Mar 31, 2016
Report on the Financial Statements
We have audited the accompanying financial statements of Anar Industries Ltd. ("the Company"), which comprise the Balance Sheet as at March 31, 2016, 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
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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 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 and the order under section 143 (11) of the Act.
We conducted our audit of 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 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 a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s directors, as well as evaluating the overall presentation of the financial statements. 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 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 loss 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, 2016 ("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, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The 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) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the directors as on March, 31, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in ''Annexure B''; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The company has not any pending litigations on its financial position in its financial statements.
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
(Referred to in Paragraph 1 under ''Report on other Legal and Regulatory Requirements'' section of our report.)
i. In respect of fixed assets
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified during the year by the management at reasonable intervals and no material discrepancies have been noticed on such physical 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 immovable properties are held in the name of the Company.
ii. As explained to us, inventories were physically verified during the year by the management at reasonable intervals and no material discrepancies were noticed on such verification.
iii. The Company has not granted any loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
v. According to the information and explanations given to us, the Company has not accepted any deposits from the public during the year.
vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, 2013, for any of the product & services rendered by the Company.
vii. According to the information and explanations given to us and the records of the Company examined by us:
(a) The Company is generally regular except for the month of March-2016, in depositing undisputed statutory dues, including provident fund, employees'' state insurance, income tax, sales tax, service tax, custom duty, excise duty, value added tax, cess and other statutory dues, as applicable, to the appropriate authorities. There are no arrears in respect of the aforesaid dues as at 31st March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax, service tax, value added tax, wealth tax, excise duty and cess which have not been deposited on account of any dispute.
viii. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not taken any loans and borrowings from any banks or financial institutions or government. Accordingly, paragraph 3(viii) of the Order is not applicable.
ix. The Company did not raise any money by way of initial public offer or further public offer during the year. According to the information and explanation given to us by the management, terms loans were not obtained during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
x. According to the information and explanations given to us, no fraud by the company or on the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, managerial remuneration has not been paid during the year. Hence this clause is not applicable.
xii. In Our Opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xii. According to the information and explanations given to us and based on our examination of the records of the Company, all the transactions with related parties are in compliance with the provisions of Section 177 and Section 188 of the Act, wherever applicable. The details of related party transactions have been disclosed in the Financial Statements, as required under Accounting Standard (AS) 18, Related Party Disclosures, specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014.
xiv. According to the information and explanations given to us and based on our examination of records of the Company, the Company has made preferential allotment of equity share during the year and the amount raised have been used for the purposes for which the funds were raised.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
xvi. According to the nature of business of the Company, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Consequently, the provisions of Clause 3(xvi) of the Order is not applicable to the Company.
For, J. K. Parmar & Co.
Chartered Accountants
Firm No. 107599W
Sd/-
[J.K. Parmar]
Proprietor
M.ship No. 34138
Date:- 30/05/2016
Place: - Ahmedabad
Mar 31, 2015
We have audited the accompanying financial statements of Anar
Industries Ltd. ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the 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 financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's directors, as well as
evaluating the 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 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 loss 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 Â
section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The 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) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the
directors as on March, 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The company has not any pending litigations on its financial
position in its financial statements.
ii. The company does not require any provision, as required under the
applicable law or accounting standards, for material foreseeable
losses, if any.
iii. The Company does not require to transfer to any amount to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 1 of the Independent Auditor's report of even
date to the members of Anar Industries Limited on the financial
statements for the year ended March 31, 2015, we report that:
1)a) The company has maintained proper records, showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
b) Physical verification of major assets was conducted by the
Management during the year, which in our opinion is reasonable having
regard to the size of the Company and nature of its assets. No material
discrepancies were noticed on such verification as with the book of
record.
2)a) The inventory excluding stocks in transit has been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
3) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Therefore the
requirements of sub-clause (a) and (b) of clause (iii) are not
applicable to the Company.
4) In our opinion, and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanation given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weakness in the
aforesaid internal controls.
5) The Company has not accepted any deposits from the public within the
meaning of section 73 to 76 of the Companies Act, 2013, and rules
framed there under.
6) The maintenance of cost records under section 148(1) of the
Companies Act, 2013, is not applicable to the Company.
7)a. According to the information and explanations given to us and the
records of the company examined by us, in our opinion, the Company is
generally regular in depositing undisputed statutory dues in respect of
profession tax, service tax, TDS, excise duty, provident fund, custom
duty, investor education protection fund, employees' state insurance,
income tax, sales tax, wealth tax, purchase tax, entry tax, municipal
tax and other material statutory dues applicable, with the appropriate
authorities.
b. According to the information and explanation given to us, and the
records of the Company examined by us, there is no disputed tax or
statutory dues as on 31.03.2015.
c. According to the information and explanation given to us, there is
no declaration of dividend during the financial year 2014-15 by the
Company; hence the question of transferring amount to investor
education and protection fund does not arise.
8) The Company have accumulated loss of Rs. 1,17,92,071/- as per the
Balance Sheet as at the end of the financial year. The Company has
incurred cash loss of Rs. 62,97,213/- during the financial year and has
also incurred cash loss of Rs. 19,26,168/- during the immediately
preceding financial year.
9) According to the records of the Company examined by us and the
information and explanation given to us, the Company has no dues to
financial institution or banks or debentures holders as at balance
sheet date. According to the information and explanation given to us,
the Company has not given any guarantee for loans taken by others from
banks or financial institutions.
10) According to the information and explanation given to us, the
Company has not given guarantees for loans taken by others from banks
or financial institutions.
11) The Company has not taken any term loan from banks or financial
institutions.
12) According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For J. K. Parmar & Co.
Chartered Accountants
Sd/-
Firm No. 107599W
PLACE: AHMEDABAD
DATE: 30.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of ANAR
INDUSTRIES LIMITED ("the Company") which comprise the balance sheet as
at March 31, 2014, and the statement of profit and loss and the cash
flow statement for the year ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the financial statements
The Company''s 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 flow of the company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of general circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) 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 concluded our audit in accordance
with the standards on auditing issued by the institute of chartered
accountant 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 statement, 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
procedure that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view subject to note no. 21 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 of the
Company for the year ended on that date; and
(c) In the case of the cash flow statement, of the cash flows of the
company for the year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("the
order") issued by the central government in terms of section 227(4A) 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 obtain all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
C. The 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 Standers referred to
in sub-section (3C) of section 211 of the Companies Act, 1956, read
with the general circular 15/2013 dated September 13, 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, taken on record by the board of directors, none
of the director is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO IN INDEPENDENT AUDITOR''S REPORT RE: ANAR INDUSTRIES LIMITED
("THE COMPANY")
[Referred to in paragraph (1) under the heading ("Report on other Legal
and Regulatory Requirements") of our report of even date]
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) As explained to us, all the fixed assets have been physically
verified by the management, interval of verification which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. As informed to us, no material discrepancies were
noticed on such physical verification;
(c) In our opinion, the Company has not disposed off substantial part
of its fixed assets during the period and the going concern status of
the Company is not affected.
2 As explained to us, there is no inventory; hence this clause is not
applicable with respect to inventory.
3 In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
(a) The Company has granted unsecured loans to one party. In respect of
the said loans, the maximum amount outstanding at any time during the
period is Rs. 87.91 lacs and the yearend balance is Rs. 87.91 lacs;
(b) In our opinion and according to information and explanations given
to us, the rate of interest, where applicable and the other terms and
conditions of the loans given are not prescribed by the Company hence
we are unable to give any comment.
(c) In respect of said loans, the terms of repayment and interest are
not prescribed hence we are unable to give comment on overdue.
(d) The Company has not taken any loan during the period from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Consequently, the
requirements of clauses (iii) (f) and (iii) (g) of paragraph 4 of the
Order are not applicable.
4 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 the
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5 To the best of our knowledge and belief and according to the
information and explanation given to us, there are no contracts or
arrangements that needed to be entered in the Register maintained in
pursuance of Section 301 of the Companies Act, 1956.
6 The Company has not accepted any deposit from the public during the
year under Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. According to information and
explanations given to us, no order has been passed by the Company Law
Board or National Company Law Tribunal or the Reserve Bank of India or
any Court or any Court or any other Tribunal.
7 In our opinion, the company has an internal audit system commensurate
with the size and the nature of its business.
8 The Central Government has not prescribed maintenance of cost records
under Section 209(1)(d) of the Act for the Company.
9 In respect of statutory dues:
(a) According to the records of the Company, the company has been
generally regular in depositing with statutory authorities, undisputed
statutory dues, including provident fund, income tax, sales tax, wealth
tax, service tax, custom duty, cess and other material statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of aforesaid dues were
outstanding, as at March 31, 2014 for a period of more than six months
from the date they became payable except service tax payable Rs. 187460
for the year 2010-11 and TDS payable of Rs. 92,202 for the AY 2014-15.
10 The Company has accumulated losses at the end of the financial
period, which are less than fifty percent of its net worth. The Company
has incurred cash losses during the period covered under the audit, and
also has incurred cash losses in the immediately preceding financial
year.
11 Based on the information and explanations given by the management,
we are of opinion that the Company has not defaulted in repayment of
dues to any financial institutions and banks. The Company has not
issued debentures.
12 The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debenture and other securities.
13 In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
paragraph 4 of the Order are not applicable.
14 In our opinion and according to information and explanation given to
us, the company is not a dealer or trader in securities. The company
has not invested surplus funds in marketable securities and mutual
funds.
15 In our opinion and according to information and explanations given
to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions, hence the question of terms
and condition of that guarantee is not arise.
16 Based on the information and explanation given to us by the
management, the term loans were applied for the purpose for which the
loans were raised.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
18 The Company has not made during the period any preferential
allotment of shares to companies, firms, parties covered in the
register maintained under section 301 of the Companies Act 1956.
19 In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the period covered by our report. Accordingly, provisions of clause
(xix) of paragraph 4 of the Order are not applicable.
20 The Company has not raised any money by public issues during the
period.
21 Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we have not
come across any instance of material fraud on or by the Company,
noticed or reported during the period, nor have been informed of such
case by the management.
For and on behalf of
J. K. PARMAR & CO.
Chartered Accountants
Firm Registration No. 105799W
J. K. Parmar
Proprietor
Membership No. 34138
Place: Ahmedabad
Date: 30-05-2014
Mar 31, 2013
Report on financial statements
We have audited the accompanying financial statements of ANAR
INDUSTRIES LIMITED which comprise the Balance Sheet as at March 31,
2013, and the statement of Profit & Loss and Cgsh Flow Statement for
the year 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 flow of the company in accordance with
the Accounting Standards referred to in sub-section 211 of the
companies Act, 1956 .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 concluded 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 statement,
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 procedure that are appropriate in the circumstances. An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the balance sheet, of the state of affairs of the
company as at March 31,2013;
(b) in the case of the statement of profit and loss, of the LOSS for
the year ended on that date; and © 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 (Auditors Report) Order, 2003 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 obtain all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
d. in our opinion, the balance sheet, statement of profit and loss, and
cash flow statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the companies Act, 1956;and
e. On the basis of written representations received from the directors
as on March 31,2013, and taken on record by the board of directors,
none of the director is disqualified as on March 31,2013, from being
appointed as a director in terms of clause (g)
ofsub-section(1)ofsection274ofthecompaniesAct, 1956.
1 (a) The Company is maintaining proper record to show full particulars
including quantitative detail and situation of all fixed assets.
(b) We are informed that the Company has formulated a programme of
physical verification of all the fixed assets over a period of three
years which, on our opinion, is reasonable having regard to the size of
the Company and nature of its assets. Accordingly, the physical
verification of the fixed assets has been carried out by management
during the year and no material discrepancies were noticed on such
verification.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
2 (a) As explain to us, there was no inventory hence the same have not
been physically verified by management at reasonable intervals during
the year.
(b) As per the information given to us, the procedures of physical
verification of inventory followed by management are, in our opinion,
reasonable and adequate in relation to the size of the company and the
nature of the business.
(c) The Company is maintaining proper record of inventory. There was no
discrepancies noticed on verification between the physical stocks and
the book records.
3 (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act,1965. Accordingly, paragraphs
4(iii)(b), (c) and (d) of the Order are not applicable.
(b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firm and other parties covered in the register maintained under section
301 of the Companies Act, 1965. Accordingly, paragraphs 4(iii) (f) and
(g) of the Order are not applicable.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control system.
5 According to the information and explanations given to us, we are of
the opinion that there are no contracts or arrangements that need to be
entered in the register maintained under section 301 of the Companies
Act, 1956; accordingly paragraph 4(v) (b) of the Order is not
applicable.
6 The Company has not accepted deposits from the public and in our
opinion and according to the information and explanation given to us,
the directives issued by the Reserve bank of India and the provisions
of section 58A and 58AA and the relevant provision of Companies Act,
1956 and rules framed there under are not applicable.
7 In our opinion, the company has an internal audit system commensurate
with its size and the nature of business.
8 The maintenance of cost records pursuant to the Companies (Cost
Accounting Records) rules, 2011 prescribed by the Central Government
under Section 209(1) (d) of the Companies Act, 1956 is not applicable
to the Company. Therefore the provisions of clause(VIII)of paragraph 4
of the Companies Auditor Report Order, 2003 is not applicable to the
Company.
9 According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the company is
generally regular in depositing un disputed statutory dues including
provident fund, investor education and protection fund, employee state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and other material statutory dues as applicable with
the appropriate authorities.
According to the information and explanations given to us, there were
no undisputed amounts payable in respect of provident fund, investor
education and protection fund, employee state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, cess and
other statutory dues outstanding as at March 31,2013 for a period of
more than six months from the date they become payable except service
tax payable Rs. 1,87,460 for the year 2010-11.
10 The Company has accumulated loss of Rs. 28,09,196/- as at March 31,
2013 and it has incurred cash losses of Rs.7,60,900/-in the financial
year ended on that date.
11 According to the records of the Company examined by us and to the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12 According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debenture and other securities.
13 The provisions of any statute applicable to chit fund/nidhi/mutual
benefit fund/societies are not applicable to the Company.
14 In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities. The
Company has not invested surplus funds in marketable securities and
mutual funds.
15 In our opinion and according to the information and explanations
given to us, No guarantee is given by the Company for loan taken by
subsidiary or associates companies from banks or financial
institutions.
16 In our opinion and according to the information and explanations
given to us, no bank term loan is applied during the year.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
no funds raised on shortterm basis have been used for long term
purpose.
18 The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act 1956 during the year.
19 During the year the Company has not issued any debentures.
20 The Company has not raised any money by public issue during the
year.
21 During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practice 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 been informed of such case by management.
PLACE: AHMEDABAD for J K PARMAR & Co.
DATE: 21/05/2013 Chartered Accountants
Firm No. 107599W
(J K PARMAR)
Proprietor
M.NO.34138
Mar 31, 2010
We have audited the attached Balance sheet of ENRICH INDUSTIRES LIMITED
{after restructuring arrangement made as per order of Honorable Gujarat
High Court Dt. 17.06,2010) on 31st March 2010 and the Profit & Loss
account for the year ended on that date annexed thereto and cash flow
statement for the period ended on that date. These financial statements
are the responsibility of the companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
We conducted our audit in accordance with 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.
1) 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.
2) Further to our comments in the annexure referred to above, we report
that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 the
books;
c) The balance sheet, profit & loss account and cash flow statement
dealt by this report are in agreement with the books of account;
d) In our opinion, the balance sheet and profit & loss account dealt by
this report comply with the 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,
and taken on record by the board of directors, we report that none of
the director is disqualified as at 31st March, 2010 from being
appointed as a director in terms of clause (q) of sub-section (1) of
section 274 of the companies act, 1956.
f) 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
subject to we have relied on audited accounts of Softcom Division of
Anar Softcom Pvt. Ltd. in preparing the final accounts and notes no.
2(1),(II),(III) & (VI) give a true and fair view in conformity with the
accounting principles generally accepted in India;
i. In the case of the Balance Sheet, of the State of Affairs of the
company as at March 31, 2009; and
ii. In the case of the Profit & Loss account, of the Profit for the
year ended on that date; and
iii. In the case of cash flow statement, of the cash flow for the year
ended on that date.
Annexure to the Auditors Report Referred to in paragraph 1 of our
report of even date.
1. The company has maintained proper records of fixed assets showing
full particulars including quantitative details and location. Regarding
fixed assets of softcom division of Anar Softcom Pvt. Ltd. has been
taken from the audited accounts submitted to the company.
2. As explained to us, as at 31.03.2010 there is no stock of trading
goods. In our opinion and according to the information and
explanations, given to us, the procedure of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of the busi- ness.
The company has maintained proper record of inventory. As explained to
us, there were no material discrepan- cies noticed on physical
verification of the having regard to the size of the operation of the
company.
3. We are informed that the company has taken/granted loans-unsecured,
from/to companies, firms or other parties listed in the register
maintained under section 301 of the companies act, 1956. The closing
balance on 31.03.2010 are NIL
The company has not taken/given interest on such loans. The terms &
conditions of such loans are not prima facie prejudicial to the
interest of the company.
The repayment of such loans has not been stipulated so we cannot offer
any remarks on recovery/payment/ overdue of such loans.
4. In our opinion, and according to the information and explanation
given it us, there are adequate internal control procedures
commensurate with the inventory and fixed assets and for the sale of
goods. In our opinion and according to the information and explanations
given to us, there is no continuing failure to correct major weak- ness
in internal control.
5. In our opinion, and according to the information and explanation
given to us, there are no transaction made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the companies act, 1956 and aggregating during the year to Rs. 5,00,000
or more in respect of any party, made at price as available with the
company.
6. In our opinion, and according to the information and explanation
given to us, the company has complied with the provision of section 58A
and 58AA.
7. in our opinion, the company has an internal audit system
commensurate with the size of nature of its business.
8. The central Government has not prescribed maintenance of cost
Records section 209(1) (d) of the companies act, 1956 in respect of
activities of the company.
9. According to the information and explanations given to us, there
are no undisputed statutory dues payable in respect of provident fund,
investor education and protection fund, employees state insurance,
income-tax, sale-tax, wealth tax, custom duty, excise duty, cess which
are outstanding as at 31/03/2010 for a period of more than six month
from the date they became payable.
10. The company has accumulated losses at the end of the financial
year, which is less than fifty percent of net worth. As per scheme of
arrangement of restructuring as per order of Honorabie Gujarat High
Court, the com- pany has written of unrealizable stock, debtors and
loans and advances by reduction of paid up share capital.
11. The company has not defaulted in repayment of dues to bank.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, deben- tures and other securities.
13. The company under audit is not chit Fund/Nidhi etc. as specified
paragraph 13 of CARO-2003.
14. According to the information and explanation given to us, proper
records have been maintained in respect of transactions and contracts,
in shares, securities, debenture and other investments and timely
entries have been made therein. The shares and other securities have
been held by the company in its own name.
15. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by other form bank
or financial institute.
16. The company has not taken any term loans and hence requirement of
reporting regarding application of terms loans does not arise.
17. As informed to us, during the year the company has not raised short
terms/long term funds.
18. We are informed that the company has not made any preferential
allotment of shares to companies, firms or order parties listed in the
register maintained under section 301 of the companies act, 1956. As
per scheme of arrangement of restructuring as per order of Honorable
Gujarat High Court and approval of stock exchange and shareholders of
the company, the company has to issue equity shares to the promoters/
shareholders of Anar Softcom Pvt. Ltd. in consideration for transfer of
business of softcom division with the company.
19. The company has not issued debentures and hence requirement of
reporting regarding creation of securities in respect of debentures
Issued does not arise.
20. The Company has not raised any money by way of Pubiic Issues during
the year.
21. On the basis of records and information provided by the companys
management, no fraud on or by the com- pany has been noticed or
reported during the course of our Audit.
For J, K. PARMAR & Co.
Chartered Accountants
Place: Ahmedabad
Date: 14/09/2010. (J. K. PARMAR)
Proprietor
M. No. 34138.
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