Mar 31, 2018
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Everest Kanto Cylinder Limited (the Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information
Managementâs Responsibility for the Standalone Financial Statements
2. 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 financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company, in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (âInd ASâ) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. 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.
5. 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 these standalone financial statements are free from material misstatement.
6. 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31 March 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
9. We draw attention to Note 53 to the financial statements, regarding delays in payments against the supply of goods of Rs. 8,470 Lacs, receipt of receivables of Rs. 16 Lacs and interest receivable of Rs. 1,341 Lacs, that are outstanding for a period beyond the timelines stipulated vide FED Master Direction No. 17/2016-17, FED Master Direction No. 16/ 2015-16 and Notification No. FEMA 120/ RB-2004 respectively, under the Foreign Exchange Management Act, 1999. The Management of the Company has represented that the Company is in the process of regularizing these defaults by filing necessary application with the appropriate authority for condonation of such delays. Pending conclusion of the aforesaid matter, the amount of penalty, if any, that may be levied, is not ascertainable and accordingly, the accompanying financial results do not include any adjustments that may arise due to such delay/default. Our report is not modified in respect of this matter.
Other Matter
10. The Company had prepared separate sets of statutory financial statements for the year ended 31 March 2017 and 31 March 2016, in accordance with Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended), on which we issued auditorâs reports to the shareholders of the Company dated 30 May 2017 and 30 May 2016, respectively. These financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have also been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
11. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure A statement on the matters specified in paragraphs 3 and 4 of the Order.
12. Further to our comments in Annexure A, 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 report on the accounts of the branch office of the Company audited under Section 143(8) of the Act by the branch auditor has been sent to us and have been properly dealt with by us in preparing this report;
d) the standalone financial statements dealt with by this report are in agreement with the books of account and with the return received from branch not visited by us;
e) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;
f) on the basis of the written representations received from the directors 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;
g) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on 31 March 2018, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report dated 30 May 2018 as per Annexure B, expressed Unmodified opinion.
h) 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 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Company, as detailed in note 43 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;
iv. the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November 2016 to 30 December 2016 which are not relevant to these standalone financial statements. Hence, reporting under this clause is not applicable.
Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.
(b) The Property, Plant and Equipment have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the Property, Plant and Equipment is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of all the immovable properties (which are included under the head âProperty, Plant and Equipmentâ) are held in the name of the Company, except for the following property:
(in Rs. in Lakhs)
Nature of |
Total |
Whether |
Gross block |
Net block |
property |
Number |
leasehold / |
as on 31 |
on 31 |
of Cases |
freehold |
March 2018 |
March 2018 |
|
Land |
One |
Leasehold |
111.42 |
111.42 |
(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies between physical inventory and book records were noticed on physical verification.
(iii) The Company has granted unsecured loans to companies covered in the register maintained under Section 189 of the Act; and with respect to the same:
(a) in our opinion the terms and conditions of grant of such loans are not, prima facie, prejudicial to the Companyâs interest.
(b) the schedule of repayment of principal has been stipulated wherein the principal amounts are repayable on demand and since the repayment of such loans has not been demanded, in our opinion, repayment of the principal amount is regular;
(c) there is no overdue amount in respect of loans granted to such companies.
(iv) In our opinion, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of loans, investments, guarantees and security.
(v) In our opinion, 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 subsection (1) of Section 148 of the Act in respect of Companyâs products and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) (a) 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 other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities, though there has been a slight delay in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.
(b) The dues outstanding in respect of income-tax, sales-tax, service tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:
Statement of Disputed dues
Name of the statute |
Nature of dues |
Amount (Rs. in Lakhs) |
Amount paid /adjusted under Protest (Rs. in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Sales Tax Act, 1956 |
Central Sales Tax |
12.82 |
- |
F.Y. 2000-01 |
Sales Tax Tribunal |
141.54 |
43.08 |
F.Y. 2005-06 |
Joint Commissioner of Sales Tax (Appeals) |
||
99.52 |
17.18 |
F.Y. 2008-09 |
|||
54.15 |
6.44 |
F.Y. 2011-12 |
|||
90.58 |
10.78 |
F.Y. 2012-13 |
|||
57.20 |
F.Y. 2013-14 |
Deputy Commissioner of Sales Tax, (Maharashtra) |
|||
260.76 |
- |
F.Y. 2013-14 |
Deputy Commissioner of Sales Tax (Gujarat) |
||
Sales Tax (Lease Tax) |
21.05 |
7.36 |
F.Y. 1993-94 |
Maharashtra Sales Tax Tribunal |
|
F.Y. 1994-95 |
|||||
F.Y. 1995-96 |
|||||
F.Y. 1996-97 |
|||||
F.Y. 1997-98 |
|||||
The Finance Act,1994 |
Service Tax |
5.38 |
0.20 |
F.Y. 2011-12 |
Assistant Commissioner, Central Excise and Service Tax |
Bombay Sales Tax Act, 1959 |
Bombay Sales tax |
26.11 |
- |
F.Y. 2000-01 |
Sales Tax Tribunal |
The Income Tax Act, 1961 |
Income Tax |
787.49 |
605.33 |
A.Y. 2009-10 |
High Court |
773.19 |
29.48 |
A.Y. 2010-11 |
High Court |
||
237.87 |
- |
A.Y. 2011-12 |
Income Tax Appellate Tribunal |
||
264.44 |
- |
A.Y. 2012-13 |
Commissioner of Income Tax (Appeals) |
||
99.79 |
- |
A.Y. 2013-14 |
Commissioner of Income Tax (Appeals) |
||
The Gujarat Value Added Tax Act, 2003 |
Commercial Tax |
14.99 |
7.84 |
F.Y. 2009-10 |
Joint Commissioner of Commercial Tax(Appeals) |
Maharashtra Value Added Tax Act,2002 |
Value Added Tax |
18.95 |
- |
F.Y. 2005-06 |
Joint Commissioner of Sales Tax (Appeals) |
147.43 |
- |
F.Y. 2008-09 |
|||
96.98 |
5.00 |
F.Y. 2009-10 |
|||
60.80 |
14.00 |
F.Y. 2010-11 |
|||
102.90 |
5.00 |
F.Y. 2011-12 |
|||
46.41 |
2.22 |
F.Y. 2012-13 |
|||
952.68 |
- |
F.Y. 2013-14 |
Deputy Commissioner of Sales Tax |
(viii) The Company has not defaulted in repayment of loans or borrowings to any financial institution. The Company did not have any outstanding debentures during the year. The Company has defaulted in repayment of loans to the following bank and government:
Name of the Bank/ Government |
Amount of default as on 31 March 2018 (Rs. in Lakhs) |
Period of default |
Due Date |
Remarks |
Gujarat-State Government |
297.03 |
April 2017 to October 2017 |
01/04/2017 |
Delays of 23 to 186 days |
Yes Bank |
1,362.91 |
April 2017 |
09/04/2017 01/05/2017 |
Delays of 24 to 46 days |
(ix) The Company did not raise moneys by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.
(x) In our opinion, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.
(xi) The Company has not paid or provided for any managerial remuneration. Accordingly, the provisions of Clause 3(xi) of the Order are not applicable.
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion, all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable Ind AS.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.
(xv) In our opinion, the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Independent Auditorâs report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (the âActâ)
1. In conjunction with our audit of the standalone financial statements of Everest Kanto Cylinder Limited (the âCompanyâ) as at and for the year ended 31 March 2018, we have audited the internal financial controls over financial reporting (IFCoFR) of the Company as of that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs Board of Directors 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 (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Companyâs business, including adherence to 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 Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Company''s IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR, 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
6. A Company''s IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s IFCoFR 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 Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of IFCoFR, 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 IFCoFR to future periods are subject to the risk that IFCoFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, adequate internal financial controls 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 issued by the ICAI.
For Walker Chandiok & Co LLP
Chartered Accountants
Firms Registration No.: 001076N/N500013
per Khushroo B. Panthaky
Partner Place : Mumbai
Membership No.: 42423 Date: 30 May 2018
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Everest Kanto Cylinder Limited ("the Company"), which comprise the
Balance Sheet as at 31 March, 2015, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information,
in which are incorporated the returns for the year ended on that date
audited by the branch auditors of the Company's branch at Dubai.
Management's Responsibility for the Standalone Financial Statements
2. 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 standalone 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 (as amended). This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act; safeguarding the assets
of the Company; 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
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. 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.
5. 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 standalone financial
statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial controls relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness ofsuch 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.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our qualified audit opinion on
the standalone financial statements.
Basis for Qualified Opinion
8. As stated in clause 18 of Note xxvii to the financial statements,
the Company's current investments, as at 31 March, 2015, include an
investment amounting to Rs. 6,925.07 Lakh (as at 31 March, 2014
Rs.6,925.07 Lakh) in its wholly owned subsidiary in China, EKC
Industries (Tianjin) Co. Ltd., whose financial statements as at 31
March 2015 indicate significant accumulated losses and net worth being
substantially eroded, however, a provision of only Rs. 1,500 Lakh has
been recognized in the books for diminution in value of investments. In
the absence of sufficient appropriate evidence, we are unable to
comment upon the carrying value of this investment and the
consequential impact, if any, on the accompanying financial statements.
Qualified Opinion
9. In our opinion and to the best of our information and according to
the explanations given to us, except for the possible effects of the
matter described in the Basis for Qualified Opinion paragraph,the
aforesaid standalone 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 31 March, 2015, and its
loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
11. As required by Section143(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 booksand proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
c. the report on the accounts of the branch office of the Company
audited under Section 143(8) of the Act by the branch auditors have
been sent to us and have been properly dealt with by us in preparing
this report;
d. the standalone financial statements dealt with by this report are
in agreement with the books of account and with the returns received
from the branches not visited by us;
e. except for the possible effects of the matter described in the
Basis for Qualified Opinion paragraph,in our opinion, the aforesaid
standalone financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014 (as amended);
f. on the basis of the written representations received from the
directors as on 31st March, 2015 and 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 Section164(2) of the
Act;
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. as detailed in clause 2 of Note xxvii to the standalone financial
statements, the Company has disclosed the impact of pending litigations
on its standalone financial position;
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. following are the instances of delays in transferring amounts,
required to be transferred, to the Investor Education and Protection
Fund by the Company.
Amount (?) Due date Date of payment
0.66 lakh 08/08/2014 Unpaid
Annexure to the Independent Auditor's Report of even date to the
members of Everest Kanto Cylinder Limited, on the financial statements
for the year ended 31st March, 2015
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(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 and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) The Company has granted secured loan to a company covered in the
register maintained under Section 189 of the Act; and with respect to
the same:
(a) the principal amount is not due for repayment currently however,
the receipt of the interest is not regular.
(b) there is no overdue amount in respect of the principal amount of
the loan granted exceeding ' one lakh. Reasonable steps have been
taken by the Company for the recovery of the overdue interest exceeding
' one lakh.
(iv) In our opinion, 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. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(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 sub-section (1) of Section 148 of the
Act in respect of Company's products/services and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
(vii) (a) 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 other
material statutory dues, as applicable, have generally been regularly
deposited with the appropriate authorities, though there has been a
slight delay in a few cases. Further, no undisputed amounts payable in
respect thereof were outstanding at the year-end for a period of more
than six months from the date they became payable.
(b) The dues outstanding in respect of income-tax, sales- tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax and
cess on account of any dispute, are as follows:
Name of Nature Amount Amount Period to
Statute of Dues (Rs. in Paid the which the
Lakh) Under amount
Protest relates
(Rs. in (Assessment
Lakh) Year)
Central 12.82 - F.Y. 2000-01
Sales Tax
Central 141.54 43.08 F.Y. 2005-06
Sales Tax
Act' 1956
99.52 17.18 F.Y. 2008-09
Sales Tax 21.05 7.36 F.Y. 1993-94
(Lease F.Y. 1994-95
Tax) F.Y. 1995-96
F.Y. 1996-97
F.Y. 1997-98
Bombay Bombay 26.11 - F.Y. 2000-01
Sales Tax Sales Tax
Act, 1959
The Income Income 91.65 - A.Y. 2009-10
Tax Act, Tax
1961 714.65 - A.Y. 2010-11
The Gujarat Commercial 14.99 7.84 F.Y. 2009-10
Value Added Tax
Tax Act,
2003
Maharashtra Value 147.43 - F.Y. 2008-09
Value Added Tax
Added Tax 18.95 F.Y. 2005-06
Act,2002
Name of Forum
Statute where
dispute
is
pending
Sales Tax
Tribunal
Central Joint
Sales Tax Commissioner
Act' 1956 of Sales Tax
(Appeals)
Joint
Commissioner
of Sales Tax
(Appeals)
Maharashtra
Sales Tax
Tribunal
Bombay Sales Tax
Sales Tax Tribunal
Act, 1959
The Income Income Tax
Tax Act, Appellate
1961 Tribunal
Income Tax
Appellate
Tribunal
The Gujarat Joint
Value Added Commi-
Tax Act, ssioner of
2003 Commercial
Tax(Appeals)
Maharashtra Joint
Value Commi-
Added Tax ssioner of
Act,2002 Sales Tax
(Appeals)
(c) The Company has not transferred the amount required to be
transferred to the Investor Education and Protection Fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder.
(viii) In our opinion, the Company's accumulated losses at the end of
the financial year are more than fifty percent of its net worth. The
Company has incurred cash losses in the current and the immediately
preceding financial year.
(ix) There are no dues payable to financial institutions or
debenture-holders.The Company has defaulted in repayment of dues to the
following banks:
Name of Amount Due date Delay in
the bank (Rs. in Lakh) days
Yes Bank 14.38 09-January-2015 53
Yes Bank 16.86 01-June-2014 3
6582 01-June-2014 6
39.90 01-June-2014 9
4173 01-June-2014 11
34.36 01-July-2014 9
19.52 01-July-2014 14
29.83 01-July-2014 16
34.57 01-July-2014 24
19.94 01-July-2014 30
49.74 01-July-2014 30
34.97 01-July-2014 31
4277 01-July-2014 35
97.22 01-August-2014 27
49.93 01-August-2014 20
3979 01-August-2014 32
66.66 01-August-2014 61
20.96 01-August-2014 61
23.34 01-September-2014 60
251.21 01- September-2014 61
265.70 01-October-2014 88
40.86 01-November-2014 83
229.33 01-November-2014 89
4.37 01-November-2014 90
265.70 01-December-2014 60
25.37 01-January-2015 42
29.28 01-January-2015 49
39.20 01-January-2015 57
180.62 01-January-2015 61
94.11 01-February-2015 55
180.45 01-February-2015 59
94.86 01-March-2015 55
153.12 01-March-2015 60
8.55 01-July-2014 24
8.83 01-August-2014 61
8.83 01-September-2014 61
8.55 01-October-2014 80
8.83 01-November-2014 90
8.55 01-December-2014 60
8.83 01-January-2015 61
8.83 01-February-2015 59
7.90 01-March-2015 60
6.14 01-July-2014 24
6.35 01-August-2014 61
6.35 01-September-2014 61
6.14 01-October-2014 88
6.35 01-November-2014 90
6.14 01-December-2014 60
6.35 01-January-2015 61
6.35 01-February-2015 59
5.59 01-March-2015 60
Exim Bank 22.40 19-June-2014 34
51.13 30-September-2014 29
17.43 02-January-2015 5
30.26 02-January-2015 5
(x) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xii) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker Chandiok & Co LLP
(formerly Walker, Chandiok & Co)
Chartered Accountants
Firm Registration No.: 001076N / N500013
per Khushroo B. Panthaky
Partner Mumbai
Membership No.: 42423 26 May 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of Everest
Kanto Cylinder Limited, (the "Company"), which comprise the Balance
Sheet as at 31 March 2014, 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
2. Management is responsible for the preparation of these financial
statements, that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards notified under 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 presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) in the case of Statement of Profit and Loss, of the loss for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
7. We draw your attention to Clause 17 of Note xxvii to the financial
statements. As stated in the clause, non-current investments, as at 31
March 2014, held by the Company, include an investment amounting to Rs.
431.72 Lakh (Rs. 431.72 Lakh as at 31 March 2013) in its subsidiary
company, Calcutta Compressions & Liquefaction Engineering Limited,
whose financial statements indicate significant accumulated losses and
net worth being fully eroded as at 31 March 2014. Further, the Company
has recoverable loans and other receivables aggregating Rs. 1068.91 Lakh
as at 31 March 2014 (Rs. 903.58 Lakh as at 31 March 2013). However, in
the opinion of the management, considering the long term recurring
nature of the subsidiary''s business, its projected earnings and cash
flows and the improvements in its current operational performance, no
provision for diminution in value of investments or towards
non-recovery of loans and other receivables, is currently considered
necessary. Our opinion is not qualified in respect of this matter.
8. We draw your attention to Clause 13(b) of Note xxvii to the
financial statements regarding managerial remuneration of Rs. 149.90 Lakh
paid in excess of the limits specified in
Schedule XIII to the Companies Act, 1956 to the Chairman & Managing
Director (CMD) of the Company during the year ended 31 March 2013. This
managerial remuneration has been approved by the shareholders of the
Company but is awaiting approval by the Central Government and as a
result, this excess remuneration is held in trust by the CMD. Our
opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
9. 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.
10. 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 and proper returns adequate for the purposes of our audit
have been received from branches not visited by us;
(c) we have received the report on the accounts of the branch office
audited under section 228 by other auditor and have appropriately dealt
with these while forming our audit opinion;
(d) the financial statements dealt with by this report are in agreement
with the books of account and with the returns received from the
branches not visited by us;
(e) in our opinion, the financial statements 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; and
(f) on the basis of written representations received from the
directors, as at 31 March 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as at 31 March 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 Independent Auditors'' Report of even date to the
members of Everest Kanto Cylinder Limited, on the financial statements
for the year ended 31 March 2014
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the financial statements of the Company and
taking into consideration the information and explanations given to us
and the books of account and other records examined by us in the normal
course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification of the
fixed assets is reasonable having regard to the size of the Company and
the nature of its assets.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(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 and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
(iii) (a) The Company has granted secured loans to one party covered in
the register maintained under Section 301 of the Act. The maximum
amount outstanding during the year is Rs. 2,000 Lakhs and the year-end
balance is Rs. 1447.78 Lakhs.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
Company.
(c) In respect of loans granted, the principal amount is not due for
repayment currently however, receipt of interest is not regular.
(d) Where overdue amount in respect of interest on loan granted is more
than Rs. one lakh, reasonable steps have been taken by the Company for
recovery of interest. There is no overdue amount in respect of
principal portion of loans granted to such companies, firms or other
parties.
(e) The Company has taken unsecured loans from four parties covered in
the register maintained under Section 301 of the Act. The maximum
amount outstanding during the year is Rs. 641 Lakhs and the year-end
balance is Rs. 641 Lakhs.
(f) In our opinion, the rate of interest and other terms and conditions
of loans taken by the Company are not, prima facie, prejudicial to the
interest of the Company.
(g) In respect of loans taken, the principal amounts are repayable on
demand and since the repayment of such loans has not been demanded, in
our opinion, payment of the principal amount is regular; the payment of
the interest is regular.
(iv) In our opinion, 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. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) (a) In our opinion, the particulars of all contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of Rs. five lakhs in
respect of any party during the year 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 from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) 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 clause (d) of sub-section (1) of
Section 209 of the Act in respect of Company''s products and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. However, we have not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales-tax, wealth tax, service tax, customs duty, excise duty, cess
have not generally been regularly deposited with the appropriate
authorities though the delays in deposit have not been significant.
Further, no undisputed amounts payable in respect thereof were
outstanding at the year-end for a period of more than six months from
the date they become payable
(b) The dues outstanding in respect of income-tax, sales- tax, wealth
tax, service tax, customs duty, excise duty, cess on account of any
dispute, are as follows:
Amount Amount Period to Forum
Name of Nature (Rs. in Paid which the where
Statute of Dues Lakh) Under amount dispute
Protest relates is
(Rs. in (Assessment pending
Lakh) Year)
Central Sales Tax
12.82 - 2001-02
Sales Tax Tribunal
Central
1994-95
Sales Tax Joint
Sales Tax
1995-96
Act, 1956 Commissioner
(Lease 21.05 7.36
1996-97 of Sales Tax
Tax)
1997-98 (Appeals)
1998-99
Bombay
Bombay Sales Tax
Sales Tax 26.11 - 2001-02
Sales Tax Tribunal
Act, 1959
Mumbai
15.21 - 2007-08 High Court
Income Tax
2008-09 Appellate
977.27 693.32
2009-10 Tribunal
The Income
Income
Tax Act,
Dispute
Tax
1961 Resolution
623.79 - 2010-11
Panel
Commissioner
2013-14 of Income
48.33 -
Tax
Joint
The Gujarat
Commissioner
Value Added Commercial 14.99 7.84 2009-10 of
Tax Act, Tax Commercial
2003 Tax(Appeals)
(x) In our opinion, the Company''s accumulated losses at the end of the
financial year are less than fifty percent of its net worth. The
Company has incurred cash losses in the current year and immediately
preceding financial year.
(xi) The Company has not defaulted in repayment of dues to any bank or
financial institution during the year. The Company did not have any
outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, provisions of clause 4(xiii)
of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investment by the Company.
(xviii) Dur ing the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the
Order are not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) No fraud on or by the Company has been noticed or reported during
the period covered by our audit.
For Walker Chandiok & Co LLP
(formerly Walker, Chandiok & Co)
Chartered Accountants
Firm Registration No.: 001076N
per Khushroo B. Panthaky
Partner
Mumbai
Membership No.: F-42423
27May, 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of Everest
Kanto Cylinder Limited (the "Company"), which comprise the Balance
Sheet as at March 31st, 2013, 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,
which we have signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company
in accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of ''the Companies Act, 1956'' of India (the "Act").
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' 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 auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
7. We draw your attention to Note 14 (a) to the financial statements
regarding managerial remuneration paid/ provided during the year ended
March 31, 2013 to three Whole-Time directors of the Company aggregating
Rs. 228.78 lac in excess of the limits specified in Schedule XIII to the
Companies Act, 1956 (the ''''Act'''') which has been approved by the
shareholders of the Company. The Company has filed applications to the
Central Government seeking an approval for the payment of such excess
remuneration. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
8. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
9. 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 and proper returns adequate for the purposes of our audit
have been received from branches not visited by us;
(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 and with the returns received from branches not visited by us;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act;
(e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Annexure to Auditors'' Report
Referred to in paragraph 8 of our Report of even date
i. (a) The Company is generally maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets are physically verified by the Management during
the year and no material discrepancies between the book records and the
physical inventory have been noticed. In our opinion, the frequency of
verification is reasonable.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
ii. (a) The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. (a) The Company has, granted unsecured loan, to a company covered
in the register maintained under section 301 of the Act. The maximum
amount involved during the year and the year-end balance of such loans
amount to Rs. 2,000 Lakh. The Company has not granted any secured/
unsecured loans to firms or other parties covered in the register
maintained under Section 301 of the Act.
(b) In our opinion, the rate of interest and other terms and conditions
of such loan is not prima facie, prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loan, the party is repaying the
principal amount, as stipulated, and is also regular in payment of
interest as applicable.
(d) In respect of the aforesaid loan, there is no overdue amount more
than Rupees One Lakh.
(e) The Company has taken unsecured loans, from two companies covered
in the register maintained under Section 301 of the Act. The maximum
amount involved during the year and the year-end balance of such loans
aggregated to Rs. 421.40 lakhs and Rs. 421.40 lakhs, respectively. The
Company has not taken any secured/ unsecured loans from firms or other
parties covered in the register maintained under Section 301 of the
Act.
(f) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
Company.
(g) In respect of the aforesaid loans, the Company is regular in
repaying the principal amounts, as stipulated, and is also regular in
payment of interest, as applicable.
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 for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weakness in the
aforesaid internal control system.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year 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 from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues, including
provident fund, investor education and protection fund, sales tax,
wealth tax, customs duty, excise duty and other material statutory
dues, as applicable, with the appropriate authorities but have not
generally been regular in depositing service tax, income tax and
employee state insurance dues with the appropriate authorities though
the delays in deposit have not been serious.
x. The Company has no accumulated losses as at the end of the financial
year and it has incurred cash loss in the financial year ended on that
date but not incurred any cash loss in the immediately preceding
financial year.
xi. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
xiii. As the provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
Company, the provisions of Clause 4(xiii) of the Order are not
applicable to the Company.
xiv. In our opinion, the Company has maintained proper records of
transactions and contracts relating to dealing or trading
in shares, securities, debentures and other investments during the year
and timely entries have been made therein. Further, such securities
have been held by the Company in its own name or are in the process of
transfer in its name, except to the extent of the exemption granted
under Section 49 of the Act.
xv. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the company.
xvi. In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
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 no funds raised on short-term basis have been used for
long-term investment.
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 Act during the year. Accordingly, the provisions of Clause
4(xviii) of the Order are not applicable to the Company.
xix. The Company has not issued any debentures during the year and does
not have any debentures outstanding as at the beginning of the year and
at the year end. Accordingly, the provisions of Clause 4(xix) of the
Order are not applicable to the Company.
xx. The Company has not raised any money by public issues during the
year. Accordingly, the provisions of Clause 4(xx) of the Order are not
applicable to the Company.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For Dalal & Shah
Firm Registration No. 102021W
Chartered Accountants
S.Venkatesh
Mumbai Partner
30th May, 2013 Membership No. 037942
Mar 31, 2012
1. We have audited the attached Balance Sheet of Everest Kanto
Cylinder Limited (the "Company") as at March 31, 2012, and the
related Statement of Profit and Loss and Cash Flow Statement for the
year ended on that date annexed thereto, which we have signed under
reference to this report. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with 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
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of "The Companies Act, 1956'
of India (the "Act") and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in paragraph 3 above, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the 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 appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub- section (3C) of Section 211 of
the Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2012 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, they said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. (a) The Company is generally maintaining proper records showing
full particulars, including quantitative details and situation, of
fixed assets.
(b) The fixed assets are physically verified by the Management during
the year and no material discrepancies between the book records and the
physical inventory have been noticed. In our opinion, the frequency of
verification is reasonable.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. (a) The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The Company has, granted unsecured loan, to a company covered
in the register maintained under section 301 of the Act. The maximum
amount involved during the year and the year-end balance of such loans
amount to Rs 2000 Lakh.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie, prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loans, the parties are repaying the
principal amounts as stipulated and are also regular in payment of
interest, where applicable.
(d) In respect of the aforesaid loans, there is no overdue amount.
(e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly clauses (f) and (g) of the
Companies (Auditor's Report) Order, 2003 as amended by Companies
(Auditor's Report) (Amendment) Order, 2004 are not applicable to the
company for the year.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
5. (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 the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lac in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues,
including provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax, wealth tax,
service tax, customs duty, excise duty and other material statutory
dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income-tax and sales-tax as at March 31, 2012 which have not been
deposited on account of disputes are as follows:
Nature Amount Period to Forum where
of Dues (Rs. in Lac.) Which the dispute is pending
amount relates
11.13 A.Y. 2007-08 Commissioner of
Income Tax (Appeals)
Income
Tax Commissioner of
156.54 A.Y. 2008-09 Income Tax (Appeals)
Sales Tax A.Y. 1994-95 Joint Commissioner of
(Lease Tax) 16 34 to A.Y. 1998-99 Sales Tax (Appeals)
86 97 A Y- 2001-02 Joint Commissioner of
Sales Tax to AY- 2003-04 Sales Tax (Appeals)
(BST) A.Y. 1997-98 Deputy Commissioner of
159 36 to A.Y. 2004-05 Sales Tax
27 85 A Y- 2001-02 Joint Commissioner of
Sales Tax to AY- 2003-04 Sales Tax (Appeals)
(CST) A.Y 1997-98 Deputy Commissioner of
185 29 to A.Y. 2004-05 Sales Tax
Sales Tax Assistant Commissioner
(Others) 27 26 A Y- 2009-10 of Sales Tax
There were no disputed amounts due towards wealth tax, service tax,
custom duty and excise duty.
10. The Company has no accumulated losses as at 31st March 2012 and
has not incurred cash losses during the current financial year and also
in the preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. Further, such securities have been
held by the Company in its own name or are in the process of transfer
in its name, except to the extent of the exemption granted under
Section 49 of the Act.
15. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the company.
16. The Company has not obtained any term loans during the year.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion, and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year; and
does not have any debentures outstanding as at the year end.
20. The Company has not raised any money by public issues during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For Dalal & Shah
Firm Registration No. 102021W
Chartered Accountants
S.Venkatesh
Mumbai Partner
29th May, 2012 Membership No. F-037942
Mar 31, 2011
1. We have audited the attached Balance Sheet of Everest Kanto
Cylinder Limited (the "Company") as at 31st March, 2011, and the
related Profit and Loss Account and Cash Flow Statement for the year
ended on that date annexed thereto, which we have signed under
reference to this report. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with 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
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of The Companies Act, 1956
of India (the Act) and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in paragraph 3 above, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the 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 appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the
directors, as on 31st March, 2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(f ) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2011;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to Auditors Report
Referred to in paragraph 3 of our Report of even date
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. (a) The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The Company has, granted unsecured loan to a company covered in
the register maintained under Section 301 of the Act. The maximum
amount involved during the year and the year-end balance of such loan
amounts to Rs. 2,000 Lac.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie, prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loans, the parties are repaying the
principal amounts as stipulated and are also regular in payment of
interest, where applicable.
(d) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
5. (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 the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. Five Lac in respect of any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues
as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income-tax and sales-tax as at 31st March, 2011 which have not been
deposited on account of disputes are as follows:
Period to which Forum where
Nature of Amount the amount the dispute is
dues (Rs. in Lac) relates pending
Commissioner
Income Tax 21.14 A.Y. 2007-08 of Income Tax
(Appeals)
Joint
Sales Tax A.Y. 1994-95 to Commissioner
16.34
(Lease Tax ) A.Y. 1998-99 of Sales Tax
(Appeals)
Joint
A.Y. 2001-02 to Commissioner
Sales Tax 86.97 A.Y. 2003-04 of Sales Tax
(BST) (Appeals)
Joint
A.Y. 2001-02 to Commissioner
Sales Tax 27.85 A.Y. 2003-04 of Sales Tax
(CST) (Appeals)
There were no disputed dues in respect of wealth tax, service tax,
custom duty, excise duty and cess.
10. The Company has no accumulated losses as at 31st March, 2011 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. Further, all such securities have been
held by the Company in its own name.
14. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the Company.
15. The company has not obtained any term loans during the year.
16. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short term
basis which have been used for long term investment.
17. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
18. The Company has not issued any debenture during the year.
19. The Company has not raised any money by public issues during the
year.
20. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
21. The other clauses, (iii)(d),(iii)(f),(iii)(g) and (xiii) of
paragraph 4 of the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, are not
applicable in the case of the Company for the year, since in our
opinion there is no matter which arises to be reported in the aforesaid
Order.
For Dalal & Shah
Firm Registration No. 102021W
Chartered Accountants
S.Venkatesh
Mumbai Partner
27th May, 2011 Membership No. F-037942
Mar 31, 2010
1. We have audited the attached Balance Sheet of Everest Kanto
Cylinder Limited as at 31st March, 2010, and the related Profit and
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
These financial statements are the responsibility of the CompanyÃs
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 (AuditorÃs Report) Order, 2003, as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004
(together the ÃOrderÃ), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of ÃThe Companies Act, 1956Ã
of India (the ÃActÃ) and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to Auditorsà Report Referred to in paragraph 3 of our Report
of even date
1. (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. (a) The inventory has been physically verified by the
management during the year. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. In our
opinion, the discrepancies noticed on physical verification of
inventory as compared to book records were not material.
3. (a) The Company has, granted unsecured loan to a
company covered in the register maintained under Section 301 of the
Act. The maximum amount involved during the year and the year end
balance of such loan amounts to Rs. 500 Lac and Rs. 200 Lac,
respectively.
(b) In our opinion, the rate of interest and other terms and conditions
of the loan are not prima facie prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loan, the party is repaying the
principal amounts as stipulated and is also regular in payment of
interest, where applicable.
(d) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, no major weaknesses have been noticed or
reported.
5. (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 the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under Section 301 of
the Act and exceeding the value of Rupees Five Lac in respect of any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A of the Act and the rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to
us and the records of the Company examined by us, in our opinion, the
Company is generally regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
employeesà state insurance, income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues
as applicable with the appropriate authorities in India.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income tax and sales tax as at 31st March, 2010 which have not been
deposited on account of disputes are as follows:
Nature of Amount Period to which Forum where
dues (Rs. in lacs) the amount the dispute is
relates pending
Commissioner
AY 2000-2001 to of Income Tax
7.44
Income Tax AY 2006-2007 (Appeals)
Sales Tax AY 1994-1995 to Departmental
(Lease Tax) 16.00 AY 1998-1999 Authorities
There were no disputed dues towards wealth tax, service tax, customs
duty, excise duty or cess.
10. The Company has no accumulated losses as at 31st March, 2010 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder during the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In respect of shares, securities, debentures and other investments
dealt or traded by the Company, proper records have been maintained in
respect of the transactions and contracts and timely entries have been
made therein. All the investments are held by the Company in its own
name.
14. In our opinion and according to the information and explanations
given to us, and the representations made by the management, the
Company has given guarantees to banks for loans taken by its
subsidiaries. The terms and conditions of these guarantees given are
not prejudicial to the interest of the Company.
15. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
16. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short term
basis which have been used for long term investment.
17. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issues during the
year.
20. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
21. The other clauses, (iii)(d), (iii)(f), (iii)(g) and (xiii) of
paragraph 4 of the Order are not applicable in the case of the Company
for the current year, since in our opinion there is no matter which
arises to be reported in the aforesaid Order.
For Dalal & Shah
Firm Registration Number: 102021W
Chartered Accountants
S.Venkatesh
Partner
Membership Number: 037942
Mumbai
26th May, 2010