Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of AMD Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its loss, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act, read with relevant rules issues thereunder.
e) on the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, nne of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - refer note 38 to the standalone Ind AS financial statements.
ii. There are no material foreseeable losses on long term contracts including derivative contracts therefore, no such provision is required to be made.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to the Independent Auditorsâ Report
The Annexure referred to in our Independent Auditorsâ Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31st March 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the company, the title deeds of the immovable properties are held in the name of the company.
(ii) (a) The management of the Company has conducted the physical verification of inventory at reasonable intervals during the year.
(b) The procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventory and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
(iv) The company has not granted any loans under provisions of section 185 and has complied with provisions of section 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
(v) The Company has not accepted any deposits from the public under provisions of sections 73 to 76 or any other relevant provisions of the Companies Actâ 2013.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, GST and other material statutory dues with the appropriate authorities.
(b) According to the information and explanations given to us, below given dues of income tax, sales tax, service tax, excise duty, value added tax and cess have not been deposited with the appropriate authorities on account of disputes:
S. No. |
Period of Demand |
Amount Involved |
Particulars of demand |
Appeal pending before |
1 |
F.Y. 1999-00 to 2006-07 |
Rs.9,50,962/- |
Local Sales Tax raised by UP Local Sales Tax Authorities. |
Supreme Court |
2. |
F.Y. 1999-00 to 2006-07 |
Rs.31,18,745/- |
Central Sales Tax raised by UP Trade tax Authorities. |
Supreme Court |
3 |
F.Y. 2003-04 |
Rs.3,58,400/- |
Demand raised by Assessing Authority u/s 21, we have filed appeal against above order. |
Tribunal Court, Ghaziabad |
4 |
F.Y. 2001-02 |
Rs.11,45,102/- |
Entry tax raised by UP Trade Tax Authorities |
Tribunal Court, Ghaziabad |
5. |
F.Y. 2002-03 |
Rs.11,40,307/- |
Entry tax raised by UP trade tax Authorities. |
Supreme Court |
6. |
FY 2004-05 |
Rs.16,37,643/- |
Entry tax raised by UP trade tax Authorities. |
Allahabad High Court |
7. |
F Y 2001-02 |
Rs.2,00,000/- |
Labour Dispute |
Labour Court-I, Ghaziabad |
8. |
F.Y. 2005-06 |
Rs.4,47,623/- |
Sales Tax Demand raised by UP trade tax Authorities |
Addl. Commissioner Appeal (Trade Tax)-I, Ghaziabad |
9. |
F. Y 2005-2006 |
Rs.2,20,397/- |
Entry tax raised by UP trade tax Authorities. |
Supreme Court |
10. |
F.Y 2007-2008 |
Rs.38,09,702/- |
Demand raised by Trade Tax Department. |
Honâble High Court, Allahabad |
11. |
2008-09 & 2009-10 |
Rs. 2,97,18,848/- |
Demand raised by Trade Tax Department. |
Tribunal court, Ghaziabad |
(viii) In our opinion and according to the information and the explanations given to us the company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(ix) In our opinion and according to the information and the explanations given to us the company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised.
(x) In our opinion no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the year under review.
(xi) In our opinion and according to the information and the explanations given to us and based on examination of records of the company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to information given to us the company is not a nidhi Company. Accordingly paragraph 3(xii) of the order is not applicable.
(xiii) In our opinion and according to the information and the explanations given to us and based on our examination of the records of the company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where ever applicable and the details of such transactions have been disclosed in the notes to the standalone Ind AS 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 the explanations given to us the company has not entered into any non-cash transactions with directors or persons connected with him under the provisions of section 192 of Companies Act, 2013
(xvi) According to the information and the explanations given to us the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934
Annexure - B to the Independent Auditorâs Report of even date on the Standalone Ind AS financial statements of AMD Industries Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of AMD Industries Limited (âthe companyâ) as of March 31, 2018 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 Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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(''ICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Goyal Nagpal & Co.
FRN:018289C
Chartered Accountants
Sd/-
(CA Virender Nagpal)
Date : 25.05.2018 Partner
Place : New Delhi M. No. 416004
Mar 31, 2016
Independent Auditorsâ Report
To
the Members of AMD Industries Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of AMD Industries Limited (âthe companyâ), which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss, the Cash Flow Statement and a summary of significant accounting policies and other explanatory information for the year then ended .
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs 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 disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31st March, 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;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ and
g) With respect to the other matters included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,2014, in our opinion and to the best of our information and according to the explanations given to us :
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 32(i)(c) to the financial statements
ii. There are no material foreseeable losses on long term contracts including derivative contracts therefore, no such provision is required to be made.
iii. There has been no delay in transferring amount, required to be transferred , to the investor education and protection fund by the company.
The Annexure referred to in our Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31st March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the company, the title deeds of the immovable properties are held in the name of the company.
(ii) (a) The management of the Company has conducted the physical verification of inventory at reasonable intervals during the year.
(b) The procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventory and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ).
(iv) The company has not granted any loans under provisions of section 185 and has complied with provisions of section 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
(v) The Company has not accepted any deposits under provisions of sections 73 to 76 or any other relevant provisions of the Companies Actâ 2013.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company is regular
in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues with the appropriate authorities.
(b) According to the information and explanations given to us, below given dues of income tax, sales tax, service tax, excise duty, value added tax and cess have not been deposited with the appropriate authorities on account of disputes:
S. No. |
Period of Demand |
Amount Involved |
Particulars of demand |
Appeal pending before |
1 |
A.Y. 1999-00 to 2006-07 |
Rs.9,50,962/- |
Local Sales Tax raised by UP Local Sales Tax Authorities. |
Supreme Court |
2. |
A.Y. 1999-00 to 2006-07 |
Rs.31,18,745/- |
Central Sales Tax raised by UP Trade tax Authorities. |
Supreme Court |
3 |
A.Y. 2003-04 |
Rs.3,58,400/- |
Demand raised by Assessing Authority u/s 21 of UP Trade Tax Act 1948 |
UP Trade Tax Tribunal, Ghaziabad |
4 |
F.Y 2001-02 |
Rs.11,45,102/- |
Entry tax raised by UP Trade Tax Authorities |
Jt. Commissioner Appeal (Trade Tax) - III, Ghaziabad |
5. |
F.Y 2002-03 |
Rs.11,40,307/- |
Entry tax raised by UP trade tax Authorities. |
Supreme Court |
6. |
FY 2004-05 |
Rs.16,37,643/- |
Entry tax raised by UP trade tax Authorities. |
Supreme Court |
7. |
F Y 2001-02 |
Rs.2,00,000/- |
Labour Dispute |
Labour Court-I, Ghaziabad |
8. |
F.Y. 2005-06 |
Rs.4,74,111/- |
Sales Tax Demand raised by UP trade tax Authorities |
Commissioner Appeal (Trade Tax)-I, Ghaziabad |
9. |
A Y 2005-2006 |
Rs.2,20,397/- |
Entry tax raised by UP trade tax Authorities. |
Supreme Court |
10. |
A Y 2007-2008 |
Rs.38,09,702/- |
Demand raised by Trade Tax Department. |
High Court, Allahabad |
11. |
F.Y. 2008-09,2012-13 |
Rs.41,71,281/- |
Entry Tax raised by Rajasthan Trade Tax Authorities. |
Supreme Court |
12. |
F.Y 2014-15 |
Rs. 2,71,360/- |
Excise authorities has raised demand |
Commissioner Appeal, Ghaziabad. |
(viii) The company has not defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.
(ix) In our opinion and according to the information and the explanations given to us the company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised.
(x) In our opinion no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the year under review.
(xi) In our opinion and according to the information and the explanations given to us and based on examination of records of the company, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to information given to us the company is not a nidhi Company. Accordingly paragraph 3(xii) of the order is not applicable.
(xiii) In our opinion and according to the information and the explanations given to us and based on our examination of the records of the company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where ever applicable and the 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 the explanations given to us the company has not entered into any non-cash transactions with directors or persons connected with him under the provisions of section 192 of Companies Act, 2013
(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
We have audited the internal financial controls over financial reporting of AMD Industries Limited (âthe companyâ) as of March 31, 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 Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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(âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgments, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Suresh & Associates
FRN: 003316N
Chartered Accountants
(CA Narendra Kr Arora)
Date : 26th May, 2016 Partner
Place: New Delhi M. No. 088256
Mar 31, 2015
We have audited the accompanying standalone financial statements of AMD
Industries Limited ('the company'), which comprise the Balance Sheet as
at 31 March 2015, the Statement of Profit and Loss, the Cash Flow
Statement and a summary of 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 in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
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 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 true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial
statements, give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31,2015 and its profit and its cash
flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act; and
f) With respect to the other matters 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 financial statements - Refer Note 32(i)(c) to
the financial statements
ii. There are no material forseeable losses on long term contracts
including derivative contracts therefore, no such provision is required
to be made.
iii. There are no instances of delay in transferring amount, required
to be transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditor's Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
(i) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(ii) (a) The management of the Company has conducted the physical
verification of inventory at reasonable intervals during the year.
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and nature of its business.
(c) The Company has maintained the proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act, 2013 ('the Act').
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of goods. We have not observed any
major weakness in the internal control system during the course of the
audit.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, the
company is regular in depositing undisputed statutory dues including
provident fund, employees' state insurance, income tax, sales tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax, cess and any other material statutory dues with the appropriate
authorities.
(b) According to the information and explanations given to us, below
given dues of income tax, sales tax, wealth tax, service tax, value
added tax and cess have not been deposited with the appropriate
authorities on account of dispute:
(c) According to the information and explanations given to us the
amount which were required to be transferred to the investor education
and
S.No. Period of Demand Amount Involved Appeal pending before
1. A.Y. 1999-00 Rs.9,50,962/- Supreme Court
to 2006-07
2. A.Y. 1999-00 Rs.31,18,745/- Supreme Court
to 2006-07
3. A.Y. 2003-04 Rs.3,58,400/- UP Trade Tax Tribunal,
Ghaziabad
4. F.Y. 2001-02 Rs.11,45,102/- Jt.Commissioner Appeal
(Trade Tax) - III,
Ghaziabad
5. F.Y. 2002-03 Rs.11,40,307/- Supreme Court
6. FY 2004-05 Rs.16,37,643/- Supreme Court
7. F Y 2001-02 Rs.2,00,000/- Labour Court-I,
Ghaziabad
8. F.Y. 2005-06 Rs.4,74,111/- Commissioner Appeal
(Trade Tax)-I,
Ghaziabad
9. A Y 2005-2006 Rs.2,20,397/- Supreme Court
10. A Y 2012-13 Rs.28,97,299/- CESTAT, New Delhi
11. A Y 2007-2008 Rs.38,09,702/- High Court, Allahabad
12. F.Y. 2011-12 Rs.9,99,264/- High Court, Rajasthan
S.No. Period of Demand Particulars of demand
1. A.Y. 1999-00 Local Sales Tax raised by UP Local Sales
to 2006-07 Tax Authorities.
2. A.Y. 1999-00 Central Sales Tax raised by UP Trade
to 2006-07 tax Authorities.
3. A.Y. 2003-04 Demand raised by Assessing Authority u/s 21
of UP Trade Tax Act 1948
4. F.Y. 2001-02 Entry tax raised by UP Trade Tax Authorities
5. F.Y. 2002-03 Entry tax raised by UP trade tax Authorities
6. FY 2004-05 Entry tax raised by UP trade tax Authorities
7. F Y 2001-02 Labour Dispute
8. F.Y. 2005-06 Sales Tax Demand raised by UP trade
tax Authorities
9. A Y 2005-2006 Entry tax raised by UP trade tax Authorities
10. A Y 2012-13 Excise Duty Demand raised by Excise Assessing
Authorities. Filed an appeal with stay at
CESAT, New Delhi.
11. A Y 2007-2008 Demand raised by Trade Tax Department.
12. F.Y. 2011-12 Entry Tax raised by Rajasthan Trade Tax
Authorities.
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
(viii) Company has no accumulated losses at the end of the financial
year. The company has not incurred cash losses in current financial
year and in the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders during the year.
(x) In our opinion and according to the information and the
explanations given to us, the Company has given guarantee for loans
taken by others from banks or financial institutions. The company has
given corporate guarantees of Rupees Twenty three crores for loans
taken by its subsidiaries from bank and financial institutions. The
terms and other conditions, in our opinion are not prima facie
prejudicial to the interest of the company.
(xi) The Company has utilised term loans for the purpose for which the
loans were obtained.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For Suresh & Associates
FRN: 003316N
Chartered Accountants
(CA. Narendra Kumar Arora)
Partner
M. No. 088256
Date : 27.05.2015
Place : New Delhi
Mar 31, 2014
We have audited the accompanying financial statements of AMD Industries
Limited ('the Company') which comprise the balance sheet as at 31st
March 2014, 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.
1. 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.
2. 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.
3. 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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2014;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
4. 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
subsection (3C) of section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the
ANNEXURE TO AUDITOR'S REPORT
Referred to Paragraph 4 of our report of even date attached
(i) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Some of the fixed assets of the company have been physically
verified during the year by the management in accordance with program
of verification, which in our opinion provide for physical verification
of all the fixed assets at reasonable intervals. According to
information and explanation given to us, no material discrepancies have
been noticed on such verification.
c) No fixed assets have been disposed off during the year which may
affect the going concern concept.
(ii) a) As explained to us, the inventory has been physically verified
by the management at reasonable intervals during the year. In our
opinion, the frequency of such verification is reasonable considering
size and nature of the business.
b) In our opinion and according to information and explanation given to
us, the procedures of physical verification of inventory, followed by
the management, are reasonable and adequate in relation to the size and
nature of its business.
c) In our opinion and according to information and explanation given to
us, the company is maintaining proper records of inventory and no
serious discrepancies have been noticed on physical verification.
(iii) a) The company has granted unsecured loan and advances of
Rs.35,26,572/- to one company covered in the register maintained under
section 301 of the Act.
b) In our opinion the rate of interest and other terms and conditions
of loan and advances given by the company are prima facie not
prejudicial to the interest of the company.
c) As per information given to us, the repayment of principal amount
and interest are regular.
d) There has not been any instance of overdue exceeding rupees one lac
during the year.
e) The company has taken unsecured loans of Rs.2,00,46,754.68/- from
one company and Rs.4,00,41,757/- from three other parties , covered in
the register maintained under section 301 of the Act.
f) The rate of interest and other terms and conditions of loans taken
by the company are prima facie not prejudicial to the interest of the
company.
g) As per information given to us, the repayment of principal amount
and interest are regular.
(iv) In our opinion and according to information and explanation given
to us, there are adequate internal control procedures commensurate with
the size and nature of the company for purchase of inventory and fixed
assets and sale of goods and services. There is no continuing failure
to correct major weakness in internal control system.
(v) a) According to the information and explanation given to us, the
company has entered into transaction pursuance of contract or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956.
b) In our opinion and as per information given to us, such transactions
are made at prevailing market price at the relevant time.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit and the directives issued by the RBI and
the provisions of 58A and 58AA of the Act and rules framed there under,
wherever applicable, have been complied with.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
(viii) The maintenance of the cost record have been prescribed by the
Central Government under section 209(1)(d) of Companies Act, 1956 to
the company.
(ix) a) According to books of accounts examined by us and explanation
given to us company is generally regular in depositing undisputed
statutory dues and there are no undisputed statutory dues payable in
respect of PF, ESI, Income Tax, Sales Tax, Wealth Tax Custom Duty,
Excise Duty, Cess and other statutory dues which are outstanding as at
31st March, 2014 for the period of more than 6 months from the date they
became payable.
b) According to information given to us certain dues of Sales Tax,Entry
Tax,Excise Duty and other statutory dues have not been deposited by the
company on account of dispute pending before concerned authority details
of such dues are given below.
S. Period of Demand Amount Particulars of demand
No. Involved
1 A.Y. 1999-00 Rs.9,50,962/- Local Sales Tax raised by
to 2006-07 UP Local Sales Tax
Authorities.
2. A.Y. 1999-00 Rs.31,18,745/- Central Sales Tax raised
to 2006-07 by UP Trade tax
Authorities.
3 A.Y. 2003-04 Rs.3,58,400/- Demand raised by Assessing
Authority u/s 21,we have
filed appeal against above
order.
4 F.Y. 2001-02 Rs.11,45,102/- Entry tax raised by UP
Trade Tax
Authorities
5. F.Y. 2002-03 Rs.11,40,307/- Entry tax raised by UP
trade tax Authorities
6. FY 2004-05 Rs.16,37,643/- Entry tax raised by
UP trade
tax Authorities
7. F Y 2001-02 Rs.2,00,000/- Labour Dispute
8. F.Y. 2005-06 Rs.4,74,111/- Sales Tax Demand raised
by UP
trade tax Authorities
9. F. Y. 2007-08 Rs.2,02,382/- Sales Tax demand raised by
UP Trade tax
Authorities Ghaziabad
10. F.Y. 2003-04 Rs.9,31,360/- Refund of Excise duty
claim denied by Excise
Authorities.
11. A Y 2005-2006 Rs.2,20,397/- Entry tax raised by UP
ttrade ax Authorities
12. A Y 2012-13 Rs.28,97,299/- Excise Duty Demand raised
by Excise
Assessing Authorities.
Filed an appeal with stay
at CESTAT, New Delhi
13. A Y 2007 -2008 Rs.38,09,702/- Demand raised by Trade Tax
Department. TheTribunal,
Ghaziabad has given Order
in our favor. The
department appealed
against the
Tribunal Order.
14. F.Y. 2011-12 Rs.9,99,264/- Entry tax raised by
Rajasthan trade tax
Authorities.
S.No. Period of Demand Appeal pending before
1 A.Y. 1999-00 Supreme Court
to 2006-07
2. A.Y. 1999-00 Supreme Court
to 2006-07
3 A.Y. 2003-04 Tribunal Court, Ghaziabad
4 F.Y. 2001-02 Jt. Commissioner Appeal
(trade tax)-III, Ghaziabad
5. F.Y. 2002-03 Supreme Court
6. FY 2004-05 Supreme Court
7. F Y 2001-02 Labour Court-I, Ghaziabad
8. F.Y. 2005-06 Commissioner Appeal (trad tax)
-I, Ghaziabad
9. F. Y. 2007-08 Addl. Commissioner Appeal
(trade tax)-III,
10. F.Y. 2003-04 CESTAT, R K Puram, New Delhi,
11. A Y 2005-2006 Supreme Court
12. A Y 2012-13 CESTAT, New Delhi
13. A Y 2007 -200 Hon'ble High Court, Allahabad
14. F.Y. 2011-12 Hon'ble High Court Rajasthan.
(x) There are no accumulated losses of the company. The company has
also not incurred any cash losses during the financial year and nor in
immediately preceding financial year.
(xi) As per explanation and information provided to us company has not
defaulted in repayment of dues to a financial institution or banks.
(xii) The company has not granted loan and advances on basis of
security by way of pledged of shares, debentures, other securities.
(xiii) In our opinion and according to the information and explanations
given to us, the company is not a chit fund/nidhi/mutual benefit fund/
society.
(xiv) As per information given to us company is not dealing or trading
in shares, securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prime-facie prejudicial to the interest of the
Company.
(xvi) To the best of our knowledge & belief and according to
information given to us term loan availed by company are prima facie
applied by company during the year for the purpose for which they are
obtained.
(xvii) As per information & explanation given to us and overall
examination of balance sheet of the company we report that funds raised
on short-term basis have prima facie not been used for long-term
investment and vice versa.
(xviii) As per information and explanation given to us the company has
not made preferential allotment of shares to parties and companies
covered in register maintained under section 301 of the Companies Act.
(xix) As per information and explanation given to us the company has
not issued any debentures and no security has been created against the
debenture.
(xx) During the year, company has not raised money by way public issue
of equity shares.
(xxi) As per information and explanation given to us no fraud has been
noticed or reported during the year.
For SURESH & ASSOCIATES.
FRN : 003316N
CHARTERED ACCOUNTANTS.
(CASURESH K. GUPTA)
DATE : 28.05.2014 PARTNER
PLACE: NEW DELHI M No. 080050
Mar 31, 2012
1. We have audited the attached Balance Sheet of AMD INDUSTRIES LIMITED
as at 31st March, 2012, Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have conducted audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act. 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we report
that:-
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement, dealt with by this report, are in agreement with the books
of account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement, dealt with by this report, comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March, 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;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to Paragraph 3 of our report of even date attached
(i) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Some of the fixed assets of the company have been physically
verified during the year by the management in accordance with program
of verification, which in our opinion provide for physical verification
of all the fixed assets at reasonable intervals. According to
information and explanation given to us, no material discrepancies have
been noticed on such verification.
c) No fixed assets have been disposed off during the year which may
affect the going concern concept.
(ii) a & b) As explained to us, the inventory has been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable
considering size and nature of the business.
c) In our opinion and according to information and explanation given to
us, the procedures of physical verification of inventory, followed by
the management, are reasonable and adequate. No serious discrepancies
have been noticed in physical verification.
(iii) a) The company has taken secured or unsecured loans from the
entities, listed in the register maintained under section 301 of the
Companies Act, 1956.
b) The rate of interest and other terms and conditions of loans are not
prejudicial to the interest of the company.
c) As per information given to us, the repayment of principal amount
and interest are regular.
d) There has not been any instance of overdue exceeding rupees one lac
during the year.
(iv) In our opinion and according to information and explanation given
to us, there are adequate internal control procedures commensurate with
the size and nature of the company for purchase of inventory and fixed
assets and sale of goods. There is no continuing failure to correct
major weakness in internal control.
(v) a) According to the information and explanation given to us, the
company has entered into transaction pursuance of contract or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956.
b) In our opinion and as per information given to us, such transactions
are made at prevailing market price.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit and the directives issued by the RBI and
the provisions of 58Aand 58AAof the Act and rules framed there under,
wherever applicable, have been complied with.
(vii) In our opinion, the company has an internal audit system
commensurate with it size and nature of business.
(viii) The maintenance of the cost record have not been prescribed by
the Central Government under section 209(1 )(d) of Companies Act, 1956
to the company.
(ix) a) According to books of accounts examined by us and explanation
given to us company is generally regular in depositing undisputed
statutory dues and there are no undisputed statutory dues payable in
respect of PF, ESI, Income Tax, Sales Tax, Wealth Tax Custom Duty,
Excise Duty, Cess and other statutory dues.
b) According to information given to us certain dues of sales
Tax/lncome-tax/custom duty/wealth tax/excise duty/cess have not been
deposited by the company till 31.03.2012 on account of dispute pending
before concerned authority details of such dues are given below.
S. Period Amount Description Appeal pending before
No.
1 A.Y. 1999-00 9,50,962/- Local Sales Tax Supreme Court
to 2006-07 raised by U.P.
Local Sales
Tax Authorities
2. A.Y. 1999-00 31,18,745/- Central Sales Tax Supreme Court
to 2006-07 raised by U.P.
Trade Tax
Assessing
Authorities
3. A.Y. 2002-03 1,34,83,805 Central Sales Remand back to Orig-
Tax raised by inal assessing
U.P. Trade Tax authority by
Assessing Appellate Authority
Authorities
4. A.Y. 2003-04 10,31,276/- Central Sales Adi. Commissioner
Tax raised by Appeal (Trade Tax)-
U.P. Trade Tax III, Ghaziabad
Assessing
Authorities
5. A.Y. 2001-02 11,45,102/- Entry tax raised Jt. Commissioner
by UP Trade Tax Appeal (trade tax)-
Authorities lll, Ghaziabad
6. A.Y. 2002-03 11,40,307/- Entry tax raised Supreme Court
by UP Trade Tax
Authorities
7. A.Y. 2004-05 16,37,643/- Entry tax raised Allahabad High Court
by UP Trade Tax has dismissed the WP.
Authorities The Company is in the
process of filing of
SLP before Hon'ble
Supreme Court.
8. F.Y. 2001-02 2,00,000/- Labour Dispute Labour Court-1,
Ghaziabad
9. A.Y. 2005-06 4,74,111/- Central Sales Commissioner Appeal
Tax raised by (trade tax)-l,
U.P. Trade Tax Ghaziabad
Assessing
Authorities
10. A.Y. 2007-08 2,02,382/- Trade Tax raised Addl. Commissioner
by U.P. Trade Appeal (Trade Tax)
Tax Assessing -III, Ghaziabad
Authorities.
S. Period Amount Description Appeal pending before
No.
11. A.Y. 2003-04 9,31,360/- Refund claim Central Excise,
denied by Excise Service Tax Appell-
Authorities. ate Tribunal,
New Delhi
12. A.Y. 2003-04 1,10,000/- Interest on Remand back to
Excise Duty Dy. Commissioner,
raised by Central Excise
Commissioner Ghaziabad by Appell-
Appeal, ate Authority
Ghaziabad
13. A.Y 2005-06 2,20,397/- Entry tax raised Supreme Court
by UP Trade Tax
Authorities
14. A.Y 2007-08 38,09,702/- UPVAT raised due Addl. Commissioner
to Classifica- (Appeals) Ghaziabad
tion of Preform
by Assessing
Authorities
15. A.Y 2010-11 3,22,000/- Claim filed Deputy Commissioner,
under the Nimri Colony, Ashok
Employee Vihar, New Delhi
Compensation
Act, 1923.
(x) There are no accumulated losses of the company. The company has
also not incurred any cash losses during the financial year and nor in
immediately preceding financial year.
(xi) As per explanation and information provided to us company has not
defaulted in repayment of dues to a financial institution or banks.
(xii) The company has not granted loan and advances on basis of
security by way of pledged of shares, debentures, other securities.
(xiii) Provisions of clause (xiii) are not applicable to the company.
(xiv) As per information given to us company is not dealing or trading
in shares, securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prime-facie prejudicial to the interest of the
Company.
(xvi) To the best of our knowledge & belief and according to
information given to us term loan availed by company were prima facie
applied by company during the year for the purpose for which they were
obtained.
(xvii) As per information & explanation given to us and overall
examination of balance sheet of the company we report that funds raised
on short-term basis have prima facie not been used for long-term
investment and vice versa. ,
(xviii) As per information and explanation given to us the company has
not made preferential allotment of shares to parties and companies
covered in register maintained under section 301 of the Companies Act.
(xix) As per information & explanation given to us the company has not
issued any debentures and no security has been created against the
debenture.
(xx) During the year, company has not raised money by way public issue
of equity shares.
(xxi) As per information & explanation given to us no fraud has been
noticed or reported during the year.
For SURESH & ASSOCIATES
FRN: 003316N
CHARTERED ACCOUNTANTS
Place: New Delhi.
Date: 23th May, 2012 (CA NARENDRA ARORA)
PARTNER
M No. 088256
FRN: 003316N
Mar 31, 2011
1. We have audited the attached Balance Sheet of AMD INDUSTRIES
LIMITED as at 31st March, 2011, Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have conducted audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act. 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to ourcomments in the Annexure referred to above, we report
that-
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement, dealt with by this report, are in agreement with the books
of account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement, dealt with by this report, comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31st March, 2011, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31th March 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act. 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the balance Sheet, of the state of affairs of the
Company as at 31st March, 2011 and
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to Paragraph 3 of our report of even date attached
(I) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Some of the fixed assets of the company have been physically
verified during the year by the management in accordance with program
of verification, which in our opinion provide for physical verification
of all the fixed assets at reasonable intervals. According to
information and explanation given to us, no material discrepancies have
been noticed on such verification.
c) No fixed assets have been disposed off during the year which may
affect the going concern concept.
(ii) a & b) As explained to us, the inventory has been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable
considering size and nature of the business.
c) In our opinion and according to information and explanation given to
us, the procedures of physical verification of inventory, followed by
the management, are reasonable and adequate. No serious discrepancies
have been noticed in physical verification.
(iii) a) The company has taken secured or unsecured loans from the
entities, listed in the register maintained under section 301 of the
Companies Act, 1956.
b) The rate of interest and other terms and conditions of loans are not
prejudicial to the interest of the company.
c) As per information given to us, the repayment of principal amount
and interest are regular.
d) There has not been any instance of overdue exceeding rupees one lac
during the year.
(iv) In our opinion and according to information and explanation given
to us, there are adequate internal control procedures commensurate with
the size and nature of the company for purchase of inventory and fixed
assets and sale of goods. There is no continuing failure to correct
major weakness in internal control.
(v) a) According to the information and explanation given to us, the
company has entered into transaction pursuance of contract or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956.
b) In respect of the transactions made in pursuance of such contracts
or arrangements and exceeding value Rupees five lacs in respect of any
party during the year, because of the absence of the comparable prices
and variation in the quality of the goods involved, we are unable to
comment whether the transaction were made at prevailing market prices
at the relevant time.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit and the directives issued by the RBI and
the provisions of 58A and 58AA of the Act and rules framed there under,
wherever applicable, have been complied with.
(vii) In our opinion, the company has an internal audit system
commensurate with it size and nature of business.
(viii) The maintenance of the cost record have not been prescribed by
the Central Government under section 209(1 )(d) of Companies Act, 1956
to the company.
(ix) a) According to books of accounts examined by us and explanation
given to us company is generally regular in depositing undisputed
statutory dues and there are no undisputed statutory dues payable in
respect of PF, ESI, Income Tax, Sales Tax, Wealth Tax Custom Duty,
Excise Duty, Cess and other statutory dues which are outstanding as at
31st March, 2011 for the period of more than 6 months from the date
they became payable.
b) According to information given to us certain dues of sales
Tax/income-tax/custom duty/wealth tax/excise duty/cess have not been
deposited by the company on account of dispute pending before concerned
authority details of such dues are given below.
Sl. Period Amount Description
No.
1. A.Y. 1999-00 to 2006-07 9,50,962/- Trade Tax raised by
U.P. Trade Tax
Assessing Authorities
2. A.Y. 1999-00 to 2006-07 31,18,745/- Central Sales Tax
raised by U.P. Trade
Tax Assessing
Authorities
3. A.Y. 2002-03 1,34,83,805 Central Sales Tax
raised by U.P. Trade
Tax Assessing
Authorities
4. A.Y. 2003-04 10,31,276/- Central Sales Tax
raised by U.P. Trade
Tax Assessing
Authorities
5. A.Y.2001-02 19,07,102/- Entry tax raised by UP
Trade Tax
Authorities
6. A.Y. 2002-03 11,40,297/- Entry tax raised by UP
Trade Tax Authorities
7. A.Y. 2004-05 & 2005-06 18,58,040/- Entry tax raised by UP
Trade Tax
Authorities
8. F.Y. 2001-02 2,00,000/- Labour Dispute
9. A.Y. 2005-06 4,47,623/- Central Sales Tax raised
by U.P. Trade Tax
Assessing Authorities
10. A.Y. 2007-2008 2,02,382/- Trade Tax raised by U.P
Trade Tax
Assessing Authorities.
11. A.Y. 2003-04 9,31,360/- Refund claim denied by
Excise Authorities.
12. A.Y. 2003-04 1,10,000/- Interest on Excise Duty
raised by Commissioner
Appeal,Ghaziabad
13. F.Y. 2004-05 41,20,000/- Amount disallowed by
Income Tax
Assessing Authority
14. A.Y. 2006-07 1,02,55,306/- Sales Tax Demand Raised
by Assessing Authorities
under Rajasthan Vat Act
& Rajasthan CSTAct
Period Appeal pending before
A.Y. 1990-00 to 2006-07 Supreme Court
A.Y. 1999-00 to 2006-07 Supreme Court
A.Y. 2002-03 Remand back to Original assessing
authority by Appellate Authority
A.Y. 2003-04 Adl. Commissioner Appeal (Trade
Tax)-lll Ghaziabad
A.Y. 2001-02 Jt. Commissioner Appeal (trade
tax)-111
Ghaziabad
A.Y. 2002-03 Allahabad High Court
A.Y. 2004-05 & 2005-06 Allahabad High Court
F.Y. 2001-02 Labour Court-2, Ghaziabad
A.Y. 2005-06 Commissioner Appeal (trade tax)-l,
Ghaziabad
A.Y. 2007-2008 Addl. Commissioner Appeal
(Commercial Tax)-lll, Ghaziabad
A.Y. 2003-04 Remand back to Dy. Commissioner.
Centra Excise.Ghaziabad by Appellate
Authority
A.Y. 2003-04 Remand back to Dy. Commissioner,
Central Excise.Ghaziabad by Appellate
Authority
F.Y. 2004-05 High Court, Delhi
A.Y. 2006-07 Deputy Commissioner (Appeal).Alwar
(x) There are no accumulated losses of the company. The company has
also not incurred any cash losses during the financial year and nor in
immediately preceding financial year.
(xi) As per explanation and information provided to us company has not
defaulted in repayment of dues to a financial institution or banks.
(xii) The company has not granted loan and advances on basis of
security by way of pledged of shares, debentures, other securities.
(xiii) Provisions of clause (xiii) are not applicable to the company.
(xiv) As per information given to us company is not dealing or trading
in shares, securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prime-facie prejudicial to the interest of the
Company.
(xvi) To the best of our knowledge & belief and according to
information given to us term loan availed by company were prima facie
applied by company during the year for the purpose for which they were
obtained.
(xvii) As per information & explanation given to us and overall
examination of balance sheet of the company we report that funds raised
on short-term basis have prima facie not been used for long-term
investment and vice versa.
(xviii) As per information and explanation given to us the company has
not made preferential allotment of shares to parties and companies
covered in register maintained under section 301 of the Companies Act.
(xix) As per information & explanation given to us the company has not
issued any debentures and no security has been created against the
debenture.
(xx) During the year, company has not raised money by way public issue
of equity shares.
(xxi) As per information & explanation given to us no fraud has been
noticed or reported during the year.
For SURESH & ASSOCIATES
CHARTERED ACCOUNTANTS
(CA NARENDRA ARORA)
PARTNER
M No.088256
FRN: 003316N
Date : 27th May, 2011
Place: New Delhi.
Mar 31, 2010
1. We have audited the attached Balance Sheet of AMD INDUSTRIES
LIMITED as at 31st March, 2010, Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have conducted audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act. 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:- (i) We have obtained all the information and
explanations, which to the best of our knowledge and belief were
necessary for the purpose of our audit ; (ii) In our opinion, proper
books of account as required by law have been kept by the company so
far as appears from our examination of those books ; (iii) The Balance
Sheet, Profit and Loss Account and Cash Flow Statement, dealt with by
this report, are in agreement with the books of account ;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement, dealt with by this report, comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ;
(v) On the basis of written representations received from the
directors, as on 31st March, 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) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the balance Sheet, of the state of affairs of the
Company as at 31st March, 2010 and
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
Referred to Paragraph 3 of our report of even date attached
(I) a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Some of the fixed assets of the company have been physically
verified during the year by the management in accordance with program
of verification, which in our opinion provide for physical verification
of all the fixed assets at reasonable intervals. According to
information and explanation given to us, no material discrepancies has
been noticed on such verification.
c) No fixed assets have been disposed off during the year which may
affect the going concern concept.
(ii) a&b) As explained to us, the inventory has been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable
considering size and nature of the business.
c) In our opinion and according to information and explanation given to
us, the procedure of physical verification of inventory, followed by
the management, are reasonable and adequate. No serious discrepancies
have been noticed in physical verification.
(iii) a) The company has taken secured or unsecured loans from the
entities, listed in the register maintained under section 301 of the
Companies Act, 1956.
b) The rate of interest and other terms and conditions of loans are not
prejudicial to the interest of the company.
c) As per information given to us, the repayment of principal amount
and interest are regular.
d) There has not been any instance of overdue exceeding rupees one lac
during the year.
(iv) In our opinion and according to information and explanation given
to us, there are adequate internal control procedures commensurate with
the size and nature of the company for purchase of inventory and fixed
assets and sale of goods. There is no continuing failure to correct
major weakness in internal control.
(v) a) According to the information and explanation given to us, the
company has entered into transaction pursuance of contract or
arrangement entered in register maintained under section 301 of the
Companies Act, 1956.
b) In our opinion and as per information given to us, such transactions
are made at prevailing market price.
(vi) In our opinion and explanation given to us, the company has not
accepted any public deposit and the directives issued by the RBI and
the provisions of 58A and 58AA of the Act and rules framed there under,
wherever applicable, have been complied with.
(vii) In our opinion, the company has an internal audit system
commensurate with it size and nature of business.
(viii) The maintenance of the cost record have not been prescribed by
the Central Government under section 209(1)(d) of Companies Act, 1956
to the company.
(ix) a) According to books of accounts examined by us and explanation
given to us company is generally regular in depositing undisputed
statutory dues and there are no undisputed statutory dues payable in
respect of PF, ESI, Income Tax, Sales Tax, Wealth Tax Custom Duty,
Excise Duty, Cess and other statutory dues which are outstanding as at
31st March, 2010 for the period of more than 6 months from the date
they became payable.
b) According to information given to us certain dues of sales
Tax/Income-tax/custom duty/wealth tax/excise duty/cess have not been
deposited by the company on account of dispute pending before concerned
authority details of such dues are given below.
S.No.Period of Amount Particulars of Appeal Pending
demand Involved demand Before
1 A.Y.1999-00 to
2006-07 9,50,962/- Local Sale tax
raised by UP Supreme Court
trade tax
Authorities
2 A.Y.1999-00 to
2006-07 31,18,745/- Central Sale
tax raised by Supreme Court
UP trade tax
Authorities
3 A.Y. 2001-02 95,098/- Local sale tax
demand arise Jt.Commissioner
Appeal
due to non-
submission of (trade Tax)-III,
Ghaziabad
export
certificate
raised by UP
trade tax
Authorities
4 A.Y. 2002-03 2,61,414/- Local sale tax
demand arise Jt.Commissioner
Appeal
due to non-
submission of
export (trade Tax)-III,
Ghaziabad
certificate
raised by UP
trade tax
Authorities
5 F.Y. 2001-02 19,07,102/- Entry tax
raised by UP
trade tax Jt.Commissioner
Appeal
Authorities (trade Tax)-III,
Ghaziabad
6 F.Y. 2002-03 11,40,297/- Entry tax
raised by UP
trade tax Jt.Commissioner
Appeal
Authorities (trade Tax)-III,
Ghaziabad
7 21.01.2004 to
31.03.2007 18,58,040/- Entry tax on
HSD & LDO Allahbad High Court
raised by UP
State Govt.
8 2001-2002 2,00,000/- Labour Dispute Labour Court-I,
Ghaziabad
9 F Y 2005-06 4,74,111/- Sales Tax Demand
raised by UP Commissioner
Appeal
trade tax
Authorities (trade Tax)-I,
Ghaziabad
10 F.Y. 2007-2008 30,740/- Service Tax
demand and
Penalty Jt.Commissioner
Appeal
raised by UP
trade tax
Authorities (trade Tax)-III,
Ghaziabad
(x) There are no accumulated losses of the company. The company has
also not incurred any cash losses during the financial year and nor in
immediately proceeding financial year.
(xi) As per explanation and information provided to us company has not
defaulted in repayment of dues to a financial institution or banks.
(xii) The company has not granted loan and advances on basis of
security by way of pledged of shares, debentures, other securities.
(xiii) Provisions of clause (xiii) are not applicable to the company.
(xiv) As per information given to us company is not dealing or trading
in shares, securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prime-facie prejudicial to the interest of the
Company.
(xvi) To the best of our knowledge & belief and according to
information given to us term loan availed by company were prima facie
applied by company during the year for the purpose for which they were
obtained
(xvii) As per information & explanation given to us and overall
examination of balance sheet of the company we report that funds raised
on short-term basis have prima facie not been used for long-term
investment and vice versa.
(xviii) As per information and explanation given to us the company has
not made preferential allotment of shares to parties and companies
covered in register maintained under section 301 of the Companies Act.
(xix) As per information & explanation given to us the company has not
issued any debentures and no security has been created against the
debenture.
(xx) During the year, company has not raised money by way public issue
of equity shares.
(xxi) As per information & explanation given to us no fraud has been
noticed or reported during the year.
For SURESH & ASSOCIATES
CHARTERED ACCOUNTANTS
(CA NARENDRA ARORA)
PARTNER
Date: 25th May, 2010 M No. 088256
Place: New Delhi. FRN: 003316N