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Auditor Report of Arrow Coated Products Ltd. Company
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Auditor Report of Arrow Coated Products Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Arrow Coated Products Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015 ,Statement of Profit and Loss and Cash Flow 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 and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial 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 Board of Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Basis of Qualified Opinion

a) The company has not made provisions for overdue advances aggregating to Rs. 3987.88('000).Had this observation made by us been considered Profit after Tax would have been Rs. 61516.99('000) ( as against the reported figure of Profit of Rs.65504.87('000)); reserves and surplus would have been surplus of Rs. 98494.42('000) (as against the reported figure of surplus of Rs. 102482.64('000)): long term loans and advances would have been Rs. 31297.04 ('000) (as against reported figure of Rs.35284.92 ('000)),

b) As more fully explained in note 37 to the financial statements the Company has not complied with Accounting Standard 24 Discontinuing Operations .

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in Basis of Qualified Opinion paragraph, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 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;

(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;

(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) on the basis of the written representations received from the directors as on 31 March 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2015 from being appointed as a director in terms of Section 164 (2) of the Act; and

(f) with respect to the other matters 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 litigation on its financial position in its financial statements in accordance with the generally accepted accounting practice (refer note 27);

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 amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Arrow Coated Products Limited on the financial statements of the company for the year ended 31st March, 2015.

i) In respect of its Fixed Assets.

Proper records showing full particulars, including quantitative details and situation of fixed assets are maintained.

As explained to us some of the Fixed Assets were physically verified during the year by the management in accordance with a program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

ii) In respect of its Inventories.

As explained to us, major inventories were physically verified during the year by the management at reasonable intervals.

In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to size of the company and the nature of its business.

In our opinion and according to the information and explanations given to us, the company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

iii) According to the information and explanations given to us, the Company has not granted loans to companies covered in the Register maintained under section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii)(a) & (b) of the Order is not applicable to the Company.

iv) In our opinion and according to the information and explanation given to us the company has internal control system commensurate with the size of the company and the nature of its business with regards to purchase of inventories, fixed assets and with regards to the sale of the goods and services. During the course of our audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal controls system.

v) According to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of Section 73 and 76 or any other relevant provisions of the Act and the rules framed there under.

vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the products of the Company.

vii) The Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of the aforesaid dues in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable except .

Nature of the Dues Amount (Rs. in '000)

Local Sales Tax 214.12

Income Tax 165.95

Provident Fund 22.80

Service Tax 76.69

There were no dues of Wealth Tax, Income Tax, Customs Duty, Excise Duty and Cess, as applicable, which have not been deposited as at 31st March, 2015 on account of any dispute with the relevant authorities. The details of dues of Sales Tax and Value Added tax which have not been deposited as at 31st March, 2015 on account of any disputes are given below:

Nature of the Dues Amount (Rs. in '000) Period Authority Before which in Appeal

Local Sales Tax 2838.79 F.Y.2003-04 Assistant Commissioner of Sales Tax (Appeal), Mumbai

Central Sales Tax 441.87 F.Y.2003-04 Assistant Commissioner of Sales Tax (Appeal), Mumbai

Local Sales Tax 3677.77 F.Y.2004-05 Assistant Commissioner of Sales Tax (Appeal), Mumbai

Central Sales Tax 3520.70 F.Y.2004-05 Assistant Commissioner of Sales Tax (Appeal), Mumbai

Central Sales Tax 3932.89 F.Y.2008-09 Assistant Commissioner of Sales Tax (Appeal), Mumbai

There has been no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

viii) The company neither has accumulated losses at the end of the year, nor incurred cash losses during the financial year covered by our audit and the immediate preceding financial year.

ix) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to the financial institution, bank or debenture holders.

x) According to information and explanation given to us the company has not given guarantees for loan taken by others from banks or financial institutions.

xi) According to information and explanation given to us the company has not taken term loan during the year.

xii) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.



For J. A. Rajani & Co.

Chartered Accountants

Firm Reg. No. 108331W

P. J. Rajani

Proprietor

Membership No. 116740

Place: Mumbai

Date: 29th May, 2015.


Mar 31, 2014

We have audited the accompanying financial statements of Arrow Coated Products Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and Statement of Profit and Loss and Cash Flow 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 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 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, 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.

Basis for Qualified Opinion

a) The company has not made provisions for overdue advances aggregating to Rs. 20616.610(''000). Had this observation made by us been considered Profit after Tax would have been Rs. 24992.501(000) (as against the reported figure of Profit of Rs. 45609.111(''000)); reserves and surplus would have been surplus of Rs. 51682.559 (''000) (as against the reported figure of surplus of Rs. 72299.169 (000)): long term loans and advances would have been Rs. 8795.092 (''000) (as against reported figure of Rs. 29411.702 (''000)),

b) As more fully explained in note 39 to the financial statements the Company has not complied with Accounting Standard 24 Discontinuing Operations.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph ,the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India ;

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b) In the case of the Statement Profit and Loss, of the profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) except for the effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956") read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,2013;

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Arrow Coated Products Limited on the financial statements of the company for the year ended 31st March, 2014.

i) In respect of its Fixed Assets.

The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

Some of the fixed Assets were physically verified during the period by the management in accordance with a program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. The reconciliation work with the available records is in progress and necessary entries will be passed in the accounts to give to material discrepancies if any, observed on such reconciliation.

In our opinion and according to the information and explanations given to us, the company has made substantial disposal of Fixed Assets during the period, however such disposal has not affected the going concern status of the company.

ii) In respect of its Inventories.

As explained to us, major inventories were physically verified during the year by the management at reasonable intervals.

In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to size of the company and the nature of its business.

In our opinion and according to the information and explanations given to us, the company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

iii) According to the information and explanation given to us:

The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in register maintained u/s 301 of the Companies Act 1956.

During the period company has not taken loan from any party covered in register maintained u/s 301 of the Companies Act 1956 and the balance of loan taken from such one party was Rs. 902.390 (''000).

In our opinion, the rate of interest and other terms and condition on which loan has been taken from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

The company has taken loans from parties covered under section 301 of the Companies Act, 1956 that are interest free and no due date for repayment are stipulated. Hence, commenting on regularity of repayment of principal / interest does not arise.

iv) In our opinion and according to the information and explanation given to us the company has internal control system commensurate with the size of the company and the nature of its business with regards to purchase of inventories, fixed assets and with regards to the sale of the goods and services. During the course of our audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal controls system.

v) To the best of our knowledge and belief and according to the information and explanation given to us particulars of contracts or arrangements referred to in section 301 that need to be entered in the register have been so entered.

In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the public during the year as such within the meaning of Section 58A of the Act We have been informed that no order has been passed by the Company Law Board or National Company Law Board Tribunal or Reserve Bank of India or any other Tribunal in India.

vii) In our opinion, there is scope of strengthening internal audit system, commensurate with the size and nature of its business.

viii) We have broadly reviewed the books of accounts maintained by the company in respect of products where, pursuant to the rules made by the central government of India, the maintenance of Cost records under section 209(1) (d) of the Companies Act 1956, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

ix) According to the record of the company, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it with appropriate authorities expect for serious delays in depositing tax deducted at source and service tax.

According to the information and explanations given to us, there are no undisputed amount payable in respect of income tax, wealth tax, custom duty, excise duty and cess which were outstanding, at the end for the period of more than six months from the date they became payable except

Nature of the Dues Amount (Rs. in ''000)

Local Sales Tax 213.35 Income Tax 160.69 Provident Fund 22.80 Service Tax 81.68

According to the information and explanations given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute except

Nature of the Dues Amount Period Authority Before which (Rs in ''000) in Appeal

Local Sales Tax 2838.79 F.Y.2003-04 Assistant Commissioner of Sales Tax, Mumbai

Central Sales Tax 441.87 F.Y.2003-04 Assistant Commissioner of Sales Tax, Mumbai

Local Sales Tax 3677.77 F.Y.2004-05 Assistant Commissioner of Sales Tax, Mumbai

Central Sales Tax 3520.70 F.Y.2004-05 Assistant Commissioner of Sales Tax, Mumbai

Central Sales Tax 4152.89 F.Y.2008-09 Assistant Commissioner of Sales Tax, Mumbai

x) Accumulated losses of the Company are less than fifty per cent of its networth. The Company has not incurred cash losses during the financial year covered by our audit and but had incurred cash loss of Rs. 25410.39 (''000) In the immediate 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 the financial institution, bank or debenture holders.

xii) According to information and explanation given to us company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) Clause (xiii) of the order is not applicable to the Company, as the Company is not chit fund Company or Nidhi / Mutual benefit fund / Society.

xiv) The company has, in our opinion, maintained proper records and contracts with respect to its investment where timely entries are made in the former. All investment at the end are generally held in the name of the company.

xv) According to information and explanation given to us the company has not given guarantees for loan taken by others from banks or financial institutions.

xvi) According to information and explanation given to us the company has not taken term loan during the year.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment.

xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

xix) According to information and explanation given to us Debentures have not been issued by the company during the year.

xx) During the year the company has raised money by public issue and we have verified the disclosure made in note 48 to the financial statements .

xxi) According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For J. A. Rajani & Co. Chartered Accountants Firm Reg. No. 108331W

P. J. Rajani Place: Mumbai Proprietor Date : 3rd May, 2014 Membership No. 116740


Mar 31, 2013

Report on the Financial Statements : We have audited the accompanying financial statements of Arrow Coated Products Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and Statement of Profit and Loss and Cash Flow 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 management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility : Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Qualified Opinion : a) The company has not made provisions for overdue debts aggregating to Rs. 13720.57 (''000) and advances aggregating to Rs 31500.92(''000).Had this observation made by us been considered Loss after Tax would have been Rs. 28459.05(''000) ( as against the reported figure of Profit of Rs.16322.44 (''000)); reserves and surplus would have been surplus of Rs. 1316.90(''00 0) ( as against the reported figure of surplus of Rs. 46098.40 (''000)):trade receivable would have been Rs. 17755.23 (''000) ( as against the reported figure of Rs. 31475.80 (''000)): long term loans and advances would have been Rs.28449.01 (''000) (as against reported figure of Rs 59949.93 (''000)), b) As more fully explained in note 41 to the financial statements the Company has not complied with Accounting Standard 24 Discontinuing Operations.

Qualified Opinion : In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph ,the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b) In the case of the Statement Profit and Loss, of the profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) except for the effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section.(1) of section 274 of the Companies Act, 1956.

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ARROW COATED PRODUCTS LIMITED ON THE FINANCIAL STATEMENTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH 2013

i) In respect of its Fixed Assets.

The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

Some of the fixed Assets were physically verified during the period by the management in accordance with a program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. The reconciliation work with the available records is in progress and necessary entries will be passed in the accounts to give to material discrepancies if any, observed on such reconciliation. In our opinion and according to the information and explanations given to us, the company has not made any substantial disposal of Fixed Assets during the period.

ii) In respect of its Inventories.

As explained to us, major inventories were physically verified during the year by the management at reasonable intervals. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to size of the company and the nature of its business. In our opinion and according to the information and explanations given to us, the company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

iii) According to the information and explanation given to us:

The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in register maintained u/s 301 of the Companies Act 1956. During the period company has taken loan from five party aggregating to Rs 1818.48 (''000) and the balance of loan taken from such two parties was Rs 21446.12 (''000). In our opinion, the rate of interest and other terms and condition on which loan has been taken from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company. The company has taken loans from parties covered under section 301 of the Companies Act, 1956 that are interest free and no due date for repayment are stipulated. Hence, commenting on regularity of repayment of principal / interest does not arise.

iv) In our opinion and according to the information and explanation given to us the company has internal control system commensurate with the size of the company and the nature of its business with regards to purchase of inventories, fixed assets and with regards to the sale of the goods and services. During the course of our audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal controls system.

v) To the best of our knowledge and belief and according to the information and explanation given to us particulars of contracts or arrangements referred to in section 301 that need to be entered in the register have been so entered. In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) In our opinion and according to the information and explanation given to us, the company has accepted deposits from the public as such within the meaning of Section 58A of the Act from relatives of director during the year .In respect of which the provisions of sections 58A and 58AA of the Act and rules framed there under have not been complied with. We have been informed that no order has been passed by the Company Law Board or National Company Law Board Tribunal or Reserve Bank of India or any other Tribunal in India.

vii) In our opinion, there is scope of strengthening internal audit system, commensurate with the size and nature of its business.

viii) We have broadly reviewed the books of accounts maintained by the company in respect of products where , pursuant to the rules made by the central government of India , the maintenance of Cost records under section 209(1) (d) of the Companies Act 1956 , and are of the opinion that , prima facie , the prescribed accounts and records have been made and maintained . We have not , however , made a detailed examination of the records with a view to determine whether they are accurate or complete.

ix) According to the record of the company, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it with appropriate authorities expect for serious delays in depositing tax deducted at source and service tax . According to the information and explanations given to us, there are no undisputed amount payable in respect of income tax, wealth tax, custom duty, excise duty and cess which were outstanding, at the end for the period of more than six months from the date they became payable except

xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to the financial institution, bank or debenture holders.

xii) According to information and explanation given to us company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) Clause (xiii) of the order is not applicable to the Company, as the Company is not chit fund Company or Nidhi / Mutual benefit fund / Society.

xiv) The company has, in our opinion, maintained proper records and contracts with respect to its investment where timely entries are made in the former. All investment at the end are generally held in the name of the company.

xv) According to information and explanation given to us the company has not given guarantees for loan taken by others from banks or financial institutions.

xvi) According to information and explanation given to us the company has not taken term loan during the year.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment.

xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

xix) According to information and explanation given to us Debentures have not been issued by the company during the year.

xx) During the year the company has raised money by public issue and we have verified the disclosure made in note 48 to the financial statements .

xxi) According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For J. A. Rajani & Co.

Chartered Accountants

P. J. Rajani

Proprietor

Place: Mumbai Membership No. 116740

Date: 28th May, 2013. Firm Reg. No. 108331W


Mar 31, 2012

1. We have audited the attached Balance Sheet of ARROW COATED PRODUCTS LIMITED as at 31st March, 2012 and Statement of Profit and Loss and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 (as amended) issued by the Central Government of India in term of Section 227(4A) of the Companies Act, 1956(The Act) and on the basis of such examination of the books and records of the Company as we consider proper and the information and explanation given to us during the course of our audit, we annex a statement on the Matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to above, we state 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 the law have been kept by the Company so far as appears from our examination of the books;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting standard except Accounting Standard 24 Discontinuing Operations and Accounting Standard 15 Employee Benefits (refer note 35) referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

e) On the basis of written representation received from directors of the Company as at 31st March, 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified from being appointed as director of the Company in terms of clause (g) of sub-section (1) of section 274 of companies Act, 1956;

f) The Company has not made provisions for overdue debts aggregating to Rs. 39867.16 ('000) and advances aggregating to Rs. 31500.92('000). Had this observation made by us been considered Loss after Tax would have been Rs. 80674.84('000) (as against the reported figure of Loss of Rs. 9306.77 ('000) ; reserves and surplus would have been deficit of Rs. 29512.17('000) (as against the reported figure of surplus of Rs. 41855.91 ('000); trade receivable would have been Rs. 6018.84 ('000) (as against the reported figure of Rs. 45885.99 ('000); long term loans and advances would have been Rs. 29719.53 ('000) (as against reported figure of Rs. 61220.45 ('000),

g) In our opinion, and to the best of our information and according to the explanation given to us the said accounts subject to para (d) and (f) above and read together with the notes thereon and attached thereto give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with accounting principles generally accepted principle in India:

i) In the 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 loss 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 REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

i) In respect of it's Fixed Assets.

The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

Some of the fixed Assets were physically verified during the period by the management in accordance with a program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. The reconciliation work with the available records is in progress and necessary entries will be passed in the accounts to give to material discrepancies if any, observed on such reconciliation.

In our opinion and according to the information and explanations given to us, the Company has not made any substantial disposal of Fixed Assets during the period.

ii) In respect of it's Inventories.

As explained to us, inventories were been physically verified during the period by the management at reasonable intervals

In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to size of the Company and the nature of its business.

In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

iii) According to the information and explanation given to us:

The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in register maintained u/s 301 of the Companies Act 1956.

During the period Company has taken loan from four party aggregating to Rs 6912.26 ('000) and the balance of loan taken from such six parties was 65009.36 ('000).

In our opinion, the rate of interest and otherterms and condition on which loan has been taken from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

The Company has taken loans from parties covered under section 301 of the Companies Act, 1956 that are interest free and no due date for repayment are stipulated. Hence, commenting on regularity of repayment of principal / interest does not arise.

iv) In our opinion and according to the information and explanation given to us, the Company has internal control system commensurate with the size of the Company and the nature of its business with regards to purchase of inventories, fixed assets and with regards to the sale of the goods and services. During the course of our audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal controls system.

v) To the best of our knowledge and belief and according to the information and explanation given to us particulars of contracts or arrangements referred to in section 301 that need to be entered in the register have been so entered.

In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) In our opinion and according to the information and explanation given to us, the Company has accepted deposits from the public as such within the meaning of Section 58A of the Actfrom relatives of director during the year .In respect of which the provisions of sections 58Aand 58AA of the Act and rules framed there under have not been complied with. We have been informed that no order has been passed by the Company Law Board or National Company Law Board Tribunal or Reserve Bank of India or any other Tribunal in India.

vii) In our opinion, there is a scope of strengthening the internal audit system, commensurate with the size and nature of its business.

viii) We have broadly reviewed the books of accounts maintained by the Company in respect of products where , pursuant to the rules made by the central government of India , the maintenance of Cost records under section 209(1) (d) of the Companies Act 1956 , and are of the opinion that, prima facie , the prescribed accounts and records have been made and maintained . We have not, however, made a detailed examination of the records with a view to determine whetherthey are accurate or complete.

ix) According to the record of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees'State Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it with appropriate authorities though there has been delay in major cases.

According to the information and explanations given to us, except for the cases stated below, there are no undisputed amount payable in respect of income tax, wealth tax, custom duty, excise duty and cess which were outstanding, at the end for the period of more than six months from the date they became payable:-

Nature of the Dues Amount (Rs. in '000)

Central Sales Tax 157.78

Local Sales Tax 252.01

Income Tax 321.77

Provident Fund 22.80

Service Tax 109.64

According to the information and explanations given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute except for:-

Nature of the Dues Amount (Rs. in '000) Period Authority Before which in Appeal

Local Sales Tax 2838.79 F.Y.2003-04 Assistant Commissioner of Sales Tax, Mumbai

Central Sales Tax 441.87 F.Y.2003-04 Assistant Commissioner of Sales Tax, Mumbai

Local Sales Tax 3677.77 F.Y.2004-05 Assistant Commissioner of Sales Tax, Mumbai

Central Sales Tax 3520.70 F.Y.2004-05 Assistant Commissioner of Sales Tax, Mumbai

x) Accumulated losses of the Company are less then fifty percent of the Company's net worth. Company incurred cash loss of Rs. 78434.47 ('000) during the period covered by our audit. In the immediately preceding financial year, the Company had made cash loss of Rs.52247.60 ('000)

xi) According to the information and explanations given to us, the Company has defaulted in payment of Interestdue to Indusind Bank Ltd. amounting to Rs. 1231.01 ('000).

xii) According to the information and explanation given to us , the Company has notgranted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) Clause (xiii) of the order is not applicable to the Company, as the Company is not chit fund Company or Nidhi / Mutual benefit fund / Society.

xiv) In our opinion the Company is not dealing in or trading in shares, securities, debentures and other investment, accordingly clause (xiv) of the order is not applicable.

xv) According to information and explanation given to us the Company has not given guarantees for loan taken by others from banks or financial institutions.

xvi) The Company has not taken any term loan during the year.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that the no funds raised on short-term basis have been used for long-term investment.

xviii) According to the information and explanations given to us, the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

xix) According to information and explanation given to us Debentures have not been issued by the Company during the year.

xx) During the year the Company has raised money by public issue and we have verified the disclosure made in note 45 to the financial statement.

xxi) According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

As per our report of even date.

For J.A.Rajani & Co.

Chartered Accountants

P.J.Rajani

Proprietor

Membership No. 116740

Firm Reg. No.108331W

Place: Mumbai

Date: 30th May ,2012


Mar 31, 2010

1. We have audited the attached Balance Sheet of ARROW COATED PRODUCTS LIMITED as at 31st March 2010 and also the Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Central Government of India in term of Section 227(4A) of the Companies Act, 1956(The Act) and on the basis of such examination of the books and records of the Company as we consider proper and the information and explanation given to us during the course of our audit, we annex a statement on the Matters specified in paragraphs 4 and 5 of the said Order

4. Further to our comments in the annexure referred to above, we state 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 the law have been kept by the Company so far as appears from our examination of the books;

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 comply with the Accounting standard except Accounting Standard 24 Discontinuing Operations (refer note no 16) referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

e) On the basis of written representation received from directors of the company as at March 31,2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified from being appointed as director of the company in terms of clause (g) of sub-section (1) of section 274 of companies Act, 1956;

f) The company has not made provisions for overdue debts aggregating Rs. 377.05 Lacs and advances aggregating Rs. 84.10 Lacs . Had this observations made by us been considered Loss after tax would have been Rs. 548.73 Lacs [as against the reported figure of Loss of Rs. 87.58 Lacs]; Reserves and Surplus would have been Rs. 10.28 Lacs [as against the reported figure of Rs. 471.43 Lacs]; Sundry debtors would have been Rs. 345.35 Lacs [as against the reported figure of Rs. 722.40 Lacs] and Loans and Advances would have been 604.62 lacs [ as against reported figure of Rs 688.72 lacs].

g) In our opinion, and to the best of our information and according to the explanation given to us the said accounts subject to para d and f above and read together with the Significant Accounting Policies and Notes on Accounts Schedule 21 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 principle 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 loss 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 REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

i) In respect of its Fixed Assets.

The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

Some of the fixed Assets were physically verified during the period by the management in accordance with a program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. The reconciliation work with the available records is in progress and necessary entries will be passed in the accounts to give to material discrepancies if any, observed on such reconciliation.

In our opinion and according to the information and explanations given to us, the company has not made any substantial disposal of Fixed Assets during the period.

ii) In respect of its Inventories.

As explained to us, inventories were been physically verified during the period by the management at reasonable intervals

In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to size of the company and the nature of its business.

In our opinion and according to the information and explanations given to us, the company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

iii) According to the information and explanation given to us:

The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in register maintained u/s 301 of the Companies Act 1956.

During the period company has taken loan from two party aggregating to Rs 8300/- (in 000) and the balance of loan taken from such two parties was Rs.5057/- (in 000).

In our opinion, the rate of interest and other terms and condition on which loan has been taken from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

The company has taken loans from parties covered under section 301 of the Companies Act, 1956 that are interest free and no due date for repayment are stipulated. Hence, commenting on regularity of repayment of principal / interest does not arise.

iv) In our opinion and according to the information and explanation given to us, the company has internal control system commensurate with the size of the company and the nature of its business with regards to purchase of inventories, fixed assets and with regards to the sale of the goods and services. During the course of our audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal controls system.

v) To the best of our knowledge and belief and according to the information and explanation given to us particulars of contracts or arrangements referred to in section 301 that need to be entered in the register have been so entered.

In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) In our opinion and according to the information and explanation given to us, the company has not accepted any deposits from the public as such within the meaning of Section 58A and 58AA or any other relevant provision of the Act and Rules framed there under. We have been informed that no order has been passed by the Company Law Board or National Company Law Board Tribunal or Reserve Bank of lndia or any other Tribunalinlndia.

vii) In our opinion, there is a scope of strengthening the internal audit system, commensurate with the size and nature of its business

viii) To the best of our knowledge and explanation given to us the maintenance of Cost records under section 209(1) d of the Companies Act 1956 has not been prescribed by Central Government for any of the products of the Company for the period under review.

ix) According to the record of the company, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Custom Duty, Excise

Duty, Service Tax, Cess and other statutory dues applicable to it with appropriate authorities though there has been delay in few cases.

According to the information and explanations given to us, except for the cases stated below, there are no undisputed amount payable in respect of income tax, wealth tax, custom duty, excise duty and cess which were outstanding, at the end for the period of more than six months from the date they became payable:__



Nature of the Dues Amount (Rs in 000)

Local Sales Tax 302.14

Income Tax 221.26

Provident Fund 22.80

Service Tax 109.64



According to the information and explanations given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute except for:

Nature of the Dues Amount Period Authority Before which in Appeal (Rs in 000)

Local Sales Tax 1166.03 F.Y.2005-06 Assistant Commissioner of Commercial Tax Department, Bangalore

Local Sales Tax 6 07.28 F.Y.2006-07 Assistant Commissioner of Commercial Tax Department, Bangalore

Income Tax 533.43 A.Y.2006-07 Commissioner of Income Tax(Appeals)



viii) The company has no accumulated losses at the end of the period, however has incurred cash losses during the period covered by our audit. In the immediately preceding financial year, the company had made cash loss.

ix) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues tothefinancialinstitution,bankordebentureholders.

x) We are of the opinion that company has maintained adequate records where the company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xi) Clause (xiii) of the order is not applicable to the Company, as the Company is not chit fund Company or Nidhi / Mutual benefit fund / Society!

xii) In our opinion the company is not dealing in or trading in shares, securities, debentures and other investment, accordingly clause (xiv)ofthe order is not applicable.

xiii) According to information and explanation given to us the company has not given guarantees for loan taken by others from banks or financial institutions.

xiv) The company has not taken any term loan during the year.

xv) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

xvi) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

xvii) According to information and explanation given to us Debentures have not been issued by the company during the year.

xviii)During the year the company has not raised money by public issue.

xix) According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the



For J. A. Rajani & Co.

Chartered Accountants

P. J. Rajani

Proprietor

Place: Mumbai Membership No. 116740

Date : 29th May2010 Firm Reg. No.108331W


Mar 31, 2001

We have audited the attached Balance Sheet of ARROW COATED PRODUCTS Ltd. as at 31st March 2001 and also the Profit and Loss Account of the Company for the year ended on that date annexed thereto and report that:

1. As required by the Manufacturing and Other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that:

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 the law have been kept by the Company so far as appears from our examination of the books.

c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Profit & Loss account and Balance Sheet comply with the accounting standard except Retirement Benefit (Note No.11) referred to in sub-section(3C) of section 211 of the Companies Act, 1956.

e) On the basis of written representation received from Directors taken on record by the Board of Directors we reported that none of Director is disqualified as on 31st March ,2001 from being appointed as director in terms of clause (g) ofsubsection (I) of subsection (I) if section 274 of companies Act 1956.

f) In our opinion, and to the best of our information and according to the explanation given to us, the accounts read with the notes there on give the information required by the companies Act, 1956, in the manner so required and give a true and fair view:

i) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2001 and

ii) In the case of the Profit and Loss Account of the loss of the Company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT Ref: ARROW COATED PRODUCTS LTD. (Referred to in Paragraph 1 of our report of even date on the accounts for the year ended 31st March 2001)

1) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. As explained to us, the fixed assets have been physically verified by the management during the year and no material discrepancies have been noticed on such verification.

2) None of the fixed assets have been revalued during the year.

3) The stocks of finished goods and raw materials have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonabie.

4) In our opinion, the procedure followed by the management for physical verification of stocks are reasonable and adequate in relation to size of the Company and the nature of its business.

5) The discrepancies noticed on verification between the physical stocks and the book records were not material.

6) In our opinion, on the basis of examination of stock records, the valuation of stock is fair and proper and in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

7) The Company has taken unsecured loan from companies, firms or other parties listed in the Register maintained under Section. 301 of the Companies Act, 1956. We are informed that there are no companies under the same management within the meaning of Section 370 (1B) of the Companies Act, 1956.

8) The Company has not granted any ioans to companies, firm or other parties listed in the Register maintained under Section 301 of the companies Act, 1956. We are informed that there are no companies under the same management within the meaning of Section 370 (1B) of the Companies Act, 1956.

9) In respect of loans and advances in the nature of ioans including loans to employees & others, given by the Company, where stipu lations have been made, the parties are repaying the principal amount and interest thereon if any, as per stipulations.

10) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets and with regards to the sale of goods.

11) In our opinion and according to the information, and explanation given to us, the transaction of purchase of goods and materials and sale of goods and materials in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50000/- or more in respect of each party have been made at prices which are reasonabie having regard to the prevailing market prices for such goods, materials or service the prices at which transactions for similar goods and materials have been made with other parties

12) The Company has a regular procedure for determination of unserviceable or damaged stores, raw materials and finished goods. Provisions for loss in respect thereof has been made in the accounts.

13) According to the information and explanation given to us, the Company has not accepted any deposits from the public within the meaning of Section 58A of the Companies Act, 1956 and rules framed thereunder.

14) In our opinion, reasonable records have been maintained by the Company for the sale and disposal of scrap. We are informed that no realisable by-products are generated by the Companys operations.

15) In our opinion, there is scope for strengthening the interna! audit system, commensurate with the size and nature of its business.

16) The maintenance of Cost Records under Section 209 (1) (d) of the companies act 1956 has not been prescribed by Central Government for any of the products of the company for year under review.

17) The company is not reguler in depositing Provident Fund and Employees State Insurance dues with the appropriate authorities.

18) According to the information and explanation given to us, there were no undisputed amounts payable in respect of Income tax, Wealth tax. Sales tax, Custom duty and Excise duty which have remained outstanding as at 31st March, 2001 except Rs. 13,95,733/- and Rs. 1,82,789/- being the SalesTax payable and IncomeTax Assesment dues respectively, for a period of more than six months from the date they became payable.

19) According to the information and explanations given to us and the records of the company examined by us, no personal expenses have been charged to revenue account other than those payable under contractual obligations or in accordance with generally accepted business practice.

20) The company is not a sick Industrial Company under the meaning of the clause (O) of section 3(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

21) As explained to us.no damage goods were determined in the class of goods traded in by the Company.

For J.A.RAJANI & CO CHARTERED ACCOUNTANTS

Place : Mumbai (J.A.RAJANI)

Date : 25th August,2001 PROPRIETOR

 
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