Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, including the statement of 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.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ)with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS)specified under section 133 of the Act., read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS financial statements give the information required by the Act in the manner so required and give true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018, its profit including other comprehensive income, its cash flows and the changes in equity forth year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the 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 standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of written representations received from the directors as on 31 March 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018, from being appointed as a director in terms of section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 27 to the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. The disclosure in the financial statements regarding holdings as well as dealing in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018.
Other Matter
The comparative financial information of the Company for the year ended 31 March 2017 and the transition date opening balance sheet as at 1 April 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by another auditor whose report for the year ended 31 March 2017 and 31 March 2016 dated 10 November 2017 and 27 May 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Annexure Rs. 1â referred to in paragraph under the heading âReport on other legal and regulatory requirementsâ of our report of even date
Re: THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED (âthe Companyâ)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been confirmed by them as at 31 March 2018 and no material discrepancies were noticed in respect of such confirmations.
(iii) (a) The Company has not granted any secured or unsecured loans to companies, firms, limited liability partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore the requirements of sub-clause (a), (b) and (c) of clause (iii) are not applicable to the Company.
(iv) There are no loans given, no investments made, no guarantees given, and no security given by the Company in terms of provisions of section 185 and 186 of the Companies Act, 2013.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income tax, duty of excise, duty of custom, sales tax, ESI and employeesâ state insurance on account of any dispute, is as follows:
Name of the Statute |
Nature of Dues |
Amount (Rs.) in Lacs |
Period to which |
Forum where dispute is pending |
Central Excise Act,1944 |
Duty/Interest/Penalty |
24.48 |
April 2008 to February 2013 |
Assistant Commissioner |
Central Excise Act,1944 |
Duty/Interest/Penalty |
0.57 |
August, 2002 to March, 2007 |
Assistant Commissioner |
Central Excise Act,1944 |
Duty/Interest/Penalty |
1.18 |
2005 to 2006 |
Assistant Commissioner |
Central Excise Act,1944 |
Duty/Interest/Penalty |
56.59 |
October 2008 to August 2013 |
Assistant Commissioner |
Central Excise Act,1944 |
Duty |
3.79 |
March 2013 to September 2013 |
Dy. Commissioner |
Central Excise Act,1944 |
Duty |
14.70 |
September 2013 to August 2014 |
CESTAT, West Zone Bench. |
Central Excise Act,1944 |
Duty |
5.96 |
November 2010 to Sept 2013 |
Additional Commissioner of Central Excise |
Central Excise Act,1944 |
Duty |
0.50 |
0ct0ber 2013 to August 2014 |
Suptd. Of Central Excise(Tech)-IVth Division, Mahad |
Central Excise Act,1944 |
Duty |
14.28 |
October 2013 to June 2014 |
Additional Commissioner of Central Excise |
Central Excise Act,1944 |
Duty |
4.43 |
September 2014 to December 2014 |
Asst. Commissioner of Central Excise |
Central Excise Act,1944 |
Duty |
1.58 |
January 2015 to April 2015 |
Asst. Commissioner of Central Excise |
Central Excise Act,1944 |
Transport Fees on SDS |
51.24 |
2007-08 to 2016-17 |
Bombay High Court |
Customs Act, 1962 |
Utilization of DEPB Licences |
16.60 |
2002-03 |
Collector of Customs |
TOTAL |
195.90 |
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowing to a financial institution, bank or government. The Company did not have any outstanding debentures during the year.
(ix) In our opinion and according to the information and explanations given by the management, the Company has utilized the monies raised by term loans for the purpose for which they were obtained. The Company has not raised any money way of initial public offer / further public offer / debt instruments during the year.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
ANNEXURE-2 TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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. 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 the Companyâs 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. 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 auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs 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 companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs 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 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Rahul Gautam Divan & Associates
ICAI Firm registration number: 120294W
Chartered Accountants
Rahul Divan
Partner
Membership No.: 100733
Place: New Delhi
Date: 28 May 2018
Mar 31, 2016
TO THE MEMBERS OF THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the financial statements.
Basis for Qualified Opinion
The Company had recognized net deferred tax asset in earlier years aggregating to Rs.2654.15 Lacs till 31st March, 2009 considering unabsorbed loss up to 31st March, 2008 and unabsorbed depreciation up to 31st March, 2009. For subsequent financial periods, further net deferred tax asset has not been recognized in view of managementâs perceptions and reasons detailed in Note No. V(c). We are not in a position to opine on the reliability of the said net deferred tax asset. Consequently, the Accumulated Losses as at the year-end would have been higher by Rs.2654.15 Lacs.
Opinion
In our opinion and to the best of our information and according to the explanations given to us and except for the possible effects of the matter described in the Basis for Qualified Opinion Paragraph, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act, we give in the âAnnexure A'', a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position (net of provision made) in its financial statements 2A(i) to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXUREA
Re: THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED.
Referred to in paragraph 1 on Report on Other Legal and Regulatory Requirements of our report.
(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) A substantial portion of these fixed assets has been physically verified by the management during the year. In our opinion the same is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the Company.
(ii) Physical verification of inventory has been conducted at reasonable intervals by the management and No material discrepancies were noticed on physical verification.
(iii) The Company has not granted any secured or unsecured loans to companies, firms, limited liability partnership or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore the requirements of sub-clause (a), (b) and (c) of clause (iii) are not applicable to the Company.
(iv) There are no loans given, no investments made, no guarantees given, and no security given by the Company in terms of provisions of section 185 and 186 of the Companies Act, 2013.
(v) The Company has not accepted any deposits during the year. Therefore the question of complying with directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder do not arise.
(vi) The Central Government has specified the maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013. Such accounts and records have been made and maintained by the Company.
(vii) (a) The Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.
(b) Dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax that have not been deposited on account of any dispute are as under.
Name of the Statute |
Nature of Dues |
Forum where dispute is Pending |
Period to which relate |
Amount (Rs in Lacs) |
Central Excise Act |
Duty/Interest/Penalty |
Asst.Commissioner |
April 2008 to February 2013 |
24.48 |
Duty/Interest/Penalty |
Asst.Commissioner |
August, 2002 to March, 2007 |
0.57 |
|
Duty/Interest/Penalty |
Asst.Commissioner |
2005 to 2006 |
1.18 |
|
Duty/Interest/Penalty |
Asst.Commissioner |
October 2008 to August 2013 |
56.59 |
|
Duty |
Dy. Commissioner |
March, 2013 to September, 2013 |
3.79 |
|
Duty |
CESTAT, West Zone Bench. |
Sept 13 to Aug 14 |
14.70 |
|
Duty |
Additional Commissioner of Central Excise |
Nov 10 to Sept 13 |
5.96 |
|
Duty |
Suptd. Of Central Excise(Tech)-IVth Division, Mahad |
Oct 13 to Aug 14 |
0.50 |
|
Duty |
Additional Commissioner of Central Excise |
Oct 2013 to June, 2014 |
14.28 |
|
Duty |
Asst. Commissioner of Central Excise |
September, 2014 to December, 2014 |
4.43 |
|
Duty |
Asst. Commissioner of Central Excise |
January, 2015 to April, 2015 |
1.58 |
|
Transport Fees on SDS |
Bombay High Court |
2007-08 to 2015-16 |
46.38 |
|
|
|
|
Total |
174.44 |
(viii) The Company has not defaulted in repayment of loans or borrowings to a financial institution, bank, government or dues to debenture holders.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) or any term loans during the year.
(x) Any fraud by the Company or any fraud on the Company by its officers or employees has not been noticed or reported during the year.
(xi) Managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) The Company is not a Nidhi Company and therefore the compliance requirements relevant to a Nidhi Company are not applicable.
(xiii) All transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review, therefore the compliance of the requirement of section 42 of the Companies Act, 2013 are not applicable.
(xv) Pursuant to the provisions of section 192 of the Companies Act, 2013, the Company has not entered into any non-cash transactions with directors or persons connected with him/her.
(xvi) The Company is not required to be registered under section 45-1(A) of the Reserve Bank of lndia Act, 1934.
For K.S.AIYAR & Co
Chartered Accountants
ICAI Firm''s Registration No. 100186W
RAJESH S. JOSHI
Place of Signature: Mumbai Partner
Date: 27th May, 2016 Membership No. 38526
Mar 31, 2015
We have audited the accompanying financial statements of THE DHARAMSI
MORARJI CHEMICAL COMPANY LIMITED ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
fl ows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specifi
ed under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal fi
nancial 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 the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
financial statements.
Basis for qualified opinion
The Company had recognized net deferred tax asset in earlier years
aggregating to Rs.2654.15 lacs till 31st March, 2009 considering
unabsorbed loss up to 31st March, 2008 and unabsorbed depreciation up
to 31st March, 2009. For the subsequent financial periods, further net
deferred tax asset has not been recognized in view of management's
perceptions and reasons detailed in Note No.V(c). We are not in a
position to opine on the realisability of the said net deferred tax
asset. Consequently, the Accumulated losses as at the end of the year
would have been higher by Rs.2654.15 Lacs.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us and except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the aforesaid
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2015 and its profit and its
cash fl ows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts)Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us: i. The Company has
disclosed the impact of pending litigations on its financial position
(net of provision made) in its financial statements
Refer Note 2-A to the financial statements; ii. The Company did not
have any long-term contracts including derivative contracts for which
there were any material foreseeable losses. iii. The amount required
to be transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made thereunder has been transferred to such fund
within time.
Re: The Dharamsi Morarji Chemical Company Limited.
Referred to in paragraph 1 on Report on Other Legal and Regulatory
Requirements of our report.
(i) (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion, the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
(ii) (a) Physical verification of inventory has been conducted at
reasonable intervals by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
(iii) The Company has not granted any secured or unsecured loans to any
party covered in the register maintained under section 189 of the
Companies Act, 2013. Therefore the requirements of sub-clause (a) and
(b) of clause (iii) are not applicable to the Company.
(iv) There is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets and for the sale of goods and services.
There is a no continuing failure to correct major weaknesses in
internal control system.
(v) The Company had unclaimed fixed deposits of Rs.0.60 Lacs (Earlier
deposits) which will be paid/transferred to Investor Education and
Protection Fund when claimed/ due.
The Company has not accepted any deposits during the year to which the
provisions of section 73 to 76 of the Companies Act, 2013 and Companies
(Acceptance of deposits) Rules, 2014 apply.
(vi) Central Government has specified the maintenance of cost records
under sub-section (l) of section 148 of the Companies Act, 2013. Such
accounts and records have been made and maintained by the Company.
(vii) (a) The Company is generally regular in depositing undisputed
statutory dues including provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax,service tax, duty of customs, duty of
excise, value added tax cess and any other statutory dues with the
appropriate authorities. There were no undisputed statutory dues that
were outstanding as at 31st March, 2015 for a period of more than six
months from the date they became payable.
(b) Dues of income tax or sales tax or wealth tax or service tax or
duty of customs or duty of excise or value added tax or cess have not
been deposited on account of any dispute are as under.
Name of the Nature of Dues Forum where dispute
is Pending
Statute
Central Duty/Interest/Penalty Asst.Commissioner
Excise Act Duty/Interest/Penalty Asst.Commissioner
Duty/Interest/Penalty Asst.Commissioner
Duty/Interest/Penalty Asst.Commissioner
Duty/Interest/Penalty Asst.Commissioner
Duty/Interest/Penalty Asst.Commissioner
Duty/Interest/Penalty Asst.Commissioner
Duty/Interest/Penalty Asst.Commissioner
Duty/Interest/Penalty Commissioner
Duty Dy. Commissioner
Duty CESTAT, West Zone Bench.
Duty Additional Commissioner of
Central Excise
Duty Suptd. Of Central Excise(Tech)-
IVth Division,
Mahad
Transport Fees on SDS Bombay High Court
Name of the Period to which relate Amount
(Rs in Lacs)
Central
Excise Act June 1999 to August 1999 2.29
Sept 1999 to Dec 1999 1.81
Jan 2000 to June 2000 3.04
July 1996 to May 1999 4.03
July 2000 to May 2001 2.68
Various 24.48
Various 0.57
August 2003 to May 2004 1.18
56.59
3.79
Sept 13 to Aug 14 14.70
Nov 10 to Sept 13 5.96
Oct 13 to Aug 14 0.50
2007-08 to 2014-15 42.34
Total 163.96
(c) The amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time.
(viii) The accumulated losses of the Company are more than fifty
percent of the Net Worth of the Company as at the end of the year and
it has not incurred any cash loss during the current financial year
and in the immediately preceding financial year.
(ix) The Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
(x) The Company has not given any guarantee for loans taken by others
from any bank or financial institution.
(xi) Term loans were applied for the purpose for which the loans were
obtained;
(xii) No fraud on or by the Company has been noticed or reported during
the year.
For K.S.AIYAR & Co
Chartered Accountants
Firm's Registration No. 100186W
RAJESH S.JOSHI
Place of Signature: Mumbai Partner
Date: 28thMay, 2015 Membership No. 38526
Mar 31, 2014
We have audited the accompanying financial statements of The Dharamsi
Morarji Chemical Company 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and fair presentation of
the financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of 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 qualified opinion.
Basis for Opinion
The Company had recognized net deferred tax asset in earlier years
aggregating to Rs.2654.15 lacs till 31s March, 2009 considering
unabsorbed loss up to 31st March, 2008 and unabsorbed depreciation up
to 31st March, 2009. For the subsequent financial periods, further net
deferred tax asset has not been recognized in view of management''s
perceptions and reason detailed in Note No.V(c). We are not in a
position to opine on the net deferred tax asset recognized till date as
regards its ultimate realization since the virtual certainty of the
available sufficient future taxable income, as required by Accounting
Standard 22 i.e. ''Accounting for taxes on income'' notified pursuant
to Companies (Accounting Standards) Rules, 2006, could not be
substantiated.
Had the Company not recognized the said net deferred tax asset
aggregating to Rs2654.15 Lacs, the Accumulated losses as at the end of
the year would have been higher by Rs.2654.15 Lacs.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the Profit 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, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General Circular
15/2013 dated 13 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 THE AUDITORS'' REPORT Referred to in paragraph 1 of Report
on Other Legal and Regulatory Requirements
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion, the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) The Company has not disposed off any substancial part of its fixed
assets during the year.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the explanations given to us, the
Company is maintaining proper records of inventory. The discrepancies
noticed on verification between the physical stocks and the book
records were not material.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) are not applicable.
(b) The Company has taken interest free loan amounting to Rs. 1715.43
Lacs from a director of the Company and inter-corporate deposits of
Rs.523.80 Lacs from four parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(c) In our opinion and according to the information and explanations
given to us, the terms and conditions of the unsecured loans taken were
prima facie not prejudicial to the interest of the Company.
(d) According to the information and explanations given to us the
repayment terms of the principal amounts are not decided.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit no major weakness
has been noticed in the internal controls.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of Companies Act, 1956 have so been entered
in register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, these contracts or arrangements have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) The Company has not accepted any deposits during the year from the
public to which provisions of sections 58A and 58AA or any other
relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company which have been made pursuant to the Rules made by the Central
Government for the maintenance of cost records under Section 209 (1)(d)
of the Companies Act, 1956, and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the same.
(ix) (a) According to the records of the Company, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including Customs Duty and Wealth Tax, Provident Fund,
Investor Education Protection Fund, Employees'' State Insurance, Income
Tax, Sales Tax, Excise Duty, Service Tax, Cess and other statutory dues
applicable to it. Based on our audit procedures and according to the
information and explanations given to us, the following undisputed
statutory dues were outstanding as at March 31,2014 for a period of
more than six months from the date they became payable.
Nature of Dues Period to which Due Dates Amount (Rs. In Lacs)
Amount relates
Service Tax &
Interest 2005-06 Various 0.19
2006-07 Various 35.34
2007-08 Various 33.31
2008-09 Various 3.53
Total 72.37
(b) According to the records of the Company, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax and Cess which have
not been deposited on account of dispute are given below:
Name of the Nature of Dues Forum where Period to Amount
Statute dispute is which (Rs in Lacs)
Pending relate
Central Duty/ Asst. June 1999 2.29
Excise Act Interest/ Commissioner to
Penalty August 1999
Duty/ Asst. Sept 1999 1.81
Interest/ Commissioner to Dec 1999
Penalty
Duty/ Asst. Jan 2000 3.04
Interest/ Commissioner to June 2000
Penalty
Duty/ Asst. July 1996 4.03
Interest/ Commissioner to May 1999
Penalty
Duty/ Asst. July 2000 2.68
Interest/ Commissioner to May 2001
Penalty
Duty/ Asst. Various 24.48
Interest/ Commissioner
Penalty
Duty/ Asst. Various 0.57
Interest/ Commissioner
Penalty
Duty/ Asst. August 2003 1.18
Interest/ Commissioner to May 2004
Penalty
Duty/ Commissioner 56.59
Interest/
Penalty
Duty Dy.
Commissioner 3.79
Duty on Asst. Various 0.80
captive Commissioner
consumption
Alleged CESTAT Various 9.76
undervaluation
of SA
Transport Fees Bombay 2007-08 37.51
on SDS High Court to 2013-14
Total 148.53
Sales Tax Tax/ Appellate 1992-93 6.91
Act Interest/ Tribunal
Penalty
Tax/ Appellate 1993-94 4.20
Interest/ Tribunal
Penalty
Total 11.11
Entry Tax Tax/Interest High Court 4.47
(x) The accumulated losses of the Company are more than fifty percent
of the Net Worth of the Company as at the end of the year and it has
not incurred any cash loss during the current financial year and in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
(xiv) 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 Order are not applicable to the
Company.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The term loan taken from a Bank has been utilized for the purpose
for which it is taken.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
purposes.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised money by public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For K.S.Aiyar & Co.
Chartered Accountants
ICAI Firm Registration Number: 100186W
Raghuvir M. Aiyar
Partner
Membership Number: 38128
Mumbai, 28.05.2014
Mar 31, 2012
1) We have audited the attached Balance Sheet of The Dharamsi Morarji
Chemical Company Limited, as at March 31, 2012 and also the Statement
of Profit & Loss and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2) We conducted our audit in accordance with the 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.
3) As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4-A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) In our opinion, proper books of 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt 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 of the Company are 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) Attention is invited to Note No. X(11), regarding preparation of
accounts on a 'Going Concern' basis despite continued losses and
erosion of total net worth of the Company, in view of the management's
perceptions and reasons detailed therein.
(vii) Attention is invited to Note No. X(16), regarding Trade
Receivables that could not be classified as outstanding for a period of
more than six months from the due date instead of invoice date as
required by the revised Schedule VI to the Companies Act, 1956. We were
explained that the necessary modification in the existing computer
program will be carried out in due course. This revised classification
does not have any material impact on the financial statements except
for the Presentation and Disclosure of the same.
(viii) The Company had recognized net deferred tax asset in earlier
years aggregating to Rs. 2654.15 lacs till 31st March, 2009 considering
unabsorbed loss up to 31st March, 2008 and unabsorbed depreciation up
to 31st March, 2009. For the subsequent financial periods, further net
deferred tax asset has not been recognized in view of management's
perceptions and reason detailed in Note No. V(c). We are not in a
position to opine on the net deferred tax asset recognized till date as
regards its ultimate realization since the virtual certainty of the
available sufficient future taxable income, as required by Accounting
Standard 22 i.e. 'Accounting for taxes on income' notified pursuant to
Companies (Accounting Standards) Rules, 2006, could not be
substantiated.
Had the Company not recognized the said net deferred tax asset
aggregating to Rs. 2654.15 Lacs, the Accumulated Losses as at the end
of the year would have been higher by Rs. 2654.15 Lacs.
(ix) Had the impact of matter stated at (viii) been considered,
accumulated losses as at 31st March, 2012 of Rs. 9755.75 Lacs would
have been Rs. 12409.90 Lacs.
(x) Subject to Clause No. (viii) and (ix)above, 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 March 31, 2012;
b. in the case of the Statement of Profit and Loss of the Loss for the
year ended on that date; and
c. in the case of the Cash Flow Statement of the cash flow for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date on the Accounts
for the year ended March 31, 2012, of The Dharamsi Morarji Chemical
Company Limited)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. However, in the case of some assets, individual records with
quantitative details and values are to be segregated, updated and
reconcited.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the year and in our opinion, the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) The fixed assets disposed off during the year were not substantial.
According to the information and explanations given to us, we are of
the opinion that the disposal of the fixed assets has not affected the
going concern status of the Company.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the explanations given to us, the
Company is maintaining proper records of inventory. The discrepancies
noticed on verification between the physical stocks and the book
records have been properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) are not applicable.
(b) The Company has taken interest free loan amounting to Rs. 1715.43
Lacs from a director/s of the Company and inter-corporate deposits of
Rs. 716.80 Lacs from four parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(c) In our opinion and according to the information and explanations
given to us, the terms and conditions of the unsecured loans taken were
prima facie not prejudicial to the interest of the Company.
(d) According to the information and explanations given to us the
repayment terms of the principal amounts are not decided.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sate of
goods and services. However, there is scope to strengthen the internal
controls at operational level through proper implementation. During me
course of our audit no major weakness has been noticed in the internal
controls.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of Companies Act, 1956 have so been entered
in register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, these contracts or arrangements have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not complied with certain provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposits accepted from the public including non-filing of
returns of fixed deposits etc. As informed to us, no order has been
passed by the Company Law Board or National Law Tribunal or Reserve
Bank of India or any other Court or any other Tribunal in contravention
of the aforesaid provisions and/or rules by the Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business, however, the
scope and coverage of the same needs to be increased.
(viii) We have broadly reviewed the books of account maintained by the
Company which have been made pursuant to the Rules made by me Central
Government for the maintenance of cost records under Section 209 (1)(d)
of the Companies Act, 1956, and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the same.
(ix) (a) According to the records of the Company, the Company is not
regular in depositing with appropriate authorities undisputed statutory
dues including Customs Duty and Wealth Tax, Provident Fund, Investor
Education Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Excise Duty, Service Tax, Cess and other statutory dues
applicable to it. Based on our audit procedures and according to the
information and explanations given to us, the following undisputed
statutory dues were outstanding as at March 31, 2012 tor a period of
more than six months from the date they became payable.
Nature of Dues Period to which Due Dates Amount (Rs.
Amount relates In Lacs)
Service Tax/
Interest thereon 2005-06 Various 0.19
2006-07 Various 45.51
2007-08 Various 33.31
2008-09 Various 3.53
Total 82.54
Professional Tax 2006-07 Various 11.18
2007-08 Various 9.75
2008-09 Various 0.20
2009-10 Various 0.05
2010-11 Various 0.50
2011-12 Various 1.25
Total 22.88
VAT and CST Various 3.36
PF, FPF, EDLI,
Admin. Charges,
ESIC etc Various 12.75
Tax deducted
at source on:
Salary 2011-12 Various 2.55
Contractors 2011-12 Various 2.54
Prof. Fees 2011-12 Various 1.39
TDS on WCT 2011-12 Various 0.15
TCS 2010-11 Various 0.06
2011-12 Various 0.02
Total 6.71
IEPF- Cannot be Cannot be 10.63
Unclaimed Ascertained Ascertained
dividend
IEPF-Unclaimed
Interest on
FD/Debentures Cannot be Cannot be 5.29
Ascertained Ascertained
IEPF-Unclaimed Cannot be Cannot be 17.31
Fixed Deposits Ascertained Ascertained
Sales Tax Loans 161.10
(ix) (b) According to the records of the Company, Income Tax, Sales
Tax, Wealth Tax, Customs Duty, Excise Duty, Service Tax and Cess which
have not been deposited on account of dispute are given below:
Name of the Nature of Dues Forum where Period to Amount
Statute dispute is whch relate (Rs.
Pending Lacs)
Central Duty/Interest/ Asst. June 1999 to 2.29
Excise Act Penalty Commissioner August 1999
Duty/Interest/ Asst. Sept 1999 to 1.81
Penalty Commissioner Dec 1999
Duty/Interest/ Asst. Jan 2000 to 3.04
Penalty Commissioner June 2000
Duty/Interest/ Asst. July 1996 to 4.03
Penalty Commissioner May 1999
Duty/Interest/ Asst. July 2000 to 2.68
Penalty Commissioner May 2001
Duty/Interest/ Asst. Various 24.48
Penalty Commissioner
Duty/Interest/ Asst. Various 0.57
Penalty Commissioner
Duty/Interest/ Asst. August 2003 1.18
Penalty Commissioner to May 2004
Duty/Interest/ Asst. Various 0.80
Penalty Commissioner
Alleged CESTAT Various 9.76
undervaluation
of SA
Total 50.64
Sales Tax Tax/Interest/ Appellate 1992-93 6.91
Act Penalty Tribunal
Tax/Interest/ Appellate 1993-94 4.20
Penalty Tribunal
Total 11.11
Entry Tax Tax/Interest High Court 4.47
(x) The accumulated losses of the Company are more than fifty percent
of the Net Worth of the Company as at the end of the year and it has
not incurred any cash loss during the current financial year and in the
immediately preceding financial year.
(xi) Company has defaulted in repayment of Sales Tax Loans of Rs.
161.10 Lacs. Pending receipt of revised schedule the same has been
considered as 'Other Payables' in 'Current Liabilities' (Also referred
to in ix(a) above).
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
(xiv) 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 Order are not applicable to the
Company.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The term loan taken from a Bank has been utilized for the purpose
for which it is taken.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the funds amounting to Rs. 2396.16 Lacs raised on short-term basis
have been used for long-term purposes.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised money by public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For K. S. Aiyar & Co.
Chartered Accountants
FRN: 100186W
RAGHUVIR M. AIYAR
Partner
Membership No. 38128
Mumbai, 30th May, 2012
Mar 31, 2011
1) We have audited the attached Balance Sheet of The Dharamsi Morarji
Chemical Company Limited, as at March 31, 2011 and also the Profit and
Loss Account and the Cash Flow Statement for the nine months period
("the period") ended on that date annexed thereto. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2) We conducted our audit in accordance with the 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.
3) As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4-A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(I) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of
our audit.
(ii) In our opinion, proper books of 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
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt 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 of the Company are 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) Attention is invited to Note No.22, regarding preparation of
accounts on a 'Going Concern' basis despite continued losses and
erosion of total net worth of the Company, in view of the management's
perceptions and reasons detailed therein.
(vii) The Company had recognized net deferred tax asset in earlier
years aggregating to Rs.2654.15 lacs till 31st March, 2009 considering
unabsorbed loss up to 31st March, 2008 and unabsorbed depreciation up to
31st March, 2009. For the subsequent financial period, further net
deferred tax asset has not been recognized in view of management's
perceptions and reason detailed in Note No. 16 (b). We are not in a
position to opine on the net deferred tax asset recognized till date as
regards its ultimate realization since the virtual certainty of the
available sufficient future taxable income, as required by Accounting
Standard 22 i.e. 'Accounting for taxes on income' notified pursuant to
Companies (Accounting Standards) Rules, 2006, could not be
substantiated.
Had the Company not recognized the said net deferred tax asset
aggregating to Rs.2654.15 Lacs, the Accumulated Losses as at the end of
the period would have been higher by Rs.2654.15 Lacs.
(viii) During the period, consequent to the negotiated settlements with
the secured/unsecured lenders of the Company, waived dues representing
only the Principal amount of borrowings aggregating to Rs.3362.76 Lacs
have been credited directly to the 'Capital Reserve' of the Company for
the reasons detailed in Note No. 14, instead of crediting the same to
the Profit and Loss Account of the period, as per the treatment
recommended by the Expert Advisory Committee of the Institute of
Chartered Accountants of India, in respect of a similar case. Had this
been credited to the Profit & Loss Account of the period, the Loss for
the period would have been lower by Rs. 3362.76 Lacs and accumulated
losses as at the end of the period would have been lower by a like
amount.
(ix) Had the impact of matters stated at (vii) and (viii) been
considered, Loss for the period ended 31st March, 2011 of Rs.479.53 Lacs
would have been converted into Profit for the period ended 31st March,
2011 of Rs.2883.23 Lacs and accumulated losses as at 31st March, 2011
of Rs.9357.42 Lacs would have been Rs.8648.81 Lacs.
(x) Subject to Clause No.(vii) and (viii)above, 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 March 31, 2011 ;
b. in the case of the Profit and Loss Account, of the Loss for the
period ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flow for the
period ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date on the Accounts
for the nine months period ended March 31,2011, of The Dharamsi Morarji
Chemical Company Limited)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. However, in the case of some assets individual records with
quantitative details and values are to be segregated, updated and
reconciled.
(b) A substantial portion of the fixed assets has been physically
verified by the management during the period and in our opinion, the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) The fixed assets disposed off during the period were not
substantial. According to the information and explanations given to us,
we are of the opinion that the disposal of the fixed assets has not
affected the going concern status of the Company.
(ii) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the explanations given to us, the
Company is maintaining proper records of inventory. The discrepancies
noticed on verification between the physical stocks and the book
records have been properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) are not applicable.
(b) The Company has taken interest free loan amounting to Rs. 1715.43
Lacs from a director/s of the Company and inter-corporate deposits of
Rs.896.80 Lacs from four parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(c) In our opinion and according to the information and explanations
given to us, the terms and conditions of the unsecured loans taken were
prima facie not prejudicial to the interest of the Company.
(d) According to the information and explanations given to us the
repayment of the principal amounts are as stipulated.
(iv) In our opinion and according to the information and explanatioas
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. However, there is scope to strengthen the internal
controls at operational level through proper implementation. During the
course of our audit no major weakness has been noticed in the internal
controls.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of Companies Act, 1956 have so been entered
in register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to usr these contracts or arrangements have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not complied with certain provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposits accepted from the public including non-filing of
returns of fixed deposits etc. As infonved to us, no order has been
passed by the Company Law Board or National Law Tribunal or Reserve
Bank of India or any other Court or any other Tribunal in contravention
of the aforesaid provisions and/or rules by the Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business, however, the
scope and coverage of the same needs to be increased.
(viii) We have broadly reviewed the books of account maintained by the
Company which have been made pursuant to the Rules made by the Central
Government for the maintenance of cost records under Section 209 (1
){d) of the Companies Act, 1956, in respect of Sulphuric Acid, Single
Super Phosphate (Fertilizer) and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained. We
have not, however, made a detailed examination of the same.
(ix) (a) According to the records of the Company, the Company is not
regular in depositing with appropriate authorities undisputed statutory
dues including Customs Duty and Wealth Tax, Provident Fund, Investor
Education Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Excise Duty, Service Tax, Cess and other statutory dues
applicable to it. Based on our audit procedures and according to the
information and explanations given to us, the following undisputed
statutory dues were outstanding as at March 31,2011 for a period of
more than six months from the date they became payable.
Nature of Dues Period to which
Amount relates Due Dates Amount (Rs.
In Lacs)
Service Tax/Interest
thereon 2005-06 Various 0.19
2006-07 Various 45.51
2007-08 Various 33.31
2008-09 Various 3.53
Total 82.54
Professional Tax 2006-07 Various 11.18
2007-08 Various 10.99
2008-09 Various 0.99
2009-10 Various 0.55
2010-11 Various 0.65
Total 24.36
VAT arid CST Various 8.10
PF,FPF,EDLI,Admin Charges.ESIC etc Various 0.18
Tax deducted at source on:
Salary 2010-11 Various 10.36
Contractors 2010-11 Various 0.74
Prof. Fees 2010-11 Various 3.07
Interest 2010-11 Various 2.33
Brokerage 2010-11 Various 1.58
Non resident 2010-11 Various 0.04
Total 18.12
Nature of Dues Period to which Amount
relates Due Dates Amount (Ra.
In Lacs)
IEPF-Unclaimed
divedend Cannot be Ascertained Cannot be 10.63
Ascertained
IEPF-Unclaimed
Interest on FD/
Debentures Cannot be Ascertained Cannot be 5.29
Ascertained
lEPF-Unclaimed
Fixed Deposits Cannot be Ascertained Cannot be 19.83
Ascertained
Sales Tax Loans 221.90
(b) According to the records of the Company, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax and Cess which have
not been deposited on account of dispute are given below:
Name of the Nature of Dues Forum where
dispute Period to which
relate Amount
Statute is Pending (Rs In
Lacs)
Central
Excise Act Duty/interest/
Penalty Asst.
Commissioner June 1999 to
August 1999 2.29
Duty/Interest/
Penalty Asst.
Commissioner Sept 1999 to
Dec 1999 1.81
Duty/interest/
Penalty Asst.
Commissioner Jan 2000 to
June 2000 3.04
Duty/interest/
Penalty Asst.
Commissioner July 1996 to
May 1999 4.03
Duty/interest/
Penalty Asst.
Commissioner July 2000 to
May 2001 2.68
Duty/interest/
Penalty Asst.
Commissioner Various 24.48
Duty/interest/
Penalty Asst.
Commissioner Various 0.57
Duty/interest/
Penalty Asst.
Commissioner August 2003 to
May 2004 1.18
Duty on
captive
consumption Asst.
Commissioner Various 0.80
Alleged
undervaluation
of SA CESTAT Various 9.76
CenVat Credit
on CHA related
services Deputy
Commissioner April 2010 to
March 2011 2.93
Total 53.57
Sales Tax
Act Tax/interest/
Penalty Appelate
Tribunal 1992-93 6.91
1993-94 4.20
Total 11.11
Entry Tax Tax/Interest High Court 4.47
(x) The accumulated losses of the Company are more than fifty percent
of the Net Worth of the Company as at the end of the financial period,
and it has not incurred cash loss during the current financial period,
but it had incurred cash loss during the immediately preceding
financial perdiod.
(xi) Company had defaulted in repayment of Sales Tax Loans for which
rescheduling has been sought by the Company.
(xV) Based on our examination of the records and the information and
explanations given to us, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiH) 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 Order are not applicable to the Company.
(xiv) 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 Order are not applicable to the
Company.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The term loans outstanding in the books of the Company as on
March 31,2011 have been taken and utilized in earlier accounting
periods, including working Capital term loans, which have been
converted from working capital fund based limits.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the funds amounting to Rs.4255.26 lacs raised on short-term basis
have been used for long-term purposes.
(xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the companies Act, 1956.
(xix) The Company has not issued any debentures during the period.
(xx) The Company has not raised money by public issue during the
period.
(xxi) Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For K. S. Alyar & Co.
Chartered Accountants
FRN:100186W
Raghuvtr M. Alyar
Partner
Membership No. 38128
Mumbai, 30th May, 2011
Jun 30, 2010
1) We have audited the attached Balance Sheet of The Dharamsi Morarji
Chemical Company Limited, as at June 30, 2010 and also the Profit and
Loss Account and the Cash Flow Statement for the fifteen months period
("the, period") ended on that date annexed thereto. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2) We conducted our audit in accordance with the 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.
3) As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
issued by the Central government of India in terms of sub-sectidn (4-A)
of section 227 of 1he Companies act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) In our opinion, proper books of 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
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt 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 June 30,2010 and taken on record by the Board of Directors, we
report that none of the directors of the Company are disqualified as on
June 30,2010 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) Attention is invited to Note No.23, regarding preparation of
accounts on a Going Concern basis despite continued losses and
erosion of total net worth of the Company, in view of the managements
perceptions and reasons detailed therein.
(vii) The Company had recognized net deferred tax asset in earlier
years aggregating to Rs.2654.15 lacs till 31s March, 2009 considering
unabsorbed loss up to 31s1 March, 2008 and unabsorbed depreciation up
to 31st March, 2009. For the subsequent financial period, further net
deferred tax asset has not been recognized in view of managements
perceptions and reason detailed in Note No. 16(b). We are not in a
position to opine on the net deferred tax asset recognized till date as
regards its ultimate realization since the virtual certainty of the
available sufficient future taxable income, as required by Accounting
Standard 22 i.e. Accounting for taxes on income issuedby the
Institute of Chartered Accountants of India, could not be
substantiated.
(viii) Had the impact of matter stated at (vii) been considered,
accumulated losses as at the year end would have been Rs. 11532.04
Lacs.
(ix) Subject to Clause No.vii above, 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 June 30,2010;
(b) in the case of the Profit and Loss Account, of the Loss for the
period ended on that date; and
(c) in the case of the Cash Flow statement, of the cash flow for the
period ended on that date.
ANNEXURE TO THE AUDITORSREPORT (Referred to in paragraph 3 of our
report of even date on the Accounts for the fifteen months period ended
June 30, 2010, of The Dharamsi Morarji Chemical Company Limited)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. However, in the case of some assets individual records with
quantitative details and values are to be segregated, updated and
reconciled.
(b) A substantia! portion of the fixed assets have been physically
verified by the management during the period and in our opinion, the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) The fixed assets disposed off during the period were not
substantial. According to the information and explanations given to us,
we are of the opinion that the disposal of the fixed assets has not
affected the going concern status of the Company.
(ii) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the explanations given to us, the
Company is maintaining proper records of inventory. The discrepancies
noticed on verification between the physical stocks and the book
records have been properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) are not applicable.
(c) In our opinion and according to the information and explanations
given to us, the terms and conditions of the unsecured loans taken were
prima facie not prejudicial to the interest of the Company.
(d) According to the information and explanations given to us the
repayment of the principal amounts are as stipulated.
(iv) In our opinion and accoiding to the informatipn and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sate of
goods and services. However, there is scope to strengthen the internal
controls at operational level through proper implementation. During the
course of our audit no major weakness has been noticed in the internal
controls.
(v) (a) In our opinion and according to the iniormation and
explanations given to us, the particulars of contracts of arrangements
referred to in Section 301 of Companies Act, 1956 have so been entered
in register required to be maintained under that section. (b) In our
opinion and according to the information and explanations given to us,
these contracts or arrangements have been made at prices which are
reasonable having regard to the prevailing market prices at
the.relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not complied with certain provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposits accepted from the public including non-filing of
returns of fixed deposits etc. As informed to us, no order has been
passed by the Company Law Board or National Law Tribunal or Reserve
Bank of India or any other Court or any other Tribunal in contravention
of the aforesaid provisions and/or rules by the Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business, however, the
scope and coverage of the same needs to be increased.
(viii) We have broadly reviewed the books of account maintained by the
Company which have been made pursuant to the Rules made by the Central
Government for the maintenance of cost records under Section 209 (1
)(d) of the Companies Act, 1956, in respect of Sulphuric Acid, Single
Super Phosphate (Fertilizer) and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained. We
have not however, made a detailed examination of the same.
(ix) (a) According to the records of the Company, the Company is not
regular in depositing with appropriate authorities undisputed statutory
dues including Customs Duty and Wealth Tax, Provident Fund, Investor
Education Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Excise Duty, Service Tax, Cess and other statutory dues
applicable to it. Based on our audit procedures and according to the
information and explanations given to us, the following undisputed
statutory dues were outstanding as at June 30,2010 for a period of more
than six months from the date they became payable.
Nature of Dues Period to which Amount
the amount relates Due Dates (Rs.in Lacs)
Service Tax/
Interest thereon 2005-06 Various 0.19
2006-07 Various 45.51
2007-08 Various 33.31
2008-09 Various 3.53
Total 82.54
Profession Tax 2006-07 Various 11.18
2007-08 Various 10.99
2008-09 Various 1.19
2009-10 Various 1.40
Total 24.76
VAT and CST Various 12.29
PF, FPF, EDLI, Admin.
Charges, ESIC etc., Various 0.30
Tax Deducted at source
- WCT 2008-09 Various 0.01
2009-10 Various 0.03
Total 0.04
Tax Collected at Source
on Scrap Sales 2008-09 Various 0,06
IEPF - Unclaimed
Dividend Cannot be ascertained Cannot be
ascertained 10,63
IEPF - Unclaimed
Interest on FD/
Debentures Cannot be ascertained Cannot be
ascertained 5,29
IEPF - Unclaimed
Fixed deposits Cannot be ascertained Cannot be
ascertained 20,46
(ix) (b) According to the records of the Company, Income Tax, Sales
Tax, Wealth Tax, Customs Duty, Excise Duty, Service Tax and Cess which
have not been deposited on account of dispute are given below:
Name of the Nature of Dues Forum where
dispute is Period to
which relates Amount
Statute Pending (Rs In Lacs)
Duty/Interest
/Penalty Asst.Commissioner June 1999 to
August 1999 2.29
Central
Excise Act Duty/Interest
/Penalty Asst.Commissioner Sept 1999 to
Dec 1999 1.81
Duty/lnterest/
Penalty Asst.Commissioner Jan 2000 to
June 2000 3.04
Duty/Interest/
Penalty Asst.Commissioner Jul 1996 to
may 1999 4.03
Duty/lnterest/
Penalty Asst.Commissioner July 2000 to
May 2001 2.68
Duty/Interest/
Penalty Asst.Commissioner Various 24.48
Duty/lnterest
/Penalty Asst.Commissioner Various 0.57
Duty/lnterest/
Penalty Asst.Commissioner August 2003 to
May 2004 1.18
Duty on captive
consumption Asst.Commissioner Various 0.80
Alleged under
valuation
of SA CESTAT Various 9.76
Total 50.64
Sales Tax
Act Tax/Interest
/Penalty Appellate Tribunal 1992-93 6.91
1993-94 4,20
Total 11.11
Entry Tax Tax/Interest High Court 5.21
(x) The accumulated losses of the Company are more than fifty percent
of the Net Worth of the Company as at the end of the financial period,
and it has incurred cash loss during the period and in the immediately
preceding previous period.
(xi) During the period Company had defaulted in repayment of dues to
Banks. However the Companys offers for One Time Settlement (OTS) made
to the Banks have been accepted by those Banks before the year end. The
Company has since complied with the stipulations contained in those
OTS. Therefore, in our opinion and according to the information and
explanations given to us, the Company as at the year end is not
considered to be at any default hi repayment of dues to those Banks.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted loans and
advances on the basts of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
(xiv) In our opinion and according to ttie 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 Order are not applicable to the
Company.
(xv> The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The term loans outstanding in the books of the Company as on June
30, 2010 have been taken and. utilized in earlier accounting periods,
including working capital term loans, which have been converted from
working capital fund based limits.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the funds amounting to Rs.12542.66 lacs raised on short-term basis
have been used for long-term purposes.
(xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the companies Act, 1956.
(xix) The Company has not issued any debentures during the period.
(xx) The Company has not raised money by public issue during the
period.
(xxi) Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For K. S. Alyar & Co.
Chartered Accountants
FRN:100186W
Raghuvir M. Aiyar
Partner
Membership No. 38128
Mumbai, 31 st August, 2010
Mar 31, 2009
1) We have audited the attached Balance Sheet of The Dharamsi Morarji
Chemical Company Limited, as at March 31,2009 and also the Profit and
Loss Account and the Cash Flow Statement for the eighteen months period
("the period") ended on that date annexed thereto. These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2) We conducted our audit in accordance with the 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.
3) As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
issued by the Central government of India in terms of sub-section (4-A)
of section 227 of the Companies act, 1956, we enclose in the Anpexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) In our opinion, proper books of 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
account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt 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, 2009 and taken on record by the Board of Directors, we
report that none of the directors of the Company are disqualified as on
March 31, 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) As detailed in Note No.15(a), the Company has considered the
reduction in interest rates with effect from April.01, 2005 on
borrowings from lenders as stipulated in the Revised Corporate Debt
Restructuring (CDR) Scheme. The Company is in the process of complying
with the conditions stipulated by the lenders, which are essential for
implementing the Revised CDR Scheme. Had the Company continued to
provide the interest cost as per rates of interest mentioned in earlier
CDR Scheme, the interest cost and loss for the period ended March 31,
2009 would have been higher by Rs.20.69 lacs. This results in an
aggregate negative impact, on the financial position of the Company as
on March 31, 2009 of Rs.350.93 lacs.
(vii) No provision has been made towards interest of Rs.785.82 lacs due
to banks, since the banks concerned have not debited the same to the
respective accounts of the Company till date (Refer note 15(d)). Had
the Company provided for the same, interest cost and loss for the
period and accumulated losses as at year end would have been higher by
Rs. 785.82 Lacs.
(viii) During the period, the Company has recognized estimated net
deferred tax asset amounting to Rs.505.98 lacs and credited the same to
the Profit and Loss Account. (Refer note 16(b)). Consequently, the
accumulated net deferred tax asset as at year end aggregates to
Rs.2654.15 lacs. We are not in a position to opine on the net deferred
tax asset recognized till date as regards its ultimate realization
since the virtual certainty of the available sufficient future taxable
income, as required by Accounting Standard 22 i.e. Accounting for
taxes on income issued by the Institute of Chartered Accountants of
India, could not be substantiated.
(ix) Attention is invited to Note No.24, regarding preparation of
accounts on a Going Concern basis despite continued losses and
erosion of total net worth of the Company, in view of the managements
perceptions and reasons detailed therein.
(x) Had the impact of matters stated at (vii) and (viii) been
considered, then the Loss for the year would have been higher by Rs.
1291.80 Lacs and the accumulated losses as at the year end would have
been higher by Rs.3439.97 Lacs.
(xi) Subject to Clause Nos. (vii) & (viii) above, 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 March 31, 2009;
(b) in the case of the Profit and Loss Account, of the Loss for the
period ended on that date; and
(c) in the case of the Cash Flow statement, of the cash flow for the
period ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date on the Accounts
for the eighteen months period ended March 31,2009, of The Dharamsi
Morarji Chemical Company Limited)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. However, in the case of some assets individual records with
quantitative details and values are to be segregated, updated and
reconciled.
(b) A substantial portion of the fixed assets have been physically
verified by the management during the period and in our opinion, the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
(c) The fixed assets disposed off during the period were not
substantial. According to the information and explanation given to us,
we are of the opinion that the disposal of the fixed assets has not
affected the going concern status of the Company.
(ii) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the explanations given to us, the
Company is maintaining proper records of inventory. The discrepancies
noticed on verification between the physical stocks and the book
records have been properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly sub clause
(b), (c) and (d) are not applicable.
(b) The Company has taken interest free loan amounting to Rs. 329.43
lacs from a director of the Company and inter-corporate deposits of
Rs.896.80 Lacs from four parties listed in the register in the Register
maintained under section 301 of the Companies Act, 1956.
(c) In our opinion and according to the information and explanations
given to us, the terms and conditions of the unsecured loans taken were
prima facie not prejudicial to the interest of the Company.
(d) According to the information and explanations given to us the
repayment of the principal amounts are as stipulated.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. However, there is scope to strengthen the internal
controls at operational level through proper implementation. During the
course of our audit no major weakness has been noticed in the internal
controls.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts of arrangements
referred to in Section 301 of Companies Act, 1956 have so been entered
in register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, these contracts or arrangements have been made at prices
which are reasonable having regard to the prevailing market prices at
the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not complied with certain provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposits accepted from the public including non-filing of
returns of fixed deposits etc. As informed to us, no order has been
passed by the Company Law Board or National Law Tribunal or Reserve
Bank of India or any other Court or any other Tribunal in contravention
of the aforesaid provisions and/or rules by the Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business, however, the
scope and coverage of the same needs to be increased.
(viii) We have broadly reviewed the books of account maintained by the
Company which have been made pursuant to the Rules made by the Central
Government for the maintenance of cost records under Section 209 (1
)(d) of the Companies Act, 1956, in respect of Sulphuric Acid, Single
Supei Phosphate (Fertilizer) and Ethyl (Absolute) Alcohol and are of
the opinion that prima facie the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the same.
(ix) (a) According to the records of the Company, the Company is not
regular in depositing with appropriate authorities undisputed statutory
dues including Customs Duty and Wealth Tax, Provident Fund, Investor
Education Protection Fund, Employees State Insurance, Income Tax,
Saies Tax, Excise Duty, Service Tax, Cess and other statutory dues
applicable to it. Based on our audit procedures and according to the
information and explanations given to us, the following undisputed
statutory dues were outstanding as at March 31, 2009 for a period of
more than six months from the date they became payable.
Nature of Dues Period to which the Due Dates Amount
amount relates (Rs.in Lacs)
Service Tax/
Interest thereon 2006-07 Various 44.87
2007-08 Various 24.94
2008-09 Various 3.09
Total 72.90
Profession Tax 2006-07 Various 11.18
2007-08 Various 10.99
2008-09 Various 5.60
Total 27.77
Provident Fund,
EDLI, Administra-
tive charges. 2008-09 Various 8.20
(Employers Cont-
ribution & Contra-
ctors employees)
Tax Deducted at
source - Profess-
ional fees 2008-09 Various 9.10
Tax Deducted at
source - Salaries 2008-09 Various 4.36
Tax Deducted at
source -
Contractors 2008-09 Various 6.60
Tax Deducted at
source - Interest 2008-09 Various 7.01
Tax Deducted at
source - Brokerage 2008-09 Various 1.79
Tax Deducted at
source - Rent 2008-09 Various 0.23
Total 29.09
Tax Collected at
Source on Scrap
Sales 2008-09 Various 0.21
IEPF - Unclaimed
Dividend Cannot be ascertained Cannot be
ascertained 10.63
IEPF - Unclaimed
Interest on FD/
Debentures Cannot be ascertained Cannot be
ascertained 5.29
IEPF - Unclaimed
Fixed deposits Cannot be ascertained Cannot be
ascertained 21.11
(ix) b) According to the records of the Company, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Service Tax and Cess which have
not been deposited on account of dispute are given below:
Name of
the Statute Nature of Dues Forum where
dispute is Period to
which relates Amount
Pending (Rs.in
lacs)
Duty/lnterest/
Penalty CESTAT June 1999 to
August 1999 2.29
Duty/Interest/
Penalty CESTAT Sept 1999 to
Dec 1999 1.81
Duty/Interest/
Penalty CESTAT Jan 2000 to
June 2000 3.04
Duty/lnterest/
Penalty CESTAT July 2000 to
May 2001 2.68
Duty/lnterest/
Penalty CESTAT August 2003 to
May 2004 0.56
Cess on EOU
Supply Assistant
Commissioner July 1996 to
May 1999 0.80
Cess on EOU
Supply Assistant
Commissioner March 2007 0.35
Alleged under-
valuation of SA - 9.76
Total 21.29
Sales Tax
Act Tax/Interest/
Penalty Appellate
Tribunal 1992-93 6.91
1993-94 4.20
Total 11.11
(x) The accumulated losses of the Company are more than fifty percent
of the Net Worth of the Company as at the end of the financial period,
and it has incurred cash loss during the period and in the immediately
preceding previous period.
(xi) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to banks as
detailed below:
Name of Bank Principal Amount Period of default Interest Amount
default
IDBI Limited Rs.476 Lacs Quarterly installment
from Rs.347.56
Lacs
01-07-2007 to
31-03-2009
State Bank
of India Rs.88.05 Lacs Quarterly installment
from Rs.57.97
Lacs
01-01-2008 to
31-03-2009
Dena Bank Rs.51.24 Lacs Quarterly installment
from Rs.35.36
Lacs
01-07-2008 to
31-03-2009
SBI Commercial
and
International Rs.14.82 Lacs Quarterly installment
from Rs.10.29
Lacs
Bank Limited. 01 -01 -2008 to
31 -03-2009
Name of Bank Period of default
State Bank
of India Monthly from 01-05-2007 to
31-03-2009.
Dena Bank Monthly from 31-10-2007 to
31-03-2009.
SBI Commercial
and
International Monthly from 30-04-2008 to
31-03-2009.
Bank Limited. Monthly from 31-07-2007 to
31-03-2009.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
(xiv) 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 Order are not applicable to the
Company.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
(xvi) The term loans outstanding in the books of the Company as on
March 31, 2009 have been taken and utilized in earlier accounting
periods, including working capital term loans, which have been
converted from working capital fund based limits.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that the funds amounting to Rs.9519.63 lacs raised on short-term basis
have been used for long-term purposes.
(xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the companies Act, 1956.
(xix) The Company has not issued any debentures during the period.
(xx) The Company has not raised money by public issue during the
period.
(xxi) Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For K. S. Aiyar & Co.
Chartered Accountants
Raghuvir M. Aiyar
Partner
Mumbai, 30th June, 2009 Membership No. 38128
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