Mar 31, 2015
We have audited the accompanying financial statements of Birla TranAsia
Carpets Limited ("the Company"), which comprises the Balance Sheet as
at 31st March 2015, 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.
Managements Responsibility for the financial statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flow 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Basis of Qualified Opinion
1. Attention is invited to Note 6 on Long Term Provisions. Accounting
Standard (AS) 15 - Employee Benefits (Revised 2005) requires the
provisioning of retirement benefits based on actuarial valuation of
retirement benefits and additional disclosures as required in terms of
AS-15. The management has made the provisions based on their own
estimates.
2. Note No. 5 and 7 of Notes to Financial Statements with regard to
non-provision of interest on Inter Corporate Loans, (amount
unascertained) and PICUP loans (amounting to Rs 2,67,34,127/- up to
31st March, 2013 and interest amount uncertain from 1st April 2013 to
31st March 2015) resulting into understatement of loss for the year.
Similarly non-accounting of interest liability resulting in to
understatement of current liabilities as on 31-03-2015 to the same
extent.
3. Sundry Debtors/Creditors, unsecured loan and advances have been
considered as good for recovery/payable by the management. Also are
subject to confirmation and reconciliation. A detailed analysis of
actual recoverability/payable which is overdue according to normal
operating cycle of the company should be quantified and necessary
provision need to be made. The non creation of provision for debts and
interest are resulted into under/over statement of balances and loss.
(Also Refer Notes on 5, 7, 8, 9, 11, 14, 16 and 28 to Financial
Statements).
4. No provision has been made for contingent liabilities as defined
under AS 29 are summarized in Note No. 25 to Notes to Financial
Statements.
Qualified Opinion
In our opinion and to the best of our knowledge and according to the
information and explanations given to us, except for the effects of the
matters described in paragraphs 1 to 4 of the Basis for Qualified
Opinion paragraph, the said 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, 2015,
b. In the case of Statement of Profit and Loss, of the loss for the
year ended on that date and
c. In the case of Cash Flow statement, of the cash flows for the year
ended on that date
Emphasis of Matter:
Attention is invited to regarding the financial statements being
prepared on a going concern basis, notwithstanding the fact that the
Company's net worth is eroded. Net worth as at March 31, 2015 is
negative Rs.39,89,08,950. The company has referred to BIFR on
04/11/1991. Although the final order has not been passed by the BIFR
and it is pending since long. The latest communication was dated
21/11/2013. These facts cast a significant doubt on the ability of the
Company to continue as a going concern as rescheduling of debt, Loans,
other liabilities and resuming normal operations. Our opinion is not
modified in this respect.
Report on other legal and regulatory requirements
1. As required by the Companies (Audit Report) Order, 2015 ('the Order)
issued by the Central Government of India in terms of sub-section (11)
of section 143 of Act, we give in the Annexure a statement on the
matters specified in the paragraph 3 & 4 of the order, to the extent
applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b. In our opinion, proper books of accounts 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 & 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 & Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards specified under section 133 of the Act; except for
the effects of matters described in the Basis for Qualified Opinion
paragraph
e. On the basis of written representations received from the
directors, we report that none of the directors is disqualified as on
31st March 2015, from being appointed as a director in terms of section
164(2) Act.
f. With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us -
i. As mentioned in the Basis for Qualified Opinion paragraph, The
Company has disclosed the pending litigations on its financial position
in its financial statements as contingent liability. However, no
provision has been made for contingent liabilities as defined under AS
29 are summarized in Note No. 25 to Notes to Financial Statements
pertaining to disputed liabilities.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts except for
pending litigation as mentioned in Point (i) above.
iii. There was no liability towards amount required to be transferred,
to the Investor Education and Protection Fund by the Company
Annexure to Audit Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31st March, 2015, we report that:
i. FIXED ASSETS
a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets;
b) As explained to us, the assets have been physically verified by the
management in accordance with a phased program of verification of its
fixed assets adopted by the Company which, in our opinion, is
reasonable, considering the size and the nature of its business. No
material discrepancies have been noticed on such physical verification;
ii. INVENTORY
a) As explained to us, inventories were physically verified during the
year by the management at reasonable intervals;
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were generally reasonable and adequate in
relation to the size of the company and the nature of its business;
c) In our opinion and according to the information and explanations
given to us and records produced before us, the company is maintaining
proper records of its inventories and no material discrepancy has been
observed by the management during the course of verification;
iii. LOANS AND ADVANCES GRANTED
The Company has not granted any Loans, Secured or Unsecured to
Companies, Firms or other parties covered under register maintained
under section 189 of the Act. Accordingly this clause is not applicable
to the Company
iv. INTERNAL CONTROL SYSTEM
In our opinion and according to the information and explanations given
to us, there is adequate internal control system commensurate with the
size of the Company and nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
However, in our opinion the company does not have an Internal Audit
System commensurate with the size & nature of the business resulting in
non compliance of Sec 138 of the Act.
v. ACCEPTANCE OF DEPOSITS
In our opinion and according to information and explanations given to
us, the company has not accepted any deposits from public during the
year. Hence the provisions of section 73 to 76 of the Companies Act,
2013 and the Companies (Acceptance of Deposits) Rules, 1975 are not
applicable to the company.
vi. COST RECORDS
The Central Government has not prescribed maintenance of cost records
under section 148 of the Companies Act, 2013 for any of the products of
the Company;
vii. STATUTORY DUES
a) According to the information and explanations given to us following
are the undisputed amounts of
Provident Fund, Excise Duty and Sales tax etc. payable as on 31st
March, 2015 and due for a period of
more than six months from the date they become payable and provided for
in the books of accounts:
Period for
Name of the Statute Nature of the Amount which the
dues (Rs.)* amount Due
relates
Excise 13,32,900 2003-04
Duty 2004-05
Central Excise Act, Interest 7,06,000 2003-04
1944 Interest 7,70,000 2004-05
Interest 4,56,718 2005-06
Interest 2,08,293 2006-07
Sales Tax Sales Tax 14,67,631 2004-05
Act,1975
Fringe Benefit Tax FBT 53,005 2006-07
FBT 1,31,438 2008-09
The Income Tax Act, TDS u/s 194J 1,59,932 2014-15
1961 TDS u/s 192 61,700 2014-15
Name of the Statute Due date Date of payment
31.03.2005 Not Paid
Central Excise Act, Up to 31.03.04 Not Paid
1944 Up to 31.03.05 Not Paid
Up to 31.03.06 Not Paid
Up to 31.03.07 Not Paid
Sales Tax 31.03.2005 Not Paid
Act,1975
Fringe Benefit Tax 31.03.200 Not Paid
15.12.2008 Not Paid
The Income Tax Act, 30.04.2015 Not Paid
1961 30.04.2015 Not Paid
* Above amounts are subject to interest on overdue and penalty.
b) According to the information and explanations given to us and as per
our verification of records of the company, the following disputed
amounts of tax not provided for in the accounts of the company has not
been deposited with appropriate authority as at 31st March,
2015:
Name of the Nature of Amount (Rs.) Period to which
Statute the Dues the amount relates
28,75,017 1998-99
9,545 2001-02
75,196 2004-05
14,53,367 2005-06
UP Sales Tax Sales Tax 8,59396 2556-97
5,04,180 2007-08
12,890 2009-10
71,419 2010-11
90,903 2011-12
1,14,038 1985-86
68,956 1990-91
1,09,656 1993-94
1,73,753 1994-95
39,004 1995-96
1,18,144 1996-97
Delhi Sales Tax sales tax 87,794 1997-98
Act, 1975 16,02,224 1998-99
25,66,329 1999-00
7,38,160 2000-01
1,22,840 2001-02
12,536 2002-03
1,22,840 2003-04
1,28,158 2004-05
Name of the Nature of Amount (Rs.) Forum where dispute
Statute the Dues is pending
28,75,017 Joint Commissioner
of Trade tax
(Appeal), Uttar
Pradesh.
9,545 Deputy Commissioner,
Uttar Pradesh
75,196 ÂDoÂ--
14,53,367 ÂDo---
UP Sales Tax Sales Tax 8,59396
5,04,180 ÂDo---
12,890 ÂDo---
71,419 ÂDo---
90,903 ÂDo---
Deputy Commissioner
of Sales tax
1,14,038 (Appeal), Delhi
68,956 ÂDoÂ--
1,09,656 ÂDoÂ--
1,73,753 ÂDo---
39,004 ÂDoÂ--
1,18,144 ÂDoÂ--
Delhi Sales Tax sales tax 87,794 ÂDoÂ--
Act, 1975 16,02,224 ÂDo---
25,66,329 ÂDo---
7,38,160 ÂDo---
1,22,840 ÂDo---
12,536 ÂDo---
1,22,840 ÂDo---
1,28,158 ÂDo---
Central Excise Act, 1944
i) One appeal filed at Appellate Tribunal, New Delhi on 06/10/2009 for
Rs. 17,25,392/- with interest from the date of payment till the refund
being granted. It is still pending before the adjusting authority.
ii) Contempt Petition filed against Excise Department at Allahabad High
Court against our refund of Rs. 17,25,392/- against the order of
Supreme Court in our favor. Summons issued to concerned authority.
PROVIDENT FUND
In the matter of the proceedings under section 14-B & 7-Q of the
Employee's Provident Fund & Misc. Provisions Act, 1952 and imposed the
damages & interest for the period from 12/1997 to 11/2001 amounting Rs.
21,73,215/- and Rs. 7,43,883/- respectively for which Stay was taken
Before the Hon'ble Employee's Provident Fund Appellate Tribunal, New
Delhi. After several hearings the case was dismissed in favor of P.F.
Commissioner however the final order was kept under ambiance.
1) Notice for interest payment from 10.06.2007 to 31.12.2014 (7Q) for
M/ s. Gayatri Allied & Security Services of Panel Interest of Rs. 4,
08,964/- to be paid immediately. Hearing is in progress.
2) Pending deposit of P.F. for M/ s. Gayatri Allied & Security Services
from October 13 to December 14 Rs.2,68,553/- to be Paid.
INCOME TAX
Income Tax Act. Demand 4,867,100/- 1997-98
Income Tax Act. Demand 200,887/- 2001-02
Income Tax Act. Demand 171,201/- 2005-06
Income Tax Act. Demand 10,533,346/- 2007-08
Income Tax Act. Joint Commissioner of Income Tax, New Delhi.
Income Tax Act. Deputy Commissioner of Income Tax, New Delhi.
Income Tax Act. Assistant Commissioner of Income Tax, New Delhi.
Income Tax Act. Deputy Commissioner of Income Tax, New Delhi.
1) A demand of Rs. One Crore five Lacs raised by Income Tax department
(for AY 2008-2009) and approached to BIFR for recovery last hearing was
on 21.11.2013 case pending with BIFR. Documents submitted by BTCL and
case was remanded and referred to Ward for their comments.
2) Case for scrutiny AY - 2012 - 13 required documents submitted to
department some documents to be received from Mumbai Office. Next date
of hearing is on 17/12/2014. Required details submitted on 19.02.2015
final Hearing was conducted on 24/02/2015. The final ruling is awaited.
E.S.I.C
Particular Amount
Employees State Insurance Corporation Dues 23,51,993/-
Speaking Order no. K/INSP/II/67 - 7713 - 11 dated 20.04.11 in the form
of C - 18 for the period from May 2006 to March 2011 in the tune of
Rs. 23,51,993/- Appeal submitted to Joint Director Sub- Reginal Office
Noida. Recd Notice from department dated 17.02.15 regarding per person
hearing on 24.02.2015.
Trade Tax
Particular Year Amount
Appeal pending before Jt. commissioner of 2000-01 43,29,922
Trade Tax, Uttarakhand 2000-01 43,29,922
viii. ACCUMULATED LOSSES
The accumulated losses/Reserves of the company are more than fifty
percent of its Equity Capital amounting to Rs. 42,72,59,240/-. The
company has incurred cash losses during the financial year covered by
our audit and in the immediately preceding financial year. Company has
referred to BIFR on 04/11/1991. The final order is yet to be passed.
ix. DUES TO FINANCIAL INSTITUTIONS, BANKS AND DEBENTURE HOLDERS
The Company had procured loan from The Pradeshiya Industrial and
Investment Corporation of U.P. Ltd. (PICUP) which is having a Balance
Outstanding as on year end of Rs. 1,47,00,125 towards principal which
is overdue. Also, the interest payable thereon has not been accounted
which is resulting in understatement of liability.
x. GUARANTEES GIVEN
As per the information and explanation given to us and records produced
before us, Company has not given any guarantee for loans taken by
others from Bank or Financial Institution and accordingly, this clause
is not applicable to the Company;
xi. TERM LOANS
The Company has not taken any term loan during the year.
xii. FRAUD NOTICED
During the course of our examination of the books and records of the
Company, carried out in accordance with generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instances of fraud on or
by the Company, noticed or reported during the year, nor have we been
informed of such case by management.
For LKM & Co.
Firm Registration Number - 126823W
Chartered Accountants
Laxmikant Malpani (Proprietor) Place: Mumbai
Membership Number - 106989 Date: 29th May, 2015
Mar 31, 2010
1. We have audited the attached Balance Sheet of Birla Trans Asia
Carpets Limited as at 31st March 2010, the Profit & Loss Account and
also the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in In- dia. Those standards require that we plan and
perform the audit to obtain reasonable as- surance about whether the
financial state- ments are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and dis- closures in the financial statements. An au- dit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evalu- ating the overall financial
statement presen- tation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Re- port) Order, 2003
issued by the Central Gov- ernment of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure re- ferred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were neces- sary for the purpose of
our audit.
(ii) 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.
(iii) The Balance Sheet, Profit and Loss Ac- count and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow State- ment dealt with by this report comply with the accounting
standards referred to sub-section (3C) of section 211 of the Companies
Act, 1956; except Account- ing Standard (AS) 15 - Employee Ben- efits
(Revised 2005) requiring of provi- sioning of retirement benefits based
on actuarial valuation of retirement ben- efits and additional
disclosures as re- quired in terms of AS-15. The manage- ment has made
the provisions based on their own estimates.
(v) On the basis of written representations received from the
directors, we report that none of the directors is disqualified as on
31st March 2010, from being ap- pointed as a director in terms of
clause (g) of sub section (1) of section 274 of the companies Act,
1956.
(vi) In our opinion and to the best of our information and according to
the expla- nations given to us, the said accounts read together with
the significant Ac- counting Policies and Notes of Accounts in schedule
U and else were in Accounts subject to :
(a.) Note No.7 of Schedule T of Notes to Accounts with regard to non-
provision of interest on Inter Corporate Loans and PICUP loans
resulting into under- statement of loss for the year, amount
unascertained. Simi- larly non-accounting of inter- est liability
resulting in to un- derstatement of current liabili- ties as on
31-03-2010 to the same extent.
(b.) Sundry Debtors/Creditors have been considered as good for
recovery/payable by the management: A detailed analy- sis of actual
recoverability/payable of sundry debtors/creditors which are due for
more than six month should be made and necessary provision which is yet
to be quan- tified will be required.
Given 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 gener- ally 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 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.
Annexure 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 assets have been physically verified by the management
during the year and there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanation
given to us, the company has not disposed off any fixed assets during
the year.
(ii) (a) The inventory of Raw Materials, Stores & Spares, Finished
Goods and other items 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material. Old damaged stock due to moth and
rains lying with company amounting to Rs.57,00,126/- has been destroyed
during the year, accordingly reduced from the value of closing stock.
(iii) (a) The Company has not granted any Loans, Secured or Unsecured
to Companies, Firms or other parties covered under register maintained
under section 301 of the Act. Accordingly provisions of clause
(iii)(b), (iii)(c) and (iii)(d) of the Order are not applicable to the
Company
(b) According to information and explanations given to us the company
has taken unsecured loan from companies covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 3301.88 lacs and year end
balance of such loan taken were Rs. 3301.88 lacs excluding interest on
such loans, amount of interest unascertained in respect of such
Companies
(c) In our opinion, the rate of Interest and other terms and conditions
of such loans are not prima facie prejudicial to the interests of the
Company
(d) According to information and explanation given to us in respect of
such loans taken by Company, no stipulations have been made regarding
payment of principal and interest there on.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls and its needs to further strengthen.
(v) According to the information and explanation given to us, we are of
the opinion that there was no transaction that needs to be entered into
the register maintained under section 301 of the Companies Act, 1956.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from public
during the year. Hence, the provisions of sections 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975, are not applicable to the company.
(vii) The company has an internal audit system the scope and coverage
of which is in our opinion requires to be further enhanced to be
commensurate with its size and nature of its business. The company
have a formal Internal Audit System upto September 2009 only.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
section 209(l)(d) of the Companies Act, 1956 for the products of the
company.
(ix) (a) According to the information and explanations given to us
following are the undisputed amounts of Provident Fund, Excise Duty and
Sales tax etc. payable
as on 31st March, 2010 and due for a period of more than six months
from the date they become payable and provided for in the books of
accounts :
Name of
the Statute Nature of Amount Period
for which Date of
the dues (Rs.) * the amount Due Date Payment
relates
Employees
Provident Provident
Fund
Fund and
Miscellaneous Contribution 36680/- 2009-10 On 15th of Not Paid
Provisions
Act, 1952 every month
Central Excise
Act, 1944 Excise Duty 1332900/- 2003-04 & 31.03.2005 Not Paid
2004-05
Interest 706000/- 2003-04 Up to 31
.03.04 Not Paid
Interest 770000/- 2004-05 Up to 31.
03.05 Not Paid
Interest 456718/- 2005-06 Up to 31.
03.06 Not Paid
Interest 208293/- 2006-07 Up to 31.
03-07 Not Paid
Delhi Sales
Tax Act,1975 Sales Tax 1490506/- 2004-05 31.03.2005 Not Paid
Fringe Benefit
Tax FBT 54809/- 2006-07 31.03.2007 Not Paid
FBT 131438/- 2008-09 15.12.2008 Not Paid
UP Sales Tax Sales Tax 4361/- 2009-10 31.03.2009 Not Paid
* On and above interest on overdue and penalty if any.
(b) According to the information and explanations given to us and as
per our verification of records of the company, the following disputed
amounts of Tax not provided for in the accounts of the company has not
been deposited with appropriate authority as at 31st March, 2010.
Name of
the Statute Nature of Amount Period for which
Forum where
dispute
the dues (Rs.) the amount is pending
relates
UP sales tax Sales Tax 2,875,017/- 1998-99 Joint Commissioner
of Trade tax
(Appeal), Uttar
Pradesh.
Delhi Sales Tax Sales Tax 114,038/- 1985-86 Deputy Commissioner
of Sales tax
Act, 1975 (Appeal), Delhi
68,956/- 1990-91 -Do-
109,656/- 1993-94 -Do-
173,753/- 1994-95 -Do-
39,004/- 1995-96 -Do-
118,144/- 1996-97 -Do-
87,794/- 1997-98 -Do-
1,602,224/- 1998-99 -Do-
2,566,329/- 1999-00 -Do-
738,160/- 2000-01 -Do-
122,840/- 2001-02 -Do-
153,361/- 2002-03 -Do-
440,128/- 2003-04 -Do-
12,536/- 2003-04 -Do-
128,158/- 2004-05 -Do-
Total 6475081/-
Central Excise Excise
Duty on
Act, 1944 Raw Material
1,026,636/- Supreme Court of
India.
Excise Duty on
finished products
167,000/- Commissioner of
Central Excise
(Appeals), Delhi.
TOTAL 1,193,636/-
Income Tax Act. Demand 4,867,100/- Joint Commissioner of
Income
Tax, New Delhi.
1) One appeal filed at Appellate Tribunal, New Delhi on 06/10/2009 for
Rs. 17,25,392.00 with interest from the date of payment till the refund
being granted. It is still pending before the adjusting authority. No
hearing till date.
2) Contempt Petition filed against Excise Department at Allahabad High
Court against our refund of Rs. 17, 25,392.00 against the order of
Supreme Court in our favor. Summons issued to concerned authority and
the next date of hearing is awaited.
(x) The accumulated losses of the company are more than fifty percent
of its net worth. The company has incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(xl) In our opinion and according to the information and explanations
given to us, the company has not defaulted in the repayment of dues to
a financial institutions, banks or debenture
holders. Except one employee Loan not paid during the year and loan
amount is Rs. 2.0,007/ - and EMI overdue.
(xii) We are of the opinion that the company has not granted any loans
and advances on the basis of securities 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. There- fore the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) Companies (Auditors 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
institution are not prejudicial to the interest of the company.
(xvi) The Company has not taken any term loan during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short- term
assets except permanent working capital.
(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 the information and explanations given to us, during
the period covered by our audit report, the company had not issued any
debentures.
(xx) According to the information and explanations given to us, the
company has not raised any money from the public.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For LKM & CO.
Chartered Accountants
Laxmikant Malpani
(Proprietor) M. No. 106989
Place: Mumbai
Dated: 17/05/2010
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