Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
To
The Members of DAMODAR INDUSTRIES LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of DAMODAR INDUSTRIES LIMITED ("the company"), which comprise the Balance Sheet as at March 31, 2018 ,the Statement of Profit and Loss (including Other Comprehensive Income),the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management'' 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 of these financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income),cash flows of the Company and the Statement of Changes in Equity in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under section 133 of Companies Act, 2013, read with Companies (Indian Accounting Standard) Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities, selection and application of 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 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.
We conducted my audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that We comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation and fair presentation 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 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 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, its cash flows and the statement of changes in equity 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 Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, We give in the ''Annexure A''a statement on the matters specified in paragraphs 3 and 4 of the said 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 my examination of those books.
c) The Balance Sheet, Statement of Profit and Loss (including other comprehensive income),Cash Flow Statement and Statement of Changes in Equity dealt with by this report are in agreement with the books of account.
d) In our opinion, the aforesaid Financial Statement comply with the Accounting Standards specified under section 133 of Companies Act, 2013. Read with Companies(Indian Accounting Standard) Rules,2015 ,as amended.
e) On the basis of the written representations received from the directors, as on March 31, 2018 and taken on record by the Board of Directors, We report that 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 Companies Act, 2013.
f) With respect to the adequacy of the internal financial control over financial reporting of the Company and the operative effectiveness of such controls ,refer to our separate report in ''Annexure B''.
g) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in my opinion, and to the best of my information and according to the explanation given to us:
1. The Company has disclosed the impact of pending litigations on its financial statement.
2. The Company does not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
3. The Company has transferred the amounts which were required to be transferred to the Investor Education and Protection Fund.
The Annexure referred to in paragraph 1, under Report on other Legal and Regulatory Requirements in the
Independent Auditor''s Report of even date to the members of Damodar Industries Limited (the company) on the financial statements for the year ended March 31, 2018, we report that:
i. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information
(b) The Fixed Assets were physically verified during the year by the management in according with a regular programme of verification which, in our opinion provides for physical verification of major portion of fixed assets at reasonable intervals. According to the information and explanation given to us and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of examination of the records of the company, the title deeds of immovable properties are held in the name of the company
ii. In respect of its inventories:
(a) As explained to us, the inventories were physically verified by the management at regular intervals during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them.
(b) The discrepancies noticed on verification between the physical stocks and book records were not material.
iii. The company has not granted any loans, secured or unsecured to the companies, firms, Limited liability partnership or other parties covered in the register maintained under section 189 of the companies Act, 2013. Accordingly, provisions of paragraph 3 (iii) of the Companies (Auditor Report) ordered 2016 were not applicable to the Company.
iv. The Company has not made investments and granted any loans or provided any guarantees or security to the parties covered under section 185 and 186 of the Companies Act, 2013. Accordingly, provisions of paragraph 3 (iv) of the Companies (Auditor Report) order 2016 were not applicable to the Company
v. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of sections 73 to 76 and other relevant provisions of the Companies Act, 2013 and the rules framed thereunder with regard to the deposits accepted from the public. As per information given to us, no order under the aforesaid sections has been passed by the company Law Board or National Company Law Board or Reserve Bank of India or any court or any other tribunal, on the company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the rules prescribed by the Central Government under sub section 1 of section 148 of the Companies Act,2013 and are of the opinion that prime facie the prescribed accounts and cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. In respect of statutory dues:
(a) According to information and explanations given to us and on the basis of our examination of the records of the company has been regular in depositing undisputed statutory dues including Provided Fund, investor education and production fund employer state insurance Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, cess and other material statutory dues 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, 2018 for a period of more than six months from the date of becoming payable.
b) According to the information and explanations given to me, there are no dues in respect of Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of any dispute. The details of dues which have not been deposited on account of dispute are given below:
Sr. No. |
Name of the Sta t ute |
Nature of t h e d u es |
Amount |
Period to which t h e amount relates |
Forum where d i s p ute is pending |
1. |
DEPB Entitlement Refund |
Custom |
8 1, 18,321/- |
F.Y. 2010-1 1 |
DGFT |
viii. In our opinion and according to the information and explanations given to us , the company has not defaulted in repayment of dues to any financial institutions and bank as at the Balance sheet date.
ix. In our opinion and according to the information and explanations given to us, during the year the company did not raised any money by way of initial public offer or further public offer (including debt instruments) and the term loans availed during the year have been applied for the purpose for which they were 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 audit.
xi. According to the information and explanations given to us, and based on our examination of records of the company, the company has paid/ provided for managerial remuneration in accordance with requisite approvals mandated by the provision of Section 197 read with Schedule V of the Companies 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 records of the company, transaction with the related parties are in compliance with Section 177 & 188 of the Act where applicable and details of such transaction have been disclosed in the financial statements as required by the applicable accounting standards.
xiv According to the information and explanations given to us, and based on our examination of records of the company, the company has not made any preferential allotment or private placement of shares of fully or partly convertible debentures during the year.
xv According to the information and explanations given to us, and based on our examination of 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 According to the information and explanations given to us, the company is not required to be registered under section 45 1A of the reserve bank of india Act, 1934. Accordingly paragraph 3(xvi) of the Order is not applicable.
The annexure referred to in paragraph 2 (f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date to the members of Damodar Industries Limited on the financial statements for the year ended March 31,2018.
Report on the Internal Financial controls under clause (i) of sub-section 3 of section143 of the companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Damodar Industries Limited ("the Company") as of March 31, 2018 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 control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") 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 standalone 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)
In provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Jitendra Mishra & Company
Chartered Accountants
Firm Registration No: 125334W
(Jitendra Mishra)
Place: Mumbai Proprietor
Date : May 26, 2018 Membership No: FCA 116676
Mar 31, 2017
To The Members of DAMODAR INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of DAMODAR INDUSTRIES LIMITED ("the company"), which comprise the Balance Sheet as at March 31, 2017 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management'' 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 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 Companies Act, 2013, 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 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 my audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted my audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that We comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation and fair presentation 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 reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
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 the affairs of the Company as at March 31, 2017.
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, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, We give in the ''Annexure A''a statement on the matters specified in paragraphs 3 and 4 of the said 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 my 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 specified under section 133 of Companies Act, 2013. Read with rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors, as on March 31, 2017 and taken on record by the Board of Directors, I report that none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Companies Act, 2013.
f) With respect to the adequacy of the internal financial control over financial reporting of the Company and the operative effectiveness of such controls, refer to our separate report in ''Annexure B''.
g) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in my opinion, and to the best of my information and according to the explanation given to me:
1. The Company has disclosed the impact of pending litigations on its financial statement.
2. The Company does not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
3. The Company has transferred the amounts which were required to be transferred to the Investor Education and Protection Fund.
4. The Company has provided requisite disclosure in financial statements as to holding as well as dealing in Specified Bank Notes during the period from 08 November 2016 to 30 December 2016.Based on audit procedures and relying on management representation, we report that disclosures are in accordance with books of accounts maintained by the Company and as to produced by the management. Refer Note No.15 to financial statements
The Annexure referred to in paragraph 1, under Report on other Legal and Regulatory Requirements in the
Independent Auditor''s Report of even date to the members of Damodar Industries Limited (the company) on the financial statements for the year ended March 31, 2017, we report that:
i. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information
(b) The Fixed Assets were physically verified during the year by the management in according with a regular programme of verification which, in our opinion provides for physical verification of major portion of fixed assets at reasonable intervals. According to the information and explanation given to us and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of examination of the records of the company, the title deeds of immovable properties are held in the name of the company
ii. In respect of its inventories:
(a) As explained to us, the inventories were physically verified by the management at regular intervals during the year.In respect of inventory lying with third parties, these have substantially been confirmed by them.
(b) The discrepancies noticed on verification between the physical stocks and book records were not material.
iii. The company has not granted any loans, secured or unsecured to the companies, firms, Limited liability partnership or other parties covered in the register maintained under section 189 of the companies Act, 2013. Accordingly, provisions of paragraph 3 (iii) of the Companies (Auditor Report) ordered 2016 were not applicable to the Company.
iv. The Company has not made investments and granted any loans or provided any guarantees or security to the parties covered under section 185 and 186 of the Companies Act, 2013. Accordingly, provisions of paragraph 3 (iv) of the Companies (Auditor Report) order 2016 were not applicable to the Company.
v. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of sections 73 to 76 and other relevant provisions of the Companies Act, 2013 and the rules framed there under with regard to the deposits accepted from the public. As per information given to us, no order under the aforesaid sections has been passed by the company Law Board or National Company Law Board or Reserve Bank of India or any court or any other tribunal, on the company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the rules prescribed by the Central Government under sub section 1 of section 148 of the Companies Act,2013 and are of the opinion that prime facie the prescribed accounts and cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. In respect of statutory dues:
(a) According to information and explanations given to us and on the basis of our examination of the records of the company has been regular in depositing undisputed statutory dues including Provided Fund, investor education and production fund employer state insurance Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, cess and other material statutory dues 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, 2017 for a period of more than six months from the date of becoming payable.
b) According to the information and explanations given to me, there are no dues in respect of Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of any dispute. The details of dues which have not been deposited on account of dispute are given below:
Sr. No. |
Name of the Statute |
Nature of the dues |
Amount |
Period to which the amount relates |
Forum where dispute is pending |
1. |
DEPB Entitlement Refund |
Custom |
8 1, 18,321/- |
F.Y. 2010-1 1 |
DGFT |
viii. In our opinion and according to the information and explanations given to us , the company has not defaulted in repayment of dues to any financial institutions and bank as at the Balance sheet date.
ix. In our opinion and according to the information and explanations given to us, during the year the company did not raised any money by way of initial public offer or further public offer (including debt instruments) and the term loans availed during the year have been applied for the purpose for which they were 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 audit.
xi. According to the information and explanations given to us, and based on our examination of records of the company, the company has paid/ provided for managerial remuneration in accordance with requisite approvals mandated by the provision of Section 197 read with Schedule V of the Companies 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 records of the company, transaction with the related parties are in compliance with Section 177 & 188 of the Act where applicable and details of such transaction have been disclosed in the financial statements as required by the applicable accounting standards.
xiv According to the information and explanations given to us, and based on our examination of records of the company, the company has not made any preferential allotment or private placement of shares of fully or partly convertible debentures during the year.
xv According to the information and explanations given to us, and based on our examination of 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 According to the information and explanations given to us, the company is not required to be registered under section 45 1A 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
The annexure referred to in paragraph 2 (f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date to the members of Damodar Industries Limited on the financial statements for the year ended 31st March,2017.
Report on the Internal Financial controls under clause (i) of sub-section 3 of section143 of the companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Damodar Industries Limited ("the Company") as of March 31, 2017 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 control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") 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 standalone 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 standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Jitendra Mishra & Company
Chartered Accountants
Firm Registration No: 125334W
(C.A. Jitendra Mishra)
Place: Mumbai Proprietor
Date : 29 May, 2017 Membership No: FCA 116676
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
To
The Members of
DAMODAR INDUSTRIES LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of DAMODAR INDUSTRIES LIMITED ("the company"), which comprise the Balance Sheet as at March 31, 2016 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management'' 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 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 Companies Act, 2013, 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 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 my audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted my audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that We comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation and fair presentation 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 reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
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 the affairs of the Company as at March 31, 2016.
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, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, We give in the ''Annexure A''a statement on the matters specified in paragraphs 3 and 4 of the said 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 my 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 specified under section 133 of Companies Act, 2013. Read with rule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors, as on March 31, 2016 and taken on record by the Board of Directors, I report that none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164(2) of the Companies Act, 2013.
f) With respect to the adequacy of the internal financial control over financial reporting of the Companyand the operative effectiveness of such controls ,refer to our separate report in ''Annexure B''.
g) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in my opinion, and to the best of my information and according to the explanation given to me:
1. The Company has disclosed the impact of pending litigations on its financial statement.
2. The Company does not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
3. The Company has transferred the amounts which were required to be transferred to the Investor Education and Protection Fund.
The Annexure referred to in paragraph 1, under Report on other Legal and Regulatory Requirements in the
Independent Auditor''s Report of even date to the members of Damodar Industries Limited (the company) on the
financial statements for the year ended March 31, 2016, we report that:
I In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information
(b) The Fixed Assets were physically verified during the year by the management in according with a regular programme of verification which, in our opinion provides for physical verification of major portion of fixed assets at reasonable intervals. According to the information and explanation given to us and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of examination of the records of the company, the title deeds of immovable properties are held in the name of the company
ii. In respect of its inventories:
(a) As explained to us, the inventories were physically verified by the management at regular intervals during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them.
(b) The discrepancies noticed on verification between the physical stocks and book records were not material.
iii. The company has not granted any loans, secured or unsecured to the companies, firms, Limited liability partnership or other parties covered in the register maintained under section 189 of the companies Act, 2013. Accordingly, provisions of paragraph 3 (iii) of the Companies (Auditor Report) ordered 2016 were not applicable to the Company.
iv. The Company has not made investments and granted any loans or provided any guarantees or security to the parties covered under section 185 and 186 of the Companies Act, 2013. Accordingly, provisions of paragraph 3 (iv) of the Companies (Auditor Report) ordered 2016 were not applicable to the Company
v. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of sections 73 to 76 and other relevant provisions of the Companies Act, 2013 and the rules framed there under with regard to the deposits accepted from the public. As per information given to us, no order under the aforesaid sections has been passed by the company Law Board or National Company Law Board or Reserve Bank of India or any court or any other tribunal, on the company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the rules prescribed by the Central Government under sub section 1 of section 148 of the Companies Act,2013 and are of the opinion that prime facie the prescribed accounts and cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. In respect of statutory dues:
(a) According to information and explanations given to us and on the basis of our examination of the records of the company has been regular in disposing undisputed statutory dues including Provided Fund, investor education and production fund employer state insurance Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, cess and other material statutory dues 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, 2016 for a period of more than six months from the date of becoming payable.
b) According to the information and explanations given to me, there are no dues in respect of Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of any dispute. The details of dues which have not been deposited on account of dispute are given below:
Sr. No. |
Name of the Statute |
Nature of the dues |
Amount |
Period to which the amount relates |
Forum where disputes pending |
1. |
DEPB Entitlement Refund |
Custom |
81,18,321/- |
F.Y. 2010-1 1 |
DGFT |
2. |
Central Sales Tax Act, 1956 |
C.S.T |
74,37,996/- |
F.Y. 2006-07 |
Deputy Commissioner (Appeal ) |
3. |
Maharashtra Value Added Tax |
MVAT |
42,91,001/- |
F.Y. 2006-07 |
Deputy Commissioner (Appeal) |
viii. In our opinion and according to the information and explanations given to us , the company has not defaulted in repayment of dues to any financial institutions and bank as at the Balance sheet date.
ix. In our opinion and according to the information and explanations given to us, during the year the company did not raised any money by way of initial public offer or further public offer (including debt instruments) and the term loans availed during the year have been applied for the purpose for which they were 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 audit.
xi. According to the information and explanations given to us, and based on our examination of records of the company, the company has paid/ provided for managerial remuneration in accordance with requisite approvals mandated by the provision of Section 197 read with Schedule V of the Companies 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 records of the company, transaction with the related parties are in compliance with Section 177 & 188 of the Act where applicable and details of such transaction have been disclosed in the financial statements as required by the applicable accounting standards.
xiv According to the information and explanations given to us, and based on our examination of records of the company, the company has not made any preferential allotment or private placement of shares of fully or partly convertible debentures during the year.
xv According to the information and explanations given to us, and based on our examination of 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 According to the information and explanations given to us, the company is not required to be registered under section 45 1A 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
The annexure referred to in paragraph 2 (f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date to the members of Damodar Industries Limited on the financial statements for the year ended 31st March,2016.
Report on the Internal Financial controls under clause (i) of sub-section 3 of section143 of the companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Damodar Industries Limited ("the Company") as of March 31, 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 control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") 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 standalone 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 standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Jitendra Mishra & Company
Chartered Accountants
Firm Registration No: 125334W
(C.A. Jitendra Mishra)
Place: Mumbai
Date : 2 7 May, 2 0 1 6
Membership No: FCA 116676
Mar 31, 2015
I have audited the accompanying financial statements of DAMODAR
INDUSTRIES LIMITED ("the company"), which comprise the Balance Sheet as
at March 31,2015 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management' 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 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 Companies Act, 2013, 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 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
My responsibility is to express an opinion on these financial
statements based on my audit. I 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.
I conducted my audit in accordance with the Standards on Auditing
specified under Section 143 (10) of the Act. Those Standards require
that I comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation and fair presentation 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 adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and reasonableness of
the accounting estimates made by the management, as well as evaluating
the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion on the financial
statements.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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 the affairs of the
Company as at March 31,2015.
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, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, I give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the said
Order.
2. As required by section 143 (3) of the Act, I report that:
a) I have sought and obtained all the information and explanations,
which to the best of my knowledge and belief were necessary for the
purpose of my audit.
b) In my opinion, proper books of account as required by law have been
kept by the Company so far as it appears from my 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 my opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards specified
under section 133 of Companies Act, 2013. Read with rule 7 of the
Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the
directors, as on March 31,2015 and taken on record by the Board of
Directors, I report that none of the directors is disqualified as on
March 31, 2015 from being appointed as a director in terms of Section
164(2) of the Companies Act, 2013.
f) With respect to the other matters to be included in the Auditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules 2014 in my opinion, and to the best of my information and
according to the explanation given to me:
1. The Company has disclosed the impact of pending litigations on its
financial statement.
2. The Company does not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
3. The Company has transferred the amounts which were required to be
transferred to the Investor Education and Protection Fund.
The Annexure referred to in paragraph 1, under Report on other Legal
and Regulatory Requirements in the Independent Auditor's Report of even
date to the members of Damodar Industries Limited (the company) on the
financial statements for the period ended March 31,2015, I report that:
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
ii. In respect of its inventories:
(a) As explained to me, inventories have been physically verified by
the management at regular intervals during the year.
(b) In my opinion and according to the information and explanations
given to me, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. As
explained to me, there were no material discrepancies noticed on
physical verification of inventory.
iii. During the year the company has not granted any loans, secured or
unsecured to the companies, firms or other parties covered in the
register maintained under section 189 of the company's Act, 2013.
In view of my comment in paragraph (a) above, Clause (3) (a) and (b) of
paragraph 3 of the aforesaid order are not applicable to the company
iv. In my opinion and according to the information and explanations
given to me, 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 sale of goods
and services. During the course of my audit, no major weakness has been
noticed in the internal control systems in respect of these areas.
v. In my opinion and according to the information and explanations
given to me, the company has complied with the provisions of sections
73 to 76 and other relevant provisions of the Companies Act, 2013 and
the rules framed thereunder with regard to the deposits accepted from
the public. As per information given to me, no order under the
aforesaid sections has been passed by the company Law Board or National
Company Law Board or Reserve Bank of India or any court or any other
tribunal, on the company.
vi. I have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under Section (1) of section 143
of the Companies Act, 148 and are of the opinion that prime facie the
prescribed cost records have been maintained. I have, however, not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
vii. In respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Customs
Duty, Excise Duty, Service Tax, Cess and other Statutory Dues have been
regularly deposited with the appropriate authorities. According to the
information and explanations given to me, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2015 for a period of more than six months from the date of becoming
payable.
b) According to the information and explanations given to me, there are
no dues in respect of Wealth-Tax, Excise Duty, Service Tax or Cess
outstanding on account of any dispute. The details of dues which have
not been deposited on account of dispute are given below:
Sr. Name of the Nature of Amount
No. Statute the dues
1. DEPB Entitlement Custom 81,18,321/-
Refund
2. Central Sales Tax C.S.T 74,37,996/-
Act, 1956
3. Maharashtra Value MVAT 42,91,001/-
Added Tax
Name of the Statute Period to which Forum where
the amount disputei s
relates pending
DEPB Entitlement Refund F.Y. 2010-11 DGFT
Central Sales Tax Act, 1956 F.Y. 2006-07 Deputy Commissioner
(Appeal)
Maharashtra Value Added Tax F.Y. 2006-07 Deputy
Commissioner (Appeal)
viii. The company doe as at the end of the financial year and has not
incurred cash losses during the year covered by my Audit and also in
the immediately preceding financial year.
ix. In my opinion and according to the information and explanations
given to me, the company has not defaulted in repayment of dues to any
financial institutions and banks.
x. According to the information and explanations given to me, the
company has not given any guarantee for loans token by others from bank
or financial institutions.
xi. In my opinion and according to the information and explanations
given to me, and on an overall examination of the balance sheet of the
Company, I report that term loans were applied for the purpose for
which the loans were obtained.
xii Based on the Audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the Information and explanations given to me, I report that no fraud on
or by the company has been noticed or reported during the course of my
audit.
A.J. Baliya
Place: Mumbai Chartered Accountant
Date: May 27, 2015 Membership No.FCA 35989
Mar 31, 2014
We have audited the accompanying financial statements of Damodar
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 principles generally accepted in India
including 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.
Auditors 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
presentation of the financial statements that give a true & fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinon
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Act read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
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) In respect of its fixed assets:
(a) The Company has maintained proper records to 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) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(2) In respect of its inventories :
(a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
(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) 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) In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in register
maintained under Section 301 of the companies Act, 1956, according to
the information and explanations given to us:
(a) The Company has taken unsecured loans from twenty-two parties
repayable on demand. At year end aggregate outstanding balance of such
loans was Rs. 2,90,92,438/- and the maximum amount outstanding during the
year was Rs. 6,42,08,834/-.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
prima facie not prejudicial to the interest of the company.
(c) The Company is regular in repaying the principal amounts of loan as
stipulated and has been regular in payment of interest in respect of
such loans.
(d) There is no overdue amount of loans taken as referred to in (a).
(e) The company has not given loans to any of the parties covered 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 are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods.
During the course of our audit, we have not observed any major
weaknesses in internal control system.
(5) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act 1956, and exceeding the value of Five Lakhs rupees in
respect of any party during the year have been made at prices which are
reasonable as per the information available with the Company.
(6) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A, 58AA and other relevant provisions of the Companies Act, 1956 and
the rules framed there under with regard to the deposits accepted from
the public. As per information given to us, no order under the
aforesaid sections has been passed by the company Law Board or Reserve
Bank of India or any court or any other tribunal, on the company.
(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 cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209 (1)(d) of the
Companies Act, 1956 and are of the opinion that prime facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(9) In respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Customs
Duty, Excise Duty, Service Tax, Cess and other Statutory Dues have been
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 31st March,
2014 for a period of more than six months from the date of becoming
payable.
(b) According to the information and explanations given to us, there
are no dues in respect of Income-Tax, Sales-Tax, Custom Duty,
Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of
any dispute. The details of dues of Income Tax which have not been
deposited on account of dispute are given below:
Sr. Name of the Nature of Amount
No. Statute the dues
1. DEPB Entitlement Custom 81,18,321/-
Refund
2. Central Sales Tax C.S.T 74,37,996/-
Act, 1956
3. Maharashtra Value MVAT 42,91,001/-
Added
Commissioner
Total Rs.1,98,47,318/-
Name of the Statue Period to which Forum where
the amount disputeis
relates pending
DEPB Entitlement
Refund F.Y. 2010-11 DGFT
Central Sales Tax
Act, 1956 F .Y. 2006-07 Deputy
Commissioner
(Appeal)
Maharashtra Value
Added
Commissioner F.Y. 2006-07 Deputy
Tax
(Appeal)
(10) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
(11) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to any financial institution or bank.
(12) In our opinion and according 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 the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order 2003 are not applicable to the
Company.
(14) In our opinion and according to the information and explanations
given to us, 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 are not applicable to the Company.
(15) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from
banks or financial institutions.
(16) To the best of our knowledge and belief and according to the
information and explanation given to us, in our opinion, term loans
availed by the company were, prima facie, applied by the company during
the year for the purposes for which the loans were obtained, other than
amounts temporarily invested pending utilization of the funds for the
intended use.
(17) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment and vice-versa.
(18) The Company has not made any preferential allotment of shares
during the year.
(19) The Company has not issued any debentures during the year.
(20) The Company has not raised any money by public issue during the
year.
(21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For A.J. Baliya & Associates
Chartered Accountants
(Registration No. 100948W)
(C.A. A. J. BALIYA)
Place: Mumbai Partner
Dated: 26th May , 2014 Membership No.FCA 35989
Mar 31, 2013
We have audited the accompanying financial statements of Damodar
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31,2013, and the Statement of Profit and Loss and Cash Flow
Statement for tne year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
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.
Auditors 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 whetherthe 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
presentation of the financial statements that give a true & fair view
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Profit and Loss Account, of the profit forthe
year ended on that date; and
c) in the case of the Cash Flow Statement,
ofthecashflowsfortheyearended onthatdate. Report on Other Legal and
Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
To the members of DAMODAR INDUSTRIES LIMITED
[Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date]
(1) In respect of its fixed assets:
(a) The Company has maintained proper records to 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) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(2) In respect of its inventories:
(a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
(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) 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) In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in register
maintained under Section 301 of the companies Act, 1956, according to
the information and explanations given to us:
(a) The Company has taken unsecured loans from twenty-one parties
repayable on demand. At year end aggregate outstanding balance of such
loans was Rs. 3,83,32,683/- and the maximum amount outstanding during
the year was Rs. 4,56,51,041 /-.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and otherterms and conditions are
prima facie not prejudicial to the interest of the company.
(c) The Company is regular in repaying the principal amounts of loan as
stipulated and has been regular in payment of interest in respect of
such loans.
(d) There is no overdue amount of loans taken as referred to in (a).
(e) The company has not given loans to any of the parties covered 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 are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods.
During the course of our audit, we have not observed any
majorweaknesses in internal control system.
(5) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act 1956, and exceeding the value of Five Lakhs rupees in
respect of any party during the year have been made at prices which are
reasonable as per the information available with the Company.
(6) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A, 58AAand other relevant provisions of the Companies Act, 1956 and
the rules framed there under with regard to the deposits accepted from
the public. As per information given to us, no order under the
aforesaid sections has been passed by the company Law Board or Reserve
Bank of India or any court or any other tribunal, on the corv,r",ny.
(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 cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209 (l)(d) of the
Companies Act, 1956 and are of the opinion that prime facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(9) In respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Customs
Duty, Excise Duty, Service Tax, Cess and other Statutory Dues have been
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 31 st March,
2013 for a period of more than six months from the date of becoming
payable.
(b) According to the information and explanations given to us, there
are no dues in respect of Income-Tax, Sales-Tax, Custom Duty,
Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of
any dispute.
(10) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
(11) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to any financial institution or bank.
(12) In our opinion and according 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 the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order 2003 are not applicable to the
Company.
(14) In our opinion and according to the information and explanations
given to us, 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 are not applicable to the Company.
(15) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from
banks or financial institutions.
(16) To the best of our knowledge and belief and according to the
information and explanation given to us, in our opinion, term loans
availed by the company were, prima facie, applied by the company during
the year for the purposes for which the loans were obtained, other than
amounts temporarily invested pending utilization of the funds for the
intended use.
(17) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment and vice-versa.
(18) The Company has not made any preferential allotment of shares
during the year.
(19) The Company has not issued any debentures during the year
(20) The Company has not raised any money by public issue during the
year.
(21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For A. J. BALIYA & ASSOCIATES
Chartered Accountants
(Registration No. 100948W)
CA. A. J. BALIYA
Place: Mumbai Partner
Dated: May 29, 2013 FCA No. 35989
Mar 31, 2012
We have audited the attached Balance Sheet of Damodar Threads Limited
as at March 31, 2012 and also the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us, we set out in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of
our audit;
(ii) 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;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the directors
as on March 31, 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles generally
accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2012;
(b) In the case of 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.
(1) In respect of fixed assets
(a) The Company has maintained proper records to 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) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(2) In respect of its inventories:
(a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
(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) 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) In respect of loans accepted by the company from companies, firms
or other parties covered in registrar maintained under Section 301 of
the companies Act, 1956, according to the information and explanations
given to us:
(a) The company has accepted unsecured loans from sixteen parties
repayable on demand. At year end aggregate outstanding balance of such
loans was Rs. 12,81,956/- and the maximum amount outstanding during
the year was Rs 4,48,62,914/-.
(b) The Company has not granted any loan during the year.
(c) In our opinion the rate of interest and other terms and conditions
are prima facie not prejudicial to the interest of the company.
(d) The Company is regular in repaying the principal amounts of loan as
stipulated and has been regular in payment of interest in respect of
such loans.
(e) There is no overdue amount of loans taken as referred to in (a).
(4) 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 for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal control.
(5) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act 1956, and exceeding the value of Five Lakhs rupees in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(6) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A, 58AA and other relevant provisions of the Companies Act, 1956 and
the rules framed there under with regard to the deposits accepted from
the public. As per information given to us, no order under the
aforesaid sections has been passed by the company Law Board or Reserve
Bank of India or any court or any other tribunal, on the company.
(7) In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
(8) To the best of our knowledge, the Central Government has prescribed
maintenance of cost records under Section 209 (1 }{d) of the Companies
Act, 1956. In our opinion, prime facie, the prescribed accounts and
records have been maintained. However, we are not required to and have
not made examination of the records.
(9) In respect of statutory dues:
(a) According to the information and explanation given to us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income-Tax, Sales-Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and other
Statutory Dues have been 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 31st March, 2012 for a period of more than six months
from the date of becoming payable.
(b) According to the information and explanations given to us, there
are no dues in respect of Income- Tax, Sales-Tax, Custom Duty,
Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of
any dispute.
(10) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
(11) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to any financial institution or bank.
(12) In our opinion and according 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 the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order 2003 are not applicable to the
Company.
(14) In our opinion and according to the information and explanations
given to us, 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 are not applicable to the Company.
(15) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from
banks or financial institutions.
(16) To the best of our knowledge and belief and according to the
information and explanation given to us, in our opinion, term loans
availed by the company were, prima facie, applied by the company during
the year for the purposes for which the loans were obtained, other than
amounts temporarily invested pending utilization of the funds for the
intended use.
(17) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment and vice-versa.
(18) During the year Company has not made any preferential allotment to
parties and companies covered in the Register maintained under section
301 of the Companies Act.
(19) The Company has not issued any debentures during the year.
(20) The Company has not raised any money by public issue during the
year.
(21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For A. J. BALIYA & ASSOCIATES
Chartered Accountants
(CA. A. J. BALIYA)
Place: Mumbai Partner
Dated: May 30, 2012 Membership No.FCA 35989
Mar 31, 2011
We have audited the attached Balance Sheet of Damodar Threads Limited
as at March 31, 2011 and also the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us, we set out in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) 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;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the directors
as on March 31, 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2011
from being appointed as a director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(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 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 2 of our report of even date]
(1) In respect of fixed assets
(a) The Company has maintained proper records to 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) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(2) In respect of its inventories:
(a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
(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) 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) In respect of loans accepted by the company from companies, firms
or other parties covered in registrar maintained under Section 301 of
the companies Act, 1956, according to the information and explanations
given to us:
(a) The company has accepted unsecured loans from fifteen parties
repayable on demand. At year end aggregate outstanding balance of such
loans was Rs. 3,91,75,174/- and the maximum amount outstanding during
the year was Rs 4,96,50,823/-.
(b) The Company has not granted any loan during the year.
(c) In our opinion the rate of interest and other terms and conditions
are prima facie not prejudicial to the interest of the company.
(d) The Company is regular in repaying the principal amounts of loan as
stipulated and has been regular in payment of interest in respect of
such loans.
(e) There is no overdue amount of loans taken as referred to in (a).
(4) 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 for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal control.
(5) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the
opinion that transactions that need to be entered into the register
maintained under Section 301 of the Companies Act 1956, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act 1956, and exceeding the value of Five Lakhs rupees in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(6) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A, 58AA and other relevant provisions of the Companies Act, 1956 and
the rules framed there under with regard to the deposits accepted from
the public. As per information given to us, no order under the
aforesaid sections has been passed by the company Law Board or Reserve
Bank of India or any court or any other tribunal, on the company.
(7) In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
(8) To the best of our knowledge, the Central Government has prescribed
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956. In our opinion, prime facie, the prescribed accounts and
records have been maintained. However, we are not required to and have
not made examination of the records.
(9) In respect of statutory dues:
(a) According to the information and explanation given to us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance, Income-Tax, Sales-Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and other
Statutory Dues have been 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 31st March, 2011 for a period of more than six months
from the date of becoming payable.
(b) According to the information and explanations given to us, there
are no dues in respect of Income-Tax, Sales-Tax, Custom Duty,
Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of
any dispute.
(10) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year.
(11) According to the information and explanations given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to any financial institution or bank.
(12) In our opinion and according 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 the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order 2003 are not applicable to the
Company.
(14) In our opinion and according to the information and explanations
given to us, 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 are not applicable to the Company.
(15) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from
banks or financial institutions.
(16) To the best of our knowledge and belief and according to the
information and explanation given to us, in our opinion, term loans
availed by the company were, prima facie, applied by the company during
the year for the purposes for which the loans were obtained, other than
amounts temporarily invested pending utilization of the funds for the
intended use.
(17) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment and vice-versa.
(18) During the year the Company has made preferential allotment of
11,05,000 Equity shares of Rs. 10/- each fully paid up at a premium of
Rs. 45/- per share in cash.
(19) The Company has not issued any debentures during the year.
(20) The Company has not raised any money by public issue during the
year.
(21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
ForA.J. Baliya & Associates
Chartered Accountants
(C.A. A. J. BALIYA)
Partner
Membership No.FCA 35989
Place: Mumbai
Dated: 30th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Damodar Threads Limited
as at March 31, 2010 and also the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to the information and explanations given to
us, we set out in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) 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;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representation received from the directors
as on March 31, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2010
from being appointed as a director in terms of Clause (g) of
sub-section (I) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(b) In the case of 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 2 of our report
of even date]
(1) In respect of fixed assets
(a) The Company has maintained proper records to 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) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(2) In respect of its inventories :
(a) As explained to us, inventories have been physically verified by
the management at regular intervals during the year.
(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) 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) In respect of loans accepted by the company from companies, firms
or other parties covered in registrar maintained under Section 301 of
the companies Act, 1956, according to the information and explanations
given to us:
(a) The company has accepted unsecured loans from twenty parties
repayable on demand. At year end aggregate outstanding balance of such
loans was Rs. 4,66,34,386/- and the maximum amount outstanding during
the year was Rs 6,85,82,929/-.
(b) The Company has not granted any loan during the year.
(c) In our opinion the rate of interest and other terms and conditions
are prima facie not prejudicial to the interest of the company.
(d) The Company is regular in repaying the principal amounts of loan as
stipulated and has been regular in payment of interest in respect of
such loans.
(e) There is no overdue amount of loans taken as referred to in (a).
(4) 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 for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal control.
(5) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
transactions that need to be entered into the register maintained under
Section 301 of tho Companies Act 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act 1956, and exceeding the value of five Lakhs rupees in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(6) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A, 58AA and other relevant provisions of the Companies Act, 1956 and
the rules framed there under with regard to the deposits accepted from
the public. As per information given to us, no order under the
aforesaid sections has been passed by the company Law Board or Reserve
Bank of India or any court or any other tribunal, on the company.
(7) In our opinion, the internal audit system of the Company is
commensurate with its size and nature of its business.
(8) To the best of our knowledge, the Central Government has prescribed
maintenance of cost records under Section 209 (I) (d) of the Companies
Act, 1956. In our opinion, prime facie, the prescribed accounts and
records have been maintained. However, we are not required to and have
not made examination of the records.
(9) In respect of statutory dues:
(a) According to the information and explanation given to us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State insurance, Income-Tax, Saies-Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax, Cess and other
Statutory Dues have been regulariy 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 3st March, 2010 for a period of more than six months
from the date of becoming payabfe
(b) According to the information and explanations given to us, there
are no dues in respect of [ncome-Tax, Sales-Tax, Custom Duty,
Wealth-Tax, Excise Duty, Service Tax or Cess outstanding on account of
any dispute.
(10) The Company has no accumulated losses at tne end of the financial
year and it has not incurred any cash losses in the current and
immediately orecedir; Inancia ye-:
(11) According to the information ano exoianations given to us and the
records examinee oy us, tne Comoany nas not defaulted in repayment of
dues to any financial institution or bam:,
(12) In our opinion and according 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 the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order 2003 are not applicable to the
Company
(14) In our opinion and according to the information and explanations
given to us, 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 (Auditors Report) Order,
2003 are not applicable to the Company.
(15) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by- others from
banks or financial institutions.
(16) To the best of our knowledge and belief and according to the
information and explanation given to us, in our opinion, term loans
availed by the company were, prima facie, applied by the company during
the year for the purposes for which the loans were obtained, other than
amounts temporarily invested pending utilization of the funds for the
intended use.
(17) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment and vice-versa.
(18) The Company has not made any preferential allotment of shares
during the year.
(19) The Company has not issued any debentures during the year.
(20) The Company has not raised any money by public issue during the
year.
(21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For A.J. Baliya & Associates
Chartered Accountants
(C.A. A.J. BALIYA)
Partner.
Membership No.FCA35989
Place: Mumbai
Dated :22nd May, 2010.