of each
party have been made at prices which in our opinion, are reasonable
having regard to prevailing market price at relevant time. (vi) The
Company has not accepted deposits from the public during the year
covered by our audit report. However, the deposits have been repaid
during the year and also the balance stands in the books at the year
end. The Company has complied with all the provisions of Section 58A
and 58AA of the Act and the rules framed there under.
(vii) As per information & explanations given by the management, the
Company has a separate internal audit department constituting of
professionals undertaking audit exercises throughout the year.
Accordingly the internal audit system in the Company seems commensurate
with its size and the nature of its business.
(viii) We have broadly examined the books of accounts maintained by the
Company pursuant to the rules by the Central Government for the
maintenance of cost records under section 209 (1)(d) of the Companies
Act, 1956 and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have however,
not made a detailed examination of the records with a view to determine
whether they are accurate or complete.
(ix) (a) Based on our audit procedures and on the information and
explanations given by the management, we report that 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 to the extent
applicable and any other statutory dues have generally been regularly
deposited with the appropriate authorities, though there have been
slight delays in few cases. According to the information and
explanations given to us there were no outstanding statutory dues as on
31st of March, 2013 for a period of more than six months from the date
they became payable.
(b) Details of excise duty which has not been deposited as on 31st
March, 2013 by the Company on account of dispute is given below:
Name of Nature of Forum Total
Amount Amount
paid Period to
the Statute the dues where
pending involved* under
protest which
amount
(Rs.
Lacs) (Rs.
Lacs) relates
Central
Excise Excise
Duty Commissioner 173.55 63.13 December,
Act, 1944 of
Central
Excise 2007 to
Commissionerate, September,
Chandigarh 2012
* Amount as per demand order, not including interest and penalty as not
quantified in the demand order.
(x) The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(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.
(xii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provision of clause 4(xiii) of the Order
is not applicable to the Company.
(xiv) Based on our audit procedures and on the information and
explanation given by the management, we report that the Company is not
dealing or trading in Shares, Securities, Debentures & other
Investments. Therefore, the provision of clause 4(xiv) of the Order is
not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantees to the tune of Rs. 3049.45 Lacs for loans
taken by others from banks and financial institutions, the terms
whereof are prima-facie not prejudicial to the interest of the Company.
(xvi) Based on our audit procedures and on the information and
explanation given by the management, we report that the term loans have
been applied for the purpose for which they were raised.
(xvii) Based on our audit procedures and on the information and
explanation given by the management, we report that no funds raised on
short-term basis have been used for long-term investment by the
Company.
(xviii) The Company has made preferential allotment of 6,75,000 shares
to KDS Corporation Pvt. Ltd., Company covered in the register
maintained u/s 301 of the Companies Act, 1956, during the year. In our
opinion the price at which shares have been issued is not prejudicial
to the interest of the Company.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures during the year.
Therefore, the provision of clause 4(xix) of the Order is not
applicable to the Company.
(xx) During the year, the Company has not raised any money by way of
the public issue.
(xxi) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
Sd/-
C.A. Ashish Chhabra
Partner
Membership No. 507083
N. Kumar Chhabra
& Co.
Date: 30 May, 2013 Chartered Accountants
Place: New Delhi Firm Registration
No. 000837N
Mar 31, 2012
We have audited the Balance Sheet of Alchemist Limited as at 31st
March, 2012, the related Statement of Profit and Loss and Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our Audit.
We conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We Report that:
1. As required by the Companies (Auditors' Report) Order, 2003 as
amended by the Companies (Auditor's Report) Amendment Order, 2004,
issued by the Central Government of India in terms Section 227(4A) of
the Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in Paragraph 4 & 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 the proper books of account, as required by law,
have been kept by the Company, so far as appears from our examination
of those books of account.
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement are in agreement with the books of account;
(iv) Based on representations received from the Directors as on 31st
March, 2012 and taken on record by the Board of Directors, we report
that 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)
of section 274 of the Companies Act, 1956;
(v) In our opinion and to the best of our information and according to
the explanations given to us, the financial statement dealt within by
this report comply with the Accounting Standards referred to in Sub
Section (3C) of Section 211 of the Act and 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 the company's
affairs as at 31s1 March, 2012.
(b) in the case of the Statement of Profit & Loss, of the Profit of the
Company for the year ended on that date and,
(c) in the case of Cash Flow Statement of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in Paragraph 1 of the Auditor's Report to the Members of
the company as required by the Companies (Auditors' Report) Order, 2003
as amended by the companies (Auditor's Report) Amendment Order, 2004,
issued by the Central Government of India and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we further 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 formulated a regular program of verification by
which all the assets of company have been physically verified. No
material discrepancies were noticed on physical verification conducted
by the management during the year as compared with the book records.
(c) There was no disposal of a substantial part of fixed assets.
(ii) (a) The physical verification of stocks of finished goods, stores,
spare parts and raw materials was carried out during the year by the
management.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management was reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operations of the company.
(iii) (a) According to the information & explanations given to us the
company has granted loans to Subsidiary Company, Alchemist Foods
Limited (Party covered in the register maintained under section 301 of
the Companies Act, 1956) for which the maximum amount outstanding
during the year was Rs. 11813.43 Lac and amount outstanding on 31st
March, 2012 was Rs. 11774.38 Lac, also granted loan to subsidiary
company, Alchemist Infrastructures Pvt. Ltd. (Party covered in the
register maintained under section 301 of the Companies Act, 1956) for
which the maximum amount outstanding during the year was Rs. 7.50 Lacs
and amount outstanding on 31st March 2012, was Rs. 7.50 Lacs and also
the Company has taken unsecured loan from KDS Corporation Pvt. Ltd.
(Party covered in the register maintained under section 301 of the
Companies Act, 1956) for which the maximum amount outstanding during
the year was Rs. 37561.69 Lacs and amount outstanding on 31 st March,
2012 was Rs 27917.69 Lacs.
(b) The Company has taken/given interest free loans and other term and
conditions of the loan taken/ given by the company to/from parties
covered in register maintained under Section 301 are not prima-facie
prejudicial to the interest of the company.
(c) The company is regular in repayment.
(d) There is no overdue amount in respect of the loan taken/given by
the company.
(iv) In our opinion, the internal control procedures are adequate and
commensurate with the size and the nature of its business for purchase
of inventories and fixed assets and with regard to the sale of goods.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions made in the pursuance of
contracts or arrangements, that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 for the year
have been so entered. (b) In our opinion and according to the
information and explanations 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 aggregating
during the year to Rs.5,00,000/- or more in respect of each party have
been made at prices which in our opinion, are reasonable having regard
to prevailing market price at relevant time.
(vi) The Company has not accepted deposits from the public during the
year covered by our audit report. However, the deposits have been
repaid during the year and also the balance stands in the books at the
year end, the Company has complied with the provisions of Section
58Aand 58AAof the Act and the rules framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business. (viii) We have
broadly examined the books of account maintained by the company
pursuant to the rules by the Central Government for the maintenance of
cost records under section 209 (l)(d) of the Companies Act, 1956 and
are of the opinion that, prima facie, the prescribed accounts and
record have been made and maintained. We have however, not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(ix) (a) Undisputed Statutory dues including provident fund, investors
education and protection fund, employees state insurance, income tax,
sales tax, wealth tax, service-tax, customs duty, excise duty, cess and
other material statutory dues, as applicable, have generally been
regularly deposited with the appropriate authorities, though there has
been a slight delay in the few cases. No undisputed amount payable in
respect thereof were outstanding at the year-end for a period of more
than six month from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues outstanding in respect of Sales tax, Income tax, Customs
Duty, Excise Duty, Cess and any other Statutory Dues to be deposited on
account of any dispute.
(x) The company has no accumulated losses and has not incurred any cash
losses during the financial year and in the immediately preceding
financial year.
(xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions, banks and other securities.
(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) The Company in not a Chit fund or a nidhi/mutual benefits
fund/society. Therefore the provisions of Clause 4(xiii) of the Order
are not applicable to the company.
(xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities and debentures.
Therefore, provisions of clause 4(xiv) of the Order are not applicable
to the Company.
(xv) In our opinion and according to the information & explanation
given to us, the terms and conditions on which the company has given
guarantee to the tune of Rs. 1877 Lacs for loans taken by others from
banks and financial institutions are prima-facie not prejudicial to the
interest of the company.
(xvi) In our opinions and according to the information and explanation
given to us, 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 utilized for
long term investments and vice versa.
(xviii) The Company has made preferential allotment of 6,40,000 shares
to KDS Corporation Pvt. Ltd., Company covered in the register
maintained u/s301 of the Companies Act, 1956, during the year. In our
opinion the price at which shares have been issued is not prejudicial
to the interest of the company.
(xix) According to the information and explanations given to us, the
Company has not issued any secured debentures during the year.
Accordingly, the provision of Clause (xix) of the Order is not
applicable to the Company.
(xx) During the year, the Company has not raised any money by way of
the public issue.
(xxi) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year.
sd/-
CA. Ashish Chhabra
Partner
Membership No: 507083
N. Kumar Chhabra & Co.
Dated: 30th August,2012 Chartered Accountants
Place: New Delhi Firm Registration No: 000837N
Mar 31, 2011
We have audited the Balance Sheet of ALCHEMIST LIMITED as at 31st
March, 2011 and the related Profit and Loss Account and cash flow
statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
We Report that:
1. As required by the Companies (Auditors' Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of section 227(4A)
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.
2. Furthertoourcomments in theAnnexure referred to in paragraph 1
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 accounts, as required by law, have
been kept by the Company, so far as appears from our examination of
those books of accounts.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
are in agreement with the books of accounts.
iv) In our opinion the Balance Sheet & Profit and Loss Account and the
cash flow statement comply with the Accounting Standards referred to
section 211 (3C) of the Companies Act, 1956.
v) Based on 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) The accounts of the company has been prepared on a going concern
basis.
vii) In our opinion, and to the best of our information and according
to the explanations given to us, the said accounts read with notes
thereon and attached thereto, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of Balance Sheet, of the state of company's affairs
as at 31st March,2011,
(b) in the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date and
(c) in the case of Cash Flow Statement of the cash flow for the year
ended on that date.
Annexure to the Auditors' Report
Referred to in Paragraph 1 of the Auditors' Report to the Members of
the company as required by the Companies (Auditors' Report) Order, 2003
as amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we further 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 formulated a regular program of verification by
which all the assets of company have been physically verified. No
material discrepancies were noticed on physical verification conducted
by the management during the year as compared with the book records.
(c) There was no disposal of a substantial part of fixed assets.
(ii) (a) The physical verification of stocks of finished goods, stores,
spare parts and raw materials
was carried out during the year by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management was reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operations of the company.
(iii) (a) According to the information & explanations given to us the
company has granted loans to Subsidiary Company, Alchemist Foods
Limited (Party covered in the register maintained under section 301 of
the Companies Act, 1956) for which the maximum amount outstanding
during the year was Rs. 16779.66 Lac and amount outstanding on 31st
March, 2011 was Rs. 7638.08 Lac and also the Company has taken
unsecured loan from KDS Corporation Pvt. Ltd., (Party covered in the
register maintained under section 301 of the Companies Act, 1956) for
which the maximum amount outstanding during the year was Rs. 14331.68
Lacs and amount outstanding on 31st March, 2011 was Rs. 13481.68 Lacs.
(b) The Company has taken/given interest free loans and other term and
conditions of the loan taken/given by the company to/from parties
covered in register maintained under Section 301 are not prima-facie
prejudicial to the interest of the company.
(c) The company is regular in repayment.
(d) There is no overdue amount in respect of the loan taken/given by
the company.
(iv) In our opinion, the internal control procedures are adequate and
commensurate with the size and the nature of its business for purchase
of inventories and fixed assets and with regard to the sale of goods.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions made in the pursuance of
contracts or arrangements, that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 for the year
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, aggregating
during the year to Rs. 5,00,000/- or more in respect of each party have
been made at prices which in our opinion, are reasonable having regard
to prevailing market price at the releventtime.
(vi) The company has accepted deposits from the public during the year
covered by our audit report. However, the deposits have been repaid
during the year and also the balance stand in the books at the year end
the company has complied with the provisions of Section 58A and 58AA of
the Act and the rules framed there under.
(vii) in our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Govt has not prescribed any records to be maintained under
section 209(1 )(d) of the Companies Act, 1956.
(ix) (a) According to the records available with the company, the
company was regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Custom Duty, Excise Duty and Cess and
any other Statutory Dues. According to the information & explanation
given to us, no undisputed amount payable in respect of the aforesaid
dues were outstanding as at 31 st March, 2011, for a period of more
than six months from the date they become payable.
(b) According to the information and explanations given to us, there
are no dues of sale tax, income tax, custom duty, excise duty, cess and
any other statutory dues to be deposited on account of any dispute.
(x) The company has no accumulated losses and has not incurred any cash
losses during the financial year and in the immediately preceding
financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks and other securities.
(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) The company is not a Chit fund or a nidhi/mutual benefit
fund/society. Therefore the provisions of Clause 4(xiii) of the Order
are not applicable to the company.
(xiv) According to the information and explanations given to us, the
company is not dealing in shares, securities and debentures. Therefore,
provisions of clause 4(xiv) of the Order are not applicable to the
company.
(xv) In our opinion and according to the information and explanation
given to us, the terms and conditions on which the company has given
corporate guarantee to the tune of Rs.1877 Lacs for loans taken by
others from banks and financial institutions are prima-facie 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 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 utilised for
long term investment and vice versa.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment during the year.
(xix) According to the information and explanations given to us, the
company has not issued any secured debentures during the year.
Accordingly, the provisions of Clause (xix) of the Order is not
applicable to the company.
(xx) During the year, the company has not raised any money by way of a
pubic issue.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year, that causes the financial
statement to be materially mis stated.
C A. Ashish Chhabra
Partner
Membership No.: 507083
N.KUMAR CHHABRA & CO.
Date : 1st September, 2011 Chartered Accountants
Place : New Delhi Firm Registration No. 000837N
Mar 31, 2010
We have audited the Balance Sheet of ALCHEMIST LIMITED as at 31st
March, 2010 and the related Profit and Loss Account and 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.
We 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
We Report that:
1. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of section 227(4A)
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.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that:
i) we have obtained ail 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 accounts, as required by law, have
been kept by the Company, so far as appears from our examination of
those books of accounts.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
are in agreement with the books of accounts.
iv) In our opinion the Balance Sheet & Profit and Loss Account comply
with the Accounting Standards referred to section 211 (3C) of the
Companies Act, 1956.
v) Based on 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) The accounts of the company has been prepared on a going concern
basis.
vii) In our opinion, and to the best of our information and according
to the explanations given to us, the said accounts read with notes
thereon and attached thereto, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of Balance Sheet, of the state of Companys affairs as
at 31st March, 2010,
(b) in the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date and
(c) in the case of Cash Flow Statement of the cash flow for the year
ended on that date.
Annexure to the Auditors Report
Referred to in Paragraph 1 of the Auditors Report to the Members of
the company as required by the Companies (Auditors Report) Order, 2003
as amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we further 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 formulated a regular program of verification by
which all the assets of company have been physically verified. No
material discrepancies were noticed on physical verification conducted
by the managementduring the year as compared with the book records.
(c) There was no disposal of a substantial part of fixed assets.
(ii) (a) The physical verification of stocks of finished goods, stores,
spare parts and raw materials was carried out during the year by the
management.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management was reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operations of the company.
(iii) (a) According to the information & explanations given to us the
company has granted loans to Subsidiary Company, Alchemist Foods
Limited (Party covered in the register maintained under section 301 of
the Companies Act, 1956) for which the maximum amount outstanding
during the year was Rs.414.00 Lac and amount outstanding on 31st March,
2010 was Rs.414.00 Lac and also the Company has taken unsecured loan
from KDS Corporation Pvt. Ltd., (Party covered in the register
maintained under section 301 of the Companies Act, 1956) for which the
maximum amount outstanding during the year was Rs.6191.69 Lacs and
amount outstanding on 31st March, 2010 was Rs.2471.69 Lacs.
(b) The Company has taken/given interest free loans and other term and
conditions of the loan taken/given by the company to/from parties
covered in register maintained under Section 301 are not prima-facie
prejudicial to the interest of the company.
(c) The company is regular in repayment.
(d) There is no overdue amount in respect of the loan taken/given by
the company.
(iv) In our opinion, the internal control procedures are adequate and
commensurate with the size and the nature of its business for purchase
of inventories and fixed assets and with regard to the sale of goods.
(v) (a) In our opinion and according to the information and
explanations given to us, the transactions made in the pursuance of
contracts or arrangements, that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 for the year
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, aggregating during the year to Rs.5,00,000/-
or more in respect of each party have been made at prices which in our
opinion, are reasonable having regard to prevailing market price at the
relevent time.
(vi) The company has accepted deposits from the public during the year
covered by our audit report. The company has complied with the
provisions of Section 58A and 58AA of the Act and the rules framed
there under.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Govt has not prescribed any records to be maintained under
section 209(1 )(d) of the Companies Act, 1956.
(ix) (a) According to the records available with the company, the
company was regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Custom Duty, Excise Duty and Cess and
any other Statutory Dues. According to the information & explanation
given to us, no undisputed amount payable in respect of the aforesaid
dues were outstanding as at 31 st March, 2010, for a period of more
than 6 months from the date they become payable.
(b) According to the information and explanations given to us, there
are no dues of sale tax, income tax, custom duty, excise duty, cess and
any other statutory dues to be deposited on account of any dispute.
(x) The company has no accumulated losses and has not incurred any cash
losses during the financial year and in the immediately preceding
financial year.
(xi) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks and other securities.
(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) The company is not a Chit fund or a nidhi/mutual benefit
fund/society. Therefore the provisions of Clause 4(xiii) of the Order
are not applicable to the company.
(xiv) According to the information and explanations given to us, the
company is not dealing in shares, securities and debentures. Therefore,
provisions of clause 4(xiv) of the Order are not applicable to the
company.
(xv) In our opinion and according to the information and explanation
given to us, the terms and conditions on which the company has given
corporate guarantee to the tune of Rs.1877 Lacs for loans taken by
others from banks and financial institutions are prima-facie 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 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 utilised for
long term investment and vice versa.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment during the year.
(xix) According to the information and explanations given to us, the
company has not issued any secured debentures during the year.
Accordingly, the provisions of Clause (xix) of the Order is not
applicable to the company.
(xx) During the year, the company has not raised any money by way of a
pubic issue.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year, that causes the financial
statement to be materially mis stated.
CA. Ashish Chhabra
Partner
Membership No. : 507083
N.KUMAR CHHABRA & CO.
Date : 27th August, 2010 Chartered Accountants
Place : New Delhi Firm Registration No. 000837N