Mar 31, 2015
We have audited the accompanying standalone financial statements of
ALPS INDUSTRIES LIMITED (the Company ) which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the 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, includingthe 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.
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 underthe
provisions ofthe 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 ofthe financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers the internal
financial control relevant to the Company's preparation ofthe financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an
adequate internal financial controls system over financial reporting
and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness ofthe accounting estimates made by the Company's
Directors, as well as evaluating the overall presentation ofthe
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 made any provision towards losses amounting to Rs.
39205 Lac on derivative contracts (refer to note nos. 36 (A) (c) I, II
and III to the notes to account) and towards claim amounting to Rs. 6259
Lac against the corporate guarantee provided by the company on behalf of
one of its subsidiary company (Refer to note no. 36 (A) (c) IV to the
notes to account), hence to these extent the loss as shown in the
statement of profit and Loss, accumulated losses and current liabilities
are understated. This matter was also qualified in our report on the
financial statements for the year ended on 31st March 2014.
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
We draw attention to the following matters in the Notes to Financial
Statements:
1. To the Note no. 37 relating to non provision of interest amounting
to RS. 12291.33 lac for the financial year 201415 on loans taken from
banks/Financial Institution/ARC/Subsidiary companies pursuant to
consent of the secured lenders, constituting more than 83% of the
outstanding secured debt of the company, to the Draft Rehabilitation
Scheme (DRS) which is pending consideration before the Hon'ble BIFR,
which interalia envisages the complete waiver of all outstanding
interest from these lenders.
2. To note no 42 regarding pending confirmation of balances from trade
receivable, loans & Advances and trade payables and reconciliation
thereof and ascertainment of slow, non moving and damaged inventory and
impact thereof, if any.
3. To the Note no. 43 relating to non adjustment of amounts paid to
secured lenders in terms of settlement reached with them, under
consideration ofthe DRS by the Hon'ble BIFR.
4. To the Note no. 45 which briefs the status ofthe reference ofthe
company filed with the Hon'ble Board of Industrial & Financial
Reconstruction (BIFR) u/s 15 ofthe Sick Industrial Companies (Special
Provisions) Act, 1985. The financial statements have been prepared by
the company on going concern basis pending sanction of the
rehabilitation scheme by the Hon'ble BIFR.
Our opinion is not modified in respect ofthese matters.
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 paragraph 3 and 4 ofthe Order, to
the extent applicable:
2. As required by Section 143 (3) ofthe 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 ofthe 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 ofthe Act, read with Rule 7 ofthe Companies
(Accounts) Rules, 2014;
(e) The matters described in the Basis for Qualified Opinion paragraph
and Emphasis on Matters above, in our opinion, may have an adverse
effect on the functioning ofthe Company;
(f) On the basis ofthe written representations received from the
directors as on 31st March 2015 and taken on record by the Board of
Directors, none ofthe directors is disqualified as on 31st March, 2015,
from being appointed as a director in terms of Section 164 (2) ofthe
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; and
(h) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 ofthe 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 financial statements- Refer Note No. 36 to
the financial statements;
ii. Except non provision of losses stated in the Basis for Qualified
Opinion paragraph above, the Company has made provision, as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on longterm contracts including derivative
contracts;
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 the heading of "Report on other Legal
and Regulatory Requirement" of our report of even date In terms ofthe
information and explanations given to us and the books and records
examined by us in the normal course of audit and to the best of our
knowledge and belief, we state as under:
I. (a) The Company has maintained records which are yet to be updated
showing full particulars including quantitative details and situation of
its fixed assets.
(b) As explained to us, the management has physically verified all the
fixed assets during the year except for Jaspur and Kashipur unit due to
closure, in a phased periodical manner, which in our opinion is
reasonable having regard to the size ofthe Company. We have been
informed that no material discrepancies were noticed on such physical
verification during the year.
II. (a) The inventory has been physically verified during the year by
the management in phased manner.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to us, the discrepancies noticed on physical verification as
compared to book records were not material and have been dealt with in
the books of account other than ascertainment of slow moving, non
moving and damaged inventories, and impact there of, if any, as
referred in note on 42.
III. According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register required to be
maintained under section 189 ofthe Act. Accordingly paragraph 3 (iii)
ofthe order is not applicable.
IV. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size ofthe Company and the nature of its business, for
purchases of inventory and fixed assets and for the sale of goods and
services. In our opinion, there is no continuing failure to correct
major weaknesses in internal control systems.
V. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public.
VI. We were informed that company has maintained cost records pursuant
to Companies (Cost Records and Audit) Rules, 2014 as amended and
prescribed by the Central Government under section 148(1) ofthe
Companies Act, 2013 and we are ofthe opinion that prima facie, the
prescribed cost records have been maintained. We have however not made
a detailed examination ofthe records with a view to determine whether
they are accurate and complete.
VII. a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund Employees'State Insurance,
Income-tax, Sales tax, Wealth Tax, Service Tax, Duty of Custom, Duty of
Excise, Value Added Tax, Cess and any other statutory dues applicable to
it with the appropriate authorities. According to the information and
explanations given to us, no amounts payable in respect of Income-tax,
Wealth Tax, Service Tax, Sales-tax, Duty of Custom, Duty of Excise, Cess
and other aforesaid statutory dues were outstanding as at 31st March,
2015 for a period of more than six months from the date they became
payable.
b) The disputed statutory dues aggregating to Rs. 567.49 Lac as on 31st
March, 2015 have not been deposited on account of matters pending
before appropriate authorities are as under:
Sr.
No. Name of the Statute Nature of Dues Amount
1 U.P. Tax on entry of Goods Entry Tax Rs. 3.56 Lac
2 Nagar Nigam Act, 1959 Sewerage Tax Rs. 5.13 Lac
3 Uttrakhand Agriculture Produce Mandi Samitee Cess Rs. 558.80 Lac
Marketing (Development &
Regulation) (Amended) Act 2012
Sr.
No. Name of the Statute From where Dispute
is pending
1 U.P. Tax on entry of Goods Hon'ble Tribunal Ghaziabad
2 Nagar Nigam Act, 1959 Hon'ble Commisioner,
Nagar Nigam Gzb
3 Uttrakhand Agriculture Produce Hon'ble Supreme Court of
Marketing (Development & India
Regulation) (Amended) Act 2012
(c) The amount required to be transferred to Investor protection fund
in accordance with the relevant provisions of the Companies Act, 1956
and rule made there under has been transferred to such fund within
time.
VIII. The accumulated losses of the company as at 31st March, 2015 are
more than fifty percent of its net worth. As per the financial
statements, the Company has not incurred cash losses during the current
financial year ended 31st March, 2015 but incurred cash loss in the
immediately preceding financial year.
I . By order dated 02.09.2011 of Board of Industrial and Financial
Reconstruction (Board), the amount becoming due after May, 2011 to
Banks and Financial institutions are deferred till the date of sanction
of the scheme of the Draft Rehabilitation Scheme (DRS) by Board and
further 83% of the secured lenders (including One Time Settlement with
the company) have consented to DRS which is pending before the Board.
Having regard to pending approvals of DRS, we are unable to express any
opinion about the default of Principal/interest and period of default,
if any.
* According to information and explanations given to us, the company
has not given any guarantees for loan taken by others from Banks &
Financial Institution during the year.
I. According to information and explanations given to us by the
management, no term loans have been obtained during the year.
II. As per information and explanation given to us, no fraud on or by
the company noticed or reported during the year.
For P. Jain & Co.
Chartered Accountants
(Firm Reg. No. : 000711C)
Munish Kr. Jain
Place : Ghaziabad Partner
Date : May 30, 2015 Membership No. : 070335
Mar 31, 2014
We have audited the accompanying financial statements of ALPS
INDUSTRIES 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 Notified under the companies Act, 1956 (the
Act) read with the General Circular 15/2013 dated 13th September, 2013
of the ministry of corporate affairs in respect of section 133 of the
companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
Internal Control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our Qualified audit opinion.
Basis for Qualified Opinion
The company has not made any provision towards losses amounting to Rs.
38979 Lacs on derivative contracts crystallized (refer to note nos. 36
(A) (d) I, II and III to the notes to account) and towards claim
amounting to Rs. 6009 Lacs against the corporate guarantee provided by
the company on behalf of one of Its subsidiary company (Refer to note
no. 36 (A) (d) IV to the notes to account), hence to these extent the
loss as shown In the statement of profit and Loss, accumulated losses
and current liabilities are understated.
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 matters
described above in the Basis for Qualified Opinion paragraph, 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 loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that;
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) Except for the effects of the matters described above in the basis
for Qualified opinion paragraph, in our opinion, the Balance Sheet,
Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards Notified under the act read with the General
Circular 15/2013 dated 13th September, 2013 of the ministry of
corporate affairs in respect of section 133 of the companies Act, 2013.
e) On the basis of written representations received from the directors
as on 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 Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirement" of our report of even date In terms of the
information and explanations given to us and the books and records
examined by us in the normal course of audit and to the best of our
knowledge and belief, we state as under;
I. (a) The Company has maintained records showing full particulars
including quantitative details and situation of its fixed assets,
however, these records are in process of completion.
(b) As explained to us, the management has during the year physically
verified all the fixed assets in a phased periodical manner which in
our opinion is reasonable having regard to the size of the Company. We
have been informed that no material discrepancies were noticed on such
physical verification during the year.
(c) During the year the Company has not disposed off substantial part
of its fixed assets.
II. (a) The inventory has been physically verified during the year by
the management at reasonable intervals. In our opinion and according to
the information and explanations given to us, the procedure of physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(b) The Company has maintained proper records of inventories. As
explained to us, the discrepancies noticed on physical verification as
compared to book records were not material, however, the same have been
properly dealt with in the books of account.
III. There are no Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 to
which the company has granted any loans, secured or unsecured, as per
information and explanation given to us. Consequently paras 4 (III)
(b), (lll)(c) and (III) (d) of the order are not applicable to the
Company.
The company has not taken any loan secured or unsecured from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956 as per information and
explanation given to us. Consequently paras 4 (III) (e), (lll)(f) and
(III) (g) of the order are not applicable to the Company.
IV. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for
purchases of inventory and fixed assets and for the sale of goods and
services. In our opinion, there is no continuing failure to correct
major weaknesses in internal control procedures.
V. (a) According to the information and explanations given to us, we
are of the opinion that particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
as required to be maintained under that section, wherever applicable.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at the prices, which appear
reasonable as per information available with the Company.
VI. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public with
in the meaning of section 58A and 58-AA or any other relevant
provisions of the Companies Act, 1956, and the Rules framed there
under.
VII. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
VIII. We have broadly reviewed the cost records maintained by the
Company pursuant to the companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209 (1) (d) of the
companies Act, 1956 and are of the opinion that prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the records with a view to determine
whether they are accurate and complete.
IX. a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, Custom duty. Excise duty. Cess and any other
statutory dues applicable to it with the appropriate authorities.
b) According to the information and explanations given to us, no
amounts payable in respect of Income-tax, Wealth tax, Service Tax,
Sales-tax, Custom duty, Excise duty, Cess and other aforesaid statutory
dues were outstanding as at 31st March, 2014 for a period of more than
six months from the date they became payable.
c) The disputed statutory dues aggregating to Rs. 429.27 Lacs have not
been deposited on account of matters pending before appropriate
authorities as on 31st March, 2014, are as under;
Sr. Name of the Statute Nature of Dues Amount From where Dispute
Pending
1. U.P. Tax on entry of Entry Tax Rs. 3.56 Tribunal Ghaziabad
Goods Lacs
2. Nagar Nigam Act, 1959 Sewerage Tax Rs. 4.72 Hon''ble Allahabad
Lacs High Court
3. Uttrakhand Mandi Samitee Rs.420.99 Hon''ble
Agriculture Cess Lacs Uttarakhand High
Produce Marketing Court at Nainital
(Development &
Regulation)
(Amended) Act 2012
X. (a) The accumulated losses of the company as at 31st March, 2014 are
more than fifty percent of its net worth.
(b) The Company has incurred cash losses during the current year ended
31st March, 2014 and in the immediately preceding financial year.
XI. Based on our audit procedure and the information and explanations
given to us, the Company has defaulted in repayment to the Bank as
given below.
Other than above by Order dated 02.09.2011 of Hon''ble BIFR, the amounts
becoming due after May 2011 to banks and financial institution are
deferred till the date of sanction of the scheme by the Board.
XII. Based on our examination of records and explanations given to us
during the year, the company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
XIII. As per the information and explanations given to us, the
provisions of special statute applicable to chit fund do not apply to
the company. The company is also not a Nidhi/Mutual Benefit
Fund/Society.
XIV. In our opinion, and according to the information and explanations
given to us, the Company is not dealing or trading in Shares,
Securities, debentures and other investments.
XV. Based on our examination of records and information and
explanations given to us, the company has not given corporate
guarantees on behalf of other body corporate to the banks during the
year.
XVI. Based on information and explanations given to us by the
management, the term loans have been applied for the purpose for which
they were obtained.
XVII. According to the information and explanation given to us and on
an overall examination of the Balance sheet of the company, we are of
the opinion that funds raised on short-term basis have not been used
for long-term investment.
XVIII. As explained to us, the company has not made any preferential
allotment of shares to companies or parties covered in the register
maintained under section 301 of the Act during the year.
XIX. According to information and explanations given to us, the
company has not issued debentures during the year.
XX. The company has not raised any money by way of public issue during
the year.
XXI. During the course ofour examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the company, noticed or reported during the
year, nor have we have been informed of such case by the management.
For P. Jain & Co.
Chartered Accountants
(Firm Reg. No: 000711C)
Munish Kr. Jain
Place : Ghaziabad Partner
Date : May 30, 2014 Membership No.: 70335
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of ALPS
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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.
Auditors'' 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 Qualified audit opinion.
Basis for Qualified Opinion
As discussed in Note Nos. 35 (A) (d) I, II and III to the notes to
account, the company has not made any provision towards the losses on
derivative contracts crystallized amounting to Rs. 38458 Lacs and
claims of Rs. 5439 Lacs against the corporate guarantee provided by the
company on behalf of one of its subsidiary company (Refer to note no.
35 (A) (d) IV of notes to account), hence to that extent the loss as
shown in statement of profit & Loss, accumulated losses and current
liabilities is understated.
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 matters
described in the Basis for Qualified Opinion paragraph, 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 loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Companies of are 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) Except for the effects of the matters described in the basis for
Qualified opinion paragraph, in our opinion, the Balance Sheet,
Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (3C) of section 211 of
the Act;
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 Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referredtoinparagraph1under the heading of "Report on other Legal and
Regulatory Requirement" of our report fever date.
In terms of the information and explanations given to us and the books
and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state as under:
I. (a) The Company has maintained records showing full particulars
including quantitative details and situation of its fixed assets,
however, these records are in process of updating.
(b) As explained to us, the management has during the year physically
verified all the fixed assets in a phased periodical manner which in
our opinion is reasonable having regard to the size of the Company. We
have been informed that no material discrepancies were noticed on such
physical verification during the year.
(c) During the year the Company has not disposed off substantial part
of its fixed assets.
II. (a) The inventory has been physically verified during the year by
the management at reasonable intervals. In our opinion and according to
the information and explanations given to us, the procedure of physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(b) The Company has maintained proper records of inventories. As
explained to us, the discrepancies noticed on physical verification as
compared to book records were not material, however, the same have been
properly dealt with in the books of account.
III. There are no Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 to
which the company has granted any loans, secured or unsecured, as per
information and explanation given to us. Consequently paras 4 (III)
(b), (III)(c) and (III) (d) of the order are not applicable to the
Company.
The company has not taken any loan secured or unsecured from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956 as per information and
explanation given to us. Consequently paras 4 (III) (e), (III)(f) and
(III) (g) of the order are not applicable to the Company.
IV. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for
purchases of inventory and fixed assets and for the sale of goods and
services. In our opinion, there is no continuing failure to correct
major weaknesses in internal control procedures.
V. (a) According to the information and explanations given to us, we
are of the opinion that particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
as required to be maintained under that section, wherever applicable.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at the prices, which appear
reasonable as per information available with the Company.
VI. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public with
in the meaning of section 58A and 58-AA or any other relevant
provisions of the Companies Act, 1956, and the Rules framed there
under.
VII. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
VIII. We have broadly reviewed the cost records maintained by the
Company pursuant to the companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209 (1) (d) of the
companies Act, 1956 and are of the opinion that prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the records with a view to determine
whether they are accurate and complete.
IX. a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and any other
statutory dues applicable to it with the appropriate authorities.
b) According to the information and explanations given to us, no
amounts payable in respect of Income-tax, Wealth tax, Service Tax,
Sales-tax, Custom duty, Excise duty, Cess and other aforesaid statutory
dues were outstanding as at 31st March, 2013 for a period of more than
six months from the date they became payable.
c) The disputed statutory dues aggregating to Rs. 236.64 Lacs have not
been deposited on account of matters pending before appropriate
authorities as on 31st March, 2013, are as under:
Sr. From where Dispute
Name of the
Statute Nature of Dues Amount is Pending
1 U.P. Tax on entry
of Goods Entry Tax Rs. 3.56
Lacs Tribunal Ghaziabad
2 Nagar Nigam Act,
1959 Sewerage Tax Rs. 3.70
Lacs Humble Allahabad
High Court
3 Uttrakhand
Agriculture Mandi Samitee
Cess Rs.
229.38
Lacs Humble Uttarakhand
High
Produce Marketing Court at Nainital
(Development &
Regulation)
(Amended) Act
2012
X. (a) The accumulated losses of the company as at 31st March, 2013
are more than fifty percent of its net worth.
(b) The Company has incurred cash losses during the current year ended
31st March, 2013 and in the immediately preceding financial year.
XI. Based on our audit procedure and the information and explanations
given to us, the Company has defaulted in repayment to the Bank as
given below.
Nature of Dues Rs. in Lacs
Principal Interest Default w.e.f
1500.00 817.77 February 2009
1000.00 529.13 March 2009
Other than above by Order dated 02.09.2011 of Humble BIFR, the amounts
becoming due after May 2011 to banks and financial institution are
deferred till the date of sanction of the scheme by the Board.
XII. Based on our examination of records and explanations given to us
during the year, the company has not granted loans and advances on the
basis of security byway of pledge of shares, debentures and other
securities.
XIII. As per the information and explanations given to us, the
provisions of special statute applicable to chit fund do not apply to
the company. The company is also not a Nidhi/Mutual Benefit Fund/
Society.
XIV. In our opinion, and according to the information and explanations
given to us, the Company is not dealing or trading in Shares,
Securities, debentures and other investments.
XV. Based on our examination of records and information and
explanations given to us, the company has not given corporate
guarantees on behalf of other body corporate to the banks during the
year.
XVI. Based on information and explanations given to us by the
management, the term loans have been applied for the purpose for which
they were obtained.
XVII. According to the information and explanation given to us and on
an overall examination of the Balance sheet of the company, we are of
the opinion that funds raised on short-term basis have not been used
for long-term investment.
XVIII. As explained to us, the company has not made any preferential
allotment of shares to companies or parties covered in the register
maintained under section 301 of the Act during the year.
XIX. According to information and explanations given to us, the
company has not issued debentures during the year.
XX. The company has not raised any money by way of public issue during
the year.
XXI. During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the company, noticed or reported during the
year, nor we have been informed of such case by the management.
For P. Jain & Co.
Chartered Accountants
(Firm Reg. No. 000711C)
Munish Kr. Jain
Place : Ghaziabad Partner
Date : May 30, 2013 Membership No. 70335
Mar 31, 2012
1. We have audited the attached Balance Sheet of ALPS INDUSTRIES
LIMITED as at 31st March 2012, and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government in terms of sub- section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above and Para
5 below, we report that:-
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of accounts as required by law have been
kept by the Company so far as 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 dealt with by this report are in compliance with
the applicable accounting standards referred to in sub section (3C) of
section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on 31st March, 2012 and taken on record by the Board of Directors,
in our opinion, none of the director is disqualified as on 31.03.2012
from being appointed as director u/s274 (1) (g) of the Companies Act,
1956.
5. Referring to note no 35 (d) I,II and III of Notes to Accounts, the
Company has not made any provision towards the losses on derivative
contracts crystallized amounting to Rs 395.27 Crore and claims of Rs
51.16 Crore against the corporate guarantee provided by the Company on
behalf of one of it's subsidiary company (refer to note no. 35 (d) IV
of notes to accounts), hence to that extent the loss as shown in the
Statement of profit & loss, accumulated losses and current liabilities
is understated.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts subject to para 5 above
read together with Accounting Policies and Notes thereon, 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:Ã
a) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012.
b) In the case of Statement of Profit and Loss, of the Loss for the year
ended on that date. and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date on the Financial
Statements for the year ended 31st March, 2012 of Alps Industries Ltd.
In terms of the information and explanations given to us and the books
and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state as under:
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets, however, these records are in process of completion.
(b) As explained to us, the management has during the year physically
verified all the fixed assets in a phased periodical manner which in
our opinion is reasonable having regard to the size of the Company. We
have been informed that no material discrepancies were noticed on such
physical verification during the year.
(c) During the year the Company has not disposed off substantial part
of its fixed assets and the going concern status of the Company is not
affected.
II. (a) The inventory has been physically verified during the year by
the management at reasonable intervals. In our opinion and according to
the information and explanations given to us, the procedure of physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(b) The Company has maintained proper records of inventories. As
explained to us, the discrepancies noticed on physical verification as
compared to book records were not material, however, the same have been
properly dealt with in the books of account.
III. There are no Companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 to
which the company has granted any loans, secured or unsecured, as per
information and explanation given to us. Consequently paras 4 (III)
(b), (III)(c) and (III) (d) of the order are not applicable to the
Company.
The company has not taken any loan secured or unsecured from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956 as per information and
explanation given to us. Consequently paras 4 (III) (e), (III)(f) and
(III) (g) of the order are not applicable to the Company.
IV. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for
purchases of inventory and fixed assets and for the sale of goods and
services. In our opinion, there is no continuing failure to correct
major weaknesses in internal control procedures.
V. (a) According to the information and explanations given to us, we
are of the opinion that particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
as required to be maintained under that section, wherever applicable.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of the
Companies Act, 1956 have been made at the prices, which appear
reasonable as per information available with the Company.
VI. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58-AAor any other relevant provisions of the Companies Act,
1956, the Companies (Acceptance of Deposits) Rules, 1975 and the
directives issued by the Reserve Bank of India, with regard to the
deposits accepted from the public by private circulation. No order has
been passed with respect to the deposits accepted from the public by
private circulation by National Company Law Tribunal/Company Law Board.
VII. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
VIII. The Central Government has prescribed maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
of manufacturing activity of the Company. We have broadly reviewed the
accounts and records of the Company and are of the opinion that prima
facie, the prescribed records are being maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate and complete.
IX. a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and any other
statutory dues applicable to it with the appropriate authorities.
b) The undisputed amounts payable in respect of Sales Tax and Service
Tax aggregating to Rs. 6.20 lac and Rs. 6.03 Lac respectively were
outstanding as at 31st March, 2012 for a period of more than six months
from the date they became payable.
c) The disputed statutory dues aggregating to Rs. 351.21 lacs have not
been deposited on account of disputed matters pending before
appropriate authorities as on 31st March, 2012 , are as under:
Sr. , From where Dispute
Name of the Statute Nature of Dues Amount
No. is Pending
1 U.P. Tax on
entry of Goods Entry Tax Rs.
26.96 Lac Addl.
Commissioner
(Appeal)
2 Nagar Nigam
Act, 1959 Sewerage Tax Rs.
4.75 Lac Hon'ble
Allahabad High
Court
3 Uttrakhand
Agriculture
Produce
Marketing Market Fee and rs
31950 Lac Hon'ble
Uttarakhand
High
(Development
& Regulation) Development
Cess Court at
Nainital
Act 2011
X. (a) The accumulated losses of the company as at 31st March, 2012 are
more than fifty percent of its net worth.
(b)The Company has incurred cash losses during the current year ended
31st March, 2012 and in the immediately preceding financial year.
XI. Based on our audit procedure and the information and explanations
given to us, the Company has defaulted in repayment to the Banks as
given below.
Nature of Dues Rs. in Lacs
Principal Interest Default w.e.f
1500.00 498.75 February 2009
1000.00 321.34 March 2009
Other than above, by Order dated 02.09.2011 of Hon'ble BIFR, the
amounts becoming due after May 2011 to banks and financial institution
are deferred till the date of sanction of the scheme by the Board .
XII. Based on our examination of records and explanations given to us
during the year, the company has not granted loans and advances on the
basis of security byway of pledge of shares, debentures and other
securities.
XIII. As per the information and explanations given to us, the
provisions of special statute applicable to chit fund do not apply to
the company. The company is also not a Nidhi/Mutual Benefit
Fund/Society.
XIV. In our opinion, and according to the information and explanations
given to us, the Company is not dealing or trading in Shares,
Securities.
XV. Based on our examination of records and information and
explanations given to us, the company has not given corporate
guarantees on behalf of other body corporate to the banks during the
year.
XVI. Based on information and explanations given to us by the
management, the term loans have been applied for the purpose for which
they were obtained.
XVII. According to the information and explanation given to us and on
an overall examination of the Balance sheet of the company, we are of the
opinion that funds raised on short-term basis have not been used for
long-term investment.
XVIII. As explained to us, the company has not made any preferential
allotment of shares to companies or parties covered in the register
maintained under section 301 of the Act during the period.
XIX. According to information and explanations given to us, during the
year, company has not issued debentures and accordingly, the creation
of securities thereof does not arise.
XX. The company has not raised any money by way of public issue during
the year.
XXI. During the course of our examination of the books and records of the
company carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instances of material
fraud on or by the company, noticed or reported during the year, nor
have we have been informed of such case by the management.
For P. Jain & Co.
Chartered Accountants
(Firm Reg. No. 000711C)
Munish Kr. Jain
Place : Ghaziabad Partner
Date : August 13, 2012 Membership No.70335
Mar 31, 2010
1. We have audited the attached Balance Sheet of ALPS INDUSTRIES
LIMITED as at 31st March 2010, the Profit and Loss Account and the Cash
Flow Statement for the period ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supportingthe amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order,2003 issued
by the Central Government in terms of sub- section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to para 3 above
and Para 5 below, we report that:-
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of accounts as requ ired by law have
been kept by the Company so far as appears from our examination of
those books.
c) The Balance Sheet, Profit and Loss account and Cash Flow Statement
referred to in this report are in agreement with the books of accounts
of the company;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow dealt with by this report comply with the accounting standards
referred to in section 211 (3C) of the Companies Act, 1956.
e) On the basis of written representations received from the directors,
and taken on record by the Board of Directors, in our opinion, none of
the director is disqualified as on 31st March, 2010 from being
appointed as director u/s 274(1 )(g)ofthe Companies Act, 1956.
5. (i) Referringto note nos. 1 (f) I, III and IV of part B
ofSchedule20, Notes to Accounts, the company has not assessed and made
any provision towards the losses on derivative contracts crystallized
amounting to Rs. 1 88.69 Crore and claims ofRs. 45.14 Crore against the
corporate guarantee provided by the Company on behalf of one of its
subsidiary company (refer to note no. 1 (f) II of part B of Schedule 20
notes to Accounts), hence to that extent the loss as shown in the
profit & loss Account, accumulated losses and current liabilities are
understated.
(ii) The Company has not assessed and provided for the Profit/Loss, if
any, against foreign currency derivative transactions outstanding as on
31.03.2010 (refer to Para 4 of part B of schedule 20, Notes on
Accounts).
6. In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts subject to note no. 5
above read together with significant Accounting Policies and Notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:-
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31 st March, 2010. ii) In the case of the Profit and Loss
account, of the Loss for the period ended on that date. iii) In the
case of Cash Flow Statement, of the cash flows for the period ended on
that date.
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 3 of our
report of even date on the accounts for the period ended 31 st March,
2010 of Alps Industries Ltd.
In terms of the information and explanations given to us and the books
and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state as under:
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets, however, these records are in process of updation.
(b) As explained to us, the management has during the year physically
verified all the fixed assets. We have been informed that no material
discrepancies were noticed on such physical verification duringthe
period.
(c) During the period the Company has not disposed off substantial part
of the fixed assets.
II. (a) The inventory has been physically verified during the period
by the management at reasonable intervals. In our opinion and according
to the information and explanations given to us, the procedure of
physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and the
nature of its business. (b) The Company is maintaining proper records
of inventory. As explained to us the discrepancies noticed on physical
verification of stocks as compared to book records were not material,
however, the same have been properly dealt with in the books of
account.
III. The Company has granted unsecured loans aggregating Rs 735.62 Lac
to four member companies, firms or parties covered in the register
maintained under section 301 of the Companies Act 1956. The company has
not taken any loans from any such party. The rate of interest and other
terms and condition of such loans are, in our opinion, prima facie, not
prejud icial to the interest of the Company.
IV. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for
purchase of inventory and fixed assets and also forthe sale of goods
and services. In our opinion, there is no continuing failure to correct
major weaknesses in internal control procedures.
V. (a) According to the information and explanations given to us, we
are of the opinion that particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained underthat section, wherever applicable. (b)
In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 have been made at the prices, which are reasonable having
regard to prevailing market prices attherelevanttime.
VI. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58-AA or any other relevant provisions of the Companies Act, 1
956, the Companies (Acceptance of Deposits) Rules, 1 975 and the
directives issued by the Reserve Bank of India, with regard to the
deposits accepted from the public by private circulation. No order has
been passed with respect to the deposits accepted from the public by
private circulation by National Company Law Tribunal/Company Law Board.
VII. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
VIII. The Central Government has prescribed maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
of manufacturing activity of Cotton yarn of the Company. We have
broadly reviewed the accounts and records of the Company and are of the
opinion that prima facie, the prescribed records are being maintained.
We have not, however, made a detailed examination of the records with a
view to determine whether they are accurate and complete.
IX. a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and any other
statutory dues applicable to it with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-tax, Wealth tax,
Service Tax, Sales-tax, Custom duty, Excise duty, Cess and other
statutory dues were outstanding as at 31 st March, 2010 for a period of
more than six months from the date they became payable.
c) The disputed statutory dues aggregating to Rs. 568.15 Lac have not
been deposited on account of disputed matters pending before
appropriate authorities as on 31 st March, 2010 , are as under:
Sr Name of the Statute Nature of Dues Amount Forum where
No. Rs.(in Dispute is
Lacs> Pending
1 U.P. Tax on entry of Goods Entry Tax 219.59 Honble Allahabad
High Court
2 U.P. Sales Tax Liability against
Form V 4.22 Deputy Commissioner
Sales Tax,
including Interest
F.Y. Ghaziabad
2006-07
3 NagarNigam Act, 1959 Sewerage Tax 4.75 Honble Civil
Court Chaziabad
4 Income Tax Disallowance of 339.59 C.I.T Appellate,
Chaziabad
Depreciation for
the A.Y.
2007-08
X. (a) The accumulated losses of the company as at 31 st March, 2010
are more than fifty percent of its net worth. (b) The Company has
incurred cash losses duringthe current period ended 31 st March, 2010 .
XI. Based on our audit procedure and the information and explanations
given to us, the Company has defaulted in repaymentto the financial
institutions/Banks as given below:-
Nature of Dues and Amount
Principal Interest Period of Default
95.83 10.94 March 2009
33.33 14.17 April 2009
33.33 14.19 May 2009
95.83 14.83 June 2009
33.33 15.66 July 2009
33.33 15.74 August 2009
95.83 15.58 September 2009
2479.15 15.99 October 2009
The entire loan in respect of above was recalled by the banks.
XII. Based on our examination of records 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. As per the information and explanations given to us, the
provisions of special statute applicable to chit fund do not apply to
the company. The company is also not a Nidhi/Mutual Benefit
Fund/Society.
XIV. In our opinion, and according to the information and explanations
given to us, the Company is not dealing or trading in Shares,
Securities.
XV. Based on our examination of records and information and
explanations given to us, the company has not given corporate
guarantees on behalf of other body corporate to the banks duringthe
period.
XVI. Based on information and explanations given to us by the
management, the term loans have been applied for the purposefor which
theywere obtained.
XVII. According to the information and explanation given to us and on
an overall examination of the Balance sheet ofthe company, we are ofthe
opinion that funds raised on short-term basis have not been used for
long-term investment.
XVIII. As explained to us, the company has not made any preferential
allotment of shares to companies or parties covered in the register
maintained under section 301 ofthe Act during the period.
XIX. According to information and explanations given to us, during the
period, company has not issued debentures and accordingly, the creation
ofsecuritiesthereofdoes not arise.
XX. The company has not raised any money by way of public issue
duringthe period.
XXI. Duringthe course of our examination ofthe books and records ofthe
company carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instances of material
fraud on or by the company, noticed or reported during the year, nor
have we have been informed of such case by the management.
For P. jain & Co.
Chartered Accountants
(Firm Reg. No. 000711C)
Place : Chaziabad
Date: May 29th, 2010
(Munish Kr. jain)
Partner
Membership No.70335
24. The previous period figures have been regrouped and rearranged,
wherever considered necessary to make them comparable with those of
current period.
Jun 30, 2009
1. We have audited the attached Balance Sheet of ALPS INDUSTRIES
LIMITED as at 30th June, 2009, the Profit and Loss Account and the Cash
Flow Statement for the period ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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.
3. As required by the Companies (Auditors Report) Order,2003 issued
by the Central Government in terms of sub section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:-
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books of the Company;
c. The Balance Sheet, Profit and Loss account referred to in this
report are in agreement with the books of accounts of the Company;
d. In our opinion, the balance sheet and profit and loss account dealt
with by this report comply with the applicable accounting standards
referred to in section 211(3C) of the Companies Act, 1956;
e. On the basis of written representations received from the
directors, and taken on record by the Board of Directors, in our
opinion, none of the directors is disqualified from being appointed as
director u/s 274(l)(g) of the Companies Act, 1956.
5. The Company has not assessed and provided for profit/loss, if any
on outstanding foreign currency derivative transactions as on 30th
June, 2009 as referred in Note No. 21 of Schedule 19.
6. In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts Subject to para 5 above
read together with Accounting Policies and Notes thereon as per
Schedule No. 19, 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 affairs of the
Company as at 30th June, 2009
b. In the case of the Profit and Loss account, of the Loss for the
period ended on that date.
c. In the case of Cash Flow Statement, of the cash flow for the period
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date on the accounts
for the period ended 30th June, 2009 of
Alps Industries Ltd.
In terms of the information and explanations given to us and the books
and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state as under:
I. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets, however, these records are in process of updation.
b. As explained to us, die management has during the year physically
verified all die fixed assets. We have been informed that no material
discrepancies were noticed on such physical verification during the
period.
c. During the period the Company has not disposed off substantial part
of the fixed assets.
n. a. The inventory has been physically verified during me period by
the Management at reasonable intervals. In our opinion and according to
the information and explanations given to us, the procedure of physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
b. The Company is maintaining proper records of inventory. As explained
to us the discrepancies noticed on physical verification of stocks as
compared to book records were not material, however, the same have been
properly dealt within the books of account.
III. The Company has granted unsecured loans aggregating Rs. 706.67
Lac to four companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. The company
has not taken any loans from any such party. The rate of interest &
other terms & condition of such loans are, in our opinion, prima facie
not prejudicial to the interest of the Company.
IV. In our opinion and according to me information and explanations
given to us, there is adequate internal control system commensurate
with die size of the Company and the nature of its business, for
purchase of inventory and fixed assets and also for the sale of goods
and services. In our opinion, mere is no continuing failure to correct
major weaknesses in internal control procedures.
V. (a) According to die information and explanations given to us, we
are of me opinion that particulars of Contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section, wherever applicable.
(b) In our opinion and according to me information and explanations
given to us, me transactions made in pursuance of Contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at the prices, which are
reasonable having regard to prevailing market prices at the relevant
time.
VI. In our opinion and according to the information and explanations
given to us, me company has complied with the provisions of section 58A
& 58-AA or any other relevant provisions of me Companies Act, 1956, the
Companies (Acceptance of Deposits) Rules, 1975 and the directives
issued by the Reserve Bank of India, with regard to the deposits
accepted from the public by private circulation. No order has been
passed with respect to the deposits accepted from the public by private
circulation by National Company Law Tribunal/Company Law Board.
VII. In our opinion, the Company has an adequate internal audit system
commensurate with me size and nature of its business.
Vin. The Central Government has prescribed maintenance of cost records
under section 209(1) (d) of the Companies Act, 1956 in respect of
manufacturing activity of Cotton yarn of me Company. We have broadly
reviewed die accounts and records of me Company and are of the opinion
that prima facie, the prescribed records are being maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate and complete.
DC a) The Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-tax, Sales-tax,
Wealm Tax, Service Tax, Custom duty, Excise duty, Cess and any odier
statutory dues applicable to it with the appropriate auuiorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-tax, Wealth tax,
Service Tax, Sales-tax, Custom duty, Excise duty, Cess and other
statutory dues were outstanding as at 30th June, 2009 for a period of
more than six months from the date they became payable.
c) The disputed statutory dues aggregating to Rs. 211.80 Lac have not
been deposited on account of disputed matters pending before
appropriate authorities as on 30th June, 2009, are as under:
Sr. No. Name of Nature of Amount Forum where
the Statute Dues Dispute is Pending
1 Central Entry Tax Rs. 208.43 Lac Honble Allahabad
Sales Tax High
Act, 1956 Court
2 Nagar Nigam Sewerage Tax Rs. 3.37 Lac Honble Civil Court
Act, 1959 Ghaziabad
X. (a) The accumulated losses of the Company as at 30 June, 2009 are
more than 50 % of its net worth. (b) The Company has incurred cash
losess during the current period ended 30th June, 2009.
XI. Based on our audit procedure and the information and explanations
given to us, the Company has defaulted in respect to the repayment to
the financial institution/bank as given below: -
Nature of Dues Period of Default Rs. in Lac
Principal February, 2009 17.37
Interest February, 2009 467.12
Principal March, 2009 1404.03
Interest March, 2009 542.97
Principal April, 2009 116.63
Interest April, 2009 849.50
Principal May, 2009 57.37
Interest May, 2009 885.36
Principal June, 2009 6632.55
Interest June, 2009 871.02
XII Based on the our examination of records and explanations given to
us the Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Xfll. As per the information and explanations given to us, the
provisions of special statute applicable to chit fund do not apply to
the company. The company is also not a Nidhi/Mutual Benefit Fund/
Society.
XIV. In our opinion, and according to the information and explanation
given to us, the Company is not dealing or trading in Shares,
Securities.
XV. Based on our examination of records and the information and
explanations given to us, the company has not given corporate
guarantees on behalf of other body corporate, to the banks during the
period.
XVI. Based on the information and explanations given to us by
management, the term loans have been applied for the purpose for which
they were obtained.
XVU. According to the information and explanation given to us and on an
overall examination of the Balance sheet of the company, we are of the
opinion that funds raised on short-term basis have not been used for
long-term investment.
XVHI. As explained to us, the company has not made any preferential
allotment of shares to companies or parties covered in the Register
maintained under section 301 of the Act during the period.
XK. According to information and explanations given to us, during the
period, company has not issued debentures and accordingly, the creation
of securities thereof does not arise.
XX. The company has not raised any money by way of public issue during
the period.
XXI. During the course of our examination of the books and records of
the company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the company, noticed or reported during the
year, nor have we have been informed of such case by the management.
For P. Jain & Co.
Chartered Accountants
Place: Ghaziabad Munish Kr. Jain
Date: September 22, 2009 Partner
Membership No. 70335