Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT To the Members of Barak Valley Cements Limited,
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Barak Valley Cements Limited (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 Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements:
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,2013 (''''the Act'''') with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules,2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of the appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. 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 and the Order issued under section 143(11) of the Act.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the company''s preparation of the 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 Company''s management, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2018, its profit including other comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Emphasis of Matter
The comparative financial information of the company for the year ended March 31,2018 and the transition date opening Balance Sheet as at April 1, 2016 included in these Standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor, Kumar Vijay Gupta & Co., as adjusted for the differences in the accounting principles adopted by the company on transition to the Ind AS, which have been audited by us.
Report on other Legal & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure ''A'' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which, to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Standalone Balance Sheet, Statement of Profit and Loss including other comprehensive income, Statement of changes in Equity and the Cash Flows Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in ''Annexure B''. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters included in the Auditor''s report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 and to best of our information and according to the explanation given to us.
(i) The company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements- Refer Note 36 to the financial statements.
(ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company during the year ended March 31, 2018.
The Annexure referred to in Paragraph (1) under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report for the year ended 31st March 2018:
1. In respect of the Company''s Property, plant and equipment:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, plant and equipment.
(b) The Property, plant and equipment of the company are physically verified by the management according to a phased programme on a rotational basis, which in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such verification.
(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. The inventories, except goods in transit and material lying with third parties, which have been substantially confirmed by them, has been physically verified during the year by the management of the company. In our opinion, the frequency of verification is reasonable and no material discrepancies were observed.
3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. So, the provisions of paragraph 3(iii) are not applicable to the company.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loan and investments made.
5. The company has not accepted any deposits within the meaning of Sections 73 to 76 of the Companies Act and the Companies (Acceptance of Deposits) Rules, 2014, as amended. Accordingly, the provisions of the clause 3 (v) of the Order are not applicable to the company.
6. We have broadly reviewed the accounts and records maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and are of the opinion that, prima facie the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of the said records with a view to determine that they are accurate or complete.
7. (a) The company has generally been regular in depositing undisputed statutory dues including provident fund, income-tax, sales -tax, wealth tax, service tax, value added tax, goods and service tax, excise duty, cess and other material statutory dues applicable to it, with the appropriate authorities. According to the information and explanations given to us, there was no arrears of statutory dues as at 31st MarchRs, 2018 except for a sum of Rs.11,76,620/- on account of Cess on cement for a period of more than six months from the date it became payable.
(b) According to the information and explanations given to us, the particulars of disputed taxes and duties as at March 31,2018 which have not been deposited with the appropriate authorities, are as under:
Name of the Statute |
Nature of Dues |
Amount (Rs. In Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Assam Entry Tax Act, 2008 |
Entry -Tax demand |
90.79 |
2005 -06 to 2008 -09 |
Appellate Authority, Guwahati. |
8. Based on our audit procedures and as per the information and explanation given to us by the management, the company has not defaulted in repayment of loans or borrowings from financial institutions or banks. The company has not issued any debentures.
9. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanations given by the management, monies raised by way of term loans were applied for the purpose for which they were raised.
10. According to the information and explanations given to us, and based upon the audit procedures performed during the year, we report that no material fraud by the company or on the company by its officers or employees has been noticed or reported during the year.
11. In our opinion and according to the information and explanations given to us, managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act, 2013.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Companies Act, 2013 where applicable and details of such transactions have been disclosed in the financial statements, as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully / partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him as referred to in section 192 of the Companies Act, 2013. Accordingly, paragraph 3 (xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Barak Valley Cements Limited (âthe Companyâ) as of 31 March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility _ for Internal Financial Controls
The Company''s 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 (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) issued by the ICAI and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For P.K. Lakhani & Co.,
Chartered Accountants
Firm Registration No. 014682-N
(CA. Anjali Yadav)
Partner
M. No. 519203
Place: Gurgaon
Date: 01st June, 2018
Mar 31, 2016
To the Members of Barak Valley Cements Limited,
Report on the Financial Statements
We have audited the accompanying standalone financial statements of BARAK VALLEY CEMENTS LIMITED (''the Company''), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements:
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,2013 (''''the Act'''') with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of the of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement , whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into accounts the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by Company''s 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 on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2016;
(ii) In the case of the Statement of Profit and Loss, of the Loss of the company for the year ended on that date; and
(iii) In the case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.
Emphasis of Matter
We draw attention to Note 40 to the financial statements which states that the operations of the ''Badarpur Energy Pvt. Ltd.'' (Wholly owned subsidiary company of Barak Valley Cements Ltd.) was discontinued since July 2014 due to non availability of required quality and quantity of biomass and still it is lying stopped. In this regard, No provision for diminution in value of investments amounting to Rs. 31.77 Crores in Badarpur Energy Pvt. Ltd. (wholly owned subsidiary) has been made as the management of the company is confident that operations in the subsidiary company will continue in future and there is no permanent decline in value of investment in subsidiary. Impact is presently not ascertainable and as such cannot be commented upon by us. Our opinion is not qualified in respect of this manner.
Report on other Legal & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure ''A'' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules ,2014 ;
e) On the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in ''Annexure B''
g) With respect to the other matters included in the Auditor''s report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 and to best of our information and according to the explanation given to us.
(i) The company has disclosed the impact of pending litigations on its financial position in its financial statement.
(ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the company.
Annexure "A" to the Independent Auditors'' Report The Annexure referred to in Paragraph (1) under the heading of "Report on Other Legal and Regulatory Requirements" of our report for the year ended 31st March 2016.
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets of the company have been physically verified by the management according to a phased programme on a rotational basis, which in our opinion is reasonable having regard to the size of the company and nature of its fixed assets. 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. The inventories have been physically verified during the year by the management of the company at reasonable intervals and no material discrepancies were noticed on physical verification.
3. The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. So, the provisions of paragraph 3(iii) are not applicable.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans, investments, guarantees and security provided.
5. According to the information and explanations given to us, the company has not accepted any deposit covered under sections 73 to 76 of the Companies Act and the rules framed there under with regard to the deposits accepted from public during the year.
6. We have broadly reviewed the accounts and records maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of the said records.
7. (a) The company is generally regular in depositing undisputed statutory dues including provident fund, income-tax, sales -tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues applicable to it, with the appropriate authorities. There were no arrears of statutory dues as at 31st March'' 2016 except for a sum of Rs.10,60,140/ - on account of Cess on cement for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the particulars of disputed taxes and duties as at March 31,2016 which have not been deposited with the appropriate authorities, are as under:
Name of the Statute |
Nature of Dues |
Amount (Rs. In Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income - Tax Act, 1961. Assam Entry Tax Act, 2008 |
Inc o m e- Ta x dem and Entry - Tax demand |
169.13 90.79 |
A. Yr. 2007-08 to 2011- 12 2005 -06 to 2008 -09 |
Ist Appellate Authority, Kolkata. Appellate Authority, Guwahati. |
8. According to the information and explanation given to us by the management, the company has defaulted in repayment of dues to financial institutions or banks or debenture holders as under :
(i) Working Capital Term Loan dues of IDBI Bank Ltd.,Guwahati : Rs. 69,55,263/- (for the period from January''16 to March'' 16)
(ii) Term Loan dues of NEDFi, Guwahati : Rs. 1,14,03,589/- (for the period from January'' 16 to March'' 16)
9. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanations given by the management, monies raised by way of term loans were applied for the purpose for which they were raised.
10. According to the information and explanations given to us, and based upon the audit procedures performed during the year, we report that no fraud, on or by the Company has been noticed or reported during the year.
11. In our opinion and according to the information and explanations given to us, managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act 2013.
12. The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 19 34.
Annexure - B to the Auditors'' Report Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Barak Valley Cements Limited ("the Company") as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 ('' ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") issued by the ICAI and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Kumar Vijay Gupta & Co.,
Chartered Accountants
Firm Registration No. 007814-N
Sd/-
(CA. Mahesh Goel)
Place: New Delhi Partner
Date: 30th May, 2016 M. No. 088958
Mar 31, 2015
We have audited the accompanying standalone financial statements of
BARAK VALLEY CEMENTS LIMITED ('the Company'), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act,2013 (''the Act'') with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
company and for preventing and detecting frauds and other
irregularities; selection and application of the of appropriate
accounting policies; making judgements and estimates that are
reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement , whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into accounts
the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operative
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company's 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 on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2015;
(ii) In the case of the Statement of Profit and Loss, of the Profit of
the company for the year ended on that date; and
(iii) In the case of Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Report on other Legal & Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order")as amended, issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting standards specified under section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014 ;
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164 (2) of the Act;
f) With respect to the other matters included in the Auditor's report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014 and to best of our information and according to the explanation
given to us.
(i) The company has disclosed the impact of pending litigations on its
financial position in its financial statement.
(ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the company.
The Annexure referred to in Paragraph (1) under the heading of "Report
on Other Legal and Regulatory Requirements" of our report for the year
ended 31st March 2015.
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets. (b) The fixed assets of the company are physically verified by
management according to a phased programme on a rotational basis, which
in our opinion is reasonable having regard to the size of the company
and nature of its fixed assets. No material discrepancies were noticed
on such verification.
2. (a) The inventories have been physically verified during the year
by the management of the company. In our opinion, the frequency of
verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of inventory
as compared to book records.
3. The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. So, the provisions of
paragraph 3(iii) are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of Inventories and fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuous failure to correct major weaknesses in these internal
controls.
5. On the basis of our examination of books and records of the
company, in our opinion and according to the information and
explanations given to us, the company has not accepted any deposits
from public during the year and therefore the directives issued by the
Reserve Bank of India and the provisions of Section 73 to 76 or other
relevant provisions of the Companies Act and the rules framed there
under are not applicable to the company.
6. We have broadly reviewed the accounts and records maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Act and are of
the opinion that prima facie the prescribed accounts and records have
been made and maintained. However, we have not made any detailed
examination of the said records.
7. (a) The company is generally regular in depositing undisputed
statutory dues including provident fund, income-tax, sales  tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax, cess and other statutory dues applicable to it, with the
appropriate authorities. There were no arrears of statutory dues as at
31st March' 2015 except for a sum of Rs.10,60,140/- on account of Cess
on cement for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, the
particulars of disputed taxes and duties as at March 31,2015 which have
not been deposited with the appropriate authorities, are as under:
(Rs, in Lakhs)
Name of the
Statute Nature of Dues Amount Period to which Forum where
(Rs, in
Lakhs) amount relates dispute is
pending
Income Â
Tax Act,
1961 Income-Tax
demand 169.13 A.Yr. 2007-08 to Commissioner
2011-12 of I. Tax
(Appeals),
Kolkata.
Assam
Entry
Tax Act, Entry-Tax
2008 demand 90.79 2005-06 to
2008-09 Commissioner
Taxes, Assam.
(c) According to the information and explanations given to us, there is
no such amount which is required to be transferred to the Investor
education and protection fund in accordance with the relevant
provisions of the companies Act, 2013 and rules made there under.
8. The company has no accumulated losses at the end of the financial
year under report. It has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
9. Based on our audit procedures and as per the information and
explanation given by the management, the company has not defaulted in
repayment of dues to financial institutions or banks. The company has
not issued any debentures.
10. In our opinion and on the basis of information and explanations
given to us, the terms and conditions of guarantee given by the company
for from loan taken from banks by its subsidiaries, are not prima facie
prejudicial to the interest of the company.
11. In our opinion and on the basis of information and the explanation
given to us, the term loans were applied for the purpose for which the
loans were raised.
12. According to the information and explanations given to us, and
based upon the audit procedures performed during the year, we report
that no fraud, on or by the Company has been noticed or reported during
the year.
For Kumar Vijay Gupta & Co.,
Chartered Accountants
Firm Registration No. 007814-N
Sd/-
(CA. Mahesh Goel)
Place : New Delhi Partner
Date : 30th May, 2015 M. No. 088958
Mar 31, 2014
We have audited the accompanying financial statements of Barak Valley
Cements Limited ("the Company"), which comprises the Balance Sheet as
at March 31,2014, the Statement of Profit and Loss and Cash Flow
Statement for the year ended and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on the effectiveness of the Company''s internal control. An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Profit and Loss Account, of the Loss for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Act read with the General Circular No. 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors
as on 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 "A" TO THE AUDITOR''S REPORT
Re: Barak Valley Cements Ltd.
Annexure ''A'' referred to in paragraph 1 of our report of even date:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have not been physically verified by the
management during the year, but there is a regular programme of
verification which, in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
(iii) (a) According to the information and explanations given to us,
the company has not granted any loans, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) of the Order are not applicable.
(b) According to the information and explanations given to us, the
company has not taken any loans, secured or unsecured from Companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly sub clause (f) and (g) of
the Order are not applicable.
(iv) In our opinion and according to information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the company and the nature of its business, with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of rupees Five Lakhs in respect of each party
during the year have been made at prices which are reasonable having
regard to prevailing market price at the relevant time.
(vi) The Company has not accepted any deposits from the public to which
the directions issued by the Reserve Bank of India and the provisions
of Section 58A and 58AA of the Act and the rules framed there under
apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the company and nature of its business.
(viii) We have broadly reviewed the accounts and records maintained by
the company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(1)(d) of the
Companies Act,1956. We are of the opinion that prima facie the
prescribed accounts and records have been made and maintained.
(ix) (a) According to the records of the Company, the company is
generally regular in depositing undisputed statutory dues including
provident fund, investor education and protection fund, income tax,
service tax , excise duty/ cess and any other material statutory dues
applicable to it, with the appropriate authorities. There were no
arrears of statutory dues as at 31st March, 2014 except for a sum of
Rs. 9,90,734/- on account of Cess on Cement for a period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, details
of disputed statutory dues, which have not been fully deposited with
the appropriate authorities, are as under:
(Rs. in Lakhs)
Name of the Statute Nature of Dues Amount
(Rs. in Lakhs)
Income -Tax Act, 1961 Income-Tax Demand 286.63
Assam Entry Tax Act, Entry-Tax Demands 122.56
2008
(Rs. in Lakhs)
Name of the Statute Period to which Forum where
amount relates dispute is pending
Income -Tax Act, 1961 Assessment Year ITAT, Guwahati.
2009-10
Assam Entry Tax Act, 2005-06 to 2008-09 Commissioner of
2008 Taxes, Assam.
(x) The Company does not have accumulated losses at the end of the
financial year under report. The company has not incurred cash losses
during the financial year covered by our audit or in the immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) Based on our examination of the records and 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
(xv) In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
(xvi) According to the information and explanations given to us by the
management, term loans were applied for the purpose for which they were
raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to information and explanations given to us, the
company has not issued Debentures during the period covered by our
report. As such, no securities or charge has been created in respect of
such issue.
(xx) According to the information and explanations given to us, the
company has not raised money by public issues during the year. As such,
reporting on this clause does not arise.
(xxi) According to information and explanations given to us, and based
upon the audit procedures performed during the year, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For Kumar Vijay Gupta & Co.
Chartered Accountants,
Sd/-
(CA. Mahesh Goel)
Date : 30.05.2014 Partner
Place: New Delhi M No.088958
Firm Regn. No. 007814-N
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Barak Valley
Cements 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''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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss Account, of the
Loss for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE "A" TO THE AUDITOR''S REPORT
Re: Barak Valley Cements Ltd. Â
Annexure ''A'' referred to in paragraph 1 of our report of even date:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have not been physically verified by the
management during the year, but there is a regular programme of
verification which, in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
(iii) (a) According to the information and explanations given to us,
the company has not granted any loans, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Compa- nies Act, 1956. Accordingly sub clause
(b), (c) and (d) of the Order are not applicable. (b) According to the
information and explanations given to us, the company has not taken any
loans, secured or unsecured from Companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly sub clause (f) and (g) of the Order are not
applicable.
(iv) In our opinion and according to information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the company and the nature of its business, with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered. (b) According to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to prevailing market price at the relevant
time.
(vi) The Company has not accepted any deposits from the public to which
the directions issued by the Reserve Bank of India and the provisions
of Section 58A and 58AA of the Act and the rules framed there under
apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the company and nature of its business.
(viii) We have broadly reviewed the accounts and records maintained by
the company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(1)(d) of the
Companies Act,1956. We are of the opinion that prima facie the
prescribed accounts and records have been made and maintained.
(ix) (a) According to the records of the Company, the company is
generally regular in depositing undisputed statutory dues including
provident fund, investor education and protection fund, income tax,
service tax, excise duty/ cess and any other material statutory dues
applicable to it, with the appropriate authorities. There were no
arrears of statutory dues as at 31st March, 2013 except for a sum of
Rs. 2,34,977/- on account of Service Tax and Rs. 8,57,485/- on account
of Cess on Cement for a period of more than six months from the date
they became payable. (b) According to the information and explanations
given to us, details of disputed statutory dues, which have not been
fully deposited with the appropriate authorities, are as under:
(Rs. in Lakhs)
Name of the
Statute Nature of Dues Amount Period to
which amount Forum where
(Rs. in
Lakhs relates dispute is
pending
Income-Tax
Act, 1961 Income-Tax
Demand 356.69 Assessment
Year 2005-06 ITAT,
Guwahati.
Income- Tax
Act, 1961 Income-Tax
Demand 262.88 Assessment
Year 2006-07 ITAT,
Guwahati.
Income -Tax
Act, 1961 Income-Tax
Demand 286.63 Assessment
Year 2009-10 ITAT,
Guwahati.
Assam Entry
Tax Act,
2008 Entry-Tax
Demand 122.56 2005-06 to
2008-09 Commiss
ioner of
Taxes,
Assam.
(x) The Company does not have accumulated losses at the end of the
financial year under report. The company has not incurred cash losses
during the financial year covered by our audit but has incurred cash
loss amounting to Rs. 1,61,68,505/ - during the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) Based on our examination of the records and 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
(xv) In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
(xvi) According to the information and explanations given to us by the
management, term loans were applied for the purpose for which they were
raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to information and explanations given to us, the
company has not issued Debentures during the period covered by our
report. As such, no securities or charge has been created in respect of
such issue.
(xx) According to the information and explanations given to us, the
company has not raised money by public issues during the year. As such,
reporting on this clause does not arise.
(xxi) According to information and explanations given to us, and based
upon the audit procedures performed during the year, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For Kumar Vijay Gupta & Co.,
Chartered Accountants,
Sd/-
(CA. Mahesh Goel)
Partner
M.No. 88958
Firm Regn. No. : 007814 -N
New Delhi, 29th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. BARAK VALLEY
CEMENTS LIMITED as at 31st March, 2012, the Statement of Profit and
Loss and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these financial statements based on our Audit.
2. We have conducted our audit in accordance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements. 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 the significant estimates
made by management, as well as evaluating the overall presentation of
the financial statement. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto a statement marked as Annexure 'A'
on the matters specified in Paragraph 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit & Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet, statement of Profit and Loss
and the Cash Flow statement dealt with by this report comply with the
Accounting Standards as referred to in Section 211(3C) of the Companies
Act, 1956 ;
(v) On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the Directors is disqualified as on 31st March, 2012 from
being appointed as a Director in terms of section 274(1)(g) of the
Companies Act, 1956;
(vi) 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 Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(b) In the case of the Profit & Loss Account, of the Loss of the
Company for the year ended on that date, and
(c) In the case of Cash Flow Statement, of the Cash flows of the
company for the year ended on that date.
Annexure "A" to the Auditors' Report
Re: Barak Valley Cements Ltd.
Annexure 'A' referred to in paragraph 3 of our report of even date:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have not been physically verified by the
management during the year, but there is a regular programme of
verification which, in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory.
Discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of accounts.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) of the Order are not applicable.
(b) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured from Companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly sub clause (f) and (g) of
the Order are not applicable.
(iv) In our opinion and according to information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the company and the nature of its business, with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of rupees Five Lakhs in respect of each party
during the year have been made at prices which are reasonable having
regard to prevailing market price at the relevant time.
(vi) The Company has not accepted any deposits from the public to which
the directions issued by the Reserve Bank of India and the provisions
of Section 58A and 58AA of the Act and the rules framed there under
apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the company and nature of its business.
(viii) We have broadly reviewed the accounts and records maintained by
the company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(1)(d) of the
Companies Act,1956. We are of the opinion that prima facie the
prescribed accounts and records have been made and maintained.
(ix) (a) According to the records of the Company, the company is
regular in depositing undisputed statutory dues including provident
fund, investor education and protection fund, income tax, service tax ,
excise duty/cess and any other material statutory dues applicable to
it, with the appropriate authorities. There were no arrears of
statutory dues as at 31st March, 2012 except for a sum of Rs.
10,87,184/- on account of Cess on Cement for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, details
of disputed statutory dues, which have not been fully deposited with
the appropriate authorities, are as under:
Name of the
Statute Nature of
Dues Amount Period to
which Forum where
(Rs. in
Lakhs) amount
relates dispute is
pending
Income-Tax
Act, 1961 Income-Tax
Demand 356.69 Assessment
Year ITAT,
2005-06 Guwahati
Bench.
Income-Tax
Act, 1961 Income-Tax
Demand 262.88 Assessment
Year ITAT,
2006-07 Guwahati
Bench.
Income-Tax
Act, 1961 Income-Tax
Demand 286.63 Assessment
Year CIT (A),
2009-10 Guwahati.
(x) The Company has no accumulated losses as at the end of the
financial year under report. The company has incurred cash loss
amounting to Rs. 1,61,68,505/- during the financial year covered by our
audit but has not incurred any cash loss in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) Based on our examination of the records and 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
(xv) In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
(xvi) According to the information and explanations given to us by the
management, term loans were applied for the purpose for which they were
raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to information and explanations given to us, the
company has not issued Debentures during the period covered by our
report. As such, no securities or charge has been created in respect of
such issue.
(xx) According to the information and explanations given to us, the
company has not raised money by public issues during the year. As
such, reporting on this clause does not arise.
(xxi) According to information and explanations given to us, and based
upon the audit procedures performed during the year, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For Kumar Vijay Gupta & Co.
Chartered Accountants
Sd/-
(CA. Mahesh Goel)
New Delhi, 30th May, 2012 Partner
M. No. 88958
Firm Regn. No. : 007814-N
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/S. BARAK VALLEY
CEMENTS LIMITED as at 31st March'2011, the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these financial statements based on our Audit.
2. We have conducted our audit in accordance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by management, as well as evaluating the overall presentation of
the financial statement. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto a statement marked as Annexure 'A'
on the matters specified in Paragraph 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which, to
the best of our knowledge and belief were necessary
for the purposes of our audit;
(ii) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as appears from our examination of the
books ;
(iii) The Balance Sheet, Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and the
Cash Flow statement dealt with by this report comply with the
Accounting Standards as referred to in Section 211(3C) of the Companies
Act, 1956 ;
(v) On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the Directors is disqualified as on 31st March, 2011 from
being appointed as a Director in terms of section 274(1)(g) of the
Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Notes on Accounts and Accounting Policies, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(b) In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date and
(c) In the case of Cash Flow Statement, of the Cash flows of the
company for the year ended on that date.
Annexure "A" to the Auditors' Report
Re: Barak Valley Cements Ltd.
Annexure `A' referred to in paragraph 3 of our report of even date:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have not been physically verified by the
management during the year, but there is a regular programme of
verification which, in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, no substantial part of fixed assets was disposed
off.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and has been properly dealt with in
the books of account.
(iii) (a) As informed, the Company has not granted any loans, secured
or unsecured to Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly sub clause (b), (c) and (d) are not applicable.
(b) As informed, the Company has not taken any loans, secured or
unsecured from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly sub clause (f) and (g) are not applicable.
(iv) In our opinion and according to information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchase of inventory, fixed assets and sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal control system in respect of these areas.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value of rupees Five Lakhs in respect of each party
during the year have been made at prices which are reasonable having
regard to prevailing market price at the relevant time.
(vi) The Company has not accepted any deposits from the public to which
the directions issued by the Reserve Bank of India and the provisions
of Section 58A and 58AA of the Act and the rules framed there under
apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the company and nature of its business.
(viii) We have broadly reviewed the accounts and records maintained by
the company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(1)(d) of the
Companies Act,1956. We are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the same.
(ix) (a) According to the records of the Company, the company is
regular in depositing undisputed statutory dues including provident
fund, investor education and protection fund, income tax, service tax ,
excise duty/ cess and any other material statutory dues applicable to
it, with the appropriate authorities. There were no arrears of
statutory dues as at 31st March, 2011 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, details
of disputed statutory dues, which have not been fully deposited with
the appropriate authorities, are as under:
Name of the Nature of Dues Amount Period to Forum where
Statue (Rs. in which amount dispute is
lacs relates pending
Income Tax Income-Tax Demand 361.69 Assesment Year ITAT,
Act, 1961 2005-06 Guwahati
Bench
Income Tax Income-Tax Demand 262.88 Assesment Year ITAT,
Act, 1961 2006-07 Guwahati
Bench
(x) The Company does not have any accumulated losses as at the end of
the financial year under report. The company has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) Based on our examination of the records and 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
(xv) In our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the company.
(xvi) According to information and explanations given to us, the
company had been sanctioned term loan of Rs.20.00 Crores from IDBI Bank
Limited for modernization and increasing the clinker manufacturing
capacity to 700TPD and cement manufacturing capacity to 850 TPD. It was
observed that out of this loan, Rs.12.00 Crores was used for said
expansion and modernization project and rest of term loan disbursement
of Rs.8.00 Crores, the company utilized towards other business
investments in the subsidiary companies
(xvii) According to information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
(xviii) According to information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to information and explanations given to us, the
company has not issued Debentures during the period covered by our
report. As such, no securities or charge has been created in respect of
such issue.
(xx) According to the information and explanations given to us, the
company has not raised money by public issues during the year. As
such, reporting on this clause does not arise.
(xxi) According to information and explanations given to us, and based
upon the audit procedures performed during the year, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Kumar Vijay Gupta & Co.
Chartered Accountants
Sd/-
(CA. Mahesh Goel)
Partner
M. No. 88958
Firm Regn. No. : 007814-N
Kolkata, 28th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/S. BARAK VALLEY
CEMENTS LIMITED as at 31 st March2010, the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys Management. Our responsibility is to express an opinion on
these financial statements based on our Audit.
2. We have conducted our audit in accordance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
ossessing the accounting principles used and the significant estimates
made by management, as well as evaluating the overall presentation of
the financial statement. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto a statement marked as Annexure A
on the matters specified in Paragraph 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which, to
the best of our knowledge and belief were necessary
for the purposes of our audit;
(ii) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as appears from our examination of the
books ;
(iii) The Balance Sheet, Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(iv) in our opinion, the Balance Sheet, Profit and Loss Account and the
Cash Flow statement dealt with by this report comply with the
Accounting Standards as referred to in Section 211 (3C) of the
Companies Act, 1956 ;
(y) On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the Directors is disqualified os on 31st March, 2010 from
being appointed as a Director in terms of section 274(1 )(g) of the
Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
Notes on Accounts and Accounting Policies, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(b) In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date and
(c) In the case of Cash Flow Statement, of 1he Cash flows of the
company for the year ended on that date.
Annexure "A" to the Auditors Report Re: Barak Valley Cements Ltd.
Annexure A referred to in paragraph 3 of our report of even date:
(i) (a) The Company has maintained proper records showing full
particulars including qualitative details and situation of fixed
assets.
(b) All the fixed assets have not been physically verified by the
management during the year, but there is a regular programme of
verification which, in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, no substantial part of fixed assets was disposed
off.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) In our opinion and according to information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and has been properly dealt with
in the books of account.
(iii) (a) As informed, the Company has not granted any loans, secured
or unsecured to Companies, firms or other parties covered in Ihe
register maintained under Section 301 of the Companies Act, 1956.
Accordingly sub clause (b), (c) and (d} are not applicable. , .
(b) As informed, the Company has not taken any loans, secured or
unsecured from Companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Ad, 1956.
Accordingly sub clause (f) and (g) are not applicable.
(iv) In our opinion and according to information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchase of inventory, fixed assets and sale of goods and services.
During the course of our oudii, no major weakness has been noticed in
the internal control system in respect of these areas.
(v) (a) According to the information and explanations given to us, we
are of the opinion thatthe transactions that need to be entered in the
register maintained under section 301 of the Companies Ad, 1956 have
been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding ihe value of rupees Five Lakhs in respect of each party
during the year have been made at prices which are reasonable having
regard to prevailing market price at the relevant time.
(vi) The Company has not accepted any deposits from the public to which
the directions issued by the Reserve Bank of India and the provisions
of Section 5BA and 58AA of the Act and the rules framed there under
apply.
(vii) In our opinion, the Company has on internal audit system
commensurate with the size of the company and nature of its business.
(viii) We have broadly reviewed the accounts and records maintained by
the company pursuant to the rules made by the Central Government for
the maintenance of cost records under section 209(l)(d) of the
Companies Act,1956. We are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the same.
(ix) (a) According to the records of the Company, the company is
regular in depositing undisputed statutory dues including , provident
fund, investor education and protection fund, income tax, service tax,
excise duty/ cess and any other material statutory dues applicable to
it, with the appropriate authorities. There were no arrears of
statutory dues as at 31st March, 2010,for a period of more than six
months from the date they become payable.
(b) According to the information and explanations given to us, details
of disputed statutory dues, which have not heen fully deposited with
the appropriate authorities, are as under;
Name of the Statute Nature of Dues Amount Period to which
(Rs. in Lakhs) amount relates
Income Tax Act, 1961 Income-Tax Demand 282.55 Assesment Year
2005-06
Income Tax Act, 1961 Income-Tax Demand 274.32 Assesment Year
2006-07
Name of the Statute Forum where
dispute is pending
Income Tax Act, 1961 ITAT, Guwohati
Bench
Income Tax Act, 1961 ITAT, Guwahati
Bench
(x) The Company does not hove any accumulated Josses os at the end of
the financial year under report. The company has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) Based on our examination of the records and 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.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/ society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditors Report) Order, 2003 ore not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shores, securities,
debentures and other investments. Therefore, the provisions of clause 4
(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(xv) tn our opinion, the terms and conditions on which the company has
given guarantees for loans taken by others from banks or financial
institutions ore not prejudicial to the interest of the company.
(xvi) According to information and explanations given to us, the term
loans have been applied for the purpose for which they were raised.
(xvii) According to information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
(xviii) According to information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to information and explanations given to us, the
company has not issued Debentures during the period covered by our
report. As such, no securities or charge has been created in respect of
such issue.
(xx) According to the information and explanations given to us, the
company has not raised money by public issues during the year. As
such, reporting on this clause does not arise.
(xxi) According to information and explanations given to us, and based
upon the audit procedures performed during the year, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Kumar Vijay Gupta & Co.
Chartered Accountants
Sd/-
(CA. Mahesh Goel)
Kolkata, 26th May, 2010 Partner
M. No. 88958
Firm Regn. No. : 007814-N
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