Mar 31, 2018
Report on the Audit of the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Bright Brothers Limited ("the Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Ind As Financial statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Ind AS 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 thereunder.
We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS 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 the Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We are also responsible to conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. our conclusions are based on the audit evidence obtained up to the date of the auditor''s report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 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 March 31, 2018, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2018 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 with reference to financial statements 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 to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer Note 33 ( Sn 1 to 5) to the Ind AS 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.
iv. The disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from November 8, 2016 to December 30, 2016 have not been made since they do not pertain to the financial year ended March 31, 2018.
Annexure - A to the Independent Auditors'' Report
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31st March 2018, we report that:
(i) In respect of Company''s property, plant and equipment:
(a) The Company has generally maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The property, plant and equipment were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the property, plant and equipment at reasonable intervals. According to the information and explanations given to us, 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.
(ii) In respect Company''s inventories:
The inventory, except goods-in-transit and inventory lying with third parties, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) In our opinion and according to information and explanation given to us, the Company has not granted any loans, secured or unsecured to parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3 (iii) of the order is not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured or provided any guarantees or security to parties covered under section 185 of the Act. The Company has not granted any loans, no investments has been made, no guarantees or security are given to parties covered section 186 of the Act. Accordingly, paragraph 3 (iv) of the Order is not applicable to the Company.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by Reserve Bank of India and the provision of sections 73 to 75 or any other applicable provisions of the Act and the (Acceptance of Deposits) Rules, 2014 with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal. In our opinion and according to explanation given to us, the Company has not accepted deposit from non-members.
(vi) We have broadly reviewed the books of accounts and records maintained by the Company pursuant to the Rules prescribed by the Central Government under sub section (1) of section 148 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 a detailed examination of the records.
(vii) In respect of statutory dues:
(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of excise, duty of customs, service tax, goods and service tax, professional tax, cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of excise, duty of customs, service tax, goods and service tax, professional tax, cess and other material statutory dues were in arrears as at 31st March 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material statutory dues which have not been deposited with the appropriate authorities on account of any dispute, other than the following dues of duty of excise, service tax, Income tax, sales tax, value added tax and provident fund:
Sr. No. |
Name of the Statute |
Nature of dues |
Financial Year to which it pertains |
Forum where dispute is pending |
*Amount (Rs. in Lakhs) |
1 |
Bombay Sales Tax Act, 1959 and Central Sales Tax Act, 1956 |
Sales tax, Interest and Penalty |
1992-93 1998-99 2001-02 |
Sales Tax Appellate Tribunal |
8.02 |
2 |
Bombay Sales Tax Act, |
Sales tax, Interest and Penalty |
1987-89 |
Joint Commissioner (Appeals-Sales Tax) |
16.86 |
3 |
Central Sales Tax Act, 1956 |
CST - Sales Tax, Interest and Penalty |
2005-06 |
Sales Tax Appellate Tribunal |
3.97 |
4 |
Central Sales Tax Act, 1956 |
CST - Sales Tax, Interest and Penalty |
2008-09. |
Joint Commissioner (Appeals-Sales Tax) |
7.89 |
5 |
Maharashtra Value Added Tax Act 2002 and Central Sales Tax Act, 1956 |
VAT-CST Interest and Penalty |
2007-08 |
Deputy Commissioner (Appeals-Sales Tax) |
26.90 |
6 |
The Central Excise Act, 1944 |
Duty and Penalty |
1996-1997 to 1998-1999 |
CESTAT |
89.78 |
7 |
Provident Fund Act, 1952 |
P.F.dues |
2010-2011, 2011-2012, 2012-2013 |
Commissioner (PF) |
8.66 |
8 |
Service Tax under the Finance Act, 1994 |
Service tax |
2012-13 |
Additional Commissioner of Service tax |
6.46 |
9 |
Sales Tax and Central Sales Tax |
Sales Tax |
2009-10, 2010-11, 2011-12, 2012-13, 2013-14 |
Deputy Commissioner of Commercial Taxes |
69.19 |
* Note: 1. The Company has made provision of Rs.0.27 lacs on account of disputed Statutory Liabilities. Disputed amount is disclosed net of provision made.
2. Interest and Penalty as per the orders received.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company does not have any loans or borrowings from financial institutions or government and has not issued any debentures.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). The term loan raised during the year has been applied for the purpose for which it was raised.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) 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.
(xiii) 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. The details of such related party transactions have been disclosed in the financial statements as required under Ind AS 24 "Related Parties Disclosuresâ specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014.
(xiv) 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. Accordingly, paragraph 3(xiv) of the Order is not applicable.
(xv) 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. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable.
Annexure - B to the Independent Auditors'' Report for the year ended 31st March, 2018 on the Ind AS Financial Statement
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 Bright Brothers Limited ("the Companyâ) as of March 31, 2018 in conjunction with our audit of the 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 (''Guidance Note'') 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 Act.
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 and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143 (10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. 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 Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 Ind AS financial statements for external purposes in accordance with the 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 Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and
3. provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company''s assets that could have a material effect on the Ind AS 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, the Company has, in all material respects, an adequate internal financial controls system over financial reporting, however, the same needs to be strengthen and such internal financial controls over financial reporting were operating effectively as at March 31, 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 issued by the ICAI.
For Desai Saksena & Associates
Chartered Accountants
Firm''s registration No.: 102358W
Alok K. Saksena
Partner
M.N.35170
Place: Mumbai
Date: 29th May 2018
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying financial statements of Bright Brothers Limited (''the Company''), which comprise the balance sheet as at 31st March 2017, the statement of profit and loss and the cash flow statement for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (herein after referred to as "financial statementsâ).
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 Actâ) with respect to the preparation and presentation 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 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 and the Companies (Accounting Standards) Amendment Rules, 2016 ("the Rulesâ). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s 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 thereunder and the Order 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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls 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 the 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.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2017 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the 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 the paragraphs 3 and 4 of the Order.
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 account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Accounting standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) rules, 2014 and the Companies (Accounting standards) Amendment rules, 2016;
(e) on the basis of the written representations received from the directors as on 31st March 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 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" to this report; and
(g) with respect to the other matters to be included in the Independent Auditor''s report in accordance with rule 11 of the Companies (Audit and Auditors) rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - refer Note No. 28 (Sn. 1 to 6) to the financial statements;
ii. there are no material foreseeable losses arising out of any long-term contracts for which provision is required to be made under any law or accounting standards. The Company has not entered into any derivative contracts;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company and;
iv. the Company has provided requisite disclosures in Note No. 27 to these financial statements as to holding as well as dealings in the specified Bank Notes during the period from 8th November, 2016 to 30 th December, 2016, on the basis of information available with the Company. Based on audit procedures and relying on the management''s representation, we report that the disclosures are in accordance with the Books of accounts maintained by the Company and as produced to us by the Management.
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31st March 2017, we report that:
(i) In respect of Company''s property, plant and equipment:
(a) The Company has generally maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The property, plant and equipment were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the property, plant and equipment at reasonable intervals. According to the information and explanations given to us, 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.
(ii) In respect Company''s inventories:
The inventory, except goods-in-transit and inventory lying with third parties, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) In our opinion and according to information and explanation given to us, the Company has not granted any loans, secured or unsecured to parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3 (iii) of the order is not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured or provided any guarantees or security to parties covered under section 185 of the Act. The Company has not granted any loans, no investments has been made, no guarantees or security are given to parties covered section 186 of the Act. Accordingly, paragraph 3 (iv) of the order is not applicable to the Company.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by Reserve Bank of India and the provision of sections 73 to 75 or any other applicable provisions of the Act and the (Acceptance of Deposits) rules, 2014 with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law board or the National Company Law Tribunal or the reserve bank of India or any Court or any other Tribunal. In our opinion and according to explanation given to us, the Company has not accepted deposit from non-members.
(vi) We have broadly reviewed the books of accounts and records maintained by the Company pursuant to the rules prescribed by the Central Government under sub-section (1) of section 148 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 a detailed examination of the records.
(vii) In respect of statutory dues:
(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of excise, duty of customs, service tax, professional tax, cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of excise, duty of customs, service tax, professional tax, cess and other material statutory dues were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material statutory dues which have not been deposited with the appropriate authorities on account of any dispute, other than the following dues of duty of excise, service tax, income tax, sales tax, value added tax and provident fund:
sr. No. |
Name of the statute |
Nature of dues |
Financial Year to which it pertains |
Forum where dispute is pending |
*Amount (Rs. in lakhs) |
1 |
bombay sales Tax Act, 1959 and Central sales Tax Act, 1956 |
sales tax, Interest and Penalty |
1992-93, 1998-99, 2001-02 |
sales Tax Appellate Tribunal |
8.02 |
sr. No. |
Name of the statute |
Nature of dues |
Financial Year to which it pertains |
Forum where dispute is pending |
*Amount (Rs. in lakhs) |
2 |
Bombay Sales Tax Act, |
Sales tax, Interest and Penalty |
1987-89, 1999-00 |
Joint Commissioner (Appeals-Sales Tax) |
34.01 |
3 |
Maharashtra Value Added Tax Act 2002/ and Central Sales Tax Act, 1956 |
VAT, Interest and Penalty |
2005-06, 2008-09 |
Joint Commissioner (Appeals-Sales Tax) |
36.58 |
4 |
Maharashtra Value Added Tax Act 2002 and Central Sales Tax Act, 1956 |
VAT, Interest and Penalty |
2005-06, 2007-08. |
Deputy Commissioner (Appeals-Sales Tax) |
27.06 |
5 |
The Central Excise Act, 1944 |
Duty and Penalty |
1996-1997 to 1998-1999 |
CESTAT |
89.78 |
6 |
Provident Fund Act, 1952 |
P.F. dues |
2010-2011, 2011-2012, 2012-2013, |
Commissioner (PF) |
8.66 |
7 |
Service Tax under the Finance Act, 1994 |
Service tax |
2012-13 |
Additional Commissioner of Service tax |
6.46 |
8 |
Service tax under the Finance Act, 1994 |
Service tax |
2007-08 |
The Commissioner of Central Excise |
51.50 |
9 |
Sales Tax and Central Sales Tax |
Sales Tax |
2009-10, 2010-11, 2011-12, 2012-13, 2013-14 |
Deputy Commissioner of Commercial Taxes |
505.19 |
* Note: 1. The Company has made provision of Rs.0.27 lacs on account of disputed Statutory Liabilities.
Disputed amount is disclosed net of provision made.
2. Interest and Penalty as per the orders received.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company does not have any loans or borrowings from financial institutions or government and has not issued any debentures.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). The term loan raised during the year has been applied for the purpose for which it was raised.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) 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.
(xiii) 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. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, related Party Disclosure specified under Section 133 of the Act, read with rule 7 of the Companies (Accounts) rules, 2014.
(xiv) 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. Accordingly, paragraph 3(xiv) of the order is not applicable.
(xv) 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. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable.
For Desai Saksena & Associates
Chartered Accountants
Firm''s registration No.: 102358W
DR. S. N. DESAI
Place : Mumbai Partner
Date : 8th May, 2017 Membership No.: 32546
Mar 31, 2016
Report For the year ended 31st March 2016
TO THE MEMBERS OF,
BRIGHT BROTHERS LIMITED
Report on the Financial statements
We have audited the accompanying financial statements of Bright Brothers Limited (''the Company''), which comprise the balance sheet as at 31st March 2016, the statement of profit and loss and the cash flow statement for the year ended on that date, 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 Actâ) with respect to the preparation and presentation 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 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 ("the Rulesâ). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s 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 and the Order under Section 143(11) of the Act.
We conducted our audit in accordance with the Auditing Standards specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls 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 the 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.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2016 and its loss and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the 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 the paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid financial statements comply with the Accounting standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) rules, 2014;
(e) on the basis of the written representations received from the directors as on 31st March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 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"; and
(g) with respect to the other matters to be included in the Independent Auditor''s report in accordance with rule 11 of the Companies (Audit and Auditors) rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27 (Sn. 1 to 6) to the financial statements;
ii. there are no material foreseeable losses arising out of any long-term contracts for which provision is required to be made under any law or accounting standards. The Company has not entered into any long term derivative contracts; and;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to the Independent Auditor''s Report
The Annexure referred to in Independent Auditor''s Report to the members of the Company on the financial statements for the year ended 31st March 2016, we report that:
(i) In respect of Company''s fixed assets:
(a) The Company has generally maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, 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.
(ii) In respect Company''s inventories:
(a) As explained to us, the inventories other than goods in transit 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, no material discrepancies were noticed on physical verification.
(iii) In our opinion and according to information and explanations given to us, the Company has not granted any loans, secured or unsecured to parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured or provided any guarantees or security to parties covered under section 185 of the Act. The Company has not granted any loans, no investments has been made, no guarantees or security are given to parties covered section 186 of the Act. Accordingly, paragraph 3(iv) of the Order is not applicable to the Company.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by Reserve Bank of India and the provision of sections 73 to 75 or any other applicable provisions of the Act and the (Acceptance of Deposits) Rules, 2014 with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal. In our opinion and according to the explanation given to us, the Company has not accepted deposit from non-members.
(vi) We have broadly reviewed the books of accounts and records maintained by the Company pursuant to the Rules prescribed by the Central Government under sub section (1) of section 148 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 a detailed examination of the records.
(vii) In respect of statutory dues:
(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of excise, duty of customs, service tax, professional tax, cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of excise, duty of customs, service tax, professional tax, cess and other material statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material statutory dues which have not been deposited with the appropriate authorities on account of any dispute, other than the following dues of duty of excise, service tax, Income tax, sales tax, value added tax and provident fund:
sr. No. |
Name of the statute |
Nature of dues |
Financial Year to which it pertains |
Forum where dispute is pending |
*Amount (Rs. in lakhs) |
1 |
Bombay Sales Tax Act, 1959 and Central Sales Tax Act, 1956 |
Sales tax, Interest and Penalty |
1992-93, 1998-99, 2001-02. |
Sales Tax Appellate Tribunal |
13.75 |
2 |
Bombay Sales Tax Act, 1959 and Central Sales Tax Act, 1956 |
Sales tax, Interest and Penalty |
1987-89, 1999-00, 2001-02, 2003-04, 2004-05. |
Joint Commissioner (Appeals-Sales Tax) |
91.14 |
3 |
Bombay Sales Tax Act, 1959 |
Sales tax, Interest and Penalty |
1992-93 |
Deputy Commissioner (Appeals-Sales Tax) |
3.52 |
4 |
Maharashtra Value Added Tax Act 2002/ and Central Sales Tax Act, 1956 |
VAT, Interest and Penalty |
2005-06, 2006-07, 2008-09. |
Joint Commissioner (Appeals-Sales Tax) |
375.68 |
5 |
Maharashtra Value Added Tax Act 2002 and Central Sales Tax Act, 1956 |
VAT, Interest and Penalty |
2005-06, 2007-08, 2009-10, 2011-12. |
Deputy Commissioner (Appeals-Sales Tax) |
28.15 |
6 |
The Central Excise Act, 1944 |
Duty and Penalty |
1996-1997 to 1998-1999 |
CESTAT |
89.78 |
7 |
Income Tax Act, 1961 |
Income Tax Dues |
2010-11 |
CIT (Appeals) |
19.70 |
8 |
Provident Fund Act, 1952 |
P.F. Dues |
2010-2011, 2011-2012, 2012-2013, |
Commissioner (PF) |
8.66 |
* Note: 1. The Company has made provision of Rs. 7.41 lacs on account of disputed Statutory Liabilities.
Disputed amount is disclosed net of provision made.
2. Interest and Penalty as per the orders received.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company does not have any loans or borrowings from financial institutions or government and has not issued any debentures.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). The term loan raised during the year has been applied for the purpose for which it was raised.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) 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.
(xiii) 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. The details of such related party transactions have been disclosed in the financial statements as required under Accounting standard (AS) 18, Related Party Disclosure specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014.
(xiv) According to the information and explanations given 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. Accordingly, paragraph 3(xiv) of the order is not applicable.
(xv) 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. Accordingly, paragraph 3(xv) of the order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) of the order is not applicable.
Annexure - B to the Independent Auditor''s Report for the year ended 31st March 2016 on the Financial statement
(Referred to in our report of even date)
Report on the Internal Financial Controls over financial Reporting 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 Bright Brothers Limited ("the Companyâ) as of 31st March 2016 in conjunction with our audit of the 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 controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI'') (the ''Guidance Note''). 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 Act.
Auditor''s 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 Standards on Auditing prescribed under Section 143(10) of the Act and the Guidance Note, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with the ethical requirement 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.
The Company has an Internal control system. However, the same needs to be strengthened.
opinion
According to the information and 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 31st March 2016, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Desai saksena & Associates
Chartered Accountants
Firm''s Registration No.: 102358W
dr. s. N. desai
Place : Mumbai Partner
Date : 19th May, 2016 Membership No.: 32546
Mar 31, 2015
We have audited the accompanying financial statements of Bright Brothers
Limited (''the Company''), which comprise the balance sheet as at 31st
March, 2015, the statement of Profit and Loss and the Cash Flow
statement for the year then ended, and a summary of the 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 financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting standards specified under section 133 of the Act, read with
rule 7 of the Companies (Accounts) rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor's 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
thereunder.
We conducted our audit in accordance with the standards on Auditing
specified under section 143(10) of the Act. Those standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the 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.
opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) order, 2015 (''the
order'') issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in 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, the statement of Profit and Loss, and the Cash
Flow statement dealt with by this report are in agreement with the
books of account;
(d) in our opinion, the aforesaid financial statements comply with the
Accounting standards specified under section 133 of the Act, read with
rule 7 of the Companies (Accounts) rules, 2014;
(e) on the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of section 164(2) of the
Act; and
(f) with respect to the other matters to be included in the Auditor's
report in accordance with rule 11 of the Companies (Audit and Auditors)
rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations as at
March 31, 2015 on its financial position in its financial statements Â
refer Note 27.
ii. The Company does not have any long term contracts for which there
were any material foreseeable losses. The Company has not entered into
any derivative contract; and
iii. the Company do not have any outstanding amount to be transferred
to the Investor Protection and education Fund.
Annexure to Independent Auditors' Report
(Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date)
i. In respect of its fixed assets:
(a) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed assets
on the basis of available information.
(b) The Company has a program for physical verification of fixed assets
in a phased manner. In our opinion, the period of verification is
reasonable, having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed in respect of the
assets physically verified during the year.
ii. In respect of its inventories:
(a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. 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 Act. Therefore, the provisions of Clause
3(iii), (iii)(a) and (iii)(b) of the said order are not applicable to
the Company.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, 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 and fixed assets and the sale of goods. During the course of
our audit, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in aforesaid internal
control systems.
v. In our opinion and according to the information and explanations
given to us, the Company has complied with directives issued by reserve
bank of India and the provision of sections 73 and any other applicable
provisions of the Act and The Companies (Acceptance of Deposits) rules,
2014 with regard to the deposits accepted from the members. According
to the information and explanations given to us, no order has been
passed by the Company Law board or the National Company Law Tribunal or
the reserve bank of India or any Court or any other Tribunal.
vi. We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the Companies (Cost records and
audit) rules, 2014 prescribed by the Central Government under
sub-section (1) of section 148 of the Act and are of the opinion that
prima facie the prescribed accounts and records have been made and
maintained. The content of these accounts and records have not been
examined by us.
vii. In respect of statutory dues :
(a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident fund, employees' state Insurance,
Income tax, sales tax, Wealth tax, service tax, Customs duty, excise
duty, Value added tax, Cess, Professional tax and other material
statutory dues have been generally regularly deposited during the year
by the Company with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of Provident Fund, employees' state Insurance, Income tax,
sales tax, Wealth tax, service tax, Customs duty, excise duty, Value
added tax, Cess, Professional tax and other material statutory dues
were in arrears as at March 31, 2015 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of employees' state Insurance, Wealth tax, Customs duty,
Professional tax and Cess which have not been deposited with the
appropriate authorities on account of any dispute. The particulars of
dues of Income tax, sales Tax,
Value Added Tax, excise Duty, Provident Fund and service tax as at
March 31, 2015 which have not been deposited on account of dispute are
as under:
sr.Name of the statute Nature of dues Financial Year to
No. which it pertains
1 service Tax under the Disallowance 2007-08
Finance Act, 1994 of Input credit
(service tax) and
penalty
2 bombay sales Tax Act, sales tax, Interest 1992-93, 1998-99,
1959 and Central sales and Penalty 1999-2000, 2001-02,
Tax Act, 1956 2004-05, 2003-04
3 bombay sales Tax Act, sales tax, Interest 1987-1989, 2003-04
1959 and Central sales and Penalty
Tax Act, 1956
4 bombay sales Tax sales tax, Interest 1992-93
Act, 1959
and Penalty
5 Maharashtra Value sales tax, Interest 2005-06, 2006-07,
Added Tax Act, 2002/ and Penalty 2008-09
and Central sales Tax
Act, 1956
6 Maharashtra Value VAT, Interest and 2005-06, 2007-08,
Added Tax Act, 2002 Penalty 2009-10
and Central sales Tax
Act, 1956
7 Uttarakhand Value VAT, Interest and 2009-10
Added Tax, 2005 Penalty
8 The Central excise Duty and Penalty 1996-1997 to
Act, 1944 1998-1999
9 Income Tax Act, 1961 Income Tax Dues 2010-11
10 Provident Fund P.F. dues 2010-2011, 2011-2012,
Act, 1952 2012-2013,
Sr.Name of the Statute Forum where Amount
No. dispute is pending (in lakhs)
1. Service Tax under the CesTAT 51.50
Finance Act,1994
2. Bombay Sales Tax Act, Tribunal 71.48
1959 and Central sales
Tax Act,1956 (Appeals-sales Tax)
3. Bombay Sales Tax Act, Joint Commissioner 23.90
1959 and Central Sales
Tax Act,1956 (Appeals-sales Tax)
4. Bombay Sales Tax
Act,1959 Deputy 3.52
Commissioner
(Appeals-sales Tax)
5. Maharashtra Value Joint Commissioner 375.68
Added Tax Act,2002/ (Appeals-sales Tax)
and Central SAles Tax
Act,1956
6. Maharashtra Value Deputy 26.96
Added Tax Act,2002
and Central sales Tax
Act,1956 Commissioner
(Appeals-sales Tax)
7. Uttarakhand Value Deputy 135.14
Added Tax,2005 Commissioner
(Appeal)
8. The Central Excise
Act,1944 CesTAT 89.78
9. Income Tax Act,1961 CIT (Appeals) 19.70
10.Provident Fund Act,1952 Commissioner (PF) 8.66
Note: The Company has made provision of Rs. 8.42 lakhs on account of
disputed statutory Liabilities.
viii. The Company does not have accumulated losses as at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank during the year. The Company does not have any borrowings from any
financial institution and it has not issued any debentures.
x. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions. Accordingly, the
provisions of Clause 3(x) of the order are not applicable to the
Company.
xi. The Company has not raised new term loans during the year. The term
loans outstanding at the beginning of the year have been applied for
the purposes for which they were raised.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For desai saksena & Associates
Chartered Accountants
Firm's registration No.: 102358W
dR. s. N. desAI
Place : Mumbai Partner
Date : 26th May, 2015 Membership No.: 32546
Mar 31, 2014
We have audited the accompanying financial statements of Bright
Brothers Limited ("the Company") which comprise of the Balance Sheet
as at 31st March, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of Significant
Accounting Polices 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 notified under 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 misstatements.
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 of 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 31st March, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, the 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, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Acts 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;
(e) On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Annexure to Auditor''s Report:
The Annexure referred to in our report to the Members of M/s. Bright
Brothers Limited ("the Company") on the accounts for the year ended
31st March 2014,
We report that:
i. In respect of its fixed assets:
(a) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, 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
physical verification.
(c) The assets disposed off during the year are not substantial
therefore do not affect the going concern status of the Company.
ii. In respect of its inventories:
(a) As explained to us the inventories have been physically verified at
reasonable interval during the year.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion the company has maintained proper records of
inventories and no material discrepancies were noticed on physical
verification of inventories as compared to the book records.
iii. In respect of loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
Register maintained under section 301 of the Companies Act, 1956:
(a) During the year, the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties listed in the Register
maintained under section 301 of the Companies Act, 1956. As the Company
has not granted any loans, secured or unsecured to the parties listed
in the Register maintained under section 301 of the Companies Act,
1956, paragraphs (iii) (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 loan secured or unsecured from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956.
iv. In our opinion, and according to the information and explanation
given to us, having regard to the explanation, except that some of the
items purchased are of a special nature and suitable alternative
sources do not exist for obtaining comparable quotations, there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business for the purchase of inventory,
fixed assets and for the sale of goods services. During the course of
our audit, no major weakness has been notice in the internal control
systems.
v. In respect of the contracts or arrangements referred to in section
301 of the Companies Act, 1956;
(a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of contract or
arrangements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been entered.
(b) The transaction made in pursuant of such contracts or arrangements
entered in the register maintained under section 301 Companies Act,
1956 and exceeding the value of Rs. five lakhs in respect of any part
during the have been made at price which are reasonable having regard
to the prevailing price at the relevant time.
vi. According to the information and explanations given to us, in our
opinion the Company has complied with the provisions of section 58A and
58AA of the Companies Act, 1956 and the rules framed there under. To
the best of our knowledge and according to the information and
explanations given to us, the Company has not received any order under
above-mentioned sections from the Company Law Board, National Company
Law Tribunal, Reserve Bank of India or any Court or any other Tribunal.
vii. In our opinion, the Company has an internal audit system which in
our opinion commensurate with the size and the nature of its business.
viii. We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the Companies (Cost Accounting
Records) Rules, 2011 prescribed by the Central Government under section
209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima
facie accounts and cost records have been made and maintained. We have,
however, not made a detailed examination of books of accounts and cost
records with a view to determine whether they are accurate or complete.
ix. In respect of statutory dues :
(a) According to the information, explanations and records of the
Company in respect of statutory and other dues, In our opinion the
Company has been generally regular in depositing undisputed statutory
dues, including Provident Fund, Employees'' state Insurance, sales Tax,
Custom Duty, Excise Duty, Cess, service Tax, Wealth Tax and any other
statutory dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2014 for a period more than six months
from the date they became payable. However, there have been marginal
delays in respect of Income tax deducted at source.
(b) According to the information and explanation given to us, the
following are the details of disputed statutory dues that were not
deposited with the authorities concerned:
Sr. Name of the Nature of dues Financial Forum where Amount
No. statute Year to dispute (Rs.)
which it is pending
pertains
1 Service Tax Disallowance of 2007-08 CESTAT 51.50
under the Input credit
Finance Act, (service tax)
1994 and penalty
2 Bombay Sales Sales tax, 1987-1989, Joint/Dy. 275.88
Tax Act and Interest 1992-1993, Commissioner
Central Sales and Penalty 2003-04, (Appeal-
Tax Act 2005-06, Sales Tax)
(Refer Note) 2006-07
3 Bombay Sales Sales tax, 1992-1993, Maharashtra 65.86
Tax Act and Interest 1999-2000, Sales Tax
Central Sales and Penalty 2001-2002, Tribunal
Tax Act 2004-2005,
(Refer Note) 2006-2007
4 The Central Duty and 1996-1997 CESTAT 124.92
Excise Act, Penalty to 1998-1999
1944 and 1998-1999
to 2002-2003
5 Income Tax Income Tax 2010-11 CIT (Appeals) 19.70
Act, Dues
1961
6 Provident P.F. dues 2010-11, Commissioner 8.66
Fund Act 2011-12, (PF)
2012-13
Note: The Company has made provision of Rs. 22.21 lakhs in the past on
account of disputed Sales-Tax liabilities.
x. The Company has no accumulated losses and has not incurred cash
losses during the financial year and in the immediately preceding
financial year.
xi. Based on our verification and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in the repayment of dues to financial institutions or
banks.
xii. In our opinion and according to the explanations given to us and
based on the information available, loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares and other securities.
xiii. The Company is not a chit fund/nidhi/mutual benefit fund/society
and as such reporting is not applicable to the Company.
xiv. In our opinion the Company is not dealing or trading in
securities. The Company has invested surplus funds in marketable
securities and mutual funds. The Company has maintained proper records
of the transactions and contracts in respect of dealing or trading in
shares, securities and other investments and timely entries have been
made therein. All shares, securities and other investments have been
held by the Company in its own name.
xv. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
xvi. During the financial year, the Company has not availed any term
loan.
xvii. On the basis of our examination of the Balance Sheet of the
Company, prima facie, we report that the company has not used
short-term funds for long-term investments.
xviii. The Company has not made preferential allotment of shares
during the year, to parties and companies covered under the register
maintained under section 301 of the companies act, 1956.
xix. The Company has not issued any secured debentures during the
year.
xx. The Company has not raised any money by public issue during the
year.
xxi. Based on the audit proceeding adopted and information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company has been noticed or reported during
the year.
For Desai Saksena & Associates
Chartered Accountants
Firm''s Registration No.: 102358W
DR. S. N. DESAI
Partner
Membership No.: 32546
Place: Mumbai
Date : 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Bright
Brothers Limited ("the Company") which comprise of the Balance Sheet as
at 31st March, 2013, the Statement of Profit and Loss for the year
ended on that date, Cash Flow Statement and a summary of Significant
Accounting Polices 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 misstatements. 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 31st March, 2013;
(b) In the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") 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, the 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, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of Section 211 of the Companies Act,
1956;
(e) on the basis of written representations received from the
diic-ctors as on 31st March, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
Annexure to Auditor''s Report:
Annexure referred to an our report on the accounts for the year ended
31st March 2013.
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements." (i) In respect of its fixed assets:
(a) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, 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
physical verification.
(c) The assets disposed off during the year are not substantial
therefore do not affect the going concern status of the Company.
(ii) In respect of its inventories:
(a) The inventories have been physically verified at reasonable
interval during the year by the management. The frequency of such
verification is adequate.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) In our opinion the Company has maintained proper records of
inventories. There was no material discrepancies noticed on physical
verification of inventories as compared to the book records.
(iii) In respect of loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956:
(a) During the year, the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956. As the Company
has not granted any loans, secured or unsecured to the parties listed
in the Register maintained under Section 301 of the Companies Act,
1956, paragraphs (iii) (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 and other parties covered in the register maintained under
Section 301 of the Companies Act, 1956. Accordingly, paragraphs 4(iii)
(b), (c), and (d) of the Companies (Auditors'' Report) order 2003 are
not applicable to the Company.
(iv) In our opinion, and according to the information and explanation
given to us, having regard to the explanation, except that some of the
items purchased are of a special nature and suitable alternative
sources do not exist for obtaining comparable quotations, there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business for the purchase of inventory,
fixed assets and for the sale of goods services. During the course of
our audit, no major weaknesses has been notice in the internal control
systems.
(v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956;
(a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of contract or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been entered.
(b) The transaction made in pursuant of such contract or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of Rs. five lakhs in respect of any
part during the have been made at price which are reasonable having
regard to the prevailing price at the relevant time.
(vi) According to the information and explanations given to us, in our
opinion the Company has complied with the provisions of Section 58A and
58 A A of the Companies Act, 1956 and the rules framed there under. To
the best of our knowledge and according to the information and
explanations given to us, the Company has not received any order under
above-mentioned sections from the Company Law Board, National Company
Law Tribunal, Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion the Company has an internal audit system which in
our opinion commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the Companies (Cost Accounting
Records) Rules, 2011 prescribed by the Central Government under Section
209(1) (d) of the Companies Act, 1956 and are of the opinion that,
prima facie accounts and cost records have been made and maintained. We
have, however, not made a detailed examination of books of accounts and
cost records with a view to determine whether they are accurate or
complete.
(ix) In respect of statutory dues :
(a) According to the information, explanations and records of the
Company in respect of statutory and other dues, In our opinion the
Company has been generally regular in depositing undisputed statutory
dues, including Provident Fund, Employees'' State Insurance, Sales Tax,
Custom Duty, Excise Duty, Cess, Service Tax, Wealth Tax and any other
statutory dues applicable to it with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2013 for a period more than six months
from the date they became payable. However, there have been marginal
delays in respect of Income tax deducted at source.
(x) The Company neither has accumulated losses as at the end of the
financial year nor has incurred cash losses during the financial year
in the immediately preceding financial year.
(xi) Based on our verification and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in the repayment of dues to its banks.
(xii) In our opinion and according to the explanations given to us and
based on the information available, loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares and other securities.
(xiii) In our opinion, the Company is not a chit fund/nidhi/mutual
benefit fund/society and as such this clause of the orders is not
applicable.
(xiv) In our opinion the Company is not a dealing or trading in
securities. The Company has invested surplus funds in marketable
securities and mutual funds. The Company has maintained proper records
of the transactions and contracts in respect of dealing or trading in
shares, securities and other investments and timely entries have been
made therein. All shares, securities and other investments have been
held by the Company in its own name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) The term loan availed by the Company were utilised for the
purpose for which the loan were obtained.
(xvii) On the basis of our examination of the Balance Sheet of the
Company, prima facie, we report that the Company has not used
short-term funds for long-term investments.
(xviii) During the year, the Company has not made preferential
allotment of shares to parties and companies covered under the register
maintained under Section 301 of the Companies Act, 1956.
(xix) During the year, the Company has not issued any secured
debentures.
(xx) During the vear Company has not raised any money by public issue.
(xxi) Based on the audit proceeding adopted and information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company has been noticed or reported during
the year.
For Desai Saksena & Associates
Chartered Accountants
Firm''s Registration No.: 102358W
DR. S. N. DESAI
Place : Mumbai Partner
Date : 31st May, 2013 Membership No.: 32546
Mar 31, 2012
(1) We have audited the attached Balance Sheet of BRIGHT BROTHERS
LIMITED, as at 31st March, 2012, the Profit and Loss Account and Cash
Flow Statement for the year ended on that date annexed thereto which we
have signed under reference to this report. These financial statements
are the responsibility of the Company's Management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
(2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of any material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
(3) As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of The Companies Act, 1956, of India (the Act) and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
(4) Further to our comments in the Annexure referred to in para-3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by 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 the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Sub-Section (3C) of Section 211 of
the Act; and
(e) On the basis of the written representations received from the
directors as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements, together
with the notes thereon and attached thereto give, in the prescribed
manner the information required by the Act, and give a true and fair
view in conformity with 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 Statement of Profit and Loss, of the profit 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.
(1) a. The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, in accordance with the phased program of
verification the management has physically verified the fixed assets,
which in our opinion is reasonable considering the size of the Company
and nature of its assets. The frequency of verification is reasonable
and no material discrepancies were noticed on such verification.
c. There was no substantial disposal of fixed assets during the year.
(2) a. As explained to us the inventories have been physically verified
during the year by the management
and Internal Auditors. In respect of inventories lying with third
parties confirmations have been obtained for a major portion of
inventories. In our opinion, the frequency of verification is
reasonable.
b. In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory and no
major discrepancies were noticed on physical verification.
(3) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
(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 inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company we have not observed any major weakness in the
aforesaid internal control system of the Company in respect of these
areas.
(5) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that needs to
be entered in the register maintained under Section 301 of the
Companies Act, have been so entered.
(6) In our opinion and according to the information and explanations
given to us, the company has complied with the directives issued by the
Reserve Bank of India and the provisions of Sections 58A and 58AA and
other relevant provisions of the Companies Act, 1956 and Companies
Acceptance of Deposit Rules, 1975. According to the information and
explanation given to us, no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of the aforesaid
deposits.
(7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(8) We have broadly reviewed the books of account maintained by the
Company in respect of products where, in pursuant to the Rules made by
the Central Government of India, the maintenance of cost records has
been prescribed under clause (d) of sub-section (1) of Section 209 of
the Act, and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(9) According to the information and explanations given to us in
respect of statutory dues:
a. The Company is regular in depositing undisputed dues, including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it with the appropriate authorities.
b. There were no undisputed amounts payable in respect of Income tax,
Sales-tax, Wealth tax, Service tax, Custom duty, Excise duty and Cess
and other material statutory dues in arrears as at 31st March, 2012 for
a period of more than six months from the date they became payable.
c. Details of dues of Income tax, Sales tax, Service tax, Customs
duty, Wealth tax, Excise duty and Cess which have not been deposited as
at 31st March, 2012 on account of any dispute are given below
Sr. Name of the Nature of Period to
which the
amount Amount in Forum
where dispute
is pending
No. Statute dispute relates dispute
(Rs in lacs)
1. Central Excise Duty, Service
tax 1996-1999 64.50 CESTAT
Act, 1944 and Penalty
1997-2003,
2008-2009 65.24 First
Appellate
Authorities
Disallowance 2007-2008 51.50 First
Appellate
Authorities
of Input
credit
(service tax)
Penalty
2. Bombay Sales Duty,
Interest & 1987-1989,
1992-1993,
1998-1999, 36.90 MST
Tax Act Penalty 1999-2000
1992-1993,
2001-2002,
2003-2004, 36.70 First
appellate
Authorities
2006-2007
(10) The Company has no accumulated losses as at 31st March, 2012 and
it has not incurred any cash losses in the current financial year and
in the immediately preceding financial year.
(11) The Company did not have borrowings from financial institutions
and banks and it has not issued any debentures. Therefore, the
provisions of clause 4(xi) of the Companies (Auditor's Report) Order
2003 (as amended) are not applicable to the Company.
(12) According to the information and explanation given to us, the
Company has granted inter corporate loans on the basis of security by
way of pledge of shares.
(13) The provisions of special statutes applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
company. Therefore, the provisions of clause 4 (xiii) of the Companies
(Auditors' Report) Order 2003 (as amended) are not applicable to the
Company.
(14) 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) of the Companies (Auditor's Report) Order
2003 (as amended) are not applicable to the Company.
(15) According to the information and explanation given to us, the
Company has not given guarantee for loans taken by others from banks or
financial institutions during the year.
(16) In our opinion and according to the information and explanation
given to us, the Company has not obtained any term loan during the
year.
(17) On the basis of overall examination of the balance sheet of the
Company, we report that there are no funds raised on short term basis
which have been used for long term investment.
(18) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
(19) The Company has not issued any debentures during the year.
(20) The Company has not raised any money by public issues during the
year and accordingly the provisions of clause 4 (xx) of the Companies
(Auditors' Report) Order 2003 (as amended) are not applicable to the
Company.
(21) Based on the audit procedures performed for the purpose of
reporting true and fair view of the financial statement and as per the
information and explanation given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of the audit.
For DHODY AND ASSOCIATES
Firm Registration No.: 003837C
Chartered Accountants
per RAKESH DHODY
Partner
Membership No.: 72621
Place : Mumbai
Date : 24th May 2012
Mar 31, 2011
(1) We have audited the attached Balance Sheet of BRIGHT BROTHERS
LIMITED, as at 31st March, 2011, the Profit and Loss Account and Cash
Flow Statement for the year ended on that date annexed thereto which we
have signed under reference to this report. 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 India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of any material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
(3) As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of The Companies Act, 1956, of India (the Act) and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
(4) Further to our comments in the Annexure referred to in the and
para-3 above, we report that:
Except in respect of Faridabad unit, due to fire on 16th April, 2011,
destroying part of fixed assets, stock and all financial records which
has resulted in non availability of sufficient records, we have relied
up on the information submitted by the management for preparation of
financial accounts. Based on this event we reserve our opinion to
comment on the profitability of Faridabad unit.
(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, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Sub-Section (3C) of Section 211 of the Act;
and
(e) On the basis of the written representations received from the
directors as on 31st March, 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements, together
with the notes thereon and attached thereto, give in the prescribed
manner the information required by the Act, and give a true and fair
view in conformity with 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 and Loss Account, of the profit 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.
Annexure to Auditors Report:
(Referred to in paragraph 3 of the Auditors Report of even date to the
members of Bright Brothers Ltd. on the financial statements for the
year ended 31st March, 2011)
(1) (a) The Company is maintaining proper records to show full
particulars including quantitative
details and situation of all fixed assets.
(b) As explained to us, the Management in accordance with the phased
program of verification has physically verified these fixed assets,
which in our opinion is reasonable considering the size of the Company
and nature of its assets. The frequency of verification is reasonable
and no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanation
given to us, a substantial part of its fixed assets has not been
disposed of by the Company during the year.
(d) The loss on account of fire at Faridabad unit has in no way
affected the going concern of the company as a whole.
(2) (a) As explained to us the inventories have been physically
verified during the year by the Management and internal auditors. In
respect of inventories lying with third parties confirmations have been
obtained for a major portion of inventories. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. In our
opinion, the discrepancies noticed on verification between physical
stocks and book stocks were not material.
(3) (a) 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 Act. Accordingly clause (iii)(b) to (d) of
paragraph 4 of the order are not applicable to the Company for the
current year.
(b) 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 Act. Accordingly clause (iii)(f) to (g) of
paragraph 4 of the order are not applicable to the Company during the
current year.
(4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets for the
sale of goods and services. Further on the basis of our examination of
the books and records of the Company and according to information and
explanation given to us, we have neither came across nor have been
informed of any instance of major weakness in the aforesaid internal
control system.
(5) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that needs to
be entered in the register maintained under section 301 of the
Companies Act, have been so entered in the register.
(6) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A and 58AA and
other relevant provisions of the Companies Act, 1956 and Companies
Acceptance of Deposit Rules, 1975 and the rules framed. According to
the information and explanation given to us, no order has been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal on the Company in
respect of the aforesaid deposits.
(7) In our opinion, the Company has internal audit system commensurate
with the size and nature of its business.
(8) The Central Government has not prescribed for the maintenance of
cost record under clause (d) of sub section (1) of Section 209 of the
Companies Act, 1956.
(9) (a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion the Company is
generally regular in depositing, undisputed statutory dues including
provident fund, employees state insurance, service-tax, custom duty,
wealth tax, excise duty, sales tax and income tax cess and other
materially statutory dues as applicable with the appropriate
authorities.
(b) According to the records of the Company examined by us and
information and explanation given to us the following are the
particulars of the disputed amount payable in respect of Sales Tax,
Income Tax, Excise Duty, Entry Tax , Service Tax, as at 31st March,
2011, which have not been deposited on account of disputes are as
follows:
Sr. Name of the Nature of Period to which Amount
No. Statute dispute the amount in dispute
relates (?. in
lacs)
1. Central Excise Duty, Service
tax 1993-1997 64.50
Act, 1944 and Penalty 1996-1999
1997-2003 68.80
2008-2010
2009-2010
2. Bombay Sales Duty,
Interest & 1987-1989 38.93
Tax Act Penalty
1998-1999
1999-2000
1992-1993 79.62
1998-1999
2000-2001
2001-2002
2003-2004
2005-2006
2006-2007
2007-2008
3. Wealth Tax
Act Valuation 2003-2004 3.31
4. The Income
Tax Income Tax 2008-2009 503.86
Act, 1961 Liability
Name of the Statue Forum where dispute is pending
Central Excise Act,1994 Custom, Excise and Service Tax
Appellate Tribunal
First Appellate Authorities
Bombay Sales Tax Act Maharashtra Sales Tax Tribunal
First appellate Authorities
Wealth Tax Act First appellate Authorities
The Income Tax First appellate Authorities
(10) The Company has no accumulated losses as at 31st March, 2011 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
(11) The Company did not have borrowings from financial institutions
and banks and it has not issued any debentures. Therefore, the
provisions of clause 4(xi) of the Companies (Auditors Report) Order
2003 (as amended) are not applicable to the Company.
(12) According to the information and explanation given to us, the
Company has granted inter corporate loans on the basis of security by
way of pledge of shares.
(13) The provisions of special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
(14) According to the information and explanation given to us, the
Company has not given guarantee for loans taken by others from banks or
financial institutions during the year.
(15) In our opinion and according to the information and explanation
given to us, the Company has not obtained any term loan during the
year.
(16) On the basis of overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanation given to us, we report that there are no funds raised on
short term basis which have been used for long term investment.
(17) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(18) The Company has not issued any debenture during the year.
(19) The Company has not raised any money through public issues during
the year.
(20) Based on the audit procedures performed for the purpose of
reporting true and fair view of the financial statement and as per the
information and explanation given by the Management, we have neither
come across any instance of material fraud on or by the Company,
reported or reported during the year nor we have been informed of such
case by management as has been noticed or reported during the course of
our audit.
For DHODY AND ASSOCIATES
Firm Registration No.: 003837C
Chartered Accountants
per RAKESH DHODY
Partner
Membership No.: 72621
Place : Mumbai
Date : 8th June, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of BRIGHT BROTHERS
LIMITED, as at 31st March, 2010, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed thereto
which we have signed under reference to this report. 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 audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of any 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 significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. In accordance with the provisions of Section 227 of the Companies
Act, 1956, we report that:
As required by the Companies (Auditors Report) Order, 2003 as amended
by the Companies (Auditors Report) (Amendment) Order, 2004 issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act, 1956, of India and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(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 as appears from our examination of those
books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Sub-Section (3C) of Section 211 of the Act;
and
(e) On the basis of the written representations received from the
directors of the company as on 31st March, 2010, and taken on record by
the Board of Directors, none of the directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with Significant Accounting Policies in Schedule A and the
Notes thereon and attached thereto give, the information required by
the Companies Act, 1956, 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, 2010;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure To Auditors Report: (Referred to in Paragraph 3 of our Report
of even date)
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management in accordance with the phrased programme of
verification, which in our opinion is reasonable considering the size
of the Company and nature of its assets. The frequency of verification
is reasonable and no material discrepancies were noticed on such
verification.
(c) The Company has not disposed off any substantial part of its fixed
assets during the year.
(ii) (a) As explained to us the inventories have been physically
verified during the year by the management. In respect of inventories
lying with third parties confirmations have been obtained. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory 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 physical stocks and book
stocks were not material having regard to the size of the operations of
the Company and have been properly dealt with in the books of accounts.
(iii) (a) According to the information and explanation given to us, the
Company has not granted any loans secured or unsecured, to companies,
firms or other parties covered in the register maintained under section
301 of the Act. Accordingly clause 4(iii)(b) to (d) of Companies
(Auditors Report) Order, 2003 is not applicable to the Company.
(b) According to the information and explanation 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 Act.. Accordingly clause 4(iii)(f) to (g) of Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
(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 and services. During the course of our
audit, nothing had come to our notice that may suggest a major weakness
in the aforesaid internal control system.
(v) According to the information and explanations given to us, the
particulars of contracts or arrangements that needs to be entered in
the register maintained in section 301 of the Companies Act, have been
so entered in the register.
(vi) In our opinion and according to the information and explanations
given to us , the directives issued by the Reserve Bank of India and
the provisions of sections 58A and 58AA and other relevant provisions
of the Companies Act,1956 and the rules framed there under, where
applicable have been complied with. No order has been passed by the or
Reserve Bank of India or any Court or any other Tribunals or the
Company Law Board in respect of the aforesaid deposits.
(vii) The Company has internal audit system commensurate without size
and nature of its business. However, the Internal audit system in
certain areas needs to be strengthened.
(viii) The Central Government has not prescribed for the maintenance of
cost record under clause
(d) of sub section (1) of section 209 of the Companies Act, 1956.
(ix) (a) According to the information and explanations given to us and
records of the company examined by us, in our opinion the Company has
been generally regular in depositing, undisputed statutory dues
including provident fund, employees state insurance, service-tax,
custom duty, excise duty, sales tax and income tax with the appropriate
authorities.
According to the information and explanation given to us, no undisputed
amounts were in arrears as at 31st March,2010, for a period of more
than six months from the day they become payable.
(b) According to the records of the Company examined by us and
information and explanation given to us the following are the
particulars of the disputed amount payable in respect of Sales Tax,
Excise Duty, Entry Tax, Service Tax, ESIC as at 31st March, 2010, which
have not been deposited on account of any disputes:
Sr. Name of the Nature of Year to which Amount
No. Statute Dispute the amount (Rs. in
relates lacs)
1. Central Excise Duty, Service tax 1993-1997 85.19
Act, 1944 and Penalty 1996-1999
1995-2000
1997-2003 93.64
1994-1997
2006-2007
2008-2009
2009-2010
2. The Central Tax, Interest & 1987-1989 39.47
Sales Tax Act, Penalty 1998-1999
956, Local 1999-2000
Sales Tax Acts
1992-1993 131.67
1997-1998
1998-1999
2000-2001
2001-2002
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
3. The Income Tax Valuation 2003-2004 3.31
Act, 1961
Name of the Forum where Dispute
Statue is pending
Central Excvise Act,1944 CESTAT
Commissioner
The Central Tribunal
Sales Tax
Act, 1956, Local
Sales Tax Acts
Commissioner
The Income Tax Commissioner
Act, 1961
(x) The Company has no accumulated losses as at 31st March, 2010 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
(xi) The Company did not have borrowings from financial institutions
and banks and it has not issued any debentures. Therefore, the
provisions of clause 4(xi) of the Companies (Auditors Report) Order
2003 (as amended) are not applicable to the Company.
(xii) According to the information and explanations given to us, the
Company has granted inter corporate loans on the basis of security by
way of pledge of shares.
(xiii) In our opinion, the Company is not a chit fund or/nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 (as amended) are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 9 (as amended) are not applicable to the Company
(xv) According to the information and explanation given to us, the
Company has not given guarantee for loans taken by others from banks or
financial institutions.
(xvi) The Company did not have any term loans outstanding 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 have been used for long term
investment.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) Based on the audit procedures performed for the purpose of
reporting true and fair view of the financial statement and as per the
information and explanation given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For DHODY AND ASSOCIATES
Chartered Accountants
(RAKESH DHODY)
Partner
Membership No.: 72621
Place : Mumbai
Date : 28th May, 2010