Mar 31, 2014
We have audited the accompanying financial statements of Bagadia
Colourchem Limited (''the Company1), which comprise the Balance Sheet as
at 31st March 2014, the Statement of Profit and Loss and the Cash Row
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 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. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the 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 financial statements, subject to Note
2.1.2 regarding continuing with going concern assumption in spite of
adverse indicators, its impact is not quantified subject to Note No.
2.8 regarding non following of Accounting Standard (AS) 28, ''Impairment
of Assets'', its impact on profits is not ascertained, 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 31s1 March, 2014 and
(b) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order''), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by Section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the balance sheet, statement of profit and loss and cash flow
statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the balance sheet, statement of profit and loss and
cash flow statement comply with the Accounting Standards referred to in
sub- section (3C) of section 211 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 except for the fact of continuing with going concern assumption in
spite of adverse indicators, and that Accounting Standard (AS) 28,
''Impairment of Assets'' has not been followed by the company, impact of
both on the profits is not ascertained;
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.
Annexure to the Auditors'' Report referred to in Paragraph 3 of our
report of even date on the Accounts for the year ended on 31st March,
2014 of Bagadia Colourchem Limited.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Ail the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were said to be
noticed on verification.
(c) During the year the Company has not disposed off a substantial part
of its fixed assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of 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. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
(iii) (a) According to the information and explanations given to us,
the Company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, clauses (iii) (b), to and (iii) (g) of paragraph 4 of the
Companies (Auditors Report) Order, 2003, are not applicable to the
Company for the current year.
(iv) 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
inventory, fixed assets and with regard to the sale of goods and
services if any as per information given to us, no major weaknesses in
the internal control system have been identified by the management or
the Internal Auditors of the Company during the year. During the course
of our audit, nothing had come to notice that may suggest a major
weaknesses in the internal control system of the Company.
(v) (a) On the basis of the audit procedures performed by us and
according to the information and explanations given to us on our
enquiries in this behalf and the record produced before us for our
verification, the particulars of contracts and arrangements required to
be entered into the register in pursuance of Section 301 of the
Companies Act, 1956 have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Act 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 the
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 the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed thereunder.
(vii) According to the information and explanations given to us, the
Company has an internal audit system commensurate with its size and
nature of its business.
(viii) We were informed that the Company has not maintained cost
records prescribed by the Centra! Government under Section 209 (1) (d)
of the Companies Act, 1956.
(ix) (a) According to the records of the Company examined by us, in our
opinion, the Company is generally regular in depositing undisputed
statutory dues including Investor Education and Protection Fund dues,
Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues as applicable with the appropriate
authorities in India.
We have been informed that the Company is not liable to pay Provident
Fund and Employees State Insurance & Service Tax.
(b) According to the records of the Company examined by us, there are
no dues of Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
which have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses as at the end of
the financial year. However it has incurred cash loss during the
financial year covered by our audit but not in the immediately
preceding financial year.
(xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or 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.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
(xvi) As informed to us, the Company has not raised any term loans
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) As informed to us, the Company has not
made any preferential allotment of shares to parties and companies
covered in the register maintained under Section 301 of the Companies
Act, 1956, during the year.
(xix) 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 and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India, we have neither 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 S. G. Shende & Co.
Chartered Accountants
Firm Reg. No. 120915W
Shreepad G. Shende
Place: Pune Proprietor
Date : 26/05/2014 Membership No. 041692
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Bagadia
Colourchem Limited (''the Company''), which comprise 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 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.
Opinion
In our opinion and to the best our information and according to the
explanations given to us, the financial statements, subject to Note No.
2.8 regarding non following of Accounting Standard (AS) 28, ''Impairment
of Assets'', its impact on profits is not ascertained, 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 31st March, 2013 and (b) in
the case of the Profit and Loss Account, of the Profit for the year
ended on that date; and (c) in the case of the Cash Flow Statement, of
the cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 (''the
Order'') issued by the Central Government 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 purposes of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report comply with the Accounting
Standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956, except for the fact that Accounting Standard (AS)
28, ''Impairment of Assets'' has not been followed by the company, its
impact on the profits is not known;
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, we report that 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.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to the Auditors'' Report referred to in Paragraph 3 of our
report of even date on the Accounts for the year ended on 31st March,
2013 of Bagadia Colourchem Limited.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were said to be
noticed on verification.
(c) During the year the Company has not disposed off a substantial part
of its fixed assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of 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. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
(iii) (a) According to the information and explanations given to us,
The Company has neither granted nor taken any loans, secured or
unsecured, to / from companies, firms or other parties listed in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, clauses (iii) (b), to and (iii) (g) of paragraph 4 of the
Companies (Auditors Report) Order, 2003, are not applicable to the
Company for the current year.
(iv) 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
inventory, fixed assets and with regard to the sale of goods and
services if any as per information given to us, no major weaknesses in
the internal control system have been identified by the management or
the internal auditors of the Company during the year. During the course
of our audit, nothing had come to notice that may suggest a major
weaknesses in the internal control system of the Company.
(v) (a) On the basis of the audit procedures performed by us and
according to the information and explanations given to us on our
enquiries in this behalf and the record produced before us for our
verification, the particulars of contracts and arrangements required to
be entered into the register in pursuance of Section 301 of the
Companies Act, 1956 have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Act 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 the
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 the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed thereunder.
(vii) According to the information and explanations given to us, the
Company has an internal audit system commensurate with its size and
nature of its business.
(viii) We were informed that the Company has not maintained cost
records prescribed by the Central Government under Section 209 (1) (d)
of the Companies Act, 1956.
(ix) (a) According to the records of the Company examined by us, in our
opinion, the Company is generally regular in depositing undisputed
statutory dues including Investor Education and Protection Fund dues,
Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues as applicable with the appropriate
authorities in India. We have been informed that the Company is not
liable to pay Provident Fund and Employees State Insurance & Service
Tax.
(b) According to the records of the Company examined by us, there are
no dues of Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
which have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash loss during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or 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. (xiv) In our opinion, the Company is
not dealing in or trading in shares, securities, debentures and other
investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
(xvi) As informed to us, the Company has not raised any term loans
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) As informed to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956, during the year.
(xix) 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 and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India, we have neither 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 S. G. Shende & Co.
Chartered Accountants
FRN : 120915 W
Shreepad G. Shende
Place : Pune Proprietor
Date : 23/05/2013 Membership No. 041692
Mar 31, 2011
1. We have audited the attached Balance Sheet of Bagadia Colourchem
Limited, as at 31.03.2011, the Profit and Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We 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 (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that :
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards (AS) referred to in sub-section (3C) of Section
211 of the Companies Act, 1956; to the extent applicable, except for
the fact that Accounting Standard (AS) 28, 'Impairment of Assets' has
not been followed by the Company.
(v) On the basis of written representations received from the
Directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2011 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Campanies Act, 1956;
(vi) In our opinion and to the best our information and according to
the explanations given to us, the said financial statements, subject to
Note No. 1.6 regarding non following of Accounting Standard (AS) 28,
'Impairment of Assets', its impact on profits is not ascertained, and
read together 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 the accounting principles generally
accepted in India;
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011; and
(b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
Annexure to the Auditors' Report referred to in Paragraph 3 of our
report of even date on the Accounts for the year ended on 31st March,
2011 of Bagadia Colourchem Limited.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were said to be
noticed on verification.
(c) During the year the Company has not disposed off a substantial part
of its fixed assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of 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. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
(iii) According to the information and explanations given to us, The
Company has neither granted nor taken any loans, secured or unsecured,
to / from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. Therefore,
clauses (iii) (b), to and (iii) (g) of paragraph 4 of the Companies
(Auditors Report) Order, 2003, are not applicable to the Company for
the current year.
(iv) 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
inventory, fixed assets and with regard to the sale of goods and
services if any as per information given to us, no major weaknesses in
the internal control system have been identified by the management or
the internal auditors of the Company during the year. During the course
of our audit, nothing had come to notice that may suggest a major
weaknesses in the internal control system of the Company.
(v) (a) On the basis of the audit procedures performed by us and
according to the information and explanations given to us on our
enquiries in this behalf and the record produced before us for our
verification, the particulars of contracts and arrangements required to
be entered into the register in pursuance of Section 301 of the
Companies Act, 1956 have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Act 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 the
prevailing market prices at the relevant time. However, in respect of
certain transactions, prevailing market prices at the relevant time are
not available as these transactions are of a special nature.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed thereunder.
(vii) According to the information and explanations given to us, the
Company has an internal audit system commensurate with its size and
nature of its business
(viii) To the best or our information and based on the information and
explanations given to us the Central Government has not prescribed the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956.
(ix) (a) According to the records of the Company examined by us, in our
opinion, the Company is generally regular in depositing undisputed
statutory dues including Investor Education and Protection Fund dues,
Income-tax, Salestax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues as applicable with the appropriate
authorities in India except for the fact that Sales tax deferred
liability of the amount of Rs. 19,34,947/- is outstanding for a period
of more than 6 months. We have been informed that the Company is not
liable to pay Provident Fund and Employees State Insurance & Service
Tax.
(b) According to the records of the Company examined by us, there are
no dues of Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
which have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash loss during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or 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.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
(xvi) As informed to us, the Company has not raised any term loans
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) As informed to us, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956, during the
year.
(xix) 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 and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India, we have neither 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 S. G. Shende & Co.
Chartered Accountants
FRN : 120915 W
Shreepad G. Shende
Proprietor
Membership No. 041692
Place : Pune
Date : 31st May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Bagadla Colourchem
Limited, as at 31.03.2010 the Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility ol 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 made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards (AS) referred to in sub-section (3C) of Section
211 ol the Companies Act, 1956; to the extent applicable, except for
the fact that Accounting Standard (AS) 28, Impairment of Assets has
not been followed by the Company.
(v) On the basis of written representations received from the
Directors, as on 31* March 2010, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31th March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Campanies Act, 1956;
(vi) In our opinion and to the best our information and according to
the explanations given to us, the said financial statements, subject to
Note No. 1.6 regarding non following of Accounting Standard (AS) 28,
Impairment of Assets its impact on profits is not ascertained, and
read together with the notes thereon, give the information required by
the Companies Act, 1956, in the manner so required and give a true and
lair view in conformity with the accounting principles generally
accepted in India;
a) in the case of the Balance Sheet, of the state cf affairs of the
Company as at 31th March, 2010; and
(b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
Annexure to the Auditors Report referred to in paragraph 3 of our
report of even date on the Accounts for the year ended on 31st March,
2010 of Bagadia Colourchem Limited.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification Which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were said to be
noticed on verification.
(c) During the year the Company has not disposed off a substantial part
of its fixed assets.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of 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. The
discrepancies noticed on physical verification between the physical
stocks and the book records were not material.
(iii) According to the information & explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to / from companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956. Therefore,
clauses (iii) (b), to and (iii)
(g) of paragraph 4 of the Companies (Auditors Report) Order, 2003, are
not applicable to the Company for the current year.
(iv) 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
inventory, fixed assets and with regard to the sale of goods and
services if any as per information given to us, no major weaknesses in
the internal control system have been identified by the management or
the internal auditors of the Company during the year. During the course
of our audit, nothing had come to our notice that may suggest a major
weaknesses in the internal control system of the Company.
(v) (a) On the basis of the audit procedures performed by us and
according to the information and explanations given to us on our
enquiries in this behalf and the record produced before us for our
verification, the particulars of contracts and arrangements required to
be entered into the Register in pursuance of Section 301 of the
Companies Act, 1956 have been so entered.
(6) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the Register maintained under Section 301 of the Act 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 the
prevailing market prices at the relevant time. However, in respect of
certain transactions including for purchases and sale of goods,
prevailing market prices at the relevant time are not available as
these transactions are of a special nature.
(vi) According to the information and explanations given to us. the
Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed thereunder.
(vii) According to the information and explanations given to us. the
Company has an internal audit system commensurate with its size and
nature of its business.
(viii) To the best of our information and based on the information and
explanations given to us the Central Government has not prescribed the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956.
(ix) (a) According to the records of the Company examined by us, in our
opinion, the Company is generally regular in depositing undisputed
statutory dues including Investor Education and Protection Fund dues,
Income-tax, Sales- tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues as applicable with the appropriate
authorities in Indiar except for the fact that Sales tax deferred
liability of the amount of Rs. 8.86,378/- is outstanding for a period
of more than 6 months. We have been informed that the Company is not
liable to pay Provident Fund and Employees State Insurance & Service
Tax.
(b) According to the records of the Company examined by us, there are
no dues of Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
which have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred cash loss during the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or 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.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
(xvi) As informed to us, the Company has not raised any term loans
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) As informed to us. the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956, during the
year.
(xix) 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 and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India, we have neither 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 S. G. Shende & Co.
Chartered Accountants
FRN : 120915 W
Shreepad G. Shende
Proprietor
Membership No. 041692
Place : Pune
Date : 28th May, 2010