Auditor Report of Fenoplast Ltd.
Mar 31, 2015
We have audited the accompanying financial statements of Fenoplast
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
Note 23.1 to the financial statements, regarding excess managerial
remuneration amounting to Rs.57.43 Lacs paid to Managing Director and
Whole Time Director in excess of limits prescribed under Schedule XIII
of the Companies Act, 1956 in the financial year 2013-14 for which
approval from the Central Government is pending. The ultimate outcome
of this matter cannot presently be determined, accordingly no
adjustments have been made in the financial statements.
Our opinion is qualified in this matter.
Opinion
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, the aforesaid financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2015, and its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements  Refer Note 31 to the
financial statements;
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company Fenoplast Limited
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of Fenoplast
Limited for the year ended on 31st March, 2015. We report that:
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets;
(b) As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and the nature
of its business. No material discrepancies were noticed on such
physical verification.
(ii) (a) The inventories have been physically verified during the year
by the management. In our opinion, the frequency of verification is
reasonable;
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) The Company has maintained proper records of its inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material;
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act.
(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, fixed assets and for the sale of goods. 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 deposits within the meaning of Section
73 to 76 of the Act and the rules framed thereunder.
(vi) We have broadly reviewed the cost records maintained by the
company pursuant to the companies (Cost audit and records) Rules 2014
prescribed by the central Government under sub-section (1) of section
148 of the Companies Act, 2013, and are of the opinion that prima facie
the prescribed cost records have been maintained.
(vii) (a) According to the information and explanations given to us and
the records of the company examined by us, the Company is generally
regular in depositing undisputed statutory dues including provident
fund, employees' state insurance, income-tax, service tax, value added
tax, sales tax, custom duty, excise duty, cess and other statutory dues
as applicable with the appropriate authorities and there were no
arrears of outstanding statutory dues as at the last day of the
financial year concerned for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us and
records of the Company examined by us, the particulars of sales tax,
income tax, customs duty, excise duty, service tax and wealth tax, as
at 31st March, 2015 which have not been deposited on account of dispute
pending, are as under:
Name of the Nature of the Amount Period to Forum where dispute
Statute Dues (Rs. In which the is pending
Lakhs) amount
relates
Income-tax
Act, 1961 Income-tax 2.20 1999-2000 Income-tax Appellate
Tribunal, Hyderabad
Income-tax
Act, 1961 Income-tax 31.90 2000-2001 Income-tax Appellate
Tribunal, Hyderabad
Income-tax
Act, 1961 Income-tax 10.44 2001-2002 Income-tax Appellate
Tribunal, Hyderabad
Income-tax
Act, 1961 Income-tax 1.89 2002-2003 Income-tax Appellate
Tribunal, Hyderabad
Income-tax
Act, 1961 Income-tax 4.55 2003-2004 Income-tax Appellate
Tribunal, Hyderabad
Income-tax
Act, 1961 Income-tax 74.66 2005-2006 Income-tax Appellate
Tribunal, Hyderabad
Income-tax
Act, 1961 Income-tax 45.62 2006-2007 Income-tax Appellate
Tribunal, Hyderabad
Income-tax
Act, 1961 Income-tax 17.38 2009-2010 Assistant Commissioner
of Income Tax
Central Sales
Tax Act, Central Sales 26.57 2009-2010 Deputy Commissioner
of
Sales 1956 Tax Sales Tax, Appeals
Central Sales
Tax Act, Central Sales 26.97 2010-2011 Deputy Commissioner
of
Sales 1956 Tax Sales Tax, Appeals
Central Sales
Tax Act, Central Sales 258.29 2011-2012 Deputy Commissioner
of
Sales 1956 Tax Sales Tax, Appeals
(c) There are no amounts to be transferred to investor education and
protection fund in accor- dance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under.
(viii) The company has no accumulated losses and it has not incurred
any cash losses during the financial year covered by our audit or in
the immediately preceding financial year;
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial institutions;
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M.Anandam & Co.,
Chartered Accountants
(Firm's Registration No. 000125S)
Place: Secunderabad M.V.Ranganath
Date : 27.05.2015 Partner
Membership.No: 028031
Mar 31, 2014
We have audited the accompanying financial statements of Fenoplast
Limited ("the Company"), which comprise the Balance Sheet as at
March 31,2014, 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with General Circular
8/2014 dated 4th April, 2014 issued by Ministry of Corporate Affairs.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Statement of Profit and Loss, of the profit 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 on Matter
We draw attention to Note 23.1 to the financial statements, regarding
excess managerial remuneration amounting to Rs.57.43 Lacs paid to
Managing Director and Whole Time Director are in excess of limits
prescribed under Schedule XIII of the Companies Act, 1956. As
represented to us by the management, the Company is in the process of
filing application to the Central Government for the approval of such
excess remuneration. The ultimate outcome of the above matter cannot
presently be determined, accordingly no adjustments have been made in
the financial statements. Our opinion is not qualified in this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
General Circular 8/2014 dated 4th April, 2014 issued by Ministry of
Corporate Affairs;
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 Re: Fenoplast Limited
Referred to in Paragraph 1 under the heading of "Report on Other
Legal and Regulatory Requirements" 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. As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the Company and the nature
of its business. No material discrepancies were noticed on such
physical verification.
c. The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
ii. a. The inventories have been physically verified during the year by
the management. In our
opinion, the frequency of verification is reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company has maintained proper records of its inventories. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. a. The Company has not granted any loan during the year to
companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Consequently the requirements of Clauses (iii) (b), (iii)
(c) and (iii) (d) of paragraph 4 of the Order are not applicable.
b. The Company has taken unsecured loan from one party covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 39.19 Lacs and the
year-end balance of loan taken is Rs.Nil.
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the parties covered in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie prejudicial to the interest of the Company.
d. The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
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, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of 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. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public within
the meaning of sections 58A and 58AA or any other relevant provisions
of the Companies Act, 1956 and the rules framed there under. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the companies (Cost Accounting records) Rules 2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies 1956, and are of the opinion that prima facie the prescribed
cost records have been maintained.
ix. a. According to the information and explanations given to us and
the records of the Company
examined by us, the Company is regular in depositing undisputed
statutory dues including provident fund, employees'' state insurance,
income-tax, service tax, sales tax, custom duty, excise duty, cess and
other statutory dues as applicable with the appropriates authorities
and there were no arrears of outstanding statutory dues as at the last
day of the financial year concerned for a period of more than six
months from the date they became payable. b. According to the
information and explanations given to us and records of the Company
examined by us, the particulars of sales tax, income tax, customs duty,
excise duty, service tax and wealth tax, as at 31st March, 2014 which
have not been deposited on account of dispute pending, are as under:
Name of the Statute Nature of Amount Period to which
the Dues (Rs. In the amount Lakhs) relates
Income-tax Act,1961 Income-tax 41.23 1986-1995
Income-tax Act, 1961 Income-tax 2.2 1999-2000
Income-tax Act, 1961 Income-tax 31.9 2000-2001
Income-tax Act, 1961 Income-tax 10.44 2001-2002
Income-tax Act, 1961 Income-tax 1.89 2002-2003
Income-tax Act, 1961 Income-tax 4.55 2003-2004
Income-tax Act, 1961 Income-tax 74.66 2005-2006
Income-tax Act, 1961 Income-tax 45.62 2006-2007
Central Sales Tax Act Central Sales 26.57 2009 2010
1956
Central Sales Tax Act, Central Sales 26.97 2010-2011
1956
Nmae of the Director Forum where dispute is pending
Income-tax Act,1961 High Court of Andhra Pradesh
Income-tax Act,1961 Income-tax Appellate Tribunal, Hyderabad
Income-tax Act,1961 Income-tax Appellate Tribunal, Hyderabad
Income-tax Act,1961 Income-tax Appellate Tribunal, Hyderabad
Income-tax Act,1961 Income-tax Appellate Tribunal, Hyderabad
Income-tax Act,1961 Income-tax Appellate Tribunal, Hyderabad
Income-tax Act,1961 Income-tax Appellate Tribunal, Hyderabad
Income-tax Act,1961 Income-tax Appellate Tribunal, Hyderabad
Central Sales Tax Act Deputy Commissioner of Sales Tax, Appeals
1956
Central Sales Tax Act Deputy Commissioner
1956
x. The Company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders.
xii. According to information and explanations given to us and based on
the documents and records produced to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4(xiii) if
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial institutions. Accordingly, the
provisions of clause 4(xv) of the Companies (Auditors'' Report) Order,
2003 are not applicable to the Company.
xvi. In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M. Anandam& Co.,
Chartered Accountants
(Firm Regn.No.000125S)
M.V. Ranganath
Partner
M.No.028031
Place: Secunderabad
Date: 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Fenoplast
Limited ("the Company"), which comprise the Balance Sheet as at March
31st, 2013, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31st, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Annexure
Re: Fenoplast Limited
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" 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. As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and the nature
of its business. No material discrepancies were noticed on such
physical verification.
c. The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
ii. a. The inventories have been physically verified during the year by
the manage- ment. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c. The Company has maintained proper records of its inventories. The
discrepan- cies noticed on verification between the physical stocks and
the book records were not material.
iii. a. The Company had granted interest free advances to two parties
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year is Rs..25.87 Lacs
and year-end balance is Rs.. Nil. The Company has written off these
advances during the year.
b. The Company has taken unsecured loans one party covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was
Rs.. 13.85 Lacs and the year-end balance of loans taken is Rs..8.83 Lacs.
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the parties covered in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie prejudicial to the interest of the Company.
d. The Company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest.
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, fixed assets and for the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal control system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of 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. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public within
the meaning of sections 58A and 58AA or any other relevant provisions
of the Companies Act, 1956 and the rules framed there under. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
company pursuant to the Companies (Cost Accounting records) Rules 2011
prescribed by the Central Government under section 209 (1) (d) of the
companies 1956, and are of the opinion that prima facie the prescribed
cost records have been maintained.
ix. a. According to the information and explanations given to us and
the records of the company examined by us, the Company is regular in
depositing undisputed statutory dues including provident fund,
employees'' state insurance, income-tax, service tax, sales tax, custom
duty, excise duty, cess and other statutory dues as applicable with the
appropriates authorities and there were no arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable.
b. According to the information and explanations given to us and
records of the Company examined by us, the particulars of sales tax,
income tax, customs duty, excise duty, service tax and wealth tax, as
at 31st March, 2013 which have not been deposited on account of dispute
pending, are as under:
Nature of Amount
Name of the Statute the Dues (Rs. In Lakhs)
Income-tax Act, 1961 Income-tax 41.23
Income-tax Act, 1961 Income-tax 2.2
Income-tax Act, 1961 Income-tax 31.9
Income-tax Act, 1961 Income-tax 10.44
Income-tax Act, 1961 Income-tax 1.89
Income-tax Act, 1961 Income-tax 4.55
Income-tax Act, 1961 Income-tax 77.66
Income-tax Act, 1961 Income-tax 48.62
Central Sales Tax Act, Central 8.38
1956 Sales Tax
Central Sales Tax Act, Central 26.57
1956 Sales Tax
Name Period to which Forum where
the amount
relates dispute is pending
Income-tax Act, 1961 1986-1995 High Court of Andhra
Pradesh
Income-tax Act, 1961 1999-2000 Income-tax Appellate
Tribunal, Hyderabad
Income-tax Act, 1961 2000-2001 Income-tax Appellate
Tribunal, Hyderabad
Income-tax Act, 1961 2001-2002 Income-tax Appellate
Tribunal, Hyderabad
Income-tax Act, 1961 2002-2003 Income-tax Appellate
Tribunal, Hyderabad
Income-tax Act, 1961 2003-2004 Income-tax Appellate
Tribunal, Hyderabad
Income-tax Act, 1961 2005-2006 Income-tax Appellate
Tribunal, Hyderabad
Income-tax Act, 1961 2006-2007 Income-tax Appellate
Tribunal, Hyderabad
Income-tax Act, 1961 2008-2009 Deputy Commissioner
of Sales Tax, Appeals
Income-tax Act, 1961 2009-2010 Deputy Commissioner
of Sales Tax, Appeals
x. The Company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders.
xii. According to information and explanations given to us and based on
the documents and records produced to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4(xiii) if
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanation
given to us, the Company is not dealing in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
xv. I n ou r opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from banks or financial institutions. Accordingly, the
provisions of clause 4(xv) of the Companies (Auditors'' Report) Order,
2003 are not applicable to the Company.
xvi. In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii. In our opinion and according to the information and explanation
to us, and on an overall examination of the Balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investments.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any funds on public issue and hence
disclosure on the end use of money raised by the public issue is not
applicable to the Company.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For M. Anandam & Co.,
Chartered Accountants
(Firm Regn.No.000125S)
M. V Ranganath
Place : Secunderabad Partner
Date :25th May, 2013 M.No.028031
Mar 31, 2012
1. We have audited the attached Balance Sheet of Fenoplast Limited
('the Company') as at 31st March 2012 and also the Statement of Profit
and Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with 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 mis statement. 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 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we annex hereto 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 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) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with requirements
of the accounting standards referred to in Sub-section (3C) of section
211 of the Companies Act, 1956
d) The Balance Sheet, Profit and Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of account;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified from being appointed as a director of the
Company under clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts read together with the
Significant Accounting Policies and 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 2012;
ii. In the case of the Statement of Profit and Loss, of the Profit of
the company for 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.
Annexure to Auditors' Report
Referred to in 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) According to the information and explanations given to us, the
Company has a phased programme of verification of fixed assets which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its business.
(c) The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
ii. (a) As per the information and explanations
given to us, physical verification of inventories is carried out by the
Company at regular intervals during the year. In our opinion the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The Company is maintaining proper records of inventory. As informed
by the management, the discrepancies noticed on verification between
the physical stocks and the book records were not material.
iii. (a) The company has granted interest free
advances to two parties covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs 25.87 Lakhs and the year-end balance is Rs.25.87
lakhs.
(b) According to the information and explanations given to us and in
our opinion, the terms and conditions on which advances have been given
to company are not prima facie prejudicial to the interest of the
company.
(c) As explained by the management, the Company is in the process of
taking reasonable steps for recovery of the principal amount.
(d) The company has taken an interest free loan from one party covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year is Rs 28.85 Lakhs and
the year-end balance is Rs.13.85 Lakhs.
(e) The company is regular in repaying the principal amounts as
stipulated.
iv. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
v. (a) According to the information and
explanations given to us, we are of the opinion that the transactions
that need to be entered into the register maintained under section 301
of the companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956, 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 prevailing market prices at the relevant
time.
vi. The Company has not accepted deposits from the public within the
meaning of sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or the Reserve Bank of India or any Court
or any other Tribunal.
vii. In our opinion, the Company has an internal audit system which is
commensurate with the size and nature of its business.
viii. In our opinion and accordingly to the information and
explanations given to us, the company has made and maintained accounts
and records prescribed by the Central Government under Section 209(1)
(d) of the Companies Act, 1956.
ix. (a) According to the information and explanations given to us, and
on the basis of our examination of books of account, the Company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, employee state
insurance, sales tax, customs duty, wealth tax, service tax, Excise
duty, Cess and other statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of the aforesaid dues
are outstanding as at 31st March, 2012 for a period of more than six
months from the date they become payable.
(b) The disputed statutory dues aggregating to Rs.138.36 Lakhs have not
been deposited on account of disputed matters as on 31st March, 2012
pending before the appropriate authorities are as under:
Name of the Nature Amount Financial Forum where
statute of dues (Rs in Lakhs) Year dispute is
pending
Income Tax
Act, 1961 Income-tax 41.23 1986-1995 High Court
of Andhra
Pradesh
Income Tax
Act, 1961 Income-tax 2.20 1999-2000 ITAT
Income Tax
Act, 1961 Income-tax 31.90 2000-2001 ITAT
Income Tax
Act, 1961 Income-tax 10.44 2001-2002 ITAT
Income Tax
Act, 1961 Income-tax 1.89 2002-2003 ITAT
Income Tax
Act, 1961 Income-tax 4.55 2003-2004 ITAT
Central Sales
Tax Act, CST 40.28 2006-2007 Deputy Commis
sioner of
Sales
1956 Tax, Appeals
Central Sales
Tax Act, CST 5.87 2007-2008 Deputy Commis
sioner of
Sales
1956 Tax Appeals
x. The Company does not have accumulated losses as at 31st March 2012
and has not incurred cash losses during the year covered by our audit
and immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
xii. According to the information and explanation given to us and based
on the documents and records produced to us, the company has not
granted loans and advances on the basis of securities by way of pledge
of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the companies (Auditor's report) order,
2003 are not applicable to the company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provisions of Clause 4 (xv) of the companies (Auditor's report) order,
2003 are not applicable to the company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii. In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis were
applied for long-term investment.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in register maintained under section 301 of the
Companies Act, 1956.
xix. According to the information and explanations given to us, there
were no debentures issued by the company during the period.
Accordingly, Clause 4 (xix) of Companies (Auditor's Report) Order, 2003
is not applicable.
xx. According to the information and explanations given to us, the
Company has not raised any funds on public issue and hence disclosure
on the end use of money raised by the public issue is not applicable to
the Company.
xxi. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
For M. ANANDAM & CO.,
Chartered Accountants
(Firm Regn.No.000125S)
(M.V.Ranganath)
Place: Secunderabad Partner
Date: 30th May 2012 Membership. No.028031
Mar 31, 2011
We have audited the attached Balance Sheet of Fenoplast Limited as at
31st March 2011 and also the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Company-s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditor-s Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
3. Further to our comments in the annexure referred to in paragraph 2
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 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) In our opinion, the Balance Sheet, Profit and Loss account and Cash
flow statement dealt with by this report comply with requirements of
the accounting standards referred to in Sub-section (3C) of section 211
of the Companies Act, 1956 except as referred in clause (f) below;
d) The Balance Sheet, Profit and Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of account;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors of Company are disqualified from being appointed as a
director of the Company under clause (g) of subsection (1) of section
274 of the Companies Act, 1956;
f) Subject to - Accounting Policy No.8 read with Note No.7 in Schedule
No. XVII regarding provision of gratuity and leave encashment - the
company has not provided liability in accordance with the Accounting
Standard - 15 "Employee Benefits".
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to Para 3 (f)
above and consequential effect not ascertainable on the profit for the
year, assets and liabilities of the company and read together with the
Company-s accounting policies and notes thereto, 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 31 st March 2011;
ii. In the case of the Profit & Loss account,of the Profit of
the company for 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.
ANNEXURE referred to in paragraph 2 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) According to the information and explanations given to us, the
Company has a phased programme of verification of fixed assets which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its business.
(c) The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern status.
ii. (a) As per the information and explanations given to us, physical
verification of inventories are carried out by the Company at regular
intervals during the year. In our opinion the frequency of verification
is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The Company is maintaining proper records of inventory. As informed
by the Management, the discrepancies noticed on verification between
the physical stocks and the book records were not material.
iii. (a) The company has granted interest free advance to one entity
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs 20.88
Lakhs and the year-end balance is Rs.20.88 lakhs.
(b) According to the information and explanations given to us and in
our opinion, the terms and conditions on which advances have been given
to company are not prima facie prejudicial to the interest of the
company.
(c) As explained by the management, the Company is in the process of
taking reasonable steps for recovery of the principal amount.
(e) The company has taken an interest free loan from one party covered
in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the year is Rs 55.00 Lakhs and the year-end
balance is Rs.28.84 Lakhs.
(f) The company is regular in repaying the principal amounts as
stipulated
iv. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
v. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956, 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 prevailing market prices at the relevant
time.
vi. The Company has not accepted deposits from the public within the
meaning of sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or the Reserve Bank of India or any Court
or any otherTribunal.
vii. In our opinion, the Company has an internal audit system which is
commensurate with the size and nature of its business.
viii.The Central Government has not prescribed rules for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956.
ix. (a) According to the information and explanations given to us, and
on the basis of our examination of books of account, the Company has
been regular in depositing with the appropriate authorities undisputed
statutory dues including provident fund, employee state insurance,
sales-tax, customs duty, wealth tax, service tax, Excise duty, Cess and
other statutory dues applicable to it. According to the information and
explanations given to us, no undisputed amounts payable in respect of
the aforesaid dues are outstanding as at 31st March, 2011 for a period
of more than 6 months from the date they become payable.
(b) The disputed statutory dues aggregating to Rs.113.84 Lakhs have
not been deposited on account of disputed matters pending before the
appropriate authorities are as under
Name of the Nature Amount not Financial Forum where
statute of dues deposited Year dispute is
(Rs in
Lakhs) pending
Income Tax
Act, 1961 Income Tax 41.23 1986-1995 High Court of
Andhra Pradesh
Income Tax
Act, 1961 Income Tax 28.72 1999-2000 The Commissio
ner of
Income Tax
(Appeals) -II
Income Tax
Act, 1961 Income Tax 3.61 2002-2003 The Commissi
oner of
Income Tax
(Appeals) -II
Central Sales
Tax CST 40.28 * 2006-2007 Deputy
Commissioner of
Act, 1956 Sales Tax
Appeals
Total 113.84
* Bank Guarantee is given for the equivalent amount
x. The Company does not have accumulated losses as at 31st March 2011
and has not incurred cash losses during the year covered by our audit
and immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
xii. According to the information and explanation given to us and based
on the documents and records produced to us, the company has not
granted loans and advances on the basis of securities by way of pledges
of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4 (xiii) of
the Companies (Auditor-s Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments.
Accordingly, the provisions of Clause 4 (xiv) of the companies
(Auditor-s report) order, 2003 are not applicable to the company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provisions of Clause 4 (xv) of the companies (Auditor-s report) order,
2003 are not applicable to the company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii. In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis were
applied for long-term investment.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in register maintained under section 301 of the
Companies Act, 1956.
xix. According to the information and explanations given to us, there
were no debentures issued by the company during the period.
Accordingly, Clause 4 (xix) of Companies (Auditor-s Report) Order, 2003
is not applicable.
xx. According to the information and explanations given to us, the
Company has not raised any funds on public issue and hence disclosure
on the end use of money raised by the public issue is not applicable to
the Company. xxi. Based upon the audit procedures performed for the
purpose of reporting the true and fair view of the financial statements
and as per the information and explanations given by the management, we
report that no fraud on or by the company has been noticed or reported
during the course of our audit.
For M. ANANDAM &CO.,
Chartered Accountants
(Firm Regn.No.000125S)
Place: Secunderabad
Date: 27th May, 2011 (M.V.Ranganath)
Partner
Membership. No.028031
Mar 31, 2010
We have audited the attached Balance Sheet of Fenoplast Limited as at
31st March 2010 and also the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
3. Further to our comments in the annexure referred to in paragraph 2
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 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) In our opinion, the Balance Sheet, Profit and Loss account and Cash
flow statement dealt with by this report comply with requirements of
the accounting standards referred to in Sub-section (3C) of section 211
of the Companies Act, 1956 except as referred in clause (f) (i) below;
d) The Balance Sheet, Profit and Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of account;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors of Company are disqualified from being appointed as a
director of the Company under clause (g) of subsection (1) of section
274 of the Companies Act, 1956;
f) In our opinion and to the best of our knowledge and according to the
explanations given to us, subject to
i) Accounting policy No. 8 in Schedule No. XVI regarding non-provision
of gratuity and leave encashment as required under Accounting Standard
-15 Employee Benefits.
ii) Note No.7 in Schedule No.XVII regarding reconciliation and
confirmation in respect of Debtors, Creditors and Loans and Advances.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to the
foregoing observations and consequential effect not ascertainable on
the profit for the year, assets and liabilities of the company and read
together with the Companys accounting policies and notes thereto, 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 31 st March 2010;
II. In the case of the Profit & Loss account, of the Profit of the
company for 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.
ANNEXURE referred to in paragraph 2 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) According to the information and explanations given to us, the
Company has a phased programme of verification of fixed assets which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its business.
(c) The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern status.
ii. (a) As per the information and explanations given to us, physical
verification of finished goods and raw materials were carried out by
the company at regular intervals during the year except for stock in
transit, materials lying with the third parties and with the warehouse
are done by the management at the year-end.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The Company is maintaining proper records of inventory. As informed
by the Management, the discrepancies noticed on verification between
the physical stocks and the book records were not material.
iii. (a) The company has granted interest free advance to one entity
covered in the register maintained under section 301 of the companies
Act, 1956. The maximum amount involved during the year was Nil and the
aggregate year-end balance of advance granted to such entity was
Rs.20.88 lakhs. The company has not taken any loans from companies,
firms or other parties covered in the register maintained under Section
301 of the Act.
(b) According to the information and explanations given to us and in
our opinion, the terms and conditions on which advances have been given
to companies, firms or other parties listed in register under section
301 of the companies act, 1956 are not primae facie, prejudicial to the
interest of the company.
(c) The companies are regular in repaying the principal amounts as
stipulated.
(d) According to the information and explanations given to us and in
our opinion, The Company is in the process of taking reasonable steps
for recovery of the principal amounts.
iv. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
v. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956, 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 prevailing market prices at the relevant
time.
vi. The Company has not accepted deposits from the public within the
meaning of sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or the Reserve Bank of India or any Court
or any other Tribunal.
vii. In our opinion, the Company has an internal audit system is
commensurate with the size and nature of its business.
viii. The Central Government has not prescribed rules for the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956.
ix. (a) According to the information and explanations given to us, and
on the basis of our examination of books of account, the
Company has been regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, employee state
insurance, sales-tax, customs duty, wealth tax, service tax, Excise
duty, Cess and other statutory dues applicable to it.
(b) According to the records of the company and the information and
explanations given to us, there are dues of income tax aggregating Rs.
90.32 Lakhs, which have not been deposited on account of various
disputes. The details of which are set out in Note 1(b) of Schedule
XVII. We have been further informed that there are no dues in respect
of wealth tax, customs duty and cess, which have not been deposited on
account of any dispute.
x. The Company does not have accumulated losses as at 31st March 2010
and has not incurred cash losses during the year covered by our audit
and immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
xii. According to the information and explanation given to us and based
on the documents and records produced to us, the company has not
granted loans and advances on the basis of securities by way of pledges
of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
xiv. In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments.
Accordingly, the provisions of Clause 4 (xiv) of the companies
(Auditors report) order, 2003 are not applicable to the company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provisions of Clause 4 (xv) of the companies (Auditors report) order,
2003 are not applicable to the company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii.ln our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis were
applied for long-term investment.
xviii.According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in register maintained under section 301 of the
Companies Act, 1956.
xix. According to the information and explanations given to us, there
were no debentures issued by the company during the period.
Accordingly, Clause 4 (xix) of Companies Audit Report Order, 2003 is
not applicable.
xx. According to the information and explanations given to us, the
Company has not raised any funds on public issue and hence disclosure
on the end use of money raised by the public issue is not applicable to
the Company.
xxi. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
For M. ANANDAM &CO.,
Chartered Accountants
Place : Secunderabad (M.V.Ranganath)
Date: 30-06-2010 Partner
Membership. No.028031
Mar 31, 2009
We have audited the attached Balance Sheet of Fenoplast Limited as at
31st March 2009 and also the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
3. Further to our comments in the annexure referred to in paragraph 2
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 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) In our opinion, the Balance Sheet, Profit and Loss account and Cash
flow statement dealt with by this report comply with requirements of
the accounting standards referred to in Sub-section (3C) of section 211
of the Companies Act, 1956 except as referred in clause (f) (i) below;
d) The Balance Sheet, Profit and Loss Account and Cash flow statement
dealt with by this report are in agreement wiih the books of account;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
tt e directors of Company are disqualified from being appointed as a
director of the Company under clause (g) of subsection (1) of section
274 of the Companies Act, 1956,
f) In our opinion and to the best of our knowledge and according to the
explanations given to us, subject to
i) Accounting policy No. 8 in Schedule No. XV regarding non-provision
of gratuity and leave encashment as required under Accounting Standard
-15 Employee Benefits.
ii) Note No.7 in Schedule No.XVI regarding reconciliation and
confirmation in respect of Debtors, Creditors and Loans and Advances.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to the
foregoing observations and consequential effect not ascertainable on
the profit for the year, assets and liabilities of the company and read
together with the Companys accounting policies and notes thereto, 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
Con ,pany as at 31 st March 2009;
II. In the case of the Profit & Loss account, of the Profit of the
company for 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.
ANNEXURE referred to in paragraph 2 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) According to the information and explanations given to us, the
Company has a phased programme of verification of fixed assets which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its business.
(c) The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern status.
ii. (a) As per the information and explanations given to us, physical
verification of finished goods and raw materials were carried out by
the company at regular intervals during the year except for stock in
transit, materials lying with the third parties and with the warehouse
are done by the management at the year-end.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The Company is maintaining proper records of inventory. As informed
by the Management, the discrepancies noticed on verification between
the physical stocks and the book records were not material.
iii. (a) The company has granted interest free advances to one entity
covered in the register maintained under section 301 of the companies
Act, 1956. The maximum amount involved during the year was Nil and the
aggregate year-end balances of advance granted to such entity was
Rs.20.88 lakhs. The company has not taken any loans from companies,
firms or other parties covered in the register maintained under Section
301 of the Act.
(b) According to the information and explanations given to us and in
our opinion, the terms and conditions on which advances have been given
to companies, firms or other parties listed in register under section
301 of the companies act, 1956 are not primae facie, prejudicial to the
interest of the company.
(c) The companies are regular in repaying the principal amounts as
stipulated.
(d) According to the information and explanations given to us and in
our opinion, The Company is in the process of taking reasonable steps
for recovery of the principal amounts.
iv. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
v. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act 1956, 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 prevailing market prices at the relevant
time.
vi. The Company has not accepted deposits from the public within the
meaning of sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under. We are
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or the Reserve Bank of India or any Court
or any other Tribunal.
vii. In our opinion, the Company has an internal audit system is
commensurate with the size and nature of its business.
viii. The Central Government has not prescribed rules for the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956.
ix. (a) Excepting Rs 9.95 lakhs in respect of income tax and Rs 1.32
lakhs in respect of fringe benefit tax, according to the information
and explanations given to us, and on the basis of our examination of
book? of account, the Company has been regular in depositing with the
appropriate authorities undisputed statutory dues including provident
fund, employee state insurance, sales-tax, customs duty, wealth tax,
service tax, Excise duty, Cess and other statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed dues payable in respect of income tax, sales tax, wealth
tax, service tax, customs duty, excise duty and cess were in arrears,
as at 31st March 2009 for a period of more than six months from the
date they become payable.
(c) According to the records of the company and the information and
explanations given to us, there are dues of income tax aggregating Rs.
106.90 Lakhs, which have not been deposited on account of various
disputes. The details of which are set out in Note 1 (b) of Schedule
XVI. We have been further informed that there are no dues in respect of
wealth tax, customs duty and cess, which have not been deposited on
account of any dispute.
x. The Company does not have accumulated losses as at 31st March 2009
and has not incurred cash losses during the year covered by our audit
and immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
xii. According to the information and explanation given to us and based
on the documents and records produced to us, the company has not
granted loans and advances on the basis of securities by way of pledges
of shares, debentures and other securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company. xiv. In our opinion and according to the information and
explanations given to us, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the companies (Auditors report) order,
2003 are not applicable to the company.
xv. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provisions of Clause 4 (xv) of the companies (Auditors report) order,
2003 are not applicable to the company.
xvi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
xvii.ln our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
company, we report that no funds raised on short term basis were
applied for long-term investment.
xviii.According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in register maintained under section 301 of the
Companies Act, 1956.
xix. According to the information and explanations given to us, there
were no debentures issued by the company during the period.
Accordingly, Clause 4 (xix) of Companies Audit Report Order, 2003 is
not applicable.
xx. According to the information and explanations given to us, the
Company has not raised any funds on public issue and hence disclosure
on the end use of money raised by the public issue is not applicable to
the Company.
xxi. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
For M. ANANDAM &CO.,
Chartered Accountants
Place: Secunderabad
Date: 30-06-2009 (M.V.Ranganath)
Partner
Membership. No.028031
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Fenoplast Ltd. Reports
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Fenoplast Ltd. Corporate Announcements
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