Mar 31, 2015
We have audited the accompanying financial statements of Everlon
Synthetics Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the Accounting principles
generally accepted in India, including the accounting standards
specified under section 133 of the act, read with rule 7 of the
companies (Accounts) Rules, 2014. This responsibility also includes the
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 the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgment and estimates that are reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error,
Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the act and the rules made
thereunder,
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act, Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation of the
financial statements that give true and fair view in order to design
audit procedures that are appropriate in the circumstances, An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by
companies directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(i ) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2015,
(ii) in the case of the Statement of Profit and Loss, 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,
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in its terms of
sub-section (11) of section 143 of Companies Act 2013, we give in the
Annexure a statement on the matters specified in paragraph 3 and 4 of
the Order.
2. As required by section 143 (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 it appears from our examination of those
books.
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
section 133 of the Companies Act, 2013, read with rule 7 of the
Companies (Accounts) Rules, 2014.
e) on the basis of written representations received from the directors
as on March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015, from being
appointed as a director in terms of sub-section (2) of section 164 of
the Companies Act, 2013.
f) With respect to the other matters included in the auditor''s report
and to best of our information and according to the explanation given
to us.
1) The Company does not have any pending litigations which would impact
its financial position.
2) The Company did not have any long-term contracts for which there
were any material foreseeable losses.
3) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITOR''S REPORT
REFERRED TO CLAUSE 1 OF OUR REPORT OF EVEN DATE:
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Fixed Assets have been physically verified by the management during
the year.
In our opinion, the frequency of verification of the fixed assets by
the management is reasonable having regard to the size of the Company
and the nature of the assets. According to information furnished to us
no material discrepancies have been noticed on such verification.
ii) a) The inventory have been physically verified by the management at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and books were
not material and have been properly dealt with in the books of account.
iii) The company has not given any loans during the year to parties
covered in the register maintained u/s.189 of Companies Act, 2013.
iv) In our opinion and according to the information and explanations
provided to us there are adequate Internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to Purchase of Inventory, Fixed Assets and for
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal control.
v) The Company has not accepted any deposits from public.
vi) We have broadly reviewed, without carrying out a detailed
examination, the books of account maintained by the Company pursuant to
the rules made by the Central Government for the maintenance of cost
records under Section 148 (1) of the Companies Act, 2013 and are of the
opinion that prima facie the prescribed accounts and records have been
maintained. We have not however, made detailed examination of the
records with a view to determining whether they are accurate or
complete.
vii) a) According to the records and as per information and
explanations provided to us, the Company is regular in depositing with
appropriate authorities undisputed amount of provident fund, employee
state insurance, income tax, sales tax, custom duty, cess and other
statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31st
March 2015, for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, there are
no dues of income tax, wealth tax, sales tax, customs duty, excise duty
and cess which have not been deposited on account of any dispute
d) According to the information and explanation given to us there is no
amount require to be transferred to Investor Education and Protection
Fund.
viii) In our opinion, the accumulated losses of the Company at the end
of the financial year are not more than fifty percent of it net worth.
The Company has not incurred cash losses during the current financial
year and not incurred cash losses during the immediately preceding
financial year.
x) The Company has not taken loans from financial institution or has
not issued debentures to any party, hence the question of default in
repayment does not arise,
xi) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xii) The Company has not raised new term loans during the year, The
outstanding term loan at the beginning of the year were applied for the
purpose for which raised,
xiii) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has not been noticed or reported during the course of
our audit,
For POLADIA & CO.
CHARTERED ACCOUNTANTS
(FIRM REGN NO. 128274W)
- sd -
P. T. POLADIA
PARTNER
Place : Mumbai M.NO.38757
Dated: 30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Everlon
Synthetic Limited ("the Company"), which comprise the Balance Sheet as
at March 31,2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whetherthe financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we reportthat:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITOR''S REPORT REFERRED TO PARAGRAPH 3 OF OUR REPORT
OF EVEN DATE:
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Fixed Assets have been physically verified by the management during
the year.
In our opinion, the frequency of verification of the fixed assets by
the management is reasonable having regard to the size of the Company
and the nature of the assets. According to information furnished to us
no material discrepancies have been noticed on such verification.
c) The Fixed Assets disposed off during the year, in our opinion do not
constitute a substantial part of the Company and such disposal in our
opinion, not affected the going concern status of the Company.
ii) a) The inventory have been physically verified by the management at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and books were
not material and have been properly dealt with in the books of account.
iii) a) The Company has taken loan from one company covered in register
maintained under Section301 of the Companies Act. 1956. The maximum
amount outstanding during the year was Rs. 386.39 lacs. The company has
not given any loans during the year to parties covered in the register
maintained u/s.301 of Companies Act, 1956.
b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, or other parties listed
in the register maintained under Section 301 of the Companies Act, 1956
are not prima-facie, prejudicial to the interest of the company.
c) There has been no conditions stipulated as regards to repayment of
principal and interest.
iv) In our opinion and according to the information and explanations
provided to us there are adequate Internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to Purchase of Inventory, Fixed Assets and for
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal control.
v) According to the information and explanations given to us, there are
no transactions that need to be entered into the register maintained in
pursuance of Section 301 ofthe Companies Act, 1956.
Accordingly, paragraph 4(v)(b)of the Order is not applicable.
vi) The Company has not accepted any deposits from public.
vii) The Company does not have any internal audit system.
viii) We have broadly reviewed, without carrying out a detailed
examination, the books of account maintained by the Company pursuant to
the rules made by the Central Government for the maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956 and are of
the opinion that prima facie the prescribed accounts and records have
been maintained. We have not however, made detailed examination ofthe
records with a view to determining whether they are accurate or
complete.
ix) a) According to the records and as per information and explanations
provided to us, the Company is regular in depositing with appropriate
authorities undisputed amount of provident fund, employee state
insurance, income tax, sales tax, custom duty, cess and other statutory
dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31 st
March 2014, for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, there are
no dues of income tax, wealth tax, sales tax, customs duty, excise duty
and cess which have not been deposited on account of any dispute,
except as follows:-
Sr Nature of Dues &
No Name of the Status Forum where Disputed Amount (Rupees)
1. Central Excise
(Central Excise 1944) Commissioner (adju.)
of Central Excise 95,225/-
2. Central Excise
(Central Excise 1944) Commissioner of
Central Excise 4,44,45,043/-
(adjudication)
x) In our opinion, the accumulated losses of the Company at the end of
the financial year are not more than fifty percent of it net worth. The
Company has not incurred cash losses during the current financial year
and not incurred cash losses during the immediately preceding financial
year.
xi) The Company has not taken loans from financial institution or has
not issued debentures to any party, hence the question of default in
repayment does not arise.
xii) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) The Company is not chit/nidhi/mutual benefit fund/society and
clause 4 (xiii) of the Order is not applicable.
xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
orfinancial institutions.
xvi) The Company has raised new term loans during the year. The
outstanding term loan at the beginning of the year were applied for the
purpose for which raised.
xvii) According to the information and explanations given to us and on
overall examination of the balance sheet and other records of the
Company, we are of the opinion that funds, raised on short-term basis
have not, primafacie, been used for long term investment and vice
versa.
xviii) During the year, the Company has not made preferential allotment
of shares to a party covered in the Register maintained under Section
301 ofthe Companies Act, 1956.
xix) The Company did not have any outstanding debentures during the
year.
xx) The Company has not raised any money by public issues during the
year.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has not been noticed or reported during the course of
our audit.
For POLADIA & CO.
CHARTERED ACCOUNTANTS
(FIRM REGN NO. 128274W)
 Sd Â
RT. POLADIA
Place: Mumbai PARTNER
Date: 30th May 2014 M N0.38757
Mar 31, 2013
We have audited the accompanying financial statements of Everlon
Synthetic Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the profit 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.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
EVERLON SYNTHETICS LIMITED
ACCOUNTING YEAR ENDED 31ST MARCH, 2013
ANNEXURE TO THE AUDITOR''S REPORT REFERRED TO CLAUSE 1 OF OUR REPORT OF
EVEN DATE:
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Fixed Assets have been physically verified by the management during
the year.In our opinion, the frequency of verification of the fixed
assets by the management is reasonable having regard to the size of the
Company and the nature of the assets. According to information
furnished to us no material discrepancies have been noticed on such
verification.
c) The Fixed Assets disposed off during the year, in our opinion do not
constitute a substantial part of the Company and such disposal in our
opinion, not affected the going concern status of the Company.
ii) a) The inventory have been physically verified by the management at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and books were
not material and have been properly dealt with in the books of account.
iii) a) The Company has taken loan from two companies covered in
register maintained under Section 301 of the Companies Act. 1956. The
maximum amount outstanding during the year was Rs. 433.72 lacs. The
company has not given any loans during the year to parties covered in
the register maintained u/s.301 of Companies Act, 1956.
b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, or other parties listed
in the register maintained under Section 301 of the Companies Act, 1956
are not prima-facie, prejudicial to the interest of the company.
c) There has been no conditions stipulated as regards to repayment of
principal and interest.
iv) In our opinion and according to the information and explanations
provided to us there are adequate Internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to Purchase of Inventory, Fixed Assets and for
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal control.
v) According to the information and explanations given to us, there are
no transactions that need to be entered into the register maintained in
pursuance of Section 301 of the Companies Act, 1956. Accordingly,
paragraph 4 (v) (b) of the Order is not applicable.
vi) The Company has not accepted any deposits from public.
vii) The Company does not have any internal audit system.
viii) We have broadly reviewed, without carrying out a detailed
examination, the books of account maintained by the Company pursuant to
the rules made by the Central Government for the maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956 and are of
the opinion that prima facie the prescribed accounts and records have
been maintained. We have not however, made detailed examination of the
records with a view to determining whether they are accurate or
complete.
x) a) According to the records and as per information and explanations
provided to us, the Company is regular in depositing with appropriate
authorities undisputed amount of provident fund, employee state
insurance, income tax, sales tax, custom duty, cess and other statutory
dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31st
March 2013, for a period of more than six months from the date they
became payable.
x) In our opinion, the accumulated losses of the Company at the end of
the financial year are not more than fifty percent of it net worth. The
Company has not incurred cash losses during the current financial year
and not incurred cash losses during the immediately preceding financial
year.
xi) The Company has not taken loans from financial institution or has
not issued debentures to any party, hence the question of default in
repayment does not arise.
xii) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) The Company is not chit/nidhi/mutual benefit fund/society and
clause 4 (xiii) of the Order is not applicable.
xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi) The Company has not raised any new term loans during the year. The
outstanding term loan at the beginning of the year were applied for the
purpose for which raised.
xvii) According to the information and explanations given to us and on
overall examination of the balance sheet and other records of the
Company, we are of the opinion that funds, raised on short-term basis
have not, prima facie, been used for long term investment and vice
versa.
xviii)During the year, the Company has not made preferential allotment
of shares to a party covered in the Register maintained under Section
301 of the Companies Act, 1956.
xix) The Company did not have any outstanding debentures during the
year.
xx) The Company has not raised any money by public issues during the
year.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has not been noticed or reported during the course of
our audit.
For POLADIA & CO.
CHARTERED ACCOUNTANTS
(Firm Regn No. 128274W)
sd/-
P.T. POLADIA
PARTNER
Place : Mumbai M.NO.38757
Dated: 30/05/2013
Mar 31, 2012
1) We have audited the attached Balance Sheet of EVERLON SYNTHETICS
LIMITED as at 31 st March, 2012 and the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2) We have conducted our audit in accordance with Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit evidence we have obtained in
our audits is sufficient and appropriate to provide a basis for our
Qualified Audit opinion.
Basis For Qualified Audit opinion
Hereto Company was following written down value method as per
Income-tax Act, 1961 for depreciation in respect of Plant & Machinery.
During the year company has changed the method of Accounting by
replacing of Written Down Value method to Straight Line Method of
Accounting as per schedule XIV of Companies Act, 1956 which resulted in
Lower provision of depreciation by Rs.67,33,036/- compared to last
year. Had Company followed same depreciation as per last year, the
profit would have been lower by that amount and negative balance in
Reserves and Surplus would have been higher by that amount.
3) As required by Companies (Auditor's Report) Order, 2003, issued by
the Central Government in terms of section 227 (4A) of the Companies
Act, 1956, we give in the Annexure, a Statement on the matters
specified in paragraphs 4 and 5 of the said Order:-
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the above books of
account. ,
d) In our opinion, the Balance Sheet and Profit and Loss Account and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956
e) In our opinion and as per information and according to the
explanations given to us, no Director is disqualified from being
appointed as director under clause (g) of subsection (1) of section
274.
f) In our opinion, and to the best of our information, and according to
the explanations given to us, the said accounts, read together with the
notes thereon, subject to "Qualified Audit Opinion" as stated above in
respect of "change in method of depreciation" give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
i) In the case of the Balance Sheet, of the state of affairs of the
Company, as at 31st March 2012.
ii)ln the case of the Profit and Loss Account, of the Profit of the
year ended on that date, and
iii)ln the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
EVERLON SYNTHETICS LIMITED ACCOUNTING YEAR ENDED 31 ST MARCH, 2012
ANNEXURE TO THE AUDITOR'S REPORT REFERRED TO PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE:
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Fixed Assets have been physically verified by the management during
the year.ln our opinion, the frequency of verification of the fixed
assets by the management is reasonable having regard to the size of the
Company and the nature of the assets. According to information
furnished to us no material discrepancies have been noticed on such
verification.
c) The Fixed Assets disposed off during the year, in our opinion do not
constitute a substantial part of the Company and such disposal in our
opinion, not affected the going concern status of the Company.
ii) a) The inventory have been physically verified by the management at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and books were
not material and have been properly dealt with in the books of account.
iii) a) The Company has taken loan from one company covered in register
maintained under Section 301 of the Companies Act. 1956. The maximum
amount outstanding during the year was Rs.434.40 lacs. The company has
not given any loans during the year to parties covered in the register
maintained u/s.301 of Companies Act, 1956.
b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, or other parties listed
in the register maintained under Section 301 of the Companies Act, 1956
are not prima-facie, prejudicial to the interest of the company.
c) There has been no conditions stipulated as regards to repayment of
principal and interest.
iv) In our opinion and according to the information and explanations
provided to us there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to Purchase of Inventory, Fixed Assets and for
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal control.
v) According to the information and explanations given to us, there are
no transactions that need to be entered into the register maintained in
pursuance of Section 301 of the Companies Act, 1956. Accordingly,
paragraph 4 (v) (b) of the Order is not applicable.
vi) The Company has not accepted any deposits from public.
vii) The Company does not have any internal audit system.
viii) We have broadly reviewed, without carrying out a detailed
examination, the books of account maintained by the Company pursuant to
the rules made by the Central Government for the maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956 and are of
the opinion that prima facie the prescribed accounts and records have
been maintained. We have not however, made detailed examination of the
records with a view to determining whether they are accurate or
complete.
ix) a) According to the records and as per information and explanations
provided to us, the Company is regular in depositing with appropriate
authorities undisputed amount of provident fund, employee state
insurance, income tax, sales tax, custom duty, cess and other statutory
dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31st
March 2012, for a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, there are
no dues of income tax, wealth tax, sales tax, customs duty, excise duty
and cess which have not been deposited on account of any dispute,
except mentioned in Item 6 of Note No.28.
x) In our opinion, the accumulated losses of the Company at the end of
the financial year are more than fifty percent of it net worth. The
Company has not incurred cash losses during the current financial year
and not incurred cash losses during the immediately preceding financial
year.
xi) The Company has not taken loans from financial institution or has
not issued debentures to any party, hence the question of default in
repayment does not arise.
xii) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) The Company is not chit/nidhi/mutual benefit fund/society and
clause 4 (xiii) of the Order is not applicable.
xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi) The Company has applied funds from term loans raised during the
year only for the purpose for which those term loans were raised. There
is no term loans outstanding at the beginning of the year.
xvii) According to the information and explanations given to us and on
overall examination of the balance sheet and other records of the
Company, we are of the opinion that funds, raised on short-term basis
have not, prima facie, been used for long term investment and vice
versa.
xviii)During the year, the Company has not made preferential allotment
of shares to a party covered in the Register maintained under Section
301 of the Companies Act, 1956.
xix) The Company did not have any outstanding debentures during the
year.
xx) The Company has not raised any money by public issues during the
year.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has not been noticed or reported during the course of
our audit.
For POLADIA & CO.
CHARTERED ACCOUNTANTS
(Firm Regn No. 128274W)
-sd-
P.T. POLADIA
PROPRIETOR
Place : Mumbai M.NO.38757
Dated: 30/05/2012
Mar 31, 2010
1) We have audited the attached Balance Sheet of EVERLON SYNTHETICS
LIMITED as at 31st March, 2010 and the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2) We have conducted our audit in accordance with Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis of
our opinion.
3) As required by Companies (Auditors Report) Order, 2003, issued by
the Central Government in terms of section 227 (4A) of the Companies
Act, 1956, we give in the Annexure, a Statement on the matters
specified in paragraphs 4 and 5 of the said Order-
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all 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 taw 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 above books of
account.
d) In our opinion, the Balance Sheet and Profit and Loss Account and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956
e) In our opinion and as per information and according to the
explanations given to us, no Director is disqualified from being
appointed as director under clause (g) of subsection (1) of section
274.
f) In our opinion, and to the best of our information, and according to
the explanations given to us, the said accounts, read together with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
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 of the year ended on that date, and iii) In the
case of Cash Flow Statement, of the cash flows for the year ended on
that date.
ACCOUNTING YEAR ENDED 31 ST MARCH, 2010 ANNEXURE TO THE AUDITORS REPORT
REFERRED TO PARAGRAPH 3 OF OUR REPORT OF EVEN DATE:
i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Fixed Assets have been physically verified by the management during
the year.ln our opinion, the frequency of verification of the fixed
assets by the management is reasonable having regard to the size of the
Company and the nature of the assets. According to information
furnished to us no material discrepancies have been noticed on such
verification.
c) The Fixed Assets disposed off during the year, in our opinion do not
constitute a substantial part of the Company and such disposal in our
opinion, not affected the going concern status of the Company.
ii) a) The inventory have been physically verified by the management at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion the Company has maintained proper records of
inventory. The discrepancies between the physical stocks and books were
not material and have been properly dealt with in the books of account
iii) a) The Company has taken loan from one company covered in register
maintained under Section 301 of the Companies Act. 1956. The maximum
amount outstanding during the year was Rs.194.05 lacs. The company has
not given any loans during the year to parties covered in the register
maintained u/s.301 of Companies Act, 1956.
b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from companies, or other parties listed
in the register maintained under Section 301 of the Companies Act, 1956
are not prima-facie, prejudicial to the interest of the company.
c) There has been no conditions stipulated as regards to repayment of
principal and interest.
iv) In our opinion and according to the information and explanations
provided to us there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regards to Purchase of Inventory, Fixed Assets and for
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal control.
v) According to the information and explanations given to us, there are
no transactions that need to be entered into the register maintained in
pursuance of Section 301 of the Companies Act, 1956. Accordingly,
paragraph 4 (v) (b) of the Order is not applicable.
vi) The Company has not accepted any deposits from public.
vii) The Company does not have any internal audit system.
viii) We have broadly reviewed, without carrying out a detailed
examination, the books of account maintained by the Company pursuant to
the rules made by the Central Government for the maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956 and are of
the opinion that prima facie the prescribed accounts and records have
been maintained. We have not however, made detailed examination of the
records with a view to determining whether they are accurate or
complete.
ix) a) According to the records and as per information and explanations
provided to us, the Company is regular in depositing with appropriate
authorities undisputed amount of provident fund, employee state
insurance, income tax, sales tax, custom duty, cess and other statutory
dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax, sales
tax, custom duty, excise duty and cess were in arrears, as at 31st
March 2010, for,a period of more than six months from the date they
became payable.
c) According to the information and explanations given to us, there are
no dues of income tax, wealth tax, sales tax, customs duty, excise duty
and cess which have not been deposited on account of any dispute,
except mentioned in Note 6 of Schedule M.
x) In our opinion, the accumulated losses of the Company at the end of
the financial year are more than fifty percent of it net worth. The
Company has not incurred cash losses during the current financial year
and not incurred cash losses during the immediately preceding financial
year.
xi) The Company has not taken loans from financial institution or has
not issued debentures to any party, hence the question of default in
repayment does not arise.
xii) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) The Company is not chit/nidhi/mutual benefit fund/society and
clause 4 (xiii) of the Order is not applicable.
xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi) The Company has not raised any new term loan from banks. There is
no term loans outstanding at the beginning of the year.
xvii) According to the information and explanations given to us and on
overall examination of the balance sheet and other records of the
Company, we are of the opinion that funds, raised on short-term basis
have not, prima facie, been used for long term investment and vice
versa.
xviii) During the year, the Company has not made preferential allotment
of shares to a party covered in the Register maintained under Section
301 of the Companies Act, 1956.
xix) The Company did not have any outstanding debentures during the
year.
xx) The Company has not raised any money by public issues during the
year.
xxi) Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has not been noticed or reported during the course of
our audit.
For POLADIA & CO.
CHARTERED ACCOUNTANTS
(Firm Regn No. 128274 W)
-Sd-
P.T. POLADIA
PROPRIETOR
M NO.38757
Place : Mumbai.
Dated : 28/5/2010.
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