Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Banaras Beads Ltd (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018,the Statement of Profit and Loss (Including Other Comprehensive Income) the Statement of Cash Flows and the statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.(herein after referred to as â standalone Ind AS financial statementsâ)
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flow and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting record in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statement 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 standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us and other auditors in terms of the reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the statement of Cash Flow and Statement of Change in Equity dealt with by the Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With Respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our separate report in Annexure-A.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in note number 46 & 47 in its financial Statement.
ii. The Company has made provision as required under the applicable law or accounting standards, for the material foreseeable losses, if any, on long terms contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditors Report) Order 2016 (the Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in â Annexure Bâ a statement of the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(f) under on other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under (i) of Sub- section 3 of Section 143 of the Companies Act,2013 (âthe Act) of Banaras Beads Limited.
We have audited the internal financial controls over financial reporting of Banaras Beads Limited ( â the Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended and as at on that date.
Managementâs Responsibility for Internal Financial Controls.
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (âthe Guidance Noteâ). These responsibilities include the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuing the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note and the Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorsâ judgment, including the assessment of the risk of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting.
Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future period are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the polices or procedures may deteriorate.
Opinion.
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF BANARAS BEADS LIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31st MARCH, 2018.
On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:
1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. As explained to us, inventories have been physically verified during the year by the management at reasonable intervals and the discrepancy noticed on physical verification of stocks as compared to book records were not material and have been properly dealt with in the books of accounts.
3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has granted unsecured loans to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, and as explained to us the terms and conditions are not prejudicial to the interest of the company and no schedule of repayment has been stipulated.
4. In our opinion and according to the information and explanation given to us, the company has complied with the provision of Section 185 and 186 of the act, with respect to the investment and loan made.
5. The Company has not accepted any deposits from the public.
6. Reporting under clause 3(v) of the order is not applicable as the Companyâs business activities are not covered by the companies (Cost Records and Audit) Rules, 2014.
7. According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employeesâ State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Goods and Service Tax, Cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2018 for a period of more than six months from the date they became payable except as reported in note 30 of the Financial Statements.
8. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has taken only working capital loans from banks and has not defaulted in repayment of dues to the bank. The company does not have any borrowing from financial institution and has not issued debentures.
9. The Company has not raised moneys by way of initial public offer or future public offer (including debt instruments) or term loans and hence reporting under clause 3(ix) of the Order is not applicable.
10. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.
11. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.
13. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
14. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause 3(xiv) of the Order is not applicable to the Company.
15.In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its Directors and hence provisions of Section 192 of the Act are not applicable.
16. The Company is not required to be registered under Section 45-I of the Reserve Bank of India Act, 1934.
For- G D Dubey & Associates
Chartered Accountants
(Firm No 009836C)
(G.D. Dubey)
M. No. 076804
VARANASI;31.05.2018
Mar 31, 2016
TO THE SHAREHOLDERS OF BANARAS BEADS LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of Banaras Beads Limited (''the Company''), which comprise Balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement of year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in Section tBfe5pomlpanies Act, 203 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial statement and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility chides in maintenance of adequate accounting records 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 ,judgments and estimates that are assumable 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 of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit 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 section of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 43(D) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether financial statements are free from internal misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statement procedures selected depend on the auditor''s judgment, including the assessment of the risks and misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control of the Company''s preparation of the financial statements that give a true and-fair 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 controls system over financial reporting and the operation effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as overall presentation of financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion financial statements .
OPINION
In our opinion and to the best of our information and according explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accepted in India, of the state of afraid of the Company as at 31 March 2016and 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, the Order") issued by the Central Government of India in terms of -sub section (I) of section 43 of the Act, we give in the Annexure a statement on the matters specified in the paragraph and 4 Order, to the extent applicable.
2 As required by Section 143 (3) of the Act, were that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept they 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 will books of account;
(d) in our opinion, the after said standalone financial statements comply with the Accounting Standards specified under Section 33 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 March 31st 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March from being appointed as a director in terms of Section 64 (2) of the Act; and
(f) with respect to the other matters to be include their Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 20)4, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations its financial position in its financial stateneiilti3ifer Note-31 33 & 34 to the financial statement s
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on the-term contracts including derivative contract Act.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection F und by the Companies no amount was due to be transferred during the. year
ANNEXURE TO INDEPENDENT AUDITORSâ REPORT
THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF BANARAS BEADS LIMITED. ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31st MARCH, 2016.
On the basis of such checks as we considered appropriate and according to the information and explanation given to e-voting of our audit, we repeat that:
1 (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at reasonable discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, title deeds of immovable properties are held in the name of the Company.
2 As explained to us, inventories have been physically verified during the year by the management at reasonable intervals battle discrepancy noticed on physical verification of stocks as compared to book records were not material dealt with in the books of accounts.
3. According to the information and explanations given to us and on the basis of our examination of the books of accounts, of the company has not granted any loans, secured or unsecured, to company firms or other parties listed in the register maintained under Section 289 of the Companies Act, Consequently, the provisions of clauses iii(ii)(c) of the order are not applicable to the Company.
4. In our opinion an according to the formation an explanation given to us, the company has complied with the provision of Section B5 and B6 of the act, with respect to the investment No loan and guarantee has been given to director et c.
5. The Company has not accepted any desist from the public.
6. As explained to us by the management maintenance of cost records as specified by the Central Government of section 48 of the Companies Act are not applicable to the company,
7 (a) According to the records the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employeesâ State Insurance, Income-tax, Sales tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other story dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues 31st March, 2016 for a period of more than six months for the date they became payable, except disputed service tax amounting to7.34. Lakhs .
(b) According to the information and explanation given to us, following amount of dues of tax and cess which have not been deposited on account of disputes :
Service Tax Appeal Pending at Commissioner Appeal 7.34 Lakhs
8. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has taken only working capital loans from banks and has not repayment of dues to the bank. The company does not have any borrowing from financial institution and has not issued debentures.
9. The Company has not raised moneys by way of initial public offer or future public offer (including debt instruments loans and hence reporting under clause 3(ix) of the Order is not applicable.
10. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or report during the year, nor have we been informed of such case by the management.
11. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approval and dated by the provisions of Section 97 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.
13. In our opinion and according to the information and explanted given to us the Company is in compliance with Section 177 and 138 of the Act, where applicable, for all transactions with the related parties and the details of related party transaction disclosed in the standalone financial statements as the applicable accounting standards.
14 During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convert debentures and hence reporting under clause B(xiv) of the Order is not applicable to the Company.
15. In our opinion and according to the information and explanations given to us, during the year the Company has not into non-cash transactions with its Directors or persons connected to its Directors and hence provision 92 of the Act are not applicable.
16. The Company is not required to be registered under the Reserve Bank of India Act, 1934.
For Kamal Kishore & Co.
Chartered Accountants
(Firm No 007424C)
Sd/-
Place VARAN AS I (Kamal Kishore Srivastava)
Date : 26 . 05 . 2016 Partner, M. No. 71639
Mar 31, 2014
We have audited the accompanying financial statements of Banaras Beads
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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 of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) In the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2014.
(ii) In the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
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.
As required by section 227(3) of the Act, we report that:
- 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;
- 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
- 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.
- 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 13 September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013; and
- On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF
BANARAS BEADS LIMITED. ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR
ENDED 31ST MARCH, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
- (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, disposal of fixed asset during the year is not substantial
so as to affect the going concern assumption.
- (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
The discrepancy noticed on physical verification of stocks as compared
to book records to the book records were not material and have been
properly dealt with in the books of accounts.
- (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
- In our opinion and according to the information and explanations
given to us, the internal control procedure with respect to the
purchase of inventory and fixed assets and sale of goods and services
need to be further improved to make it commensurate with the size of
the company and the nature of its business. During the course of our
audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
- a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As regards transaction exceeding value of Rupees five lakhs entered
into during the financial year, we are unable to comment whether the
transaction were made at prevailing market prices at the relevant time,
because of the specialized nature of the items involved and absence of
any comparable prices.
- The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
- The company has an internal audit system commensurate with the size
and nature of the company''s business but in our opinion its scope and
coverage require to be further strengthened.
- We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the records with a view to determining
whether they are accurate or complete.
- (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable.
(b) Accounting to the information and explanation given to us, no
material dues of tax and cess which have not been deposited on account
of disputes.
- The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
- Based on our audit procedures and on the information and explanations
given by the management, we are of the opinion that, the Company has
taken only working capital loans from banks and has not defaulted in
repayment of dues to the bank. The company does not have any borrowing
from financial institution and has not issued debentures.
- The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
- According to information and explanations given to us, the Company is
trading in Shares, Mutual funds & other Investments. Proper records &
timely entries have been maintained in this regard & further
investments specified are held in their own name.
- According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
- Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
- Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
- Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
- The Company has no debentures issued and outstanding during the
period under audit.
- The Company has not raised any money by public issue during the year.
- Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Kamal Kishore & Co.
Chartered Accountants
(Firm No 007424C)
Sd/-
Place: VARANASI (Kamal Kishore Srivastava)
Date : 29. 05. 2014 Partner, M. No. 71639
Mar 31, 2013
We have audited the accompanying financial statements of Banaras Beads
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 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 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.
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.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
- in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
- in the case of the Profit and Loss Account, of the profit
- for the year ended on that date; and
- in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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.
As required by section 227(3) of the Act, we report that:
- 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;
- 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
- 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.
- 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;
- 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.
THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF
BANARAS BEADS LIMITED. ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR
ENDED 31st MARCH, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
- (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, disposal of fixed asset during the year is not substantial
so as to affect the going concern assumption.
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
The discrepancy noticed on physical verification of stocks as compared
to book records to the book records were not material and have been
properly dealt with in the books of accounts.
(a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
- In our opinion and according to the information and explanations
given to us, the internal control procedure with respect to the
purchase of inventory and fixed assets and sale of goods and services
need to be further improved to make it commensurate with the size of
the company and the nature of its business. During the course of our
audit, no major instance of continuing failure to correct any
weaknesses in the internal controls has been noticed.
- a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As regards transaction exceeding value of Rupees five lakhs entered
into during the financial year, we are unable to comment whether the
transaction were made at prevailing market prices at the relevant time,
because of the specialized nature of the items involved and absence of
any comparable prices.
- The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
- The company has an internal audit system commensurate with the size
and nature of the company''s business but in our opinion its scope and
coverage require to be further strengthened.
- We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the records with a view to determining
whether they are accurate or complete.
(a) According to the records of the company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable.
(b) The disputed statutory dues aggregating Rs.43.77 lakhs that have
not been deposited on account of disputed matters pending before
appropriate authorities are as under:
Particulars Liability
Raised by
Assessing Amount
not paid Forum where dispute is
Officer
(Rs. lakhs) (Rs. in
lakhs) pending
Income Tax for
A. Y. 2001-2002 15.00 15.00 CIT (Appeals), Varanas
Income Tax for
A. Y 2010-2011 76.02 24.58 CIT (Appeals), Varanas
Related to
Custom duty 4.19 4.19 Commisioner of Customs
The Company does not have any accumulated loss and has not incurred
cash loss during the financial year covered by our audit and in the
immediately preceding financial year.
Based on our audit procedures and on the information and explanations
given by the management, we are of the opinion that, the Company has
taken only working capital loans from banks and has not defaulted in
repayment of dues to the bank. The company does not have any borrowing
from financial institution and has not issued debentures.
- According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
- The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
- According to information and explanations given to us, the Company is
trading in Shares, Mutual funds & other Investments. Proper records &
timely entries have been maintained in this regard & further
investments specified are held in their own name.
- According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
- Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
- Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 3 1st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
- Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
- The Company has no debentures issued and outstanding during the
period under audit.
- The Company has not raised any money by public issue during the year.
- Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Kamal Kishore & Co.
Chartered Accountants
(Firm No 007424C)
Sd/-
Place: VARANASI (Kamal Kishore Srivastava)
Date : 30. 05. 2013 Partner, M. No. 71639
Mar 31, 2012
1. We have audited the attached Balance Sheet of BANARAS BEADS
LIMITED, as at 31st March, 2012, the Statement of Profit & Loss and
Cash Flow Statement of the company 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 on opinion
of 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 evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Reports) Order, 2003 as
amended, issued by the Central Government of India in term of section
227 (4A) of the Companies Act, 1956, and on the basis of checks of the
books and records of the Company as we considered appropriate and the
information and the explanations given to us during the course of
audit, a statement on the matters specified in paragraphs 4 and 5 of
the said order is annexed.
4. Further to our comments in the Annexure referred to above we report
that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of the
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
these books;
(c) The Balance sheet, 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 Balance Sheet and the Statement of Profit &
Loss 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 31st March, 2012, and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31st March
2012 from being appointed as a director in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
(i) In case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012; and
(ii) In the case of the Statement of Profit and Loss , of the Profit of
the company for the year ended on that date.
(iii) In the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR'S REPORT OF EVEN
DATE ON THE ACCOUNTS OF BANARAS BEADS LIMITED FOR THE YEAR ENDED 31st
MARCH, 2012
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets on the basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management at reasonable intervals. We are informed
that no material discrepancies noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets.
2. (a) As explained to us, the inventory has been physically verified
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanation
given to us, and on the basis of our examination of records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of accounts.
3. (a) According to the information and explanations given to us, the
Company had not granted any unsecured loans to the parties covered in
the register maintained under Section 301 of the Companies act, 1956.
(b) Since no amount is due to the company, there is no need to comment
upon the rate of interest and other terms & conditions of the loans.
(c) Since no amount is due to the company, there is no need to comment
upon the terms of repayment of loans.
(d) Since no amount is due to the company, there is no need to express
our opinion on whether there is any amount overdue above Rupees one
Lakh and whether reasonable steps needs to be taken for recovery of
principal and interest.
(e) The Company has taken following unsecured loans from parties
covered in the register maintained under section 301 of the Companies
act, 1956
No. of parties 1 Amount Involved 103.25 Lakhs
(f) The rate of interest and other terms and conditions of loans taken
by the company are prima facie not prejudicial to the interest of the
company
(g) The company has repaid the loan.
4. On the basis of our evaluation of internal control systems and
according to the information and explanations given to us, we are of
the opinion that internal control systems with respect to the purchase
of inventory and fixed assets and sale of goods and services need to be
further improved to make it commensurate with the size of the company
and nature of its business.
5. In respect of the transactions entered in the register maintained
in pursuance of Section 301 of the Companies Act, 1956,
(a) Based on audit procedures applied by us, the best of our knowledge
and belief and according to the information and explanations given to
us, we are of the opinion that the transactions that needed to be
entered into the register maintained under Section 301 have been so
entered.
(b) As regards transactions exceeding value of Rupees five lakhs
entered into during the financial year, we are unable to comment
whether the transactions were made at prevailing market prices at the
relevant time, because of the specialized nature of the items involved
and absence of any comparable prices.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A of the Companies Act, 1956 and the Rules
framed there under.
7. The Company has an internal audit system commensurate with the size
and nature of the Company's business but in our opinion its scope and
coverage requires to be further strengthened.
8. Maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956. Therefore, the provisions of clause (viii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
9. (a) In our opinion and according to the information and
explanations given to us, the Company has been generally regular in
depositing undisputed statutory dues including provident fund, investor
education and protection fund, Employees' State Insurance, Income
Tax, Sales Tax ( Trade Tax, VAT), Wealth tax, Service Tax, Customs
Duty, Excise Duty, Cess and any other statutory dues, where applicable
with the appropriate authorities. Further the Central Government has
till date not prescribed the amount of Cash payable under Section 441A
of the Companies Act. We are not in a position to comment upon the
regularity or otherwise of the company in depositing the same.
(b) According to the information and explanations given to us there are
no cases of non-deposit with the appropriate authorities of un disputed
dues of sales tax/service tax/customs duty/ wealth tax/ excise duty/
Cess.
10. The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year. Accordingly, paragraph
4 (x) of the Order is not applicable.
11. In our opinion and according to the information and explanations
given to us, the Company has taken only Working Capital Loans from bank
repayable on demand and have not defaulted in repayment of dues to the
bank. The company does not have any borrowing from financial
institutions and has not issued debentures.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
provisions of clause (xiii) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the Company.
14. The company has maintained proper records for the transactions and
contracts for dealing in or trading in shares, securities, debentures,
or other investments and timely updation has been made in the records.
All the investments have been held by the company in its own name.
15. As per information available to us, the Company has not given
guarantees for loans taken by others from banks or financial
institutions.
16. The Company has not taken any term loan from any financial
institutions.
17. According to the records examined by us and according to
information and explanations given to us, on an overall basis, no funds
raised on short term basis have been used for long term investment.
18. The Company has not made during the year any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. There are no debentures issued and outstanding during the year and
hence the question of creating securities in respect thereof does not
arise.
20. The Company has not raised any monies by way of public issue
during the year.
21. To the best of our knowledge and belief and according to the
information and explanation given to us no fraud on or by the Company
has been noticed or Reported during the financial year.
For Kamal Kishore & Co.
Chartered Accountants
(Firm No 007424C)
Place: Varanasi (Kamal Kishore Srivastava)
Date : 30. 05. 2012 Partner, M. No. 71639
Mar 31, 2011
1. We have audited the attached Balance Sheet of BANARAS BEADS
LIMITED, as at 31st March, 2011, the Profit & Loss Account and Cash
Flow Statement of the company 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 on opinion of
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 evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Reports) Order, 2003 as
amended, issued by the Central Government of India in term of section
227 (4A) of the Companies Act, 1956, and on the basis of checks of the
books and records of the Company as we considered appropriate and the
information and the explanations given to us during the course of
audit, a statement on the matters specified in paragraphs 4 and 5 of
the said order is annexed.
4. Further to our comments in the Annexure referred to above we report
that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of the
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
these books;
(c) The Balance sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet and the Profit & Loss Account
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 31st March, 2011, and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31st March
2011 from being appointed as a director in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
(i) In case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011; and
(ii) In the case of the Profit and Loss Account, of the Profit of the
company for the year ended on that date.
(iii) In the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR'S REPORT OF EVEN
DATE ON THE ACCOUNTS OF BANARAS BEADS LIMITED FOR THE YEAR ENDED 31st
MARCH, 2011
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management at reasonable intervals. We are informed that discrepancies
noticed on such verification will be dealt with in the books of
accounts as and when records are updated.
(c) There was no disposal of a substantial part of fixed assets.
2. (a) As explained to us, the inventory has been physically verified
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanation
given to us, and on the basis of out examination of records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of accounts.
3. (a) According to the information and explanations given to us, the
Company had not granted any unsecured loans to the parties covered in
the register maintained under Section 301 of me Companies act, 1956.
(b) Since no amount is due to the company, there is no need to comment
upon the rate of interest and other terms & conditions of the loans.
(c) Since no amount is due to the company, there is no need to comment
upon the terms of repayment of loans.
(d) Since no amount is due to the company, there is no need to express
our opinion on whether there is any amount overdue above Rupees one
Lakh and whether reasonable steps needs to be taken for recovery of
principal and interest.
(e) The Company has not taken loans, secured or unsecured from parties
covered in the register maintained under section 301 of the Companies
act, 1956, hence sub clause (e), (f )and (g) of clause 4 (iii) of the
Orders are not applicable.
4. On the basis of our evaluation of internal control systems and
according to the information and explanations given to us, we are of
the opinion that internal control systems with respect to the purchase
of inventory and fixed assets and sale of goods and services need to be
further improved to make it commensurate with the size of the company
and nature of its business.
5. In respect of the transactions entered in the register maintained
in pursuance of Section 301 of the Companies Act, 1956,
(a) Based on audit procedures applied by us, the best of our knowledge
and belief and according to the information and explanations given to
us, we are of the opinion that the transactions that needed to be
entered into the register maintained under Section 301 have been so
entered.
(b) As regards transactions exceeding value of Rupees five lakhs
entered into during the financial year, we are unable to comment
whether the transactions were made at prevailing market prices at the
relevant time, because of the specialized nature of the items involved
and absence of any comparable prices.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A of the Companies Act, 1956 and the Rules
framed there under.
7. The Company has an internal audit system commensurate with the size
and nature of the Company's business but in our opinion its scope and
coverage requires to be further strengthened.
8. Maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956. Therefore, the provisions of clause (viii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
9. (a) In our opinion and according to the information and
explanations given to us, the Company has been generally regular in
depositing undisputed statutory dues including provident fund, investor
education and protection fund, Employees' State Insurance, Income Tax,
Sales Tax (Trade Tax, VAT), Wealth tax, Service Tax, Customs Duty,
Excise Duty, Cess and any other statutory dues, where applicable with
the appropriate authorities. Further the Central Government has till
date not prescribed the amount of Cash payable under Section 441A of
the Companies Act. We are not in a position to comment upon the
regularity or otherwise of the company in depositing the same.
(b) According to the information and explanations given to us there are
no cases of non-deposit with the appropriate authorities of un disputed
dues of sales tax/service tax/customs duty/ wealth tax/ excise duty/
Cess.
10. The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year. Accordingly, paragraph
4 (x) of the Order is not applicable.
11. In our opinion and according to the information and explanations
given to us, the Company has taken only Working Capital Loans from bank
repayable on demand and have not defaulted in repayment of dues to the
bank. The company does not have any borrowing from financial
institutions and has not issued debentures.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any statute applicable to chit fund/ nidhi/
mutual benefit fund/ societies are not applicable to Company,
therefore, the provisions of clause (xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
14. The company has maintained proper records for the transactions and
contracts for dealing in or trading in shares, securities, debentures,
or other investments and timely updation has been made in the records.
All the investments have been held by the company in its own name.
15. As per information available to us, the Company has not given
guarantees for loans taken by others from banks or financial
institutions.
16. The Company has not taken any term loan from any financial
institutions.
17. According to the records examined by us and according to
information and explanations given to us, on an overall basis, no funds
raised on short term basis have been used for long term investment.
18. The Company has not made during the year any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
1.9. There are no debentures issued and outstanding during the year
and hence the question of creating securities in respect thereof does
not arise.
20. The Company has not raised any monies by way of public issue
during the year.
21. To the best of our knowledge and belief and according to the
information and explanation given to us no fraud on or by the Company
has been noticed or Reported during the financial year.
For Kamal Kishore & Co.
Chartered Accountants
(Firm No 007424C)
(Kamal Kishore Srivastava)
Partner M. No. 71639)
Place: Varanasi.
Date : 01. 07. 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of BANARAS BEADS
LIMITED, as at 31st March, 2010, the Profit & Loss Account and Cash
Flow Statement of the company for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express on opinion of
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 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 Reports) Order, 2003 as
amended, issued by the Central Government of India in term of section
227 (4A) of the Companies Act, 1956, and on die basis of checks of the
books and records of the Company as we considered appropriate and the
information and the explanations given to us during the course of
audit, a statement on the matters specified in paragraphs 4 and 5 of
the said order is annexed.
4. Further to our comments in the Annexure referred to above we report
that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of the
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
these books;
(c) The Balance sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet and the Profit & Loss Account
comply with the Accounting Standards referred to in subsection (3C) of
Section 211 of me Companies Act, 1956.
(e) On the basis of written representations received from the directors
as on 31st March, 2010, and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31st March
2010 from being appointed as a director in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
(i) In case of the Balance Sheet, of me state of affairs of the Company
as at 31" March, 2010; and
(ii) In the case of the Profit and Loss Account, of the Profit of the
company for die year ended on that date.
(iii) In the case of Cash Flow Statement, of the Cash Flows for the
year ended on mat date.
ANNEXURE TO AUDITORS REPORT
ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITORS REPORT OF EVEN
DATE ON THE ACCOUNTS OF KANAKAS BEADS LIMITED FOR THE YEAR ENDED 31st
MARCH, 2010
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have been physically verified by the
management at reasonable intervals. We are informed that discrepancies
noticed on such verification will be dealt with in the books of
accounts as and when records are updated.
(c) There was no disposal of a substantial part of fixed assets.
2. (a) As explained to us, the inventory has been physically verified
by die management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanation
given to us, and on the basts of our examination of records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to the book records were not material and have been properly dealt with
in the books of accounts.
3. (a) According to the information and explanations given to us, the
Company had not granted any unsecured loans to the parties covered in
the register maintained under Section 301 of the Companies act, 1956.
(b) Since no amount is due to the company, there is no need to comment
upon the rate of interest and other terms & conditions of the loans.
(c) Since no amount is due to the company, there is no need to comment
upon the terms of repayment of loans.
(d) Since no amount is due to the company, there is no need to express
our opinion on whether there is any amount overdue above Rupees one
Lakh and whether reasonable steps needs to be taken for recovery of
principal and interest.
(e) The Company has not taken loans, secured or unsecured from parties
covered in the register maintained under section 301 of the Companies
act, 1956, hence sub clause (e), (f )and (g) of clause 4 (iii) of the
Orders are not applicable.
4. On the basis of our evaluation of interna! control systems and
according to the information and explanations given to us, we are of
the opinion that internal control systems with respect to the purchase
of inventory and fixed assets and sale of goods and services need to be
further improved to make it commensurate with the size of the company
and nature of its business.
5. In respect of the transactions entered in the register maintained
in pursuance of Section 301 of the Companies Act, 1956,
(a) based on audit procedures applied by us, the best of our knowledge
and belief and according to the information and explanations given to
us, we are of the opinion that the transactions that needed to be
entered into the register maintained under Section 301 have been so
entered.
(b) as regards transactions exceeding value of Rupees five lakhs
entered into during the financial year, we are unable to comment
whether the transactions were made at prevailing market prices at the
relevant time, because of the specialized nature of the items
involved and absence of any comparable prices.
6. The Company has not accepted any deposits from the public within
the meaning of section 58A of the Companies Act, 1956 and the Rules
framed there under.
7. The Company has an internal audit system commensurate with the size
and nature of the Companys business but in our opinion its scope and
coverage requires to be further strengthened.
8. Maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956. Therefore, the provisions of clause (viii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
9. (a) In our opinion and according to the information and
explanations given to us, the Company has been generally regular in
depositing
undisputed statutory dues including provident fund, investor education
and protection fund. Employees State Insurance, Income Tax, Sales Tax
( Trade Tax, VAT), Wealth tax, Service Tax, Customs Duty, Excise Duty,
Cess and any other statutory dues, where applicable with the
appropriate authorities. Further the Central Government has till date
not prescribed the amount of Cash payable under Section 441A of the
Companies Act. We are not in a position to comment upon the regularity
or otherwise of the company in depositing the same.
(b) According to me information and explanations given to us there are
no cases of non-deposit with the appropriate authorities of un disputed
dues of sales tax/service tax/customs duty/ wealth tax/ excise duty/
cess.
10. The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in
the immediately preceding financial year. Accordingly, paragraph 4 (x)
of the Order is not applicable.
11. In our opinion and according to the information and explanations
given to us, the Company has taken only Working Capital Loans from bank
repayable on demand and have not defaulted in repayment of dues to the
bank. The company does not have any borrowing from financial
institutions and has not issued debentures.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any statute applicable to chit fund/ nidhi/
mutual benefit fund/ societies are not applicable to Company,
therefore, die provisions of clause (xiii) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company.
14. The company has maintained proper records for the transactions and
contracts for dealing in or trading in shares, securities, debentures,
or other investments and timely updation has been made in the records.
All the investments have been held by the company in its own name.
15. As per information available to us, the Company has not given
guarantees for loans taken by others from banks or financial
institutions.
16. The Company has not taken any term loan from any financial
institutions.
17. According to the records examined by us and according to
information and explanations given to us, on an overall basis, no funds
raised on short term basis have been used for long term investment.
18. The Company has not made during the year any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. There are no debentures issued and outstanding during the year and
hence the question of creating securities in respect thereof does not
arise.
20. The Company has not raised any monies by way of public issue
during the year.
21. To the best of our knowledge and belief and according to the
information and explanation given to us no fraud on or by the Company
has been noticed or Reported during the financial year.
For Kamal Kishore & Co.
Chartered Accountants
(Firm No 007424C)
Place: Varanasi. (Kamal Kishore Srivastava)
Date: 08.07. 2010 Partner
M. No. 71639
Mar 31, 2001
We have audited the attached Balance Sheet of Banaras Beads Limited, as
at March, 31st 2001 and also the profit and Loss Account of the Company
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 statement
based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on 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.
1. As required by the Manufacturing and other Companies
(AuditorsvReport) Order, 1998 issued by the Central Government in
terms of Sec. 227(4A) of the Companies Act, 1956. we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said order.
2. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best our knowledge and belief were necessary for the purpose of 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 and Profit and Loss Account deals with by this
report are in agreement with the books of account (in view of i) and
ii) given in clause 2b above.
d) In our opinion, the Profit and Loss Account and Balance Sheet deals
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis written representations received from the directors as
on 31st March, 2001, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2001, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f) Subject to point Explained in item No. 1 2.3,4,5,6,7,9,11 & 18 of
Notes of Accounts : In our opinion and to the best of our knowledge and
according to the explanations given to us, the said accounts read
together with other 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 :-
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 Company for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
BANARAS BEADS LTD.
Statement referred to in paragraph (!) 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 per
the information and explanations given to us, the Company has a system
of physical verification of all its fixed assets at reasonable
intervals. Most of the fixed assets have been physically verified by
the management during the year. In our opinion, the frequency of
verification of fixed assets by the management is reasonable having
regard to the size of the Company and the nature of its business. As
explained to us, no material discrepancies were noticed on such
verification.
2. None of the fixed assets have been revalued during the year.
3. The stocks of finished goods, stores, spare parts and raw materials
lying at its location have been physically verified by the Management
at reasonable intervals. The stock is possession of third parties have
been verified by the management at reasonable intervals.
4. The procedures for physical verification of stocks followed by the
Management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. The discrepancies noticed on verification between the physical
stock and the book records were not materials and the same have been
properly dealt with in the books of account.
6. On the basis of our examination of Stock records, we are of the
opinion that the valuation of stock is fair and proper in accordance
with the normally accepted accounting principles and is on the same
basis as in the preceding year.
7. The Company has not taken any loan from Companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 or from the Companies under the same management as
defined under Sec. 370(1B) of the Companies Act, 1956. In terms of
sub-section (6) of Section 370 of the Companies Act, 1956, provision of
the Section is not applicable to a company on or after 31st October,
1998.
8. The Company has granted loans to Companies, firms or other parties
listed in the register maintained under 301 of the Companies Act, 1956
and to the Companies under the same management as defined under Section
370 of the Companies Act, 1956. The Company has not charged interest on
such loans. However in terms of sub-section (6) of Section 370 of the
Companies Act, 1956, provision of the Section is not applicable to a
company on or after 31st October, 1998.
9. In respect of loans and advances in the nature of Loans given by
the Company, parties have repaid the principal amount and interest
subject to some stickly accounts.
10. In our opinion and according to the information and explanations
given to us, there is need for improvement for 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 for the sale of goods.
11. In our opinion and according to the information and explanations
given to us, the transaction of purchase of goods and materials and
sale of goods, material and service made in purchase of contracts of
arrangements entered in the register maintained under 301 of the
Companies Act, 1956 and agreegating during the year to Rs. 50,000 or
more in respect of each party have been made at prices which are
reasonable having regard to prevailing market prices for such goods
material or services or the prices at which transaction for similar
goods material or services have been made with other parties.
12. As explained to us the Company has a regular procedure for the
determination of unserviceable or damaged store, raw materials and
finished goods adequate provision have been made in the books of
account in respect of the items so determined.
13. The Company has not accepted any deposit from the public to which
the provisions of Section 58A of the Companies Act, 956 and the rules
made there under would apply.
14. In our opinion reasonable records have been maintained by the
Company for the sale and disposal of realizable by products and scrap.
15. In our opinion the Company requires improvement in internal audit
system commensurate with the size and nature of its business.
16. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 in respect of Companys roducts.
17. According to the records of the Company, Provident Fund and
Employees State Insurance dues, where applicable, have been regularly
deposited during the year with the appreciate authorities.
18. According to the information and explanations given to us no
personal expenses have been charged to revenue account other than those
payable under Contractual obligation or in accordance with generally
accepted business practices.
19. According to the information and explanations given to us there
were no undisputed amount payable in respect of Income tax, Wealth tax,
Sale tax, Customs duty and excise duty as at 31st March, 2001 which are
outstanding for a period of more than six months from the date they
become payable. Provision for Gratuity have been made looking into upto
date liability.
20. The Company is not sick industrial Company within the meaning of
Clause of (o) of sub- Section (1) of Section 3 of sick industrial
Companies (Special provisions) Act, 1985.
21. In respect of the trading activities of the Company there were no
damaged goods during the year.
For Kamal Kishore & Co.
Chartered Accountants
Kamal Kishore Srivastava
Partner
Place: Varanasi.
Date : 10/03/2003
Mar 31, 2000
We have audited the attached Balance Sheet of Banaras Beads Limited, as
at March, 31st 2000 and also the profit and Loss Account of the Company
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 statement
based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on 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.
1. As required by the Manufacturing and other Companies (Auditors
Report) Order, 1998 issued by the Central Government in terms of Sec.
227(4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
2. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best our knowledge and belief were necessary for the purpose of 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 and Profit and Loss Account deals with by this
report are in agreement with the books of account (in view of i) and
ii) given in clause 2b above.
d) In our opinion, the Profit and Loss Account and Balance Sheet deals
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis written representations received from the directors as
on 31st March, 2000, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2000, from being appointed as a director in terms of clause(g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f) Subject to point Explained in item No. 1,2,3, 6, 7,9 & 17 of Notes
of Accounts : In our opinionand to the best of our knowledge and
according to the explanations given to us, the said accounts read
together with other 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 :-
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March,2000; and
ii) in the case of the Profit and Loss Account, of the Company for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT BANARAS BEADS LTD,
Statement referred to in paragraph (1) of our report of even date on
the Accounts for the year ended 31st March, 2000.
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. As per
the information and explanations given to us, the Company has a system
of physical verification of all its fixed assets at reasonable
intervals. Most of the fixed assets have been physically verified by
the management during the year. In our opinion, the frequency of
verification of fixed assets by the management is reasonable having
regard to the size of the Company and the nature of its business. As
explained to us, no material discrepancies were noticed on such
verification.
2. None of the fixed assets have been revalued during the year.
3. The stocks of finished goods, stores, spare parts and raw materials
lying at its location have been physically verified by the Management
at reasonable intervals. The stock is possession of third parties have
been verified by the management at reasonable intervals,
4. The procedures for physical verification of stocks followed by the
Management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
5. The discrepancies noticed on verification between the physical
stock and the book records were not materials and the same have been
properly dealt with in the books of account.
6. On the basis of our examination of Stock records, we are of the
opinion that the valuation of stock is fair and proper in accordance
with the normally accepted accounting principles and is on the same
basis as in the preceding year.
7. The Company has not taken any loan from Companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 or from the Companies under the same management as
defined under Sec. 370(1B) of the Companies Act. 1956. In terms of
sub-section (6) of Section 370 of the Companies Act, 1956, provision of
the Section is not applicable to a company on or after 31st October,
1998.
8. The Company has granted loans to Companies, firms or other parties
listed in the register maintained under 301 of the Companies Act, 1956
and to tire Companies under the same management as defined under
Section 370 of the Companies Act, 1956. The Company has not charged
interest on such loans. However in terms of sub-section (6) of Section
370 of the Companies Act, 1956, provision of the Section is not
applicable to a company on or after 31st October, 1998.
9. In respect of loans and advances in the nature of. Loans given by
the Company, parties have repaid the principal amount and interest
subject to some slickly accounts.
10. In our opinion and according to the information and explanations
given to us, there is need for improvement for 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 for the sale of goods.
11. In our opinion and according to the information and explanations
given to us, the transaction of purchase of goods and materials and
sale of goods, material and service made in purchase of contracts of
arrangements entered in the register maintained under 301 of the
Companies Act, 1956 and aggregating during the year to Rs. 50,000 or
more in respect of each party have been made at prices which are
reasonable having regard to prevailing market prices for such goods
material or services or the prices at which transaction for similar
goods material or services have been made with other parties.
12. As explained to us the Company has a regular procedure for the
determination of unserviceable or damaged store, raw materials and
finished goods adequate provision have been made in the books of
account in respect of the items so determined.
13. The Company has not accepted any deposit from the public to which
the provisions of Section 58A of the Companies Act, 956 and the rules
made there under would apply.
14. In our opinion reasonable records have been maintained by the
Company for the sale and disposal of realizable by products and scrap.
15. In our opinion the Company requires improvement in internal audit
system commensurate with the size and nature of its business.
16. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Section 209(l)(d) of the
Companies Act, 1956 in respect of Companys roducts.
17. According to the records of the Company, Provident Fund and
Employees State Insurance dues, where applicable, have been regularly
deposited during the year with the appreciate authorities.
18. According to the information and explanations given to us no
personal expenses have been charged to revenue account other than those
payable under Contractual obligation or in accordance with generally
accepted business practices.
19. According to the information and explanations given to us there
were no undisputed amount payable in respect of Income tax, Wealth tax,
Sale tax, Customs duty and excise duty as at 31st March, 2000 which are
outstanding for a period of more than six months from the date they
become payable. Provision for Gratuity have been made looking into upto
date liability.
20. The Company is not sick industrial Company within the meaning of
Clause of (o) of sub-Section (1) of Section 3 of sick industrial
Companies (Special provisions) Act, 1985.
21. In respect of the trading activities of the Company there were no
damaged goods during the year.
For Kamal Kishore & Co.
Chartered Accountants
(Kamal Kishore Srivastava)
Partner
Place: Varanasi.
Date : 10/03/2003