Mar 31, 2023
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Anik Industries Limited (âthe Companyâ), which comprise the balance sheet as at 31st March 2023, and the statement of Profit and Loss (including other comprehensive income), the statement of changes in equity and statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
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 accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 2023, and its profit (including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules framed thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter s |
Auditorâs Response |
Evaluation of uncertain tax positions The Company operates in multiple jurisdictions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct and indirect tax matters. These involve significant management judgment to determine the possible outcome of the uncertain tax positions, consequently having an impact on related accounting and disclosures in the financial statements. |
Our audit procedures include the following substantive procedures: ⢠Obtained understanding of key uncertain tax positions; and ⢠We along with our internal tax experts - - Read and analysed select key correspondences, external legal opinions / consultations by management for key uncertain tax positions; - Discussed with appropriate senior management and evaluated managementâs underlying key assumptions in estimating the tax provisions; and Assessed managementâs estimate of the possible outcome of the disputed cases |
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (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, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Company''s (Indian Accounting Standard) Rules 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b. Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statement in place and the operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
d. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
e. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Companies Act, 2013, we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss (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 financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rules framed there under.
e. On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 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.
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 disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 31 to the financial statements;
ii. The Company did not have any long term contract including derivative contract for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Company or
provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(b) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall: directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (iv) (a) and (iv) (b) contain any material mis-statement.
v. The company has not declared or paid dividend during the year hence provision of Section 123 ofthe Act not applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1,2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.
h. With respect to the matter to be included in the Auditors'' Report under Section 197(16) of the Act, In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 read with Schedule V to the Act.
Chartered Accountant (Firm Regn No.: 02052C)
Place -INDORFDate :06.06.2023 (CA SATYANARAYAN GADIYA)
UDIN : 23071229BGUZYD6408 ^ , prOprIetOr
Membership No: 071229
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of Anik 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 (the Act) 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 provision of the Act for safeguarding ofthe assets ofthe 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 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.
We have taken into account the provision of the Act, the accounting and auditing standard and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the 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 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 accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India, of the state of affairs of the company as at 31* March, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended 31st March 2017 and transition date opening balance sheet as at 1st April 2016 included in these Ind AS financial statements are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31st March, 2017 and 31st March, 2016 dated 03.06.2017 and 04.06.2016 respectively expressed an unmodified opinion on those financial statements and have been restated to comply with Ind AS. Adjustments made to the previously issued said financial information, prepared in accordance with the Companies (Accounting Standards) Rules, 2006, to comply with Ind AS have been audited by us.
Our opinion on the financial statements above and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report ) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub section (11) of section 143 ofthe 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) oftheAct, 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 appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
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 specified under section 133 ofthe act, read with rules framed thereunder.
e) On the basis of the written representations received from the directors as on 31â March 2018 taken on records by the Board of Director, none of the directors is disqualified as on 31* March, 2018 from being appointed as a director in terms of section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.
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:
a. The company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statement -refer note 35 to the financial statement;
b. The Company did not have any long term contract including derivative contract for which there were any material foreseeable losses.
c. There were no amount which, is required to be transferred, to the Investor Education and Protection Fund by the company.
Annexure A to Independent Auditorâs Report
Referred to in paragraph (1) under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date to the members ofAnik Industries Limited on the Standalone Ind AS financial statements for the year ended 31 * March, 2018.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except The lease deed in respect of the land at Jaisalmer costs Rs. 20000 on which Wind Mill is installed, is yet to be executed.
ii. In respect of its Inventories:
The inventories has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed.
iii. According to the information and explanations given to us, the Company has not granted any loans secured or unsecured to company, firms, LLPs 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 loans granted, the investments made, guarantee given and security provided.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules, framed there under. As informed to us no Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.
vi. In our opinion and according to the information and explanations given to us central government has not prescribed the maintenance of cost records under sub-section (1) of Section 148 of the Companies Act, 2013. The provisions of para 3 (vi) of the Order is not applicable to the company.
vii. In respect of Statutory dues :
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 including provident fund, employeeâs state insurance, income tax, sales tax, service tax, goods and service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. There were no undisputed statutory dues in arrears, as at 31* March, 2018 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of sales tax, value added tax, income tax, service tax, goods and service tax, duties of customs, duties of excise which have not been deposited with appropriate authorities on account of any dispute except as follows :
Name of the Statute |
Nature of Dispute |
Amount Involved (Rs. in lacs) |
Period to which the Amount Relates |
Forum where Dispute is Pending |
The Income Tax Act, 1961 |
Income Tax |
148.32 |
2009-10 & 2011-12 |
ITAT |
The Income Tax Act, 1961 |
Income Tax |
537. 40 |
2003-04, 2007-08, 2009-10, 2010-11 & 2014-15 |
Commissioner of Income Tax (Appeals) |
Central Excise Act, 1944 |
Excise Duty |
51.00 |
2002-03 to 2004-05 |
CESTAT |
The Central Sales Tax Act |
Sales Tax |
313.03 |
2001-02 |
Maharashtra Sales Tax Tribunal |
VAT Act, Bihar |
VAT |
3.19 |
2014-15 |
VAT Appellate Board Patna |
Entry Tax Act |
Entry Tax |
16.12 |
2010-11 |
M.P. Commercial Tax (Appellate Board) |
Gujarat VAT |
VAT |
674.17 |
2010-11 & 2011-12 |
Gujarat VAT Tribunal, Ahmadabad |
Entry Tax Act |
Entry Tax |
27.32 |
2011-12 |
M.P. Commercial Tax (Appellate Board) |
viii. According to the records of the company examined by us and as per the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to a financial institution, bank or government as on the balance sheet date. The Company has not issued any debenture.
ix. In our opinion and according to the information and explanations given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) and In our opinion and according to the information and explanations given to us, the term loan obtained during the year has been utilsed for the purpose it was obtained.
x. During the course of our examination of the books of account and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the company by the officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
xi. According to the information and explanations give to us and based on our examination of the 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 Act.
xii. In our opinion and according to information and explanation given to us, the company is not a Nidhi Company therefore, the provision of para 3 (xii) of the Order is not applicable to the company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year, therefore the provision of para 3 (xiv) of the Order is not applicable to the company.
xv. In our opinion and according to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him during the year, hence the provision of para 3 (xv) of the Order is not applicable to the company.
xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 therefore, the provision of para 3 (xvi) of the Order is not applicable to the company for the year under audit.
Annexure B To the Independent Auditorâs Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting ofAnik Industries Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit ofthe standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 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.
Auditors â 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. 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 judgment, including the assessment ofthe risks ofmaterial misstatement ofthe 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 ofthe 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, proj ections of any evaluation ofthe internal financial controls over financial reporting to future periods are subj ect 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 SMAK & Co.
Chartered Accountants
(Firm Reg. No. 020120C)
CA Shridhar Mandhanya
Place : Indore Partner
Dated: 05.06.2018 (Membership No. 421425)
Mar 31, 2016
To,
The Members of
Anik Industries Limited Report on the Financial Statements
We have audited the accompanying financial statements of Anik Industries Limited (âThe Companyâ) which comprises the Balance Sheet as at 31st March, 2016, 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.
Managementâs Responsibility for the Financial Statements
The Companyâs 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 statement 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 Standard 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 provision of the Act for safeguarding of 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provision of the Act, the accounting and auditing standard 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 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 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 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 accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 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 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 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
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 and with the returns received from the branches not visited by us.
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 31st March 2016 taken on records by the Board of Director, 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.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to be 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 statement - refer note 28 to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
Annexure A to Independent Auditorâs Report
Referred to in paragraph (1) under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date to the members of Anik Industries Limited on the financial statements for the year ended 31st March, 2016.
i. In respect of its Fixed Assets:
a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company have been physically verified by the management during the year, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except lease deed in respect of the land at Jaisalmer cost rs. 20,000/- on which wind Mill is installed, is yet to be executed.
ii. In respect of its Inventories:
The inventories has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed.
iii. According to the information and explanations given to us, the company has not granted any loans secured or unsecured to firms, LLPs 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 investments made, guarantee given and security provided. The company has not granted any loan in terms of section 185 and 186oftheAct.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules, framed there under. As informed to us no Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. In respect of Statutory dues:
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 including provident fund, employeeâs state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. There were no undisputed statutory dues in arrears, 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 sales tax, value added tax, income tax, service tax, duties of customs, duties of excise which have not been deposited with appropriate authorities on account of any dispute except as follows:
Name of the Statute |
Nature of Dispute |
Amount Involved (Rs.) |
Period to which the Amount Relates |
Forum where Dispute is Pending |
The Income Tax Act, 1961 |
Income Tax |
1,52,81,726 |
2009-10 |
ITAT |
The Income Tax Act, 1961 |
Income Tax |
1,60,91,930 |
2010-11 |
Commissioner of Income Tax (Appeals) |
The Income Tax Act, 1961 |
Income Tax |
1,82,92,550 |
2011-12 |
ITAT |
The Income Tax Act, 1961 |
Income Tax |
90,64,000 |
2009-10 |
Commissioner of Income Tax (Appeals) |
Central Excise Act, 1944 |
Excise Duty |
56,00,554 |
2002-03 to 2004-05 |
CESTAT |
The Central Sales Tax Act |
Sales Tax |
5,71,73,950 |
2001-02 |
Maharashtra Sales Tax Tribunal |
M.P.VAT Act, 2002 |
Commercial Tax |
28,56,777 |
2007-08 |
M. P. Commercial Tax (Appellate Board) |
Entry Tax Act |
Entry Tax |
20,25,965 |
20010-11 |
M.P. Commercial Tax (Appellate Board) |
Gujarat VAT |
VAT |
3,90,16,909 |
2011-12 |
Gujarat VAT Tribunal, Ahmadabad |
Entry Tax Act |
Entry Tax |
30,84,732 |
2011-12 |
M.P. Commercial Tax (Appellate Board) |
viii. According to the records of the company examined by us and as per the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to a financial institution, bank or government as on the balance sheet date. The Company has not issued any debenture.
ix. In our opinion and according to the information and explanations given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) and In our opinion and according to the information and explanations given to us, the term loans obtained during the year have been applied for the purpose for which they were obtained.
x. During the course of our examination of the books of account and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.
xi. According to the information and explanations give to us and based on our examination of the 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 Act.
xii. In our opinion and according to information and explanation given to us, the company is not a Nidhi Company therefore, the provision of para 3 (xii) of the Order is not applicable to the company
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year, therefore the provision of para 3 (xiv) of the Order is not applicable to the company.
xv. In our opinion and according to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him during the year, hence the provision of para 3 (xv) of the Order is not applicable to the company.
xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 therefore, the provision of para 3 (xvi) of the Order is not applicable to the company for the year under audit.
Annexure B To the Independent Auditorâs Report of even date on the Financial Statements of Anik Industries Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Anik Industries Limited (âthe Companyâ) as of March 31st, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 judgment, 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 31st, 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 Ashok Khasgiwala & Co.
Chartered Accountants
(Firm Reg. No. 0743C)
CAAvinash Baxi
Date : 441 June, 2016 ( Partner)
Place: Indore M. No. 079722
Mar 31, 2015
We have audited the accompanying financial statements of Anik
Industries Limited ("The Company") which comprises the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of 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 judgment 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 standard 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our 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 accounting principles generally
accepted in India, of the state of affairs of the Company as at 31st
March, 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 it appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
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 and with the returns received from the branches not
visited by us.
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 31st March 2015 taken on records by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to be 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 statement - refer note 29
contingent liabilities and commitments to the financial statement;
ii. The Company did not have any long term contract including
derivative contract for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date to the
members of Anik Industries Limited on the financial statements for the
year ended March 31,2015.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company have been
physically verified by the management during the year, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of its assets. No material discrepancies between the book
records and the physical inventory have been noticed. In our opinion,
the frequency of verification is reasonable.
ii. In respect of its Inventories:
a. The inventories has been physically verified during the year by the
Management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii. According to the information and explanations given to us, the
Company has not granted any loan secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Hence the provisions of clauses iii (a)
and iii (b) of the said Order are not applicable to the company.
iv. In our opinion and according to the information and explanations
given to us, there is adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and for the sale of goods
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 not observed any continuing failure to correct
major weakness in internal control system in respect of these areas.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits within the meaning
of Section 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules, framed there under. Hence the provisions of
clauses (v) of the Order is not applicable to the Company for the year
under audit.
vi. We have broadly reviewed the cost records maintained by the
Company pursuant to the rules made by the Central Government under
sub-section (1) of Section 148 of the Companies Act, 2013 and are of
the opinion that prima facie the prescribed records have been
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
vii. In respect of Statutory dues :
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 including
provident fund, employee's state insurance, income tax, sales tax,
service tax, wealth tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate
authorities. There were no undisputed statutory dues in arrears, as at
31st March, 2015 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 sales tax, value added tax, income tax, service tax, duties
of customs, wealth tax, duties of excise have not been deposited with
appropriate authorities on account of any dispute except detailed as
under :
Name of the Statute Nature of Dispute Amount
Involved (Rs.)
The Income Tax Act,1961 Income Tax 1,52,81,726
The Income Tax Act,1961 Income Tax 31,52,030
The Income Tax Act,1961 Income Tax 1,60,91,930
The Income Tax Act,1961 Income Tax 1,82,92,550
Central Excise & Service Tax Excise Duty 56,00,554
The Sales Tax Act Sales Tax 5,71,73,950
M.P. VAT Act, 2002 Commercial Tax 28,56,777
Entry Tax Act Entry Tax 20,25,965
Gujarat VAT VAT 3,90,16,909
Entry Tax Act Entry Tax 30,84,732
Name of the Statute Period to Forum where Dispute
which the is Pending
Amount Relates
The Income Tax Act,1961 2009-10 Commissioner of
Income Tax (Appeals)
The Income Tax Act,1961 2007-08 Commissioner of
Income Tax (Appeals)
The Income Tax Act,1961 2010-11 Commissioner of
Income Tax (Appeals)
The Income Tax Act,1961 2011-12 Commissioner of
Income Tax (Appeals)
Central Excise & Service Tax 2002-03 CESTAT
to 2004-05
The Sales Tax Act 2001-02 Maharashtra Sales
Tax Tribunal
M.P. VAT Act, 2002 2007-08 M. P. Commercial Tax
(Appellate Board)
Entry Tax Act 20010-11 M. P. Commercial
Tax (Appellate Board)
Gujarat VAT 2011-12 Gujarat VAT
Tribunal, Ahmadabad
Entry Tax Act 2011-12 M. P. Commercial
Tax (Appellate Board)
c) There has been no delay in transferring amounts, as required to be
transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 1956 (1 of 1956) and rules made there under.
viii. The Company does not have accumulated losses as at 31st March
2015 and it has not incurred cash losses during the financial year
under audit and in the immediately preceding financial year.
ix. According to the records of the company examined by us and as per
the information and explanations given to us, the Company has not
defaulted in repayment of dues to a Financial Institutions or Banks or
debenture holders as at 31st March, 2015.
x. The Company has given guarantee for loans taken by Others from
Bank. In our opinion and according to the information and explanations
given to us the terms and condition of the guarantee given are not
prima facie prejudicial to the interest of the company.
xi. In our opinion and according to the information and explanations
given to us, the company has not obtained any term loan during the
year.
xii. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
Place : Indore For ASHOK KHASGIWALA & CO.
Date : 30th May, 2015 Chartered Accountants
(Firm Reg. No. 0743C)
CAAvinash Baxi
Partner
(Membership No.79722)
Mar 31, 2014
We have audited the accompanying financial statements of Anik
Industries Limited ("The Company"), which comprises the Balance Sheet
as at 31st March, 2014, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13*1 September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with 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 depends on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the accompanying financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with 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 ofthe Cash Flow Statement, ofthe cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2003 (as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, 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) ofthe 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
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 and with the returns received from the branches not visited by
us;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting standards referred
to in Section 211 (3C) of the Companies Act, 1956 read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors,
as on 31st March, 2014 and taken on record by the Board of Directors
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub section (1)
of section 274 of the Companies Act, 1956.
Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date:-
i) In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. The fixed assets have been physically verified by the management
during the year and there is a regular program of verification which in
our opinion, is reasonable having regard to the size of the Company and
the nature of its fixed assets. No material discrepancies were noticed
on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
ii) In respect ofInventories:
a. The Inventories have been physically verified during the year by
the management. 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. In our opinion the Company is maintaining proper records of
inventory. As explained to us, there were no material discrepancies
noticed on physical verification of inventories as compared to the book
records.
iii) a. According to the information and explanations given to us and
in our opinion, the Company has not granted any loans
secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act, 1956.
Hence the provisions of clauses iii(b), iii (c) and iii(d) of the said
Order are not applicable to the company.
b. According to the information and explanations given to us and in
our opinion, the Company has not taken any loans secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Hence the
provisions of clauses iii(f) and iii(g) of the said Order are not
applicable to the company.
iv) 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 with regard
to purchases of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system in respect of these areas.
v) a. According to the information and explanations given to us, we are
of the opinion that the particulars of contract or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of the rupees five
lakhs in respect of each party during the year, have been made at
prices which appear reasonable having regard to prevailing market
prices at the relevant time.
vi) According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the Companies (Cost Accounting
Records) Rules, 2011 prescribed by the Central Government under Section
209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima
facie the prescribed cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
ix) a. The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including
provident fund, investor education protection fund, employee''s state
insurance, income tax, sales tax, service tax, wealth tax, custom duty,
excise duty, cess and other material statutory dues applicable to it.
There were no arrears, as at 31st March, 2014 for a period of more than
six months from the date they became payable
b. According to the records of the company and information and
explanation given to us, the statutory dues which have not been
deposited with appropriate authorities on account of any dispute are as
under :
Name ofStatus Nature of Amount Period to
Dispute Involved which the
` Amount
Relates
The Income Tax Act 1961 Income Tax 15281726 2009-10
The Income Tax Act 1961 Income Tax 3152030 2007-08
The Income Tax Act 1961 Income Tax 16091930 2010-11
Central Excise Act 1944 Excise Duty 5600554 2002-03
The Central Sales Tax Act Sales Tax 57173950 2001-02
MP VAT Act 2002 Commercial Tax 2856777 2007-08
Entry Tax Act Entry Tax 1138061 2010-11
Gujarat VAT VAT 39016909 2011-12
Entry Tax Act Entry Tax 102208 2010-11
MP VAT Act 2002 Entry Tax 25671 2011-12
Name of the Statute Forum where Dispute is Pending
The Income Tax Act, 1961 Commissioner of Income Tax (Appeals)
The Income Tax Act, 1961 Commissioner of Income Tax (Appeals)
The Income Tax Act, 1961 Commissioner of Income Tax (Appeals)
Central Excise Act, 1944 CESTAT
The Central Sales Tax Act Maharashtra Sales Tax Tribunal
M.P. VAT Act, 2002 M. P. Commercial Tax (Appellate Board)
Entry Tax Act Commissioner of Commercial Tax (Appeal)
Gujarat VAT Deputy Commissioner of
Commercial Tax (Appeal)
M.P. VAT Act, 2002 Deputy Commissioner of
Commercial Tax (Appeal)
x) The company does not have accumulated losses as at 31st March 2014.
The company has not incurred cash losses during the year under audit
and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank as at balance sheet date. The Company has
not issued any debenture.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) 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
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
xv) According to the information and explanations given to us, and the
representations made by the management, we are of the opinion that the
terms and condition of the guarantee given to banks for and on behalf
of loan taken by others are not prejudicial to the interest of the
company.
xvi) In our opinion and according to the information and explanations
given to us, the term loans raised during the year have been applied
for the purpose they were raised
xvii) According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company, we
report that no funds raised on short term basis have been utilised for
long term purposes.
xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act.
xix) The Company has not issued any debentures.
xx) The Company has not raised money by public issues during the year.
xxi) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
material fraud on or by the Company noticed or reported during the year
nor have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.
Chartered Accountants
(Firm Reg. No. 0743C)
Place : Indore
Dated : 02nd June, 2014
CA AVINASH BAXI
Partner
(Membership No: 79722)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Anik
Industries Limited ("The Company"), which comprises the Balance Sheet
as at 31st March, 2013, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with 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, 2013;
ii. in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2003 (as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, 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 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
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 and with the returns received from the branches not visited by
us;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Section 211 (3C) of the Companies Act, 1956;
e) On the basis of written representations received from the directors,
as on 31st March, 2013 and taken on record by the Board of Directors
none of the directors is disqualified as on 31st March, 2013 from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956.
(Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date)
i) In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As per the information given to us, the fixed assets are physically
verified by the management according to a phased programme designed to
cover all the items over a period which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its fixed
assets. No material discrepancies were noticed on such verification on
comparison with book records.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
ii) In respect of Inventories:
a. The Inventories have been physically verified by the management. 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. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
iii) a. According to the information and explanations given to us and
in our opinion, the Company has not granted any loans secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Hence the
provisions of clauses iii(b), iii (c) and iii(d) of the Order are not
applicable to the company.
b. According to the information and explanations given to us and in our
opinion, the Company has not taken any loans secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Hence the provisions of
clauses iii(f) and iii(g) of the Order are not applicable to the
company.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system in respect of these areas.
v) a. According to the information and explanations given to us, we
are of the opinion that the particulars of contract or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of the rupees five
lakhs in respect of each party during the year, have been made at
prices which appear reasonable having regard to prevailing market
prices at the relevant time.
vi) According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the Companies (Cost Accounting
Records) Rules 2011 prescribed by the Central Government under Section
209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima
facie the prescribed cost records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
ix) a. The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employee''s State Insurance, Income
Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess
and other Material Statutory Dues applicable to it. There were no
arrears, as at 31st March, 2013 for a period of more than six months
from the date they became payable.
x) The Company does not have accumulated losses as at 31st March, 2013.
The Company has not incurred cash losses during the year under audit
and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank. The Company has not issued any
debenture.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) 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 the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
xv) According to the information and explanations given to us, and the
representations made by the management, we are of the opinion that the
terms and condition of the guarantee given to banks for and on behalf
of loan taken by others are not prejudicial to the interest of the
Company.
xvi) In our opinion and according to the information and explanations
given to us, the company has not raised any term loan during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company, we
report that no funds raised on short term basis have been utilised for
long term purposes.
xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act.
xix) The Company has not issued any debentures.
xx) The Company has not raised money by public issues during the year.
xxi) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.
Chartered Accountants
(Firm Regn. No.0743C)
Place : Indore
Dated : 06th June, 2013 CA AVINASH BAXI
Partner
(Membership No: 79722)
Mar 31, 2012
1. We have audited the attached Balance Sheet of Anik Industries
Limitedasat 31st March, 2012, the Statement of Profit and Loss 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 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 from 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
madeby 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 (as
amended), 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 toour comments in the Annexure referred to in paragraph 3
above,were port that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposesofour
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 examinationofthose
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c. The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the booksof
account;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement dealt with by this report are prepared
incompliance with the Accounting standards referred to in Section 211
(3C)of the Companies Act, 1956;
e. Onthe basisofwritten representations received from the directors,
as on 31st March, 2012 and takenonrecord by the Board of Directors,
wereport that none ofthe directorsis disqualified ason 31st March, 2012
from being appointed asadirector in terms of clause (g)ofsub section
(1) of section 274ofthe 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 give
a true and fair view in conformity with accounting principles generally
acceptedinIndia;
i) inthe case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012;
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.
ANNEXURE TOAUDITORS' REPORT Referred toinparagraph 3 of our
reportofeven date.
i) In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As per the information given to us, the fixed assets are physically
verified by the management according to a phased programme designed to
cover all the items over a period which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its fixed
assets. No material discrepancies were noticed on such verification on
comparison with book records.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the Companyisnot affected.
ii) In respect of Inventories:
a. The Inventories have been physically verified by the management. In
our opinion the frequency of verification is reasonable.
b. In our opinion, the procedures ofphysical verification of
inventories followed by the management are reasonable and adequate
inrelation tothe sizeofthe Company and the natureofits business.
c. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies notice don
physical verification of inventories as compared tothe book records.
iii) a. According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to Companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Hence the provisions of clauses iii(b),
iii (c) and iii(d) of the Order are not applicable to the Company.
b. According to the information and explanations given to us, the
Company has not taken any loans secured or unsecured from Companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Hence the provisions of clauses iii(f)
and iii(g)ofthe Order are not applicable tothe Company.
iv) 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 with regard to purchases of inventory, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses
ininternal control system inrespectofthese areas.
v) a. According to the information and explanations given to us, we
are of the opinion that the Company has no contract or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956.
b. Inour opinion the provisionsofclause v(b)ofthe Order are not
applicable to the Company.
vi) According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (AcceptanceofDeposits) Rules,
1975 apply.
vii) Inour opinion, the Company has aninternal audit system
commensurate with the size and natureofits business.
viii) We have broadly reviewed the books of accounts and records in
respect of manufacturing of milk product and wind power generation
maintained by the Company pursuant to the Companies (Cost Accounting
Records) Rules, 2011 prescribed by the Central Government under Section
209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima
facie the prescribed cost records have been maintained.We have,
however, not made a detailed examination of the cost records with
aviewtodetermine whether they are accurateorcomplete.
ix) a. The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee's state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. There were no
arrears, as at 31st March, 2012 for a period of more than six months
from the date they became payable except Central Sales Tax Rs. 1,381
andVATRs. 9,994 outstanding for more than six months.
b. According to the records of the Company and information and
explanation given to us, the disputed statutory dues including
provident fund, sales tax, income tax, custom duty, wealth tax, service
tax, excise duty and cess which have not been deposited with
appropriate authorities are as under:
Nature of Amount Period to Forum where Dispute
Name of the
Statute Dispute Involved which the is Pending
(Rupees) Amount
Relates
Central Excise
& Service Tax Excise
Duty 56,00,554 2002-03 to CESTAT
2004-05
The Sales Tax
Act Sales
Tax 5,71,73,950 2001-02 Dy Commissioner of
Sales Tax (Appeal)
The Central
Sales Tax Act Central
Sales
Tax 13,47,641 2004-05 Additional Commissi
-oner Commercial Tax
M.P. VAT Act,
2002 Commerc
-ial Tax 28,56,777 2007-08 M.P. Commercial Tax
(Appellate Board)
x) The Company has no accumulated losses as at 31 March 2012. The
Company has not incurred cash losses during the year under audit and in
the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank. The Company has not issued any
debenture.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or anidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor's Reports)
Order, 2003 are not applicable to the Company.
xv) According to the information and explanations given to us, and the
representations made by the management, we are of the opinion that the
terms and conditions of the guarantee given to banks for and on behalf
of loan taken by others are not prejudicial to the interest of the
Company.
xvi) In our opinion and according to the information and explanations
given to us, the company has not raised any term loan during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company, we
report that no funds raised on short term basis have been utilised for
long term purposes.
xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act.
xix) According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
xx) The Company has not raised money by public issues during the year.
xxi) During the course of our examination of the books of accounts and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.
Chartered Accountants
(Firm Regn. No.0743C)
Place : Indore
Dated : 3rd September, 2012 CAAVINASH BAXI
Partner
(Membership No: 79722)
Mar 31, 2011
1. We have audited the attached Balance Sheet of Anik Industries
Limited, as at 31st March, 2011, the Profit & 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 conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order 2003 (as
amended) 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 paragraph 4 and 5
of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 the law have
been kept by the Company, so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are prepared in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies act, 1956;
e. On the basis of written representations received from the directors
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of clause (g) of sub-
section (1) Section 274 of the Companies Act, 1956;
f. Interest Expenditure of Rs. 29,97,92,530/-(Previous year Rs.
24,37,10,739/-) has been netted off against interest income, instead of
including the same under financial expenses. The said disclosure
however has no impact on the profit for the year.
g. 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 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, 2011;
ii) in the case of the Profit and Loss Account, 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.
ANNEXURE TO AUDITORS' REPORT Referred to in Paragraph 3 of our report
of even date
I) In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. As per the information given to us the Fixed Assets are physically
verified by the management according to a phased programme designed to
cover all items over a period which in our opinion, is reasonable
having regard to the size of the company and the nature of its fixed
assets. No material discrepancies were noticed on such verification on
comparison with book records.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
II) In respect of Inventories:
a. The inventories have been physically verified by the management. In
are opinion the frequency of the verification is reasonable.
b. 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. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
III) a. According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Hence the provisions of clauses
iii(b),iii(c)and iii(d) of the Order are not applicable to the company.
b. According to the information and explanations given to us, the
Company has not taken any loan secured or unsecured from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Hence the provisions of clauses iii(f)
and iii(g) of the Order are not applicable to the company.
IV) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for
purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control system
in respect of these areas.
V) a. According to the information and explanations given to us, we
are of the opinion that the Company has no contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956.
b. In our opinion the provisions of clause v (b) of the Order are not
applicable to the Company.
VI) According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply.
VII) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII) We have broadly reviewed the books of account and records in
respect of manufacture of milk products and wind power generation
maintained by the company pursuant to the rules made by the Central
Government of India for the maintenance of cost records under section
209(1)(d) of the Companies Act, 1956. We are of the opinion that prima
facie the prescribed accounts and records have been maintained.
However, we have not, made a detailed examination of such accounts and
records with a view to determine whether they are accurate or complete.
IX) a. The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employee's state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues as applicable to it. There
were no arrears as at 31st March, 2011 for a period of more than six
months from the date they became payable, except Service Tax Rs.
23,610/-, Central Sales Tax Rs. 11,29,946/-, VAT Rs. 3,52,273/- and
TDS Rs. 1,20,370/- outstanding for more than six months.
b. According to the records of the Company and information and
explanations given to us, the disputed statutory dues including
provident fund, sales tax, income tax, customs duty, wealth tax,
service tax, excise duty and cess which have not been deposited with
appropriate authorities are as under:
Name of Nature of Amount Period to Forum where Dispute
the Statute Dispute Involved which the is Pending
(Rupees) Amount
Relates
Central Excise
& Service Tax Excise Duty 56,00,554 2002-03 to Central Excise &
Service
2004-05 Tax Appellate
Tribunal
The Sales
Tax Act Sales Tax 5,71,73,950 2001-02 Dy. Commissioner
of Sales Tax
(Appeal)
The Central
Sales Tax
Act, 1956 Central Sales
Tax 13,47,641 2004-05 Additional Commiss
-ioner Commercial
Tax
M.P. VAT Act,
2002 Commercial
Tax 28,56,777 2007-08 M.P. Commercial Tax
(Appellate Board)
X) The Company has no accumulated losses as at 31st March, 2011. The
Company has not incurred cash losses during the year under audit and in
the immediately preceding financial year.
XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank. The Company has not issued any
debenture.
XII) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
XIII) 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 the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
XIV) In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
XV) According to the information and explanations given to us and the
representations made by the management, we are of the opinion that the
terms and conditions of the guarantee given to banks for and on behalf
of loan taken by others are not prejudicial to the interest of the
company.
XVI) In our opinion and according to the information and explanations
given to us the term loans have been utilized for the purpose for which
they were raised.
XVII) According to the information and explanations given to us and an
overall examination of the financial statements of the Company, we
report that no funds raised on short term basis have been utilized for
long term purposes.
XVIII) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
XIX) According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
XX) The company has not raised any money by public issues during the
year.
XXI) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Ashok Khasgiwala & Co.
Chartered Accountants
(Firm Regn. No.0743C)
Place : Indore
Dated : 3rd September, 2011 CA Avinash Baxi
Partner
(Membership No: 79722)
Mar 31, 2010
1. We have audited the attached Balance Sheet of Anik Industries
Limited, as at 31 st March, 2010, the Profit & 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 conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the Accounting Principles used and significant estimates mads
oy management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003 (as
amended) issued by 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 paragraph 4 and 5
of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper Books of Accounts as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the Books of Accounts;
d) 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 section211(3C)ofthe Companies act, 1956;
e) On the basis of written representations received from the Directors
as on 31 st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31 st March,
2010 from being appointed as a director in Terms of Clause (g) of sub-
section (1) Section 274 of the Companies Act, 1956;
f) Interest Expenditure of Rs. 24,34,10,739/- (Previous year Rs.
21,48,68,354/-) has been netted off against the interest income,
instead of including the same under financial expenses. The said
disclosure however has no impact on the profit for the year.
g) In our opinion and to the best of our information and according to
the explanations given to us, said accounts read with the notes thereon
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with 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, 2010 ;
ii) in the case of the Profit and Loss Account, 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
ANNEXURE TO AUDITORS REPORT
Referred to in Paragraph 3 of our report of even date
I) In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of FixedAssets.
b. The FixedAssets have been physically verified by the management
during the year and there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its Fixed Assets. As informed, no material
discrepancies were noticed on such verification.
c. During the year, the company has not disposed off a substantial
part of Fixed Assets and we are of the opinion that the going concern
status of the company is not affected.
II) In respect of Inventories:
a. The management has conducted physical verification of inventory at
reasonable intervals during the year.
b. The procedures of physical verification of Inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company is maintaining proper records of Inventory. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
III) a. According to the information and explanations given to us, the
company has not granted any Loan secured or
unsecured to companies, firms or other parties covered in the Register
maintained under section 301 of the Companies act, 1956. Hence the
provisions of Clauses iii(b),iii(c)and iii(d) of the Order are Not
applicable to the company. b. According to the information and
explanations given to us, the company has not taken any Loan secured or
unsecured from companies, firms or other parties covered in the
Register maintained under section 301 of the Companies act, 1956. Hence
the provisions of Clauses iii(f) and iii(g) of the Order are Not
applicable to the company.
IV) Id 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
purchases of inventory and FixedAssets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in internal control system in respect of these areas.
V) a. According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered into the Register maintained under section 301
of the Companies Act, 1956 have been so entered. b. In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements and
aggregating the value of the rupees five lakhs in respect of each
party during the year, have been made at prices which are reasonable
having regard to prevailing market prices as available with the company
or prices at which transactions, if any, for similar goods have been
made with other parties at the relevant time.
VI) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from public to
which the provisions of section 5 8 A, 5 8 AA or any other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules,
1975 apply.
VII) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
VIII) We have broadly reviewed the books of account and records in
respect of manufacture of milk products maintained by the company
pursuant to the rules made by the Central Government of India for the
maintenance of cost records under section 209(l)(d) of the Companies
Act 1956. We are of the opinion that prima facie the prescribed
accounts and records have been maintained. However, we have not, made a
detailed examination of such accounts and records with a view to
determine whether they are accurate or complete.
IX) a. According to the information and explanations given to us, the
company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, sales tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cesses and other
material statutory dues as applicable to it. There were no statutory
dues in arrears as at 31st March, 2010 for a period of more than six
months from the date it became payable.
b. According to the information and explanations given to us,
particulars of dues of Sales Tax, Income Tax, Customs Duty, Wealth Tax,
Service Tax, Excise Duty and Cesses which have not been deposited with
appropriate authorities on account of any dispute are given below:
Name of Nature of Amount Period to Forum where Dispute
the Statute the Disputed Involved which the is Pending
Dues (Rs.) Amount
Relates
Central
Excise Excise Duty 56,00,554 2002-03 to Central Excise &
Service Tax Appellate
& Service
Tax 2004-05 Tribunal
The Sales Sales Tax 5,71,73,950 2001-02 Dy. Commissioner of
Sales Tax (Appeals)
Tax Act
TheCentral Central
Sales Tax 13,47,641 2004-05 Additional Commis-
sioner Commercial Tax
Sales Tax
Act, 1956
X) The company has no Accumulated Losses as at 31st March, 2010 and it
has not incurred any cash losses during the Financial Year covered by
our audit and the immediately preceding Financial Year.
XI) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repaymentof dues to a
financial institution and bank.
XII) According to the information and explanations given to us, the
company has not granted any Loans and advances on the basis of security
by way of pledge of shafes, debentures and other securities.
XIII) 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 the Companies (Auditors Report) Order, 2003 are not applicable
to the company.
XIV) The Company has no dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of Clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable
to the company
XV) According to the information and explanations given to us and the
representations made by the management, we are of the opinion that the
Terms and conditions of the guarantee given to banks for and on behalf
of Loan taken by others are not prejudicial to the interest of the
company.
XVI) In our opinion and as per information and explanation given to us
the term loans raised during the year have been applied for the purpose
it was raised.
XVII) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company and after
placing reliance on the reasonable assumptions made by the Company for
classification of long term and short term usage of funds we are of the
opinion that, prima-facie, no funds raised on short term basis have
been utilized for long Term investment.
XVIII) During the year the company has not made any Preferential
Allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Act.
XIX According to the information and explanations given to us, the
company has not issued any debentures during the year.
XX) The company has not raised any money by public issues during the
year.
XXI) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
FOR ASHOK KHASGIWALA & CO.
Chartered Accountants
(Firm Regn. No.0743C)
Place : Indore CAAvinashBaxi
Dated: 3rd September, 2010 Partner
(Membership No: 79722)
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