Mar 31, 2015
We have audited the accompanying financial statements of Chemteeh
Industrial Valves Ltd ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement, and a summary of the significant accounting policies and
other explanatory information for the year then ended.
Management's Responsibility for the Financial Statements
The management and the Company's Board of Directors are responsible for
the matters stated in Section 134(o} of the Companies Act, 2013 ("the
Act"] with respect to the preparation of these financial statements
that give a true and fair view of the financial position, financial
performance and cash Sows of the Company m accordance with the
accounting principles genera% accepted in India, including the
Accounting Standards specified under Section-33 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also iodides maintenance of adequate accounting records in accordance
with the preparation of the Act for safeguarding the assets of the
Comply and for preventing and detecting frauds and other
irregularities; selection and unction of appropriate accounting
policies; making judgments and estimates feat tire 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 fortitude or error.
Auditor's' Responsibility
Our responsibility is to express aci opinion on these financial
statements based on our audit. We have taken mm account the provisions
of the Act, the accounting arid auditing standards and matters which
are required to be included in the audit report. Under the provisions
of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
tire 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
for 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 m place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Management and Board
of Directors, as well as evaluating the overall presentation of the
financial statements, We believe that the audit evidence we have
obtained 13 sufficient and appropriate to provide a basis For our audit
opinion on the financial statements.
Opinion
In our option and. to the best of our information and according to the
explanations given to U3, 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 at the Company as
at 31st March, 2015, and its profit/loss and its cash flows for the
year ended an that date.
Report an 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 Section
143(11} of the Act, we give in the Annexure 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 fur 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
wirier Kate 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 Hoard 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.
(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 leas disclosed this impact of pending litigations on its
financial position in its financial statements-refer Notes 31 to the
financial statements
ii. The Company did not have any long term contracts including
derivative contracts for which there were material foreseeable kisses.
iii. There were no amounts which were required to be transfer, to the
Investor Education and Protection Fund by the Company daring rhe year
ended 31.03.2015.
Referred to in Paragraph 1 under the heading "Report on other legal and
regulatory requirements" of our Independent Auditor's Report of even
dale to the members of Chemteeh Industrial Valves Ltd. On the financial
statements as of and for the year ended 31.03.2015,
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that
(l) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(h) A explain to us fixed assets have been physically verified by the
management in a phased manner and no material discrepancies were
noticed on such verification during the year. In our opinion, the
frequency of verification of the fixed assets is reasonable having
regard to the size of the Company and the nature of its assets.
(P) (a) The management has conducted physical verification of inventory,
excluding stocks with third parties, at reasonable intervals during the
year. In respect of inventory lying with Third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
(b) 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 rewords of inventory and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
[ii) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 139 of the Act. Accordingly, the provisions of clauses
3(iii] fa) and 3(iii) (b) of the Order are not applicable.
(iv) In our opinion, and according to information's & explanations
given to us, tiered is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed nor reported in the internal control System in respect of these
areas.
(v) The Company has not accepted any deposits from the public within
the meaning of Sections 73 to 76 of the Act or any other relevant
provisions of the Act and rules framed there under.
(vi) We haw broadly reviewed the accounts and records maintained by
the Company in respect of products where, pursuant to the rules made by
the Central Government of India, the maintenance of cost records has
been prescribed 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. We have not, however, made a
detailed examination of the same.
(vii) a The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Wealth Tax, Sales Tax, Service
Tax, Duty of Custom, Duty of Excise, Value added tax, Cess and other
material statutory dues, as applicable to it. According to the
information and explanations given to us, no undisputed amounts payable
in respect of outstanding statutory dues were in arrears as at March
31, 2015 for a period of more than six months from the date they became
payable except as below:
STATUTES NATURE OF AMOUNT PERIOD DUE DATE DATE OF
DUES (Rs) PAYMENT
Seres-tax Deferment 1,263,966 1999-OOto Annual
Installment 2001-02 install-
ments
Income tax TDS 2,68,388 2007-08 to Various as
per
2013-14 Default
notice
With respect to income tax TDS dues, we are being informed that the
company is in the process of compiling data / information In respect of
default notices from Tax database (TRACES) and accordingly the demands
would be either paid or necessary rectification applications would be
filed.
b) There are no dues In respect of wealth-tax, duty of excise, duty of
customs, sales tax, service tax .value added tax and cess that have not
been deposited with the appropriate authority on account of any
dispute. The particular of dues outstanding in respect of income tax,
on account of any dispute are as follows:
Sr. Name of Statute Nature Forum where Financial Amount
No. of Dispute
is pending Year in Rs.
Dues
1 Central Sales
tax CST Comm..of
sales Tax 2008-09 1109445
2 Central Sales
tax CST Comm..of
sales Tax 2006-07 270979
3 Central Sales
tax CST Comm..
Sales Tax 2000-10 4259202
4 Income Tax IT Income tax
officer 2011-12 3,989,780
C) There were no amounts which were required to be transfer, to the
Investor Education and Protection Fund by the Company during the year
ended 31.03,2015.
(viii] The Company has accumulated losses of Rs.5,11,20,964/-(P. Y. Rs.
1.34,10,416/-) at the end of the financial year which is not more than
the 50% of its Net worth. It has incurred cash loss during the current
year is Rs,2,19,39,099/- and Rs.SS,80,222/- in the immediately previous
year.
(ix) Based on our audit procedures and according to the information and
explanation given to us, we arc of the opinion that the Company has not
defaulted m repayment of dues to banks.
x) According to information and explanation given to ua and to the best
of knowledge, the Company has not given guarantees for loans taken by
others from banks or financial institutions.
(xi) In our opinion and according to intonation and explanation given
to ua, a company has not received any Term Lahti during the year.
(xii) During the course of our examination of books and records of the
company, carried out in accordance with generally accepted auditing
practices in India, we have neither" come across any instance of fraud
on or by the Company noticed or reported during the year, nor have we
been informed of any such case by the management.
For S. P. JAIN & ASSOCIATES,
CHARTERED ACCOUNTANTS
Firm Reg. No. 103969W
KAPIL K. JAIN
(PARTNER)
Membership No. 108521
Place : Mumbai,
Date : 30 MAY 2015
Mar 31, 2014
Report on Financial Statements
We have audited the accompanying financial statements of Chemtech
Industrial Valves Ltd,("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statement ofProfit and Loss and Cash Flow
Statement for the period then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility For the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error,
Auditor''s Responsibility
Our responsibility is to express an. opinion on these financial
statements based on our audit, We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical. requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a. basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us,
the financial statements give the information required by the Act in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31 2014;
(b) in the case of the statement of Profit and Loss, of the profit/
loss for the period ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
period 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. m our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956.
e. on the basis of written representations received from the directors
as on March 31 2014, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sab-section (1) of
section 274 of the Companies Act, 1956.
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)
1. a) As explained to us, the Company has maintained the records
showing full particulars including quantitative details and situation
of fixed assets.
b) As explained to us, the fixed assets have been physically verified
by the management during the year 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) In our opinion, the Company has not disposed of substantial part of
fixed assets during the period.
2. a) As explained to us, inventories have been physically verified by
the management at regular intervals during the period.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of inventories.
As explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company has taken loans from 10 parties (P.Y. taken from 5
parties) listed in the register maintained U/s. 301 of the Companies
Act, 1956. The year-end balance of loan taken from such parties was nil
(P.Y, Rs. Rs.2.00,00.000/ -j. Maximum balance outstanding during the
period is Rs, 4,24,44,990/- (P.Y. Rs. Rs. 2,21,90,640/-) and that the
Terms and Conditions are not prejudicial to the interest of the
company. The company is regular in repaying as the same is payable on
demand. There is no overdue amount
The Company has granted loans to 2 parties (P. Y. 6 parties) Companies,
Firms or other parties as listed in the register maintained under
section 301 and / or to the Companies under the same management as
defined under sub-section (IB) of Section 370 of the Companies Act,
1956. The period-end balance of loan given to such parties was
Rs.13,19,166/- (P.Y. Rs. Rs. 13,19,166/-). Maximum balance outstanding
during the period is Rs.13,42,166/- (P.Y. Rs.3,65,21,351/-) and that
the Terms and Conditions are not prejudicial to the interest of the
company. The company is regular in repaying as the same is payable on
demand. There is no overdue amount.
4 In our opinion and according to the information and explanations
given to us, there are adequate interna] control procedures
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. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Companies Act, 1956 have been so entered
b) In cur opinion and according to the information and explanations
given to us, the transactions in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding Rs. 5,00,000/- (Rupees Five Lacs only) in
respect of any party during the year have been made at price, which are
reasonable & having regard to prevailing market price at the relevant
time.
6 As explained to us the company has not accepted any deposits from the
public with in the meaning of section 58A and 58 A A of the Companies
Act, 1956 and the rules framed there under.
7 In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
8. We have broadly reviewed the accounts and records maintained by the
Company in respect of products where, 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 same.
9. a) According to the information and explanation given to us, and
records being made available to us, the undisputed statutory dues
including Income-tax, Sales Tax, Wealth Tax, and other statutory dues
wherever applicable have been generally regularly deposited 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 March 31, 2014 for a period of more than
six months from the date of becoming payable except for:
STATUTES NATURE OF AMOUNT PERIOD DUE DATE DATE OF
DUES (Rs.) PAYMENT
Sales tax Deferment 7,80,089 1999-00 to 2010-11 to
Installment 2001-02 2013-14
b) In our opinion and according to the information and explanations
given to us, there are no disputed statutory dues pending before any
Authority except for.
STATUTES NATURE AMOUNT PERIOD FORUM
OF DUES (Rs.)
Central CST 1109445 2008-09 Comm.
Sales tax of sales
Tax
Central CST 270979 2006-07 Comm.
Sales tax of sales
Tax
Central CST 4259201 2009-10 Comm.
Sales tax of sales
Tax
10. The Company does not any accumulated losses during the period
Financial Period covered by our audit. The company has incurred cash
loss of Rs.55,80,222/- (P.Y. Nil) in the current period covered by the
audit.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to banks.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14. The Company has maintained proper records of transaction and
contracts in respect of trading in securities, debentures and other
investments and timely entries have been made therein. All shares,
debentures and other investments have been held by the company in its
own name,
15. According to information and explanation given to us and to the
best of knowledge, the Company has not given guarantees for loans taken
by others from banks or financial institutions,
16. According to information and explanation given to us the company
has received new term loans during the period and the same has been
utilized and applied for the purpose for which they were obtained other
than the amounts temporarily invested pending utilization of the same
for intended use.
17. According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not raised funds from Short Term
sources and utilized the same towards Long Term investments.
18. During the year Company has made preferential allotment of
26,69,333 No. of Equity shares (face value Rs. 10/ ) at a premium of
Rs. 5/- per share to parties covered under sec.301 of the Companies
Act, 1956 and in our opinion such price is not prejudicial to the
interest of the company.
19. According to information and explanation given to us, the Company
has not issued any secured debentures during the period.
20. During the year Company has raised money by way of public issue
offer and the end use of the money raised has been verified and
disclosed in the note No. 32 of the financial statement,
21 opinion and according to the information and explanation given to us
no fraud by during the period which causes the financial statements to
materially misstated.
For S. P. JAIN & ASSOCIATES,
CHARTERED ACCOUNTANTS
FRN. 103969W
Place : Mumbai.
Date: 30/05/2014 Kapil K. Jain
(PARTNER)
Membership No. 108521